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Kasai Kogyo Co., Ltd. (JP:7256)
:7256
Japanese Market
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Kasai Kogyo Co., Ltd. (7256) AI Stock Analysis

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JP

Kasai Kogyo Co., Ltd.

(7256)

Rating:39Underperform
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. (7256) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionKasai Kogyo Co., Ltd. (7256) is a Japanese company that specializes in the manufacturing and sale of automotive interior components. The company is part of the broader automotive sector and focuses on providing high-quality interior parts such as door trims, headliners, and other related components primarily for passenger vehicles. Kasai Kogyo operates on a global scale, serving major automotive manufacturers with a commitment to innovation, quality, and customer satisfaction.
How the Company Makes MoneyKasai 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
35
Negative
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
40
Negative
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
30
Negative
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.
BreakdownMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income Statement
Total Revenue214.31B175.47B147.47B152.82B204.63B
Gross Profit23.68B4.24B4.61B4.50B22.69B
EBITDA12.25B-2.28B-8.27B-3.60B13.97B
Net Income-313.00M-13.13B-19.03B-17.08B-2.02B
Balance Sheet
Total Assets142.04B148.82B142.93B145.54B150.69B
Cash, Cash Equivalents and Short-Term Investments24.12B32.87B27.94B21.32B22.70B
Total Debt74.32B79.69B71.12B60.39B47.13B
Total Liabilities119.61B127.51B111.13B98.10B85.70B
Stockholders Equity12.36B11.28B22.33B38.66B55.99B
Cash Flow
Free Cash Flow-4.26B-5.39B-3.71B-14.29B-6.21B
Operating Cash Flow-547.00M-1.90B2.07B-4.22B6.88B
Investing Cash Flow871.00M2.74B-3.60B-7.54B-11.95B
Financing Cash Flow-10.74B2.34B6.24B10.27B8.80B

Kasai Kogyo Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price95.00
Price Trends
50DMA
93.02
Positive
100DMA
96.18
Negative
200DMA
113.42
Negative
Market Momentum
MACD
0.78
Negative
RSI
53.38
Neutral
STOCH
33.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7256, the sentiment is Neutral. The current price of 95 is above the 20-day moving average (MA) of 93.85, above the 50-day MA of 93.02, and below the 200-day MA of 113.42, indicating a neutral trend. The MACD of 0.78 indicates Negative momentum. The RSI at 53.38 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7256.

Kasai Kogyo Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
¥158.33B11.206.70%3.49%-1.01%0.48%
74
Outperform
$1.84T5.5012.64%5.32%-0.37%-10.12%
72
Outperform
$1.01T12.517.19%4.72%4.48%-51.81%
67
Neutral
¥252.20B13.266.45%2.72%5.22%-11.89%
66
Neutral
$3.18T7.5215.02%2.59%8.39%55.79%
63
Neutral
¥575.35B13.754.11%3.80%-0.05%-73.27%
39
Underperform
¥3.68B
33.86%69.12%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7256
Kasai Kogyo Co., Ltd.
95.00
-111.00
-53.88%
JP:7242
KYB Corporation
3,150.00
710.60
29.13%
JP:7272
Yamaha Motor Co
1,058.00
-390.71
-26.97%
JP:7211
Mitsubishi Motors
394.60
-56.16
-12.46%
JP:7269
Suzuki Motor
1,622.50
-166.89
-9.33%
JP:7270
SUBARU
2,520.50
-474.10
-15.83%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Apr 22, 2025