Kannanmaru Corporation (7585) AI Stock Analysis

• Market Cap: ¥1.59B
• Dividend Yield: N/A
• Average Volume (3M): 5.62K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.91
• Revenue Growth: 13.45%
• EPS Growth: -5.76%
• Country: JP
• Employees: 106
• Sector: Consumer Cyclical
• Sector Strength: 66
• Industry: Restaurants
• EPS (TTM): -28.54
• Shares Outstanding: 4,351,308
• 10 Day Avg. Volume: 9,750
• 30 Day Avg. Volume: 5,616
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• 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: ¥419.00
• Price Target Upside: 0.72% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 48 Neutral
• Price Target: ¥419.00 ▲(0.72% Upside)

Kannanmaru Corporation's stock score is primarily impacted by its weak financial performance, characterized by strong revenue growth but persistent profitability challenges. Technical analysis shows neutral to slightly bearish momentum, while valuation metrics are unattractive due to negative earnings. The absence of earnings call data and corporate events limits additional insights.

Kannanmaru Corporation Business Overview & Revenue Model

Company Description

Kannanmaru Corporation (7585) is a diversified company based in Japan, primarily engaged in the manufacturing and distribution of high-quality consumer goods and industrial products. The company operates in various sectors, including food and beverage, electronics, and textiles, focusing on delivering innovative solutions that meet the needs of its diverse clientele. Kannanmaru is known for its commitment to sustainability and quality, offering a range of products that cater to both domestic and international markets.

How the Company Makes Money

Kannanmaru Corporation generates revenue through multiple streams, including the sale of consumer goods such as packaged foods and beverages, which constitute a significant portion of its income. The company also earns revenue from its industrial products, which include electronic components and textiles, sold to both wholesale and retail partners. Strategic partnerships with suppliers and distributors enhance its market reach and operational efficiency. Additionally, Kannanmaru invests in research and development to innovate and improve its product offerings, allowing it to capture new market segments and maintain competitive pricing. The company's focus on sustainable practices also appeals to environmentally conscious consumers, further boosting its sales.

Kannanmaru Corporation Financial Statement Overview

Summary

Kannanmaru Corporation is experiencing notable revenue growth but is facing persistent profitability and cash flow challenges. The company's balance sheet suggests moderate leverage, but declining equity ratios and negative return on equity are areas of concern. Cash flow issues highlight the need for strategic improvements to ensure long-term financial health.

Income Statement

Kannanmaru Corporation has shown some revenue growth over the years, with a 23.47% increase from 2023 to 2024. However, the company continues to struggle with profitability, as evidenced by negative EBIT and net margins. The net profit margin and EBIT margin are negative, indicating challenges in controlling costs and achieving profitability.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio, indicating a manageable level of leverage. However, the equity ratio has decreased over the years, reflecting a declining proportion of equity in relation to total assets. Return on equity remains negative due to persistent net losses, which is concerning for investor returns.

Cash Flow

Cash flow analysis reveals negative free cash flow, which has deteriorated further in the recent period. The operating cash flow to net income ratio is negative, reflecting difficulties in generating cash from operations to cover net losses. This indicates liquidity challenges that need addressing for sustainable operations.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	1.65B	1.34B	596.16M	733.05M	2.32B
Gross Profit	1.14B	905.09M	402.32M	497.27M	1.64B
EBITDA	-134.78M	-240.70M	47.80M	-576.24M	-552.47M
Net Income	-206.63M	-295.51M	-10.25M	-504.91M	-628.05M
Balance Sheet
Total Assets	1.78B	1.68B	1.77B	1.81B	2.21B
Cash, Cash Equivalents and Short-Term Investments	717.54M	808.48M	949.36M	805.83M	980.28M
Total Debt	787.97M	523.80M	375.58M	364.68M	99.91M
Total Liabilities	1.13B	826.76M	601.43M	629.30M	504.90M
Stockholders Equity	649.87M	854.79M	1.17B	1.18B	1.70B
Cash Flow
Free Cash Flow	-358.50M	-292.75M	28.36M	-473.07M	-625.37M
Operating Cash Flow	-88.88M	-223.14M	116.56M	-449.97M	-542.81M
Investing Cash Flow	-316.16M	172.81M	-69.23M	184.66M	1.75M
Financing Cash Flow	264.10M	94.38M	44.53M	245.92M	-43.86M

Kannanmaru Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 416.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7585, the sentiment is Positive. The current price of 416 is below the 20-day moving average (MA) of 418.50, below the 50-day MA of 424.58, and below the 200-day MA of 431.73, indicating a neutral trend. The MACD of 1.38 indicates Negative momentum. The RSI at 54.88 is Neutral, neither overbought nor oversold. The STOCH value of 84.62 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7585.

Kannanmaru Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8181	75 Outperform	¥2.64B	5.75		1.49%	3.77%	205.69%
2789	73 Outperform	¥2.78B	8.37		1.08%	5.85%	-26.82%
3077	67 Neutral	¥3.66B	13.66		―	4.26%	73.63%
3370	60 Neutral	¥1.33B	10.71		0.53%	7.79%	242.23%
Sector *	59 Neutral	€9.27B	11.02	-14.41%	4.39%	0.28%	-37.90%
7585	48 Neutral	¥1.59B	―		―	13.45%	-5.76%
8209	39 Underperform	¥1.04B	―		―	5.14%	-102.46%