Kokusai Co., Ltd. (7722) AI Stock Analysis

• Market Cap: ¥12.18B
• Dividend Yield: 3.39%
• Average Volume (3M): 80.51K
• Price to Earnings (P/E): 7.6
• Beta (1Y): 0.51
• Revenue Growth: 22.71%
• EPS Growth: 442.11%
• Country: JP
• Employees: 287
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 28.14
• Shares Outstanding: 14,200,000
• 10 Day Avg. Volume: 50,330
• 30 Day Avg. Volume: 80,506
• PEG Ratio: -0.02
• Price to Book (P/B): 0.75
• Price to Sales (P/S): 0.64
• P/FCF Ratio: 8.62
• 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: 82 Outperform
• Price Target: ¥995.00 ▲(51.22% Upside)

Kokusai Co., Ltd. receives a strong overall stock score of 82, driven primarily by its robust financial performance and attractive valuation. The company's strong technical indicators further support a positive outlook. The absence of earnings call data and corporate events does not detract from the overall assessment, as the core financial and market metrics are highly favorable.

Positive Factors

Revenue Growth

The company's robust revenue growth of 28.9% indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Balance Sheet Health

A healthy balance sheet with low debt levels and strong equity provides financial stability and flexibility for future investments and growth.

Profitability Improvement

Improved profitability metrics, such as increased ROE, reflect efficient operations and effective cost management, enhancing long-term shareholder value.

Negative Factors

Cash Flow Volatility

Volatility in cash flow generation can impact the company's ability to fund operations and investments, posing risks to financial stability and growth.

Historical Earnings Volatility

Past earnings volatility suggests potential challenges in maintaining consistent profitability, which could affect investor confidence and strategic planning.

Free Cash Flow Efficiency

Lower free cash flow efficiency indicates room for improvement in capital allocation, which is crucial for sustaining long-term growth and operational investments.

Kokusai Co., Ltd. Business Overview & Revenue Model

Company Description

Kokusai Co., Ltd. (7722) is a leading Japanese company specializing in the manufacturing of semiconductor production equipment. The company operates primarily in the technology sector, focusing on developing advanced tools and systems for the semiconductor industry, which are essential for the production of integrated circuits and other electronic components. Kokusai's core products include thermal processing equipment, diffusion systems, and various automation solutions that enhance manufacturing efficiency and yield.

How the Company Makes Money

Kokusai Co., Ltd. generates revenue primarily through the sale of its semiconductor production equipment, which is sold to various semiconductor manufacturers globally. The company's revenue model is centered around direct sales of equipment, as well as providing maintenance and support services to clients. Key revenue streams include the initial sales of new machinery, recurring revenue from service contracts, and upgrades for existing equipment. Additionally, Kokusai benefits from strategic partnerships with major semiconductor firms and research institutions, which help in driving innovation and expanding its market presence. Factors contributing to its earnings include advancements in semiconductor technology, increasing demand for high-performance computing, and the growing trend of electrification in various industries.

Kokusai Co., Ltd. Financial Statement Overview

Summary

Kokusai Co., Ltd. demonstrated a strong recovery in financial performance with significant revenue growth and improved profitability. The balance sheet is robust with low leverage and strong equity, while cash flow generation is stable. Despite past volatility, the company is on a positive trajectory.

Income Statement

Kokusai Co., Ltd. exhibited a strong recovery in the latest fiscal year with a significant increase in revenue and return to profitability. The Gross Profit Margin stood at 36.8%, and the Net Profit Margin was 7.1%, reflecting efficient cost management. The company showed a remarkable revenue growth rate of 28.9% from the previous year, indicating a robust rebound. EBIT and EBITDA margins were also positive, highlighting improved operational performance. However, historical volatility in earnings and previous periods of losses pose potential risks.

Balance Sheet

The balance sheet is solid, with a strong equity base and prudent leverage. The Debt-to-Equity Ratio is 0.30, suggesting conservative financial management. Return on Equity (ROE) improved to 8.4%, driven by positive net income. The Equity Ratio is healthy at 53.9%, emphasizing financial stability. Overall, the company's balance sheet reflects a strong financial position with adequate liquidity and low leverage risk.

Cash Flow

The cash flow statement shows a stable cash generation capacity. The Free Cash Flow Growth Rate was -24.1%, due to a decrease in operating cash flows. The Operating Cash Flow to Net Income Ratio is 1.10, indicating good cash conversion. However, the Free Cash Flow to Net Income Ratio is slightly lower at 1.04, suggesting room for improvement in capital efficiency. Despite some fluctuations, the overall cash flow health remains satisfactory.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.37B	13.20B	10.24B	10.04B	11.13B	11.51B
Gross Profit	5.53B	4.90B	2.69B	2.92B	3.56B	3.62B
EBITDA	1.92B	1.60B	21.64M	375.39M	868.77M	718.11M
Net Income	1.18B	940.38M	-258.16M	-66.37M	475.02M	179.81M
Balance Sheet
Total Assets	20.52B	20.84B	20.52B	20.41B	17.37B	18.69B
Cash, Cash Equivalents and Short-Term Investments	8.30B	7.90B	8.25B	7.41B	5.45B	5.91B
Total Debt	3.03B	3.41B	4.02B	4.79B	2.48B	2.48B
Total Liabilities	8.97B	9.24B	9.50B	9.16B	6.07B	7.57B
Stockholders Equity	11.18B	11.22B	10.74B	11.02B	11.13B	10.98B
Cash Flow
Free Cash Flow	0.00	974.29M	1.28B	-514.43M	-130.32M	-264.72M
Operating Cash Flow	0.00	1.03B	1.34B	-471.56M	-119.70M	23.14M
Investing Cash Flow	0.00	-315.95M	-518.82M	129.41M	225.16M	-501.94M
Financing Cash Flow	0.00	-977.82M	-1.05B	2.03B	-509.07M	690.09M

Kokusai Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 658.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7722, the sentiment is Positive. The current price of 658 is below the 20-day moving average (MA) of 830.55, below the 50-day MA of 751.24, and above the 200-day MA of 635.83, indicating a bullish trend. The MACD of 27.69 indicates Positive momentum. The RSI at 70.23 is Negative, neither overbought nor oversold. The STOCH value of 57.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7722.

Kokusai Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7722	82 Outperform	¥12.18B	7.57	―	3.39%	22.71%	442.11%
5192	78 Outperform	¥106.34B	15.86	―	4.68%	3.99%	-28.28%
6455	78 Outperform	¥125.60B	11.72	―	2.25%	12.64%	34.19%
6340	71 Outperform	¥94.90B	10.73	―	2.62%	8.65%	-23.00%
6486	69 Neutral	¥137.50B	18.31	―	3.93%	1.70%	18.50%
6490	67 Neutral	¥105.57B	12.27	―	2.71%	-2.46%	-10.72%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%