KYB Corporation (7242) AI Stock Analysis

• Market Cap: €224.92B
• Dividend Yield: 2.87%
• Average Volume (3M): 141.50K
• Price to Earnings (P/E): 7.8
• Beta (1Y): 0.75
• Revenue Growth: 3.95%
• EPS Growth: 136.86%
• Country: JP
• Employees: 13,634
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 108.92
• Shares Outstanding: 50,468,662
• 10 Day Avg. Volume: 193,280
• 30 Day Avg. Volume: 141,503
• PEG Ratio: -2.11
• Price to Book (P/B): 0.65
• Price to Sales (P/S): 0.33
• P/FCF Ratio: 5.45
• 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
• EPS Forecast (FY): 72,863.38
• Revenue Forecast (FY): €70.18T

• Rating: 78 Outperform
• Price Target: ¥5,151.00 ▲(13.71% Upside)

KYB Corporation's stock score is driven by strong valuation metrics and positive technical indicators. While financial performance shows solid profitability, the deceleration in revenue growth and need for improved cash flow generation are areas to watch. The lack of earnings call data and corporate events does not impact the score.

Positive Factors

Business Model Strength

KYB's diversified revenue streams from OEM and aftermarket sales provide stability and resilience against market fluctuations, supporting long-term growth.

Competitive Advantage

Strategic partnerships bolster KYB's competitive position, ensuring steady demand and fostering innovation through collaboration, which is crucial for sustained success.

Profitability

Improved profitability margins reflect efficient operations and cost management, which contribute to financial health and capacity for reinvestment.

Negative Factors

Revenue Growth Deceleration

Slowing revenue growth could signal market saturation or competitive pressures, potentially impacting future expansion and market share.

Cash Flow Concerns

Declining cash flow growth may limit KYB's ability to invest in new projects and innovations, affecting long-term strategic initiatives.

Debt Monitoring

While the debt level is moderate, ongoing monitoring is essential to maintain financial flexibility and avoid potential liquidity issues.

KYB Corporation Business Overview & Revenue Model

Company Description

KYB Corporation (7242) is a leading global manufacturer specializing in hydraulic equipment, automotive components, and industrial machinery. Founded in Japan, the company operates primarily within the automotive and industrial sectors, providing essential parts such as shock absorbers, hydraulic cylinders, and other precision-engineered products that cater to a diverse range of applications, including automotive, construction, and aerospace industries.

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, indicated by the significant decline in free cash flow growth, suggest a need for improved operational efficiency and cash management.

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	455.67B	438.32B	442.78B	431.20B	388.36B	328.04B
Gross Profit	87.47B	82.64B	81.28B	85.25B	78.76B	60.31B
EBITDA	53.95B	40.59B	40.95B	50.88B	48.52B	37.75B
Net Income	26.85B	14.90B	15.82B	27.21B	22.55B	17.09B
Balance Sheet
Total Assets	476.55B	463.11B	476.53B	446.84B	434.19B	426.63B
Cash, Cash Equivalents and Short-Term Investments	55.53B	47.43B	46.64B	47.75B	54.87B	69.81B
Total Debt	105.25B	98.97B	101.14B	84.54B	90.86B	124.85B
Total Liabilities	235.88B	228.09B	250.12B	255.80B	273.27B	309.91B
Stockholders Equity	231.77B	225.54B	217.19B	182.83B	153.41B	110.68B
Cash Flow
Free Cash Flow	23.61B	26.80B	15.25B	12.29B	14.95B	9.58B
Operating Cash Flow	45.09B	43.85B	39.86B	23.91B	24.25B	20.83B
Investing Cash Flow	-28.31B	-34.13B	-23.50B	-13.52B	-10.87B	-6.28B
Financing Cash Flow	-8.29B	-9.10B	-15.03B	-20.18B	-32.71B	1.15B

KYB Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4530.00
• 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:7242, the sentiment is Positive. The current price of 4530 is above the 20-day moving average (MA) of 4477.75, above the 50-day MA of 4163.80, and above the 200-day MA of 3392.44, indicating a bullish trend. The MACD of 114.95 indicates Positive momentum. The RSI at 57.98 is Neutral, neither overbought nor oversold. The STOCH value of 42.14 is Neutral, 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
6995	81 Outperform	¥252.59B	6.97	―	3.45%	1.36%	139.77%
5191	79 Outperform	¥269.43B	9.25	―	2.93%	2.19%	27.44%
7242	78 Outperform	€224.92B	7.80	12.15%	2.87%	3.95%	136.86%
7283	77 Outperform	¥134.87B	9.89	―	3.42%	0.29%	9.87%
7313	65 Neutral	¥222.06B	33.42	―	4.94%	-3.71%	-51.81%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7220	61 Neutral	¥234.70B	36.04	―	1.65%	-3.23%	24.93%