KYB Corporation (7242) AI Stock Analysis

• Market Cap: ¥200.55B
• Dividend Yield: 2.93%
• Average Volume (3M): 121.52K
• Price to Earnings (P/E): 8.2
• Beta (1Y): 0.71
• Revenue Growth: -0.17%
• EPS Growth: 72.81%
• Country: JP
• Employees: 13,634
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 257.22
• Shares Outstanding: 50,468,662
• 10 Day Avg. Volume: 106,550
• 30 Day Avg. Volume: 121,516
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 77 Outperform
• Price Target: ¥4,319.00 ▲(12.18% Upside)

The overall stock score of 77 reflects strong technical indicators and attractive valuation, which are the most significant factors. The financial performance is solid but impacted by cash flow management challenges. The absence of earnings call and corporate events data means these factors do not influence the score.

KYB Corporation Business Overview & Revenue Model

Company Description

KYB Corporation manufactures and sells automotive and hydraulic components, and other products worldwide. It offers automotive products, including shock absorbers, hydraulic power steering vane pumps, steering gearbox, motors, dual pinion systems, EPS actuators, and vane pumps; motorcycle components, such as power-regulated front fork and rear cushion unit, shock absorption, front fork, and steering dampers; and railroad equipment, such as caliper brakes, oil dampers, telescopic shock absorbers, suspension system, and automatic height adjustment and differential pressure valves. The company also provides aircraft components comprising actuators, accumulators, wheel brakes, reservoir modules, and reservoirs for space rockets; construction, industrial, and agricultural machinery products consisting of pumps, motors, cylinders, valves, arch cellular communication devices, and integrated HSTs; and special purpose vehicles, including concrete mixer trucks, granule carriers, and tilting drum mixing machines, as well as products for the environment, such as pruned tree shredder trucks, primary crushers, wood crushing type grinding machine, and wood pulverizer. In addition, it provides theater equipment comprising acoustic reflectors, rigging systems, and floor equipment; marine components consisting of stern cranes; and industrial machinery, including axial piston pumps, motion packages, oil and mini buffers, and gas springs. Further, the company offers sports and welfare products, such as chair ski shock absorbers, sports dampers, and vehicle kneeling down systems. The company was formerly known as Kayaba Industry Co., Ltd. and changed its name to KYB Corporation in October 2015. KYB Corporation was founded in 1919 and is headquartered in Tokyo, Japan.

How the Company Makes Money

KYB Corporation generates revenue through the sale of its hydraulic and automotive products, which are supplied to various industries worldwide. The company operates with a diversified revenue model, with significant income derived from both original equipment manufacturing (OEM) and aftermarket sales. OEM sales involve providing components directly to automotive manufacturers and industrial clients as part of their assembly processes, while aftermarket sales consist of replacement parts and accessories sold through distributors and retailers. Additionally, KYB engages in strategic partnerships with automotive manufacturers, which can enhance its market reach and secure long-term contracts that provide stable revenue streams. The company's emphasis on research and development also enables it to innovate and offer new products, contributing to its revenue growth.

KYB Corporation Financial Statement Overview

Summary

KYB Corporation demonstrates strong revenue growth and stable profitability, supported by a balanced capital structure. However, challenges in cash flow management, as indicated by the significant decline in free cash flow growth, affect the overall financial performance.

Income Statement

KYB Corporation's income statement shows a stable gross profit margin around 18.8% and a net profit margin of approximately 3.4% in the TTM, indicating consistent profitability. The revenue growth rate is strong at 18.6% TTM, reflecting robust sales performance. However, the EBIT and EBITDA margins have slightly decreased compared to previous years, suggesting some pressure on operational efficiency.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of 0.44, indicating a balanced approach to leveraging. The return on equity is modest at 6.7% TTM, showing room for improvement in generating returns for shareholders. The equity ratio stands at 48.2%, reflecting a solid capital structure with a good proportion of equity financing.

Cash Flow

Cash flow analysis indicates a decline in free cash flow growth, with a negative rate of -89.6% TTM, highlighting potential cash management challenges. The operating cash flow to net income ratio is 0.26, suggesting adequate cash generation relative to net income. The free cash flow to net income ratio is 0.61, indicating that a significant portion of net income is converted into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	443.51B	438.32B	442.78B	431.20B	388.36B	328.04B
Gross Profit	84.45B	82.64B	81.28B	85.25B	78.76B	60.31B
EBITDA	48.05B	40.59B	40.95B	50.88B	48.52B	37.75B
Net Income	23.13B	14.90B	15.82B	27.21B	22.55B	17.09B
Balance Sheet
Total Assets	471.40B	463.11B	476.53B	446.84B	434.19B	426.63B
Cash, Cash Equivalents and Short-Term Investments	53.23B	47.43B	46.64B	47.75B	54.87B	69.81B
Total Debt	102.72B	98.97B	101.14B	84.54B	90.86B	124.85B
Total Liabilities	235.67B	228.09B	250.12B	255.80B	273.27B	309.91B
Stockholders Equity	227.26B	225.54B	217.19B	182.83B	153.41B	110.68B
Cash Flow
Free Cash Flow	26.56B	26.80B	15.25B	12.29B	14.95B	9.58B
Operating Cash Flow	45.85B	43.85B	39.86B	23.91B	24.25B	20.83B
Investing Cash Flow	-25.44B	-34.13B	-23.50B	-13.52B	-10.87B	-6.28B
Financing Cash Flow	-13.98B	-9.10B	-15.03B	-20.18B	-32.71B	1.15B

KYB Corporation Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3850.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7242, the sentiment is Neutral. The current price of 3850 is below the 20-day moving average (MA) of 3927.25, below the 50-day MA of 3887.22, and above the 200-day MA of 3169.31, indicating a bullish trend. The MACD of 33.08 indicates Negative momentum. The RSI at 50.26 is Neutral, neither overbought nor oversold. The STOCH value of 71.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7242.

KYB Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7242	―	¥200.55B	8.17	10.75%	2.93%	-0.17%	72.81%
7283	―	¥130.88B	10.85	―	3.53%	1.71%	-11.98%
5191	―	¥221.15B	8.00	―	3.30%	0.49%	27.98%
6995	―	¥229.89B	8.90	―	3.57%	-1.35%	21.33%
7313	―	¥224.92B	33.85	―	4.71%	-2.24%	-43.32%
7220	―	¥214.70B	32.97	―	1.50%	-4.23%	-28.48%
Sector *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%