Kohsoku Corporation (7504) AI Stock Analysis

• Market Cap: ¥51.76B
• Dividend Yield: 2.02%
• Average Volume (3M): 49.57K
• Price to Earnings (P/E): 15.0
• Beta (1Y): 0.69
• Revenue Growth: 9.13%
• EPS Growth: 11.11%
• Country: JP
• Employees: 1,023
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Packaging & Containers
• EPS (TTM): 33.53
• Shares Outstanding: 20,990,920
• 10 Day Avg. Volume: 34,400
• 30 Day Avg. Volume: 49,566
• PEG Ratio: 1.10
• Price to Book (P/B): 1.13
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 22.70
• 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

• Rating: 74 Outperform
• Price Target: ¥2,865.00 ▲(7.63%Upside)

Kohsoku Corporation's solid financial performance and bullish technical indicators drive the overall score, supported by a stable valuation. However, caution is advised due to potential liquidity challenges and overbought technical signals.

Kohsoku Corporation Business Overview & Revenue Model

Company Description

Kohsoku Corporation (7504) is a Japanese company primarily engaged in the automotive parts industry. The company specializes in the manufacturing and distribution of a wide range of automotive components, catering to both domestic and international markets. Its offerings include, but are not limited to, electrical components, mechanical parts, and other essential automotive supplies. Kohsoku leverages its expertise in technology and innovation to deliver high-quality products that meet the evolving demands of the automotive sector.

How the Company Makes Money

Kohsoku Corporation generates revenue through the sale of automotive parts and components. The company's primary revenue stream is its robust portfolio of products that are supplied to automakers and automotive suppliers. It benefits from strong relationships with key players in the automotive industry, where it acts as an original equipment manufacturer (OEM) as well as a supplier in the aftermarket. By maintaining high standards in production and aligning with industry trends, Kohsoku ensures a steady demand for its products. Additionally, the company may engage in partnerships or joint ventures to enhance its product offerings and expand its market reach, further contributing to its earnings.

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
113.13B	115.92B	106.22B	98.85B	91.82B	91.32B
	Gross Profit
22.41B	22.36B	20.89B	19.76B	18.13B	16.76B
	EBIT
4.53B	4.53B	4.23B	4.01B	3.70B	3.34B
	EBITDA
5.58B	5.85B	5.18B	5.12B	4.67B	4.38B
	Net Income Common Stockholders
3.34B	3.47B	3.11B	2.98B	2.66B	2.42B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
7.57B	8.38B	10.95B	8.91B	9.76B	11.73B
	Total Assets
67.31B	61.18B	61.50B	55.90B	52.47B	50.71B
	Total Debt
217.96M	350.74M	266.14M	365.97M	405.16M	480.33M
	Net Debt
-7.36B	-7.83B	-10.38B	-8.34B	-9.36B	-10.95B
	Total Liabilities
28.51B	21.41B	24.60B	21.63B	20.34B	20.34B
	Stockholders Equity
38.80B	39.77B	36.90B	34.27B	32.14B	30.37B
Cash Flow		Free Cash Flow
-2.61B	-1.21B	3.02B	1.71B	890.96M	2.29B
	Operating Cash Flow
-1.58B	970.96M	4.58B	2.56B	3.25B	3.18B
	Investing Cash Flow
-1.26B	-2.52B	-1.58B	-2.58B	-3.91B	-976.23M
	Financing Cash Flow
-602.67M	-947.53M	-1.06B	-1.03B	-1.00B	-879.90M

Kohsoku Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2662.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

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 2662 is above the 20-day moving average (MA) of 2612.20, above the 50-day MA of 2328.80, and above the 200-day MA of 2334.80, indicating a bullish trend. The MACD of 95.38 indicates Positive momentum. The RSI at 73.09 is Negative, neither overbought nor oversold. The STOCH value of 50.50 is Neutral, 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
3950	79 Outperform	¥61.35B	10.44		4.09%	2.76%	-3.98%
7504	74 Outperform	¥51.76B	14.95		2.02%	9.13%	11.11%
3946	74 Outperform	¥44.98B	6.93		4.01%	3.82%	22.44%
3951	73 Outperform	¥18.61B	10.77		4.63%	4.95%	6.56%
7482	72 Outperform	¥27.10B	13.38		4.51%	4.99%	-12.09%
7942	71 Outperform	¥54.37B	9.31		4.44%	5.33%	-12.21%
Sector *	62 Neutral	$6.82B	11.05	2.80%	4.32%	2.67%	-24.92%

Kohsoku Corporation Corporate Events

Kohsoku Corporation Announces Strategic Subsidiary Reorganization

Kohsoku Corporation announced a group reorganization involving a share exchange between its wholly-owned subsidiaries, Seiwa and Kohsoku Sea Pack. This strategic move is part of the company’s Medium-Term Management Plan to ensure steady growth by integrating Seiwa’s e-commerce operations with Kohsoku Sea Pack’s paper container manufacturing capabilities, thereby promoting synergy and efficiency within the group.

Kohsoku Corporation Proposes Revision to Share-Based Remuneration Plan

Kohsoku Corporation has announced a proposal to revise its Restricted Share-Based Remuneration Plan, which will be presented at the upcoming Annual General Meeting of Shareholders. The revision aims to increase the maximum number of shares and monetary remuneration claims for eligible directors, thereby strengthening the alignment between director incentives and shareholder value.

Kohsoku Corporation Announces 21st Consecutive Year of Dividend Increases

Kohsoku Corporation has announced a dividend of surplus, with the Board of Directors resolving to pay a year-end dividend of ¥27 per share for the fiscal year ending March 2025. This marks the 21st consecutive year of dividend increases, reflecting the company’s commitment to stable and sustained distribution of dividends in line with its long-term sales and profit enhancement goals.

Kohsoku Corporation Announces 60th Anniversary Commemorative Dividend

Kohsoku Corporation announced a commemorative dividend in celebration of its 60th anniversary, reflecting its gratitude to shareholders and stakeholders for their ongoing support. The company plans to pay an additional ¥30.00 per share for both interim and year-end dividends, leading to an increased annual dividend per share for the 22nd consecutive year, signaling strong shareholder returns and financial stability.

Kohsoku Corporation Achieves Record-High Financial Results for FY03/25

Kohsoku Corporation has reported record-high net sales for the tenth consecutive fiscal year, with operating and ordinary profits also reaching record highs. The company’s success is attributed to price revisions and business expansion, despite increased spending in human resources and logistics. These results indicate strong operational management and strategic growth, exceeding original targets across key financial metrics.

Kohsoku Completes Treasury Share Disposition for Employee Incentives

Kohsoku Corporation has completed the payment procedures for the disposition of treasury shares as part of a restricted stock compensation plan for its Employee Shareholding Association. The number of shares and total amount for disposition changed due to partial forfeiture, reflecting the finalized number of members agreeing to the incentive program. This move aligns with the company’s strategy to enhance corporate value and align employee interests with those of shareholders.