Kojima Co., Ltd. (7513) AI Stock Analysis

• Market Cap: ¥101.80B
• Dividend Yield: 1.85%
• Average Volume (3M): 168.69K
• Price to Earnings (P/E): 26.6
• Beta (1Y): 0.46
• Revenue Growth: 4.79%
• EPS Growth: 17.77%
• Country: JP
• Employees: 2,634
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Technology Distributors
• EPS (TTM): 10.77
• Shares Outstanding: 77,912,720
• 10 Day Avg. Volume: 162,210
• 30 Day Avg. Volume: 168,693
• PEG Ratio: 1.02
• Price to Book (P/B): 1.21
• Price to Sales (P/S): 0.30
• P/FCF Ratio: 80.17
• 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: 64 Neutral
• Price Target: ¥1,408.00 ▲(18.52% Upside)
• Action: Downgraded Date: 01/04/26
• Date: Action: Downgraded 01/04/26

The score is driven mainly by mixed financial performance: strong FY2025 revenue growth and a low-leverage balance sheet are offset by thin margins and weak/volatile cash-flow conversion. Technicals are supportive with the stock trading above major moving averages and positive momentum indicators. Valuation is reasonable but not compelling given a moderate P/E and a modest dividend yield.

Positive Factors

Revenue Re-acceleration

FY2025 revenue rose 34.6% after a flat FY2024 and prior declines, indicating a durable recovery in end-market demand. Sustained top-line growth improves fixed-cost absorption, supports capacity investment in distribution, and creates a clearer path to margin recovery over the medium term.

Low Leverage

A debt-to-equity ratio around 0.14 and materially lower leverage versus FY2020 point to a conservatively positioned balance sheet. This structural financial strength reduces refinancing risk, preserves optionality for M&A or capex, and provides a buffer during cyclical weakness.

Equity Growth & Positive ROE

Steady equity growth combined with a positive ROE (~6.7%) indicates the company generates shareholder returns and has rebuilt its capital base. While ROE is moderate, persistent positive returns and equity accretion support reinvestment capacity and longer-term operational stability.

Negative Factors

Thin Profit Margins

Margins at roughly 2.4% operating and 1.7% net are structurally thin, leaving little buffer against cost inflation or pricing pressure. Low margins constrain internal funding for growth and make profitability highly sensitive to small adverse moves in costs or revenues over the medium term.

Volatile Cash Generation

Free cash flow swung to ~¥1.1B in FY2025 versus ~¥11.8B in FY2024 and included negative FCF in FY2023, indicating material volatility. Such uneven cash conversion—likely from working-capital and timing swings—reduces predictability for capex, dividends, and deleveraging decisions.

Profitability Below Prior Peaks

Although revenue recovered, profitability has not returned to earlier peaks and is described as sensitive to cost and pricing shifts. This persistent gap limits the company's ability to rebuild higher returns on capital, potentially constraining competitive reinvestment and shareholder returns.

Kojima Co., Ltd. Business Overview & Revenue Model

Company Description

Kojima Co., Ltd. sells, repairs, and constructs home and electrical appliances. It offers audio-visual products, such as camera, TV set, recorder/camcorder, other audio products; and home appliances, which include refrigerator, washing machine, cooking appliances, seasonal home products, hair dressing and beauty appliances, and other home products. The company also provides information and communication equipment products, such as PC body, computer peripherals, PC software, mobile phones, and other products; and game, clock, toys, and sporting goods, as well as pharmaceuticals and construction products. As of August 31, 2020, it operated 143 stores. The company was formerly known as Kojima Denki K.K. and changed its name to Kojima Co., Ltd. in January 1993. Kojima Co., Ltd. was founded in 1963 and is headquartered in Utsunomiya, Japan. Kojima Co., Ltd. is a subsidiary of Bic Camera Inc.

How the Company Makes Money

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Kojima Co., Ltd. Financial Statement Overview

Summary

Revenue rebounded strongly in FY2025 (+34.6%), and the balance sheet is conservatively levered (debt-to-equity ~0.14). However, profitability remains structurally thin (operating margin ~2.4%, net margin ~1.7%), and cash-flow conversion is inconsistent with FY2025 free cash flow covering only ~27% of net income.

Income Statement

Revenue has re-accelerated, with FY2025 up strongly (+34.6%) after a relatively flat FY2024 and declines in FY2022–FY2023. Profitability is positive but thin, with net margin at ~1.7% and operating margin at ~2.4% in FY2025, which is below the stronger levels seen in FY2020–FY2022 and highlights sensitivity to cost/price pressure. Overall, the company is growing again, but margins remain modest and have not fully recovered to prior peaks.

Balance Sheet

The balance sheet looks conservatively positioned with low leverage: debt-to-equity is ~0.14 in FY2025, improved materially versus FY2020 (~0.51). Equity has grown steadily over time, supporting a stronger capital base, and return on equity in FY2025 (~6.7%) is positive but moderate versus earlier years (high single/low double digits). Key watch-out is that profitability returns are currently not high despite the healthier leverage profile.

Cash Flow

Cash generation is volatile. FY2025 operating cash flow (~¥4.0B) is low relative to net income, and free cash flow (~¥1.1B) covers only about ~27% of net income, a notable step-down from FY2024 when free cash flow was very strong (~¥11.8B) and closely tracked earnings. The pattern over several years (including negative free cash flow in FY2023) suggests working-capital and/or investment timing swings that can meaningfully affect cash conversion.

Breakdown	Aug 2025	Aug 2024	Aug 2023	Aug 2022	Aug 2021
Income Statement
Total Revenue	282.79B	269.87B	267.89B	279.37B	297.54B
Gross Profit	76.83B	74.20B	71.26B	75.38B	85.74B
EBITDA	8.21B	6.98B	6.45B	9.31B	10.11B
Net Income	4.71B	4.00B	2.87B	5.76B	6.30B
Balance Sheet
Total Assets	120.79B	114.66B	109.24B	117.15B	112.53B
Cash, Cash Equivalents and Short-Term Investments	26.85B	24.46B	14.09B	18.93B	18.05B
Total Debt	9.59B	7.40B	7.76B	11.68B	16.60B
Total Liabilities	50.54B	48.18B	45.45B	55.22B	53.53B
Stockholders Equity	70.25B	66.48B	63.80B	61.94B	58.99B
Cash Flow
Free Cash Flow	1.06B	11.77B	-186.00M	5.82B	295.00M
Operating Cash Flow	3.98B	13.19B	1.33B	7.77B	1.92B
Investing Cash Flow	-3.02B	-1.11B	324.00M	-2.39B	-1.47B
Financing Cash Flow	1.13B	-1.72B	-5.00B	-6.00B	-12.54B

Kojima Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1188.00
• 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:7513, the sentiment is Positive. The current price of 1188 is below the 20-day moving average (MA) of 1320.65, below the 50-day MA of 1278.62, and above the 200-day MA of 1185.95, indicating a neutral trend. The MACD of 12.53 indicates Positive momentum. The RSI at 52.44 is Neutral, neither overbought nor oversold. The STOCH value of 63.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7513.

Kojima Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8154	81 Outperform	¥194.85B	4.98	17.09%	2.94%	9.67%	45.58%
3107	76 Outperform	¥253.78B	10.08	―	3.08%	22.81%	504.99%
8137	74 Outperform	¥50.19B	13.51	―	4.12%	-4.88%	-26.05%
7537	65 Neutral	¥29.43B	-17.27	―	5.16%	1.71%	-29.37%
7513	64 Neutral	¥101.80B	26.57	―	1.85%	4.79%	17.77%
8141	64 Neutral	¥32.43B	40.99	1.55%	1.34%	-34.13%	-31.24%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Kojima Co., Ltd. Corporate Events

Kojima Expands Shareholder Benefit Program to Bolster Long-Term Investment Appeal

Kojima Co., Ltd. has approved an expansion of its shareholder benefit system, aiming to further reward investors for continued shareholding and strengthen the appeal of its stock as a long-term investment. From the fiscal year with a record date of February 2026, the company will increase the value of shopping vouchers granted to shareholders holding 100 shares or more at the February record date, particularly enhancing benefits for those with larger holdings, while maintaining the existing August benefits. This move is intended to promote stable, longer-term ownership of Kojima shares and could improve shareholder returns and support the company’s market valuation by incentivizing a more loyal investor base.

The most recent analyst rating on (JP:7513) stock is a Hold with a Yen1271.00 price target. To see the full list of analyst forecasts on Kojima Co., Ltd. stock, see the JP:7513 Stock Forecast page.

Kojima Posts Surging Quarterly Profits and Affirms Modest Growth Outlook for FY2026

Kojima Co., Ltd. reported solid growth for the three months ended November 30, 2025, with net sales rising 5.4% year on year to ¥65.67 billion and operating profit more than doubling to ¥1.21 billion, reflecting improved profitability. Ordinary profit and net profit also roughly doubled, lifting earnings per share to ¥10.77 and underscoring a strong start to the fiscal year despite a slight decline in equity ratio. The company maintained its dividend policy, keeping the annual forecast at ¥22 per share for the year ending August 31, 2026 after paying a ¥22 year-end dividend in the previous fiscal year, which included a commemorative component for its 70th anniversary. For the full year to August 31, 2026, Kojima forecasts moderate growth, projecting a 4.0% increase in net sales to ¥294 billion and a 3.7% rise in operating profit to ¥7.6 billion, signaling expectations of steady but not explosive expansion and offering shareholders visibility on earnings and returns.

The most recent analyst rating on (JP:7513) stock is a Hold with a Yen1271.00 price target. To see the full list of analyst forecasts on Kojima Co., Ltd. stock, see the JP:7513 Stock Forecast page.