Kokusai Co., Ltd. (JP:7722)
:7722
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Kokusai Co., Ltd.
(7722)
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Rating:71Outperform
Price Target:
¥803.00
▲(22.04% Upside)
Action:Reiterated
Date:05/19/26
The score is supported most by the strong financial recovery (better profitability, improved balance sheet, and solid recent free cash flow) and very compelling valuation (low P/E and high dividend yield). These positives are tempered by weak technicals, with the stock trading below key moving averages and a negative MACD.
Positive Factors
Margin Recovery
Material margin recovery (gross ~40%, net ~10% in 2026) shows the company has improved efficiency and pricing power. Sustained higher margins reduce reliance on volume growth, support durable profit generation, and provide room for R&D and aftermarket investment that strengthen long-term competitiveness.
Negative Factors
Modest and Uneven Revenue Growth
Revenue growth has been modest and inconsistent, with several years of declines earlier. This suggests the recent profit recovery relies more on margin normalization than sustainable demand expansion, leaving earnings exposed if semiconductor tool orders soften or competitive pressures limit share gains.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin Recovery
Material margin recovery (gross ~40%, net ~10% in 2026) shows the company has improved efficiency and pricing power. Sustained higher margins reduce reliance on volume growth, support durable profit generation, and provide room for R&D and aftermarket investment that strengthen long-term competitiveness.
Read all positive factors
Kokusai Co., Ltd. (7722) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥9.93B
Dividend Yield3.37%
Average Volume (3M)80.51K
Price to Earnings (P/E)7.2
Beta (1Y)0.76
Revenue Growth13.21%
EPS Growth59.90%
CountryJP
Employees287
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)86.97
Shares Outstanding14,200,000
10 Day Avg. Volume50,330
30 Day Avg. Volume80,506
Financial Highlights & Ratios
PEG Ratio0.12
Price to Book (P/B)0.87
Price to Sales (P/S)0.72
P/FCF Ratio6.30
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Kokusai Co., Ltd. Business Overview & Revenue Model
Company Description
Kokusai Co., Ltd. engages in the manufacture and sale of testers, measurement instruments, and automatic inspection equipment for motors and rotating equipment in Japan and internationally. It offers balancing machines, tire balancers for producti...
How the Company Makes Money
Kokusai Co., Ltd. generates revenue by designing, manufacturing, and selling semiconductor production equipment, specifically equipment used in thin film deposition processes such as chemical vapor deposition (CVD). The company earns from direct s...
Kokusai Co., Ltd. Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
78
Positive
Cash Flow
71
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 14.37B | 14.95B | 13.20B | 10.24B | 10.04B | 11.13B |
| Gross Profit | 5.53B | 5.98B | 4.90B | 2.69B | 2.92B | 3.56B |
| EBITDA | 1.92B | 2.26B | 1.60B | 21.64M | 375.39M | 868.77M |
| Net Income | 1.18B | 1.50B | 940.38M | -258.16M | -66.37M | 475.02M |
Balance Sheet | ||||||
| Total Assets | 20.52B | 20.80B | 20.84B | 20.52B | 20.41B | 17.37B |
| Cash, Cash Equivalents and Short-Term Investments | 8.30B | 8.54B | 7.90B | 8.25B | 7.41B | 5.45B |
| Total Debt | 3.03B | 2.57B | 3.41B | 4.02B | 4.79B | 2.48B |
| Total Liabilities | 8.97B | 7.84B | 9.24B | 9.50B | 9.16B | 6.07B |
| Stockholders Equity | 11.18B | 12.49B | 11.22B | 10.74B | 11.02B | 11.13B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 1.72B | 974.29M | 1.28B | -514.43M | -130.32M |
| Operating Cash Flow | 0.00 | 1.82B | 1.03B | 1.34B | -471.56M | -119.70M |
| Investing Cash Flow | 0.00 | -284.06M | -315.95M | -518.82M | 129.41M | 225.16M |
| Financing Cash Flow | 0.00 | -1.28B | -977.82M | -1.05B | 2.03B | -509.07M |
Kokusai Co., Ltd. Technical Analysis
Negative
658.00
Price Trends
823.43
Negative
880.02
Negative
776.87
Negative
Market Momentum
-16.55
Positive
33.99
Neutral
19.77
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7722, the sentiment is Negative. The current price of 658 is below the 20-day moving average (MA) of 810.95, below the 50-day MA of 823.43, and below the 200-day MA of 776.87, indicating a bearish trend. The MACD of -16.55 indicates Positive momentum. The RSI at 33.99 is Neutral, neither overbought nor oversold. The STOCH value of 19.77 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7722.
Kokusai Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | ¥11.58B | 7.94 | ― | 2.82% | 5.08% | 58.45% | |
73 Outperform | ¥7.64B | 8.47 | ― | 2.15% | 5.99% | 48.36% | |
71 Outperform | ¥9.93B | 7.23 | ― | 3.37% | 13.21% | 59.90% | |
68 Neutral | ¥9.61B | 11.76 | ― | 4.76% | 9.96% | 54.16% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | ¥11.97B | 10.62 | ― | 6.70% | -1.89% | -12.80% | |
50 Neutral | ¥7.25B | 164.26 | ― | 1.65% | 3.81% | ― |
* Industrials Sector Average
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.