Kasai Kogyo Co., Ltd. (7256) AI Stock Analysis

• Market Cap: ¥3.64B
• Dividend Yield: N/A
• Average Volume (3M): 1.46M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.01
• Revenue Growth: 2.09%
• EPS Growth: -544.36%
• Country: JP
• Employees: 8,147
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): N/A
• Shares Outstanding: 39,511,726
• 10 Day Avg. Volume: 3,597,410
• 30 Day Avg. Volume: 1,462,273
• PEG Ratio: 0.31
• Price to Book (P/B): 0.77
• Price to Sales (P/S): 0.04
• P/FCF Ratio: -2.24
• 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: 39 Underperform
• Price Target: ―

Kasai Kogyo Co., Ltd. is grappling with significant financial challenges, including high leverage and negative cash flows, which severely impact its financial performance and stock score. Technical indicators point to a bearish trend, and the negative P/E ratio reflects ongoing profitability issues. These factors collectively result in a low overall stock score, underscoring the need for strategic improvements.

Kasai Kogyo Co., Ltd. Business Overview & Revenue Model

Company Description

Kasai Kogyo Co., Ltd. manufactures and sells automotive interior and exterior parts, and related businesses in Japan and internationally. The company offers cabin trim products, including door trims, head lining products, sun visors, rear parcel shelf products, map lamps, and body side trims; and luggage trim products, such as luggage side trims, tonneau covers, tonneau boards, trunk rooms, floor boards, and luggage floor under boxes. It also provides noise insulation parts comprising dash and hood insulators; and other body parts consisting of engine undercovers and fender covers. The company was founded in 1912 and is headquartered in Koza, Japan.

How the Company Makes Money

Kasai Kogyo Co., Ltd. generates revenue primarily through the production and sale of automotive interior components. The company's key revenue streams include the supply of door trims, headliners, and other interior parts to major global automotive manufacturers. Kasai Kogyo's business model relies on forging strong partnerships with leading car manufacturers, which allows it to secure long-term contracts and maintain a steady flow of orders. Additionally, the company's focus on research and development helps it to innovate and improve its product offerings, thereby enhancing its competitive edge in the automotive sector. Kasai Kogyo's earnings are significantly influenced by automotive industry trends, production volumes of client manufacturers, and its ability to adapt to changing market demands.

Kasai Kogyo Co., Ltd. Financial Statement Overview

Summary

Kasai Kogyo Co., Ltd. faces significant financial challenges, including persistent losses, high leverage, and negative cash flows. Despite revenue growth, profitability remains elusive with low margins. The balance sheet reflects high financial risk due to heavy debt reliance and low equity.

Income Statement

Kasai Kogyo Co., Ltd. has shown some improvement in revenue with a growth rate of 22.2% from 2023 to 2024. However, the company continues to struggle with profitability, as evidenced by negative net profit margins and EBIT/EBITDA margins over the years. The gross profit margin improved to 11.1% in 2024 but remains low, indicating cost management challenges. These factors contribute to a low income statement score.

Balance Sheet

The company's financial leverage is concerning, with a high debt-to-equity ratio of 6.01 in 2024, indicating potential financial risks. The equity ratio has been declining, reaching 8.7% in 2024, suggesting high reliance on debt financing. Return on equity is not applicable due to negative net income. Overall, the balance sheet stability is weak, reflecting financial risks and limited equity buffer.

Cash Flow

Kasai Kogyo's cash flow from operations is negative, and free cash flow is also negative, indicating cash flow challenges. The free cash flow growth rate improved slightly in 2024, but the operating cash flow to net income ratio remains negative. The company needs to enhance cash generation to support operations and reduce financial stress.

Breakdown	TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement
Total Revenue	224.21B	214.31B	175.47B	147.47B	152.82B	204.63B
Gross Profit	25.05B	23.68B	4.71B	4.61B	4.50B	22.69B
EBITDA	27.51B	12.25B	-2.28B	-8.27B	-3.99B	13.97B
Net Income	-5.86B	-313.00M	-13.13B	-19.03B	-17.08B	-2.02B
Balance Sheet
Total Assets	158.48B	142.04B	148.82B	142.93B	145.54B	150.69B
Cash, Cash Equivalents and Short-Term Investments	33.28B	24.12B	32.87B	27.94B	21.32B	22.70B
Total Debt	82.68B	74.32B	79.69B	71.12B	60.39B	47.13B
Total Liabilities	131.26B	119.61B	127.51B	111.13B	98.10B	85.70B
Stockholders Equity	16.78B	12.36B	11.28B	21.63B	38.43B	55.99B
Cash Flow
Free Cash Flow	3.49B	-4.26B	-5.39B	-3.71B	-14.29B	-6.21B
Operating Cash Flow	3.49B	-547.00M	-1.90B	2.07B	-4.22B	6.88B
Investing Cash Flow	0.00	871.00M	2.74B	-3.60B	-7.54B	-11.95B
Financing Cash Flow	0.00	-10.74B	2.34B	6.24B	10.27B	8.80B

Kasai Kogyo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 94.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7256, the sentiment is Negative. The current price of 94 is above the 20-day moving average (MA) of 93.10, below the 50-day MA of 101.18, and below the 200-day MA of 101.56, indicating a neutral trend. The MACD of -1.77 indicates Negative momentum. The RSI at 48.19 is Neutral, neither overbought nor oversold. The STOCH value of 27.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7256.

Kasai Kogyo Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7283	80 Outperform	¥128.34B	10.85	―	3.65%	1.71%	-11.98%
7284	71 Outperform	¥4.16B	7.23	―	4.26%	4.93%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7287	61 Neutral	¥100.14B	15.08	―	3.76%	0.60%	172.55%
7291	61 Neutral	¥7.74B	56.38	―	3.70%	-3.73%	-94.78%
7266	48 Neutral	¥16.17B	7.96	―	3.27%	-7.01%	-108.77%
7256	39 Underperform	¥3.64B	―	―	―	2.09%	-544.36%