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

• Market Cap: ¥12.15B
• Dividend Yield: N/A
• Average Volume (3M): 725.15K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.93
• Revenue Growth: -9.54%
• EPS Growth: 21.21%
• Country: JP
• Employees: 8,147
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 55.49
• Shares Outstanding: 39,511,726
• 10 Day Avg. Volume: 371,060
• 30 Day Avg. Volume: 725,153
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.31
• Price to Sales (P/S): 0.02
• P/FCF Ratio: -0.82
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: ¥294.00 ▲(94.70% Upside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is held down primarily by weak financial performance (declining revenue, losses, high leverage, and pressured cash generation). Technicals are a clear positive with strong trend and momentum, but valuation is constrained by negative earnings and no provided dividend yield.

Positive Factors

Stable long-term customer contracts

Long-term contracts with major automakers provide durable revenue predictability and support capacity planning and capital allocation. For a parts supplier, multi-year programs reduce sales volatility, help secure factory utilization and enable coordinated product development with OEMs over several model cycles.

Established OEM relationships & quality reputation

A reputation for quality and innovation creates a competitive moat in the auto supply chain: it increases likelihood of repeat awards, fosters deeper engineering collaboration, and raises switching costs for customers. These structural supplier advantages support sustained order flow across programs.

R&D capability and EV market exposure

Ongoing R&D and the ability to adapt products to EV architectures position the company to capture structural growth in electric vehicles. Developing advanced materials and components can open higher-value content per vehicle and diversify end-market exposure over the medium term.

Negative Factors

Declining revenue trend

A sustained decline in revenue signals weakening demand, potential loss of program share, or pricing pressure. Reduced top-line scale erodes operating leverage, limits reinvestment capacity into product development and manufacturing, and makes recovery dependent on winning new OEM programs.

Negative profitability and falling margins

Persistent negative EBIT and net margins indicate structural cost or pricing issues that undermine internal cash generation. Falling gross margins suggest input cost or mix pressures; continued unprofitability will restrict capital for R&D and facility upgrades, weakening competitive positioning.

High leverage and weak cash conversion

Elevated leverage combined with negative free cash flow growth raises liquidity and solvency risks. Poor conversion of earnings to cash limits ability to deleverage or fund cyclical investments, increases refinancing vulnerability, and constrains strategic flexibility during downturns or when bidding for new OEM programs.

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 generates revenue primarily through the sale of its automotive components to major car manufacturers. The company operates a business model that includes long-term contracts with key clients, which provides a stable revenue stream. Additionally, they engage in research and development to create advanced materials and products that meet the evolving demands of the automotive sector. Their revenue is further bolstered by partnerships with automotive companies, enhancing their market presence and allowing for collaborative product development. Furthermore, Kasai Kogyo may benefit from global automotive trends such as the increasing demand for electric vehicles, allowing them to adapt their offerings and tap into new markets.

Kasai Kogyo Co., Ltd. Financial Statement Overview

Summary

Financial statements indicate broad weakness: declining revenue trend, negative profitability (net and EBIT margins), and a falling gross margin. The balance sheet shows high leverage (elevated debt-to-equity) and negative ROE, while cash flow is pressured by negative free cash flow growth and weak conversion of earnings into cash.

Income Statement

Kasai Kogyo Co., Ltd. has faced declining revenue growth with a negative trend over the past year, indicating potential challenges in market demand or competitive positioning. The company has struggled with profitability, as evidenced by negative net profit margins and EBIT margins. The gross profit margin has also decreased, suggesting cost pressures or inefficiencies. Overall, the income statement reflects financial difficulties and a need for strategic improvements.

Balance Sheet

The company's balance sheet shows a high debt-to-equity ratio, indicating significant leverage and potential financial risk. The return on equity is negative, reflecting ongoing losses and poor shareholder returns. However, the equity ratio remains relatively stable, suggesting some level of asset backing. The balance sheet highlights the need for improved financial management and debt reduction strategies.

Cash Flow

Kasai Kogyo Co., Ltd. has experienced negative free cash flow growth, indicating challenges in generating sufficient cash from operations. The operating cash flow to net income ratio is low, reflecting inefficiencies in converting earnings into cash. The free cash flow to net income ratio is also concerning, suggesting potential liquidity issues. Overall, the cash flow statement underscores the need for enhanced cash management and operational efficiency.

Breakdown	Mar 2025	Jun 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	218.80B	214.31B	175.47B	147.47B	152.82B
Gross Profit	20.79B	23.68B	4.71B	4.61B	4.50B
EBITDA	7.03B	12.25B	-2.28B	-9.27B	-3.99B
Net Income	-9.18B	-313.00M	-13.13B	-19.03B	-17.08B
Balance Sheet
Total Assets	144.83B	142.04B	148.82B	142.93B	145.54B
Cash, Cash Equivalents and Short-Term Investments	27.90B	24.12B	32.87B	27.94B	21.32B
Total Debt	77.13B	74.32B	79.69B	71.12B	60.39B
Total Liabilities	121.92B	119.61B	127.51B	111.13B	98.10B
Stockholders Equity	12.45B	12.36B	11.28B	21.63B	38.43B
Cash Flow
Free Cash Flow	-4.73B	-4.26B	-5.39B	-3.71B	-14.29B
Operating Cash Flow	911.00M	-547.00M	-1.90B	2.07B	-4.22B
Investing Cash Flow	-5.17B	871.00M	2.74B	-3.60B	-7.54B
Financing Cash Flow	7.30B	-10.74B	2.34B	6.24B	10.27B

Kasai Kogyo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 151.00
• 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:7256, the sentiment is Positive. The current price of 151 is below the 20-day moving average (MA) of 240.10, below the 50-day MA of 184.60, and above the 200-day MA of 124.53, indicating a bullish trend. The MACD of 46.15 indicates Negative momentum. The RSI at 66.66 is Neutral, neither overbought nor oversold. The STOCH value of 50.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	77 Outperform	¥145.52B	9.89	―	3.30%	0.29%	9.87%
7287	74 Outperform	¥165.33B	15.81	―	2.93%	1.77%	117.03%
7266	71 Outperform	¥22.52B	11.42	―	2.70%	-8.63%	-55.68%
7284	71 Outperform	¥4.27B	8.29	―	4.08%	3.46%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7291	60 Neutral	¥9.12B	28.65	―	4.24%	-7.88%	-73.98%
7256	49 Neutral	¥12.15B	-2.82	―	―	-9.54%	21.21%