Kohsoku Corporation (7504) AI Stock Analysis

• Market Cap: ¥66.11B
• Dividend Yield: 2.88%
• Average Volume (3M): 27.43K
• Price to Earnings (P/E): 18.0
• Beta (1Y): 0.71
• Revenue Growth: 12.39%
• EPS Growth: 9.81%
• Country: JP
• Employees: 1,023
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Packaging & Containers
• EPS (TTM): 65.05
• Shares Outstanding: 20,990,920
• 10 Day Avg. Volume: 21,570
• 30 Day Avg. Volume: 27,430
• PEG Ratio: 1.03
• Price to Book (P/B): 1.00
• Price to Sales (P/S): 0.34
• P/FCF Ratio: -32.86
• 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: 72 Outperform
• Price Target: ¥3,796.00 ▲(27.55% Upside)
• Action: Reiterated Date: 10/30/25
• Date: Action: Reiterated 10/30/25

Kohsoku Corporation's overall stock score is driven by strong financial performance and a solid valuation. The company's profitability and low leverage are significant strengths, although declining cash flows and decelerating revenue growth are concerns. Technical indicators suggest mixed signals, with short-term bearish sentiment but long-term support.

Positive Factors

Robust profit margins

Robust gross and net margins show the company extracts strong unit economics from its packaging operations, supporting durable profitability. Sustained margins provide resilience to input-cost volatility, fund reinvestment and dividends, and underpin long-term operating cash generation and competitiveness.

Low leverage / strong equity

A high equity ratio and very low debt-to-equity deliver structural balance-sheet strength that supports capital allocation and downside protection. Low leverage preserves borrowing capacity, enables opportunistic capex or M&A, and reduces bankruptcy and refinancing risk over the medium term.

Consistent revenue growth

Steady year-over-year revenue growth indicates persistent demand for core packaging products and supports scale economics. Continued top-line expansion helps spread fixed costs, sustain margins, and justify ongoing investment in capacity and product development to reinforce market position.

Negative Factors

Declining cash flow / negative FCF

A drop in operating cash flow and negative free cash flow reduces internal funding for capital expenditure, dividends and debt service. Persisting cash deficits increase dependence on external financing, constrain strategic investments, and raise liquidity and refinancing risk over the medium term.

Eroding liquidity buffers

Declining cash and short-term investments weaken near-term liquidity cushions, making the company more vulnerable to working-capital swings or operational disruptions. Weaker reserves limit flexibility for opportunistic spending and elevate the chance of needing debt or asset sales under stress.

Decelerating revenue growth

A modest slowdown in revenue growth suggests potential softening demand or competitive pressure in core markets. Over time slowed top-line momentum can reduce operating leverage benefits, cap margin expansion, and necessitate strategic shifts to restore higher growth trajectories.

Kohsoku Corporation Business Overview & Revenue Model

Company Description

Kohsoku Corporation trades in light food packaging materials in Japan. It offers food containers, polyminate, paper products, and packaging machinery and equipment. The company was founded in 1966 and is headquartered in Sendai, Japan.

How the Company Makes Money

Kohsoku Corporation generates revenue through multiple key streams, primarily by selling its measurement equipment and electronic components to various industries, including automotive, telecommunications, and manufacturing. The company benefits from a diverse customer base, which allows it to capitalize on demand across different sectors. Additionally, Kohsoku has established strategic partnerships with other tech firms and industry leaders, enabling collaborative projects that enhance its product offerings and market reach. Revenue is also bolstered by providing technical support and maintenance services for its products, ensuring customer satisfaction and repeat business. The company's focus on innovation and adaptation to market trends further contributes to its financial stability and growth.

Kohsoku Corporation Financial Statement Overview

Summary

Kohsoku Corporation exhibits strong profitability and a solid balance sheet with low leverage, reflecting financial health and operational efficiency. However, decreasing cash flows and a slight deceleration in revenue growth require strategic attention to sustain future growth and liquidity.

Income Statement

Kohsoku Corporation has shown consistent revenue growth over the years, with a strong increase from 2024 to 2025. Gross profit and net profit margins are robust, indicating effective cost management and profitability. EBIT and EBITDA margins are healthy, supporting operational efficiency. However, the rate of revenue growth is decelerating slightly, which could be a concern for future expansion.

Balance Sheet

The balance sheet reflects a strong equity position with a high equity ratio, indicating financial stability and low leverage risk. The debt-to-equity ratio is very low, showing prudent debt management. ROE is satisfactory, demonstrating effective shareholder value creation. However, the reduction in cash and short-term investments over the years could pose liquidity challenges if not monitored.

Cash Flow

Cash flow analysis shows a decline in operating cash flow from 2024 to 2025, affecting the overall cash flow position. The free cash flow has turned negative, which could impact future investments and debt servicing. Despite the operating cash flow to net income ratio being positive, the declining trend in free cash flow suggests caution in cash management practices.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	123.17B	115.92B	106.22B	98.85B	91.82B	86.49B
Gross Profit	24.02B	22.36B	20.89B	19.76B	18.13B	16.05B
EBITDA	6.30B	5.85B	5.18B	4.88B	4.47B	4.09B
Net Income	3.73B	3.47B	3.11B	2.98B	2.66B	2.42B
Balance Sheet
Total Assets	69.72B	61.18B	61.50B	55.90B	52.47B	50.71B
Cash, Cash Equivalents and Short-Term Investments	4.66B	8.38B	10.95B	8.91B	9.76B	11.73B
Total Debt	308.71M	350.74M	266.14M	365.97M	405.16M	480.33M
Total Liabilities	27.76B	21.41B	24.60B	21.63B	20.34B	20.34B
Stockholders Equity	41.96B	39.77B	36.90B	34.27B	32.14B	30.37B
Cash Flow
Free Cash Flow	-2.00B	-1.21B	3.02B	1.71B	890.96M	2.29B
Operating Cash Flow	2.40B	970.96M	4.58B	2.56B	3.25B	3.18B
Investing Cash Flow	-4.17B	-2.52B	-1.58B	-2.58B	-3.91B	-976.23M
Financing Cash Flow	-1.75B	-947.53M	-1.06B	-1.03B	-1.00B	-879.90M

Kohsoku Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2976.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7504, the sentiment is Positive. The current price of 2976 is below the 20-day moving average (MA) of 3230.05, below the 50-day MA of 3105.00, and above the 200-day MA of 2877.77, indicating a bullish trend. The MACD of 93.23 indicates Negative momentum. The RSI at 69.08 is Neutral, neither overbought nor oversold. The STOCH value of 87.40 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7504.

Kohsoku Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7482	78 Outperform	¥33.31B	13.98	―	4.00%	5.42%	15.41%
3950	76 Outperform	¥76.90B	12.49	―	6.64%	2.85%	-9.13%
7942	73 Outperform	¥82.36B	13.19	―	3.31%	0.83%	-9.16%
7504	72 Outperform	¥66.11B	18.04	―	2.88%	12.39%	9.81%
3951	70 Outperform	¥19.39B	13.58	―	4.39%	5.06%	-15.22%
3946	68 Neutral	¥60.23B	8.02	―	3.50%	4.40%	47.13%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Kohsoku Corporation Corporate Events

Kohsoku Marks 60th Anniversary and Launches 10-Year Vision to 2035

Kohsoku Corporation marked its 60th anniversary and used the milestone to reaffirm its stakeholder-focused identity built around the idea of cultivating loyal “Kohsoku fans.” The company expressed gratitude to shareholders and stakeholders, highlighting its long-standing presence and signaling continuity in its management ethos.

Alongside the anniversary, Kohsoku unveiled a new 10-year long-term vision, branded “KOHSOKU Fan creation challenge 2035 to be a good company,” which will guide its next medium- to long-term management plan starting in fiscal 2026. While specific numerical targets and detailed measures were not disclosed, the initiative suggests a renewed strategic focus on sustainable growth, corporate quality, and enhanced engagement with investors and other stakeholders.

The most recent analyst rating on (JP:7504) stock is a Hold with a Yen3392.00 price target. To see the full list of analyst forecasts on Kohsoku Corporation stock, see the JP:7504 Stock Forecast page.

Kohsoku Posts Higher Nine-Month Profits and Doubles Dividend with 60th-Anniversary Payouts

Kohsoku Corporation reported solid growth for the nine months ended December 31, 2025, with net sales rising 8.2% year on year to ¥95.6 billion and profit attributable to owners of parent up 9.5% to ¥3.08 billion, driving an improvement in basic earnings per share to ¥157.98. The company’s equity increased to ¥41.96 billion, although the equity-to-asset ratio eased to 60.2%, and management reaffirmed its full-year forecast for fiscal 2026, targeting ¥124 billion in net sales and ¥3.65 billion in profit attributable to owners, while significantly lifting annual dividends to ¥116 per share, including substantial commemorative payouts to mark its 60th anniversary, signaling confidence in earnings strength and a strong commitment to shareholder returns.

The most recent analyst rating on (JP:7504) stock is a Hold with a Yen3392.00 price target. To see the full list of analyst forecasts on Kohsoku Corporation stock, see the JP:7504 Stock Forecast page.

Kohsoku Issues Supplementary Materials on Q3 FY03/26 Results

Kohsoku Corporation has released supplementary materials related to its financial results for the third quarter of the fiscal year ending March 2026. The document is presented as an overview of Q3 FY03/26 performance, but contains no further operational, financial, or strategic details beyond identifying the company and the reporting period, limiting insights into the impact on its business or stakeholders.

The most recent analyst rating on (JP:7504) stock is a Hold with a Yen3392.00 price target. To see the full list of analyst forecasts on Kohsoku Corporation stock, see the JP:7504 Stock Forecast page.