KYB Corporation (7242) AI Stock Analysis

• Market Cap: €146.11B
• Dividend Yield: 3.84%
• Average Volume (3M): 102.58K
• Price to Earnings (P/E): 10.3
• Beta (1Y): 0.71
• Revenue Growth: -1.41%
• EPS Growth: -37.77%
• Country: JP
• Employees: 13,634
• Sector: Consumer Cyclical
• Sector Strength: 76
• Industry: Auto - Parts
• EPS (TTM): 111.67
• Shares Outstanding: 50,468,662
• 10 Day Avg. Volume: 131,250
• 30 Day Avg. Volume: 102,580
• PEG Ratio: -2.58
• Price to Book (P/B): 0.74
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.77
• 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: 76 Outperform
• Price Target: ―

KYB Corporation has a strong financial foundation with stable revenue growth and a prudent approach to debt, though return on equity could be improved. The stock shows mixed technical signals but is attractively valued with a low P/E ratio and high dividend yield. Overall, the stock is positioned well with solid financials and attractive valuation, though some caution is warranted due to mixed technical indicators.

KYB Corporation Business Overview & Revenue Model

Company Description

KYB Corporation (7242) is a Japanese company that specializes in the manufacturing and sale of hydraulic components and systems, primarily for automotive and industrial applications. The company operates in various sectors including automotive, motorcycle, construction machinery, and aircraft industries, offering a diverse range of products such as shock absorbers, power steering systems, and hydraulic equipment.

How the Company Makes Money

KYB Corporation generates revenue primarily through the production and sale of its wide array of hydraulic products and systems. The company's key revenue streams include the automotive sector, where it provides shock absorbers and power steering systems to major automobile manufacturers globally. Additionally, KYB serves the industrial sector by supplying hydraulic equipment for construction machinery and aircraft, enhancing its earnings through these diversified markets. The company's strategic partnerships with leading automotive companies and its commitment to innovation in hydraulic technology significantly contribute to its revenue growth.

KYB Corporation Financial Statement Overview

Summary

KYB Corporation exhibits strong financial health with stable revenue growth and profitability. The balance sheet shows a prudent approach to debt, though return on equity needs attention. Cash flow operations are solid, albeit with minor decreases in free cash flow. The overall financial position is sound, with opportunities for improvement in profitability and cash management.

Income Statement

The company shows a healthy gross profit margin and improved net profit margin over time. Revenue growth is positive, indicating strong sales performance. EBIT and EBITDA margins are stable, demonstrating operational efficiency. However, the net income has decreased from the previous year, reflecting potential profitability challenges.

Balance Sheet

The company's debt-to-equity ratio has decreased, indicating improved leverage management. The return on equity has declined, which may indicate lower profitability relative to shareholders' equity. The equity ratio is strong, showing that the company is not overly reliant on debt financing. Overall, the balance sheet is stable with manageable debt levels.

Cash Flow

The operating cash flow is strong relative to net income, suggesting good cash conversion. Free cash flow has decreased compared to the previous period, indicating reduced cash available for expansion or debt reduction. Despite these fluctuations, cash flow management remains robust.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
436.87B	442.78B	431.20B	388.36B	328.04B	381.58B
	Gross Profit
84.11B	81.28B	85.25B	78.76B	60.31B	71.25B
	EBIT
21.78B	22.42B	32.55B	30.00B	18.30B	-40.30B
	EBITDA
36.52B	40.95B	50.88B	48.52B	37.75B	-19.11B
	Net Income Common Stockholders
14.05B	15.82B	27.21B	22.55B	17.09B	-61.88B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
44.05B	46.64B	47.75B	54.87B	69.81B	51.59B
	Total Assets
470.98B	476.53B	446.84B	434.19B	426.63B	410.45B
	Total Debt
86.78B	101.14B	84.54B	90.86B	124.85B	121.98B
	Net Debt
45.65B	57.09B	40.96B	38.74B	56.15B	71.56B
	Total Liabilities
237.66B	250.12B	255.80B	273.27B	309.91B	330.64B
	Stockholders Equity
223.77B	217.19B	182.83B	153.41B	110.68B	74.09B
Cash Flow		Free Cash Flow
8.79B	15.25B	12.29B	14.95B	9.58B	-25.67B
	Operating Cash Flow
34.65B	39.86B	23.91B	24.25B	20.83B	-5.00B
	Investing Cash Flow
-27.12B	-23.50B	-13.52B	-10.87B	-6.28B	-21.50B
	Financing Cash Flow
-18.96B	-15.03B	-20.18B	-32.71B	1.15B	22.58B

KYB Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2906.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7242, the sentiment is Positive. The current price of 2906 is below the 20-day moving average (MA) of 2934.55, above the 50-day MA of 2888.34, and above the 200-day MA of 2610.84, indicating a bullish trend. The MACD of 36.00 indicates Positive momentum. The RSI at 52.21 is Neutral, neither overbought nor oversold. The STOCH value of 16.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7242.

KYB Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7270	79 Outperform	$1.91T	5.70	12.64%	4.07%	6.27%	19.66%
7242	76 Outperform	€146.11B	10.34	6.70%	3.84%	-1.41%	-37.77%
7203	76 Outperform	¥34.19T	7.29	13.59%	3.44%	6.52%	-1.27%
7269	74 Outperform	$3.48T	8.24	15.02%	2.44%	14.46%	62.35%
7267	71 Outperform	$6.82T	7.91	6.54%	4.61%	12.25%	15.01%
7272	70 Outperform	¥1.03T	12.67	7.19%	4.38%	4.48%	-51.81%
Sector *	62 Neutral	$6.84B	11.22	2.83%	3.93%	2.65%	-21.93%