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

• Market Cap: ¥5.42B
• Dividend Yield: N/A
• Average Volume (3M): 725.15K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.19
• Revenue Growth: -9.54%
• EPS Growth: 21.21%
• Country: JP
• Employees: 8,147
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): -18.09
• Shares Outstanding: 39,511,726
• 10 Day Avg. Volume: 371,060
• 30 Day Avg. Volume: 725,153
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: 51 Neutral
• Price Target: ¥133.00 ▼(-0.75% Downside)

Kasai Kogyo Co., Ltd. faces significant financial challenges, with declining revenues, negative profitability, and high leverage, which are major concerns. Despite these issues, the stock shows positive technical momentum, with prices above key moving averages. However, the negative P/E ratio and lack of dividend yield raise valuation concerns. The overall score reflects the need for strategic improvements to address financial weaknesses while acknowledging current technical strength.

Positive Factors

Business Model Strength

The company's business model relies on long-term contracts with major automotive manufacturers, providing a stable revenue stream and reducing market volatility.

Innovation and R&D

Ongoing investment in R&D allows Kasai Kogyo to innovate and meet evolving automotive demands, ensuring competitive advantage and market relevance.

Market Adaptability

By adapting to trends like electric vehicles, Kasai Kogyo can tap into new markets and sustain growth, enhancing long-term business prospects.

Negative Factors

Declining Revenue

Declining revenue growth indicates potential challenges in market demand or competitive positioning, affecting long-term financial health.

High Leverage

High leverage increases financial risk and limits flexibility, necessitating improved financial management to ensure long-term stability.

Negative Cash Flow

Negative cash flow growth suggests operational inefficiencies and potential liquidity issues, requiring strategic improvements for sustainable operations.

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

Company Description

Kasai Kogyo Co., Ltd. (7256) is a prominent Japanese manufacturer specializing in automotive components and materials. The company operates primarily within the automotive industry, focusing on the production of interior and exterior parts, including door trims, instrument panels, and other plastic components. Kasai Kogyo is known for its innovative approach to manufacturing and its commitment to quality, making it a key player in the supply chain for major automotive manufacturers both domestically and internationally.

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

Kasai Kogyo Co., Ltd. is facing significant financial challenges across income, balance sheet, and cash flow statements. The company is experiencing declining revenues, negative profitability, high leverage, and cash flow constraints. These factors indicate a need for strategic restructuring and financial optimization to improve stability and shareholder value.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	218.85B	218.80B	214.31B	175.47B	147.47B	152.82B
Gross Profit	21.46B	20.79B	23.68B	4.71B	4.61B	4.50B
EBITDA	6.62B	7.03B	12.25B	-2.28B	-9.27B	-3.99B
Net Income	-8.82B	-9.18B	-313.00M	-13.13B	-19.03B	-17.08B
Balance Sheet
Total Assets	144.83B	144.83B	142.04B	148.82B	142.93B	145.54B
Cash, Cash Equivalents and Short-Term Investments	27.90B	27.90B	24.12B	32.87B	27.94B	21.32B
Total Debt	77.13B	77.13B	74.32B	79.69B	71.12B	60.39B
Total Liabilities	121.92B	121.92B	119.61B	127.51B	111.13B	98.10B
Stockholders Equity	12.45B	12.45B	12.36B	11.28B	21.63B	38.43B
Cash Flow
Free Cash Flow	0.00	-4.73B	-4.26B	-5.39B	-3.71B	-14.29B
Operating Cash Flow	0.00	911.00M	-547.00M	-1.90B	2.07B	-4.22B
Investing Cash Flow	0.00	-5.17B	871.00M	2.74B	-3.60B	-7.54B
Financing Cash Flow	0.00	7.30B	-10.74B	2.34B	6.24B	10.27B

Kasai Kogyo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 134.00
• 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 134 is above the 20-day moving average (MA) of 126.40, above the 50-day MA of 117.44, and above the 200-day MA of 103.17, indicating a bullish trend. The MACD of 7.26 indicates Negative momentum. The RSI at 61.43 is Neutral, neither overbought nor oversold. The STOCH value of 52.17 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
7287	79 Outperform	¥128.68B	14.04	―	2.92%	1.77%	117.03%
7283	77 Outperform	¥143.75B	10.42	―	3.22%	0.29%	9.87%
7284	71 Outperform	¥4.28B	7.05	―	4.09%	3.46%	―
7266	64 Neutral	¥19.08B	15.40	―	2.74%	-8.63%	-55.68%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7291	60 Neutral	¥7.86B	20.84	―	4.27%	-7.88%	-73.98%
7256	51 Neutral	¥5.42B	-0.92	―	―	-9.54%	21.21%