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

• Market Cap: ¥7.36B
• Dividend Yield: 3.19%
• Average Volume (3M): 2.73K
• Price to Earnings (P/E): 5.8
• Beta (1Y): 0.31
• Revenue Growth: 9.49%
• EPS Growth: 37.09%
• Country: JP
• Employees: 722
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction Materials
• EPS (TTM): 27.07
• Shares Outstanding: 15,180,000
• 10 Day Avg. Volume: 2,540
• 30 Day Avg. Volume: 2,733
• PEG Ratio: 0.39
• Price to Book (P/B): 0.43
• Price to Sales (P/S): 0.19
• P/FCF Ratio: -2.81
• 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: 73 Outperform
• Price Target: ¥553.00 ▲(12.86% Upside)

Kimura Co., Ltd. scores well due to its strong valuation metrics, with a low P/E ratio and attractive dividend yield. Financial performance is solid, though debt levels and cash flow management require attention. Technical analysis indicates a neutral market position, with no strong momentum signals.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, enhancing long-term business sustainability.

Operational Performance

Stable gross profit margins reflect efficient cost control, supporting profitability and competitive positioning over the long term.

Market Expansion

International market expansion diversifies revenue streams and reduces dependency on domestic markets, enhancing growth prospects.

Negative Factors

Debt Levels

Rising debt levels can strain financial resources, potentially impacting the company's ability to invest in growth and innovation.

Cash Flow Management

Pressure on free cash flow indicates potential liquidity issues, which could limit the company's ability to fund operations and strategic initiatives.

Net Profit Margin Variability

Fluctuating net profit margins can signal challenges in maintaining consistent profitability, affecting long-term financial stability.

Kimura Co., Ltd. Business Overview & Revenue Model

Company Description

Kimura Co., Ltd. (7461) is a Japanese company specializing in the manufacturing and distribution of high-quality industrial machinery and equipment. The company operates primarily in the sectors of precision engineering and automation, offering a range of products that include cutting tools, machining systems, and factory automation solutions. Kimura Co., Ltd. is known for its commitment to innovation and quality, serving a diverse clientele across various industries, including automotive, aerospace, and electronics.

How the Company Makes Money

Kimura Co., Ltd. generates revenue through multiple streams, primarily through the sale of its industrial machinery and tools. The company earns income from direct sales to manufacturing firms, as well as through long-term contracts and partnerships with major corporations in its target sectors. Additionally, Kimura offers after-sales services, maintenance contracts, and training programs, which contribute to recurring revenue. The company also invests in research and development to create advanced technologies, positioning itself as a leader in precision engineering, thus attracting new clients and retaining existing ones. Strategic partnerships with other firms in the machinery and automation sectors further bolster its market presence and revenue generation capabilities.

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	36.46B	36.25B	33.99B	35.14B	34.34B	34.05B
Gross Profit	11.01B	10.07B	10.05B	10.30B	9.88B	9.63B
EBITDA	3.03B	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	33.50B	31.39B	26.91B	26.16B	25.34B	23.99B
Cash, Cash Equivalents and Short-Term Investments	4.14B	3.76B	3.88B	3.38B	3.35B	3.14B
Total Debt	7.87B	6.61B	3.91B	4.04B	5.03B	4.63B
Total Liabilities	14.32B	12.29B	8.92B	9.36B	9.97B	9.87B
Stockholders Equity	16.31B	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: Neutral
• Last Price: 490.00
• 50DMA: Negative
• 100DMA: Negative
• 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 Neutral. The current price of 490 is below the 20-day moving average (MA) of 497.55, below the 50-day MA of 495.76, and above the 200-day MA of 478.05, indicating a neutral trend. The MACD of -1.15 indicates Positive momentum. The RSI at 46.86 is Neutral, neither overbought nor oversold. The STOCH value of 21.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	79 Outperform	¥7.33B	8.15	―	2.03%	9.13%	20.84%
3426	76 Outperform	¥5.58B	14.12	―	2.54%	2.31%	44.49%
7635	76 Outperform	¥6.55B	10.07	―	2.34%	2.11%	9.56%
7461	73 Outperform	¥7.36B	5.84	―	3.19%	9.49%	37.09%
8104	72 Outperform	¥8.76B	11.36	―	3.09%	1.56%	-29.40%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
5928	54 Neutral	¥2.68B	31.10	―	3.04%	-8.43%	135.83%