Kohsoku Corporation (7504) AI Stock Analysis

• Market Cap: ¥58.08B
• Dividend Yield: 2.88%
• Average Volume (3M): 27.43K
• Price to Earnings (P/E): 15.7
• Beta (1Y): 0.70
• 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: ¥3,502.00 ▲(17.67% Upside)

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 profitability and margins

Sustained high gross and net margins indicate durable cost control and pricing power across products. Healthy EBIT/EBITDA margins support reinvestment in R&D and capacity, provide a cushion in downturns, and underpin long-term cash generation and shareholder returns.

Strong balance sheet with low leverage

A strong equity base and minimal leverage give the company financial flexibility to fund capex, pursue strategic partnerships, or weather cyclical weakness without heavy interest burdens. This stability supports long-term investment and resilience to shocks.

Diversified end markets and strategic partnerships

Revenue diversification across industrial automation, automotive electronics and telecommunications reduces dependence on any single cycle. Strategic partnerships broaden product reach and innovation pipelines, supporting durable demand and cross-selling opportunities over multiple cycles.

Negative Factors

Declining operating cash flow and negative free cash flow

A sustained drop in operating cash flow and negative free cash flow erode the company's ability to self-fund capex, R&D, and dividends. Over months, this can force external financing, delay strategic investments, and weaken operational flexibility.

Decelerating revenue growth trend

A slowdown in revenue growth reduces the pace at which scale benefits and margin improvements can compound. If persistent, deceleration pressures long-term investment capacity, slows market share expansion, and increases reliance on margin improvement to sustain profit growth.

Reduced cash and short-term investments risking liquidity

Shrinking cash and liquid assets weaken the firm’s buffer against unexpected needs or cyclical dips. Coupled with negative free cash flow, diminished liquidity could constrain working capital, force higher-cost borrowing, and limit the ability to seize strategic opportunities.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: Neutral
• Last Price: 2976.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7504, the sentiment is Neutral. The current price of 2976 is below the 20-day moving average (MA) of 3047.65, below the 50-day MA of 2977.60, and above the 200-day MA of 2761.71, indicating a neutral trend. The MACD of 18.83 indicates Positive momentum. The RSI at 47.10 is Neutral, neither overbought nor oversold. The STOCH value of 12.20 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7504.

Kohsoku Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3950	82 Outperform	¥76.14B	12.63	―	6.64%	2.85%	-9.13%
7482	78 Outperform	¥31.36B	13.95	―	4.00%	5.42%	15.41%
7942	74 Outperform	¥72.64B	11.02	―	3.31%	0.83%	-9.16%
7504	72 Outperform	¥58.08B	15.69	―	2.88%	12.39%	9.81%
3951	70 Outperform	¥19.26B	13.77	―	4.39%	5.06%	-15.22%
3946	68 Neutral	¥56.87B	7.51	―	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 Corporation Reports Strong First Half 2025 Financial Results and Announces 60th Anniversary Dividend

Kohsoku Corporation reported an 11.8% increase in net sales for the first half of 2025, with significant growth in operating and ordinary profits. The company announced a commemorative dividend in celebration of its 60th anniversary, reflecting its stable financial position and commitment to shareholder returns.

The most recent analyst rating on (JP:7504) stock is a Buy with a Yen3161.00 price target. To see the full list of analyst forecasts on Kohsoku Corporation stock, see the JP:7504 Stock Forecast page.