Kannanmaru Corporation (7585) AI Stock Analysis

• Market Cap: ¥1.56B
• Dividend Yield: N/A
• Average Volume (3M): 8.25K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.46
• Revenue Growth: 13.45%
• EPS Growth: -5.76%
• Country: JP
• Employees: 106
• Sector: Consumer Cyclical
• Sector Strength: 78
• Industry: Restaurants
• EPS (TTM): -28.54
• Shares Outstanding: 4,351,308
• 10 Day Avg. Volume: 7,630
• 30 Day Avg. Volume: 8,246
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥402.00
• Price Target Upside: -1.95% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 44 Neutral
• Price Target: ¥402.00 ▼(-1.95% Downside)

Kannanmaru Corporation's stock score is primarily impacted by its weak financial performance, characterized by profitability and cash flow challenges. Technical analysis indicates bearish momentum, while valuation is unattractive due to a negative P/E ratio and no dividend yield. These factors collectively result in a low overall stock score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, providing a solid foundation for future expansion.

Sustainable Practices

Commitment to sustainability enhances brand reputation and attracts eco-conscious consumers, supporting long-term revenue growth.

Product Diversification

Diversification across multiple sectors reduces risk and leverages cross-industry synergies, ensuring resilience against market fluctuations.

Negative Factors

Profitability Challenges

Struggles with profitability suggest inefficiencies that could hinder reinvestment and growth, impacting long-term financial health.

Rising Leverage

Increasing leverage can strain financial flexibility and elevate risk, potentially affecting the company's ability to fund future initiatives.

Cash Flow Management

Poor cash flow management limits the ability to finance operations and invest in growth, posing a risk to long-term sustainability.

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 shows revenue growth but struggles with profitability and cash flow management. Negative net profit margins, EBIT margins, and cash flows indicate operational inefficiencies and high costs. Increasing leverage and negative returns on equity are concerning.

Income Statement

Kannanmaru Corporation has shown a consistent increase in revenue over the years, with a notable growth rate of 13.4% from 2024 to 2025. However, the company is struggling with profitability, as indicated by negative net profit margins and EBIT margins. The gross profit margin remains relatively strong, but the persistent negative EBIT and net income suggest operational inefficiencies and high costs.

Balance Sheet

The company has a moderate debt-to-equity ratio, which has increased over the years, indicating rising leverage. The equity ratio has decreased, reflecting a reduction in stockholders' equity relative to total assets. Return on equity is negative, highlighting challenges in generating returns for shareholders.

Cash Flow

Kannanmaru Corporation faces challenges in cash flow management, with negative operating and free cash flows. The free cash flow growth rate is negative, and the operating cash flow to net income ratio is unfavorable, indicating difficulties in converting earnings into cash. The company needs to improve its cash generation capabilities.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.87B	1.65B	1.34B	596.16M	733.05M
Gross Profit	1.23B	1.14B	905.09M	402.32M	497.27M
EBITDA	-128.57M	-134.78M	-240.70M	44.63M	-449.10M
Net Income	-218.52M	-206.63M	-295.51M	-10.25M	-504.91M
Balance Sheet
Total Assets	1.54B	1.78B	1.68B	1.77B	1.81B
Cash, Cash Equivalents and Short-Term Investments	516.63M	717.54M	808.48M	949.36M	805.83M
Total Debt	745.25M	787.97M	523.80M	375.58M	364.68M
Total Liabilities	1.11B	1.13B	826.76M	601.43M	629.30M
Stockholders Equity	426.21M	649.87M	854.79M	1.17B	1.18B
Cash Flow
Free Cash Flow	-167.55M	-358.50M	-292.75M	28.36M	-473.07M
Operating Cash Flow	-53.14M	-88.88M	-223.14M	116.56M	-449.97M
Investing Cash Flow	-104.03M	-316.16M	172.81M	-69.23M	184.66M
Financing Cash Flow	-43.74M	264.10M	94.38M	44.53M	245.92M

Kannanmaru Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 410.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7585, the sentiment is Negative. The current price of 410 is below the 20-day moving average (MA) of 413.25, below the 50-day MA of 415.84, and below the 200-day MA of 422.19, indicating a bearish trend. The MACD of -2.75 indicates Positive momentum. The RSI at 39.23 is Neutral, neither overbought nor oversold. The STOCH value of 23.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥2.73B	5.94		1.41%	3.77%	205.69%
2789	73 Outperform	¥2.84B	8.59		1.06%	5.85%	-26.82%
3077	67 Neutral	¥2.42B	10.47		―	4.26%	73.63%
Sector *	61 Neutral	$18.08B	12.82	-2.51%	3.03%	1.45%	-15.68%
3370	60 Neutral	¥1.19B	9.72		0.58%	7.79%	242.23%
7585	44 Neutral	¥1.56B	―		―	13.45%	-5.76%
8209	39 Underperform	¥992.49M	―		―	5.14%	-102.46%