Kimura Co., Ltd. (7461) AI Stock Analysis

• Market Cap: ¥7.42B
• Dividend Yield: 3.2%
• Average Volume (3M): 2.12K
• Price to Earnings (P/E): 6.3
• Beta (1Y): 0.30
• Revenue Growth: 7.37%
• EPS Growth: 27.54%
• Country: JP
• Employees: 722
• Sector: Basic Materials
• Sector Strength: 61
• Industry: Construction Materials
• EPS (TTM): 17.46
• Shares Outstanding: 15,180,000
• 10 Day Avg. Volume: 1,530
• 30 Day Avg. Volume: 2,123
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥541.00
• Price Target Upside: 8.63% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 69 Neutral
• Price Target: ¥541.00 ▲(8.63% Upside)

Kimura Co., Ltd. has a strong valuation with an attractive P/E ratio and dividend yield, making it appealing for value investors. However, technical indicators suggest short-term bearish momentum, which could pose risks for immediate price appreciation. Financial performance is solid, but the increase in debt and cash flow challenges need attention.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial stability and expansion.

Operational Performance

Stable gross profit margins reflect efficient cost control and pricing strategies, contributing to sustainable profitability and competitive positioning.

Market Position

Long-term contracts with major manufacturers ensure a steady revenue stream and reinforce Kimura's strong market position in the precision machinery sector.

Negative Factors

Rising Debt Levels

Rising debt levels can strain financial resources and limit strategic flexibility, potentially impacting long-term financial health if not managed properly.

Cash Flow Challenges

Declining free cash flow can hinder investment in growth opportunities and affect liquidity, posing challenges to sustaining operations and strategic initiatives.

Net Profit Margin Variability

Variability in net profit margins indicates potential challenges in maintaining consistent profitability, which could affect long-term financial performance.

Kimura Co., Ltd. Business Overview & Revenue Model

Company Description

Kimura Co., Ltd. (7461) is a Japanese company primarily engaged in the manufacturing and sale of precision machinery and equipment. The company operates in various sectors, including automotive, aerospace, and industrial machinery, providing high-quality products and services tailored to meet the specific needs of its diverse clientele. Kimura specializes in the production of components such as gears, shafts, and other precision parts, leveraging advanced technology and innovative manufacturing processes to ensure efficiency and reliability.

How the Company Makes Money

Kimura Co., Ltd. generates revenue through several key streams, predominantly from the sale of its precision machinery and components to industries such as automotive and aerospace. The company benefits from long-term contracts and partnerships with major manufacturers, ensuring a steady flow of orders. Additionally, Kimura engages in research and development to create innovative products that meet evolving market demands, which helps to differentiate its offerings and attract new clients. The company also explores international markets, expanding its customer base and driving additional revenue growth. Factors contributing to its earnings include operational efficiency, technological advancements, and a strong reputation for quality within the manufacturing sector.

Kimura Co., Ltd. Financial Statement Overview

Summary

Kimura Co., Ltd. demonstrates solid financial health with consistent revenue growth and strong operational performance. The balance sheet is stable, though the increase in debt requires monitoring. Cash flow management shows some areas for improvement, particularly in maintaining free cash flow levels.

Income Statement

Kimura Co., Ltd. has shown consistent revenue growth over the years, with a notable increase in the latest year. The gross profit margin remains stable, indicating effective cost management. However, the net profit margin has slightly fluctuated, suggesting some variability in bottom-line efficiency. The EBIT and EBITDA margins are healthy, reflecting strong operational performance.

Balance Sheet

The company maintains a solid equity base, with a favorable equity ratio indicating financial stability. The debt-to-equity ratio is manageable, though there has been an increase in total debt recently, which could pose a risk if not managed carefully. Return on equity is strong, showcasing effective use of shareholder funds.

Cash Flow

Kimura Co., Ltd. has experienced fluctuations in free cash flow, with a significant decline in the latest year due to increased capital expenditures. The operating cash flow to net income ratio indicates effective cash generation from operations, though the free cash flow to net income ratio has been under pressure, highlighting potential challenges in maintaining liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	36.25B	36.25B	33.99B	35.14B	34.34B	34.05B
Gross Profit	10.88B	10.07B	10.05B	10.30B	9.88B	9.63B
EBITDA	3.02B	3.16B	2.81B	3.37B	3.11B	2.92B
Net Income	1.18B	1.18B	1.03B	1.30B	1.19B	1.05B
Balance Sheet
Total Assets	31.39B	31.39B	26.91B	26.16B	25.34B	23.99B
Cash, Cash Equivalents and Short-Term Investments	3.76B	3.76B	3.88B	3.38B	3.35B	3.14B
Total Debt	6.61B	6.61B	3.91B	4.04B	5.03B	4.63B
Total Liabilities	12.29B	12.29B	8.92B	9.36B	9.97B	9.87B
Stockholders Equity	16.26B	16.26B	15.33B	14.34B	13.18B	12.17B
Cash Flow
Free Cash Flow	0.00	-2.46B	885.40M	1.17B	92.78M	2.08B
Operating Cash Flow	0.00	1.41B	2.01B	1.90B	1.17B	2.54B
Investing Cash Flow	0.00	-3.93B	-1.11B	-641.81M	-1.01B	-453.17M
Financing Cash Flow	0.00	2.40B	-401.21M	-1.23B	49.79M	-1.80B

Kimura Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 498.00
• 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:7461, the sentiment is Positive. The current price of 498 is below the 20-day moving average (MA) of 500.55, above the 50-day MA of 497.44, and above the 200-day MA of 477.65, indicating a neutral trend. The MACD of -1.97 indicates Positive momentum. The RSI at 50.57 is Neutral, neither overbought nor oversold. The STOCH value of 57.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7461.

Kimura Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7434	78 Outperform	¥7.15B	8.32		2.06%	5.57%	11.85%
3426	76 Outperform	¥5.57B	14.26		2.43%	1.32%	53.45%
7635	73 Outperform	¥6.84B	10.52		3.14%	2.66%	53.66%
8104	73 Outperform	¥8.90B	11.54		3.04%	0.70%	5.27%
7461	69 Neutral	¥7.42B	6.26		3.20%	7.37%	27.54%
Sector *	61 Neutral	$10.29B	7.21	-0.05%	2.89%	2.87%	-36.73%
5928	54 Neutral	¥2.98B	34.58		2.78%	-9.47%	1353.88%