Kohnan Shoji Co., Ltd. (7516) AI Stock Analysis

• Market Cap: ¥124.43B
• Dividend Yield: 2.52%
• Average Volume (3M): 76.24K
• Price to Earnings (P/E): 8.2
• Beta (1Y): 0.43
• Revenue Growth: 4.89%
• EPS Growth: 7.47%
• Country: JP
• Employees: 4,806
• Sector: Consumer Cyclical
• Sector Strength: 64
• Industry: Home Improvement
• EPS (TTM): 152.67
• Shares Outstanding: 34,682,114
• 10 Day Avg. Volume: 99,380
• 30 Day Avg. Volume: 76,243
• PEG Ratio: 0.73
• Price to Book (P/B): 0.68
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥4,047.00
• Price Target Upside: 1.68% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 67 Neutral
• Price Target: ¥4,047.00 ▲(1.68%Upside)

The stock is supported by a strong valuation due to its low P/E ratio and attractive dividend yield. Financial performance is solid, though attention is needed for cash flow management and leverage. Technical analysis suggests a cautious outlook, with no clear momentum.

Kohnan Shoji Co., Ltd. Business Overview & Revenue Model

Company Description

Kohnan Shoji Co., Ltd. is a prominent Japanese retail company specializing in the home improvement and hardware sectors. The company operates a widespread network of retail stores across Japan, offering a diverse range of products including home improvement goods, DIY materials, gardening supplies, and household items. Kohnan Shoji is committed to providing quality products that meet the needs of both individual consumers and professional contractors.

How the Company Makes Money

Kohnan Shoji Co., Ltd. generates revenue primarily through the sale of its diverse range of home improvement and hardware products. The company's extensive retail network allows it to cater to a wide customer base, ranging from individual DIY enthusiasts to professional builders and contractors. Key revenue streams include the sales of construction materials, tools, gardening supplies, and household goods. Additionally, Kohnan Shoji's strategic location of stores in both urban and suburban areas enhances accessibility and convenience for customers, thereby driving sales. The company may also engage in partnerships with suppliers and manufacturers to offer exclusive or private-label products, further enhancing its product offerings and competitive edge in the market. Factors such as seasonal demand, home renovation trends, and economic conditions in Japan significantly influence the company's earnings.

Kohnan Shoji Co., Ltd. Financial Statement Overview

Summary

The company shows strong revenue growth and stable profitability, with a robust balance sheet. However, a significant decrease in free cash flow and moderate leverage may pose risks. Management should focus on improving operational efficiencies and optimizing cash flow.

Income Statement

The company has demonstrated consistent revenue growth, with a notable increase of 6.08% in the most recent year. Gross profit margin stands at 39.19%, indicating strong profitability from core operations. Despite a slight decline in EBIT margin to 4.99%, the company maintains a solid EBITDA margin of 8.11%. Net profit margin is stable at 2.83%, reflecting efficient cost management. Overall, the income statement shows a healthy growth trajectory and profitability, though there is room for improvement in operational efficiencies.

Balance Sheet

The debt-to-equity ratio is 1.17, suggesting moderate leverage. Return on Equity (ROE) is 8.57%, indicating effective use of equity. The equity ratio of 34.61% shows a balanced capital structure. While the company has a healthy equity position, the moderate leverage might pose risks if earnings do not grow at a similar pace. Overall, the balance sheet reflects stability with potential leverage risks.

Cash Flow

The free cash flow has decreased significantly, showing a drop of 40.37%, which raises concerns about cash generation capabilities. The operating cash flow to net income ratio is 1.58, indicating that operating cash flow is greater than net income, a positive sign. However, the free cash flow to net income ratio is only 0.16, reflecting significant capital expenditures. The cash flow analysis highlights potential cash management issues despite strong operational cash generation.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	501.40B	472.65B	439.02B	441.22B	442.07B
Gross Profit	196.57B	187.12B	175.72B	176.01B	175.78B
EBITDA	40.69B	39.07B	36.19B	39.52B	42.72B
Net Income	14.21B	14.05B	13.23B	15.59B	18.65B
Balance Sheet
Total Assets	479.01B	458.56B	419.25B	398.08B	395.10B
Cash, Cash Equivalents and Short-Term Investments	10.84B	11.72B	9.22B	12.24B	14.68B
Total Debt	193.19B	184.10B	158.80B	147.38B	147.06B
Total Liabilities	313.21B	301.30B	269.70B	255.63B	261.81B
Stockholders Equity	165.79B	157.26B	149.55B	142.44B	133.28B
Cash Flow
Free Cash Flow	2.23B	3.74B	-6.22B	6.35B	20.31B
Operating Cash Flow	22.44B	22.49B	9.40B	17.44B	35.12B
Investing Cash Flow	-21.72B	-24.01B	-17.93B	-12.68B	-15.22B
Financing Cash Flow	-1.43B	2.50B	5.43B	-7.29B	-17.20B

Kohnan Shoji Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3980.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7516, the sentiment is Positive. The current price of 3980 is above the 20-day moving average (MA) of 3833.75, above the 50-day MA of 3778.90, and above the 200-day MA of 3640.48, indicating a bullish trend. The MACD of 56.94 indicates Negative momentum. The RSI at 68.44 is Neutral, neither overbought nor oversold. The STOCH value of 78.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7516.

Kohnan Shoji Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3050	79 Outperform	¥179.34B	10.50		3.23%	6.96%	-19.43%
3191	78 Outperform	¥124.13B	13.91		0.48%	2.78%	15.97%
8218	71 Outperform	¥147.33B	10.25		1.82%	2.28%	1.10%
7516	67 Neutral	¥124.43B	8.22		2.52%	4.89%	7.47%
Sector *	67 Neutral	¥252.14B	13.51	6.48%	2.73%	5.20%	-11.34%
3199	64 Neutral	¥31.81B	15.24		1.50%	4.31%	11.77%
2790	57 Neutral	¥51.41B	259.47	0.09%	3.22%	-5.51%	-96.59%