Kyokuto Kaihatsu Kogyo Co., Ltd. (7226) AI Stock Analysis

• Market Cap: ¥95.75B
• Dividend Yield: 6.46%
• Average Volume (3M): 144.82K
• Price to Earnings (P/E): 16.9
• Beta (1Y): 0.74
• Revenue Growth: 9.70%
• EPS Growth: 66.02%
• Country: JP
• Employees: 3,237
• Sector: Industrials
• Sector Strength: 91
• Industry: Agricultural - Machinery
• EPS (TTM): 50.42
• Shares Outstanding: 40,150,000
• 10 Day Avg. Volume: 156,040
• 30 Day Avg. Volume: 144,820
• PEG Ratio: 0.84
• Price to Book (P/B): 0.66
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.39
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥2,793.00
• Price Target Upside: 8.63% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 76 Outperform
• Price Target: ¥2,793.00 ▲(8.63%Upside)

Kyokuto Kaihatsu Kogyo Co., Ltd. exhibits strong technical momentum and a robust financial foundation, bolstered by an attractive dividend yield. While profitability and cash flow management present areas for improvement, the stock's current valuation and technical indicators suggest overall strength.

Kyokuto Kaihatsu Kogyo Co., Ltd. Business Overview & Revenue Model

Company Description

Kyokuto Kaihatsu Kogyo Co., Ltd. is a Japanese manufacturing company primarily engaged in the production and sale of specialized vehicles and environmental equipment. The company operates in sectors such as construction, logistics, and waste management, providing a wide range of products including concrete mixers, dump trucks, refuse collection vehicles, and other commercial vehicles tailored for specific industrial applications. Kyokuto Kaihatsu Kogyo is recognized for its engineering excellence and innovation in developing durable and efficient equipment that meets the needs of various industries.

How the Company Makes Money

Kyokuto Kaihatsu Kogyo Co., Ltd. generates revenue through the sale of its specialized vehicles and environmental equipment. Its primary revenue streams include the manufacturing and distribution of custom-built vehicles such as concrete mixers, dump trucks, and refuse collection vehicles. The company caters to construction firms, municipal governments, and private waste management companies, providing them with reliable and high-performance equipment. Key factors contributing to its earnings include its expertise in vehicle customization, strong industry relationships, and a reputation for producing high-quality, durable products. Additionally, the company may benefit from after-sales services, spare parts sales, and maintenance contracts, ensuring a steady flow of income beyond the initial sale of its products. Significant partnerships with construction and waste management companies further bolster its market position and revenue potential.

Kyokuto Kaihatsu Kogyo Co., Ltd. Financial Statement Overview

Summary

Kyokuto Kaihatsu Kogyo Co., Ltd. shows strong revenue growth and a robust balance sheet, with a commendable equity position and manageable debt. However, there is room for improvement in profitability margins and cash flow management.

Income Statement

Kyokuto Kaihatsu Kogyo Co., Ltd. has shown a commendable revenue growth rate of 9.7% in the recent fiscal year, indicative of strong sales performance in the agricultural machinery sector. Gross profit margin stands at 17.6%, while net profit margin has improved to 4.1%, reflecting enhanced operational efficiency. However, the EBIT margin of 4.7% and EBITDA margin of 9.4% suggest room for improvement in managing operating expenses.

Balance Sheet

The company maintains a robust equity position with an equity ratio of 61.8%, showcasing strong financial stability. The debt-to-equity ratio is manageable at 0.25, indicating conservative leverage usage. Return on equity at 5.0% is modest, suggesting potential for better utilization of equity to generate profits.

Cash Flow

Kyokuto Kaihatsu Kogyo Co., Ltd. experienced a negative free cash flow in the most recent period, primarily due to significant capital expenditures. The operating cash flow to net income ratio is 0.9, highlighting a need for improved cash generation from core operations. Despite challenges, the company has managed to maintain positive operating cash flow, which is crucial for sustaining business operations.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	134.36B	140.45B	128.03B	113.09B	116.91B	117.17B
Gross Profit	23.29B	24.75B	20.70B	16.01B	21.17B	23.16B
EBITDA	10.51B	13.22B	8.56B	8.27B	23.71B	12.02B
Net Income	5.93B	5.82B	3.50B	3.58B	14.27B	6.77B
Balance Sheet
Total Assets	181.16B	187.75B	170.40B	158.16B	154.35B	142.74B
Cash, Cash Equivalents and Short-Term Investments	17.66B	20.29B	19.44B	33.63B	37.31B	21.90B
Total Debt	27.49B	29.55B	11.83B	11.07B	1.23B	1.04B
Total Liabilities	65.69B	70.47B	52.75B	46.19B	41.34B	42.16B
Stockholders Equity	114.38B	116.11B	117.00B	111.54B	112.69B	100.28B
Cash Flow
Free Cash Flow	0.00	-2.65B	-12.66B	-14.84B	1.23B	4.91B
Operating Cash Flow	0.00	5.22B	-1.84B	-3.42B	6.87B	8.26B
Investing Cash Flow	0.00	-15.07B	-9.48B	-6.82B	10.66B	-4.30B
Financing Cash Flow	0.00	10.79B	-1.50B	5.12B	-1.55B	-2.77B

Kyokuto Kaihatsu Kogyo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2571.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7226, the sentiment is Neutral. The current price of 2571 is below the 20-day moving average (MA) of 2633.65, above the 50-day MA of 2569.00, and above the 200-day MA of 2405.52, indicating a neutral trend. The MACD of -0.80 indicates Positive momentum. The RSI at 44.76 is Neutral, neither overbought nor oversold. The STOCH value of 27.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7226.

Kyokuto Kaihatsu Kogyo Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7226	76 Outperform	¥95.75B	16.95		6.46%	9.70%	66.02%
6345	76 Outperform	¥98.93B	16.01		5.15%	11.63%	20.80%
6395	75 Outperform	¥132.54B	15.92	4.46%	3.44%	11.41%	-6.80%
6306	73 Outperform	¥27.60B	13.81		4.71%	11.49%	52.70%
6358	73 Outperform	¥17.63B	12.04		5.96%	-15.65%	-41.32%
Sector *	71 Outperform	¥254.45B	13.41	8.48%	3.03%	6.33%	13.08%
6390	49 Neutral	¥15.75B	―		5.21%	-7.94%	-242.38%

Kyokuto Kaihatsu Kogyo Co., Ltd. Corporate Events

Kyokuto Kaihatsu Kogyo to Boost Profits with Securities Sale

Kyokuto Kaihatsu Kogyo Co., Ltd. has announced its decision to sell a portion of its investment securities to improve capital efficiency, expecting to record an extraordinary profit of approximately 2 billion yen. This strategic move is part of the company’s efforts to enhance financial performance and will be reflected in the fiscal year ending March 2026, potentially impacting its earnings forecast and shareholder value.

Kyokuto Kaihatsu Kogyo Revises Earnings Forecast Amid Extraordinary Loss

Kyokuto Kaihatsu Kogyo Co., Ltd. announced the recording of an extraordinary loss of approximately 5.93 billion yen for the fiscal year ending March 2026 due to a notice from the Japan Fair Trade Commission concerning a cease and desist order. Consequently, the company revised its earnings forecast, significantly lowering the profit attributable to owners of the parent by 59.3% compared to previous estimates. Despite these challenges, the company maintains its dividend forecast and emphasizes its commitment to shareholder returns and sustainable growth.

Kyokuto Kaihatsu Kogyo Faces Fair Trade Commission Hearing Over Cartel Allegations

Kyokuto Kaihatsu Kogyo Co., Ltd. and its subsidiary Nippon Trex Co., Ltd. have been under investigation by the Japan Fair Trade Commission for suspected cartel activities related to the sale of ‘Upper body’ products. The companies have received a notice of hearing regarding potential cease and desist and surcharge payment orders, with significant financial penalties proposed. The impact on their financial results is under examination, and the company has expressed regret and a commitment to enhancing compliance measures.

Kyokuto Kaihatsu Kogyo Announces Treasury Share Disposal for Stock Compensation

Kyokuto Kaihatsu Kogyo Co., Ltd. announced the disposal of 25,000 treasury shares as part of a restricted stock compensation plan aimed at incentivizing directors and executive officers to enhance corporate value. This strategic move, approved by the Board of Directors, aligns with the company’s efforts to share value with shareholders and promote sustainable growth, impacting 42 eligible directors and officers with monetary claims totaling 66,625,000 yen.

Kyokuto Kaihatsu Kogyo Reports Strong Financial Growth and Increased Dividends

Kyokuto Kaihatsu Kogyo Co., Ltd. reported a significant increase in its financial performance for the fiscal year ended March 31, 2025, with net sales rising by 9.7% and profit attributable to owners of the parent increasing by 66.2%. The company also announced an increase in annual dividends per share, reflecting its strong financial position and commitment to returning value to shareholders.