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Kuroda Precision Industries Ltd. (JP:7726)
:7726
Japanese Market
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Kuroda Precision Industries Ltd. (7726) AI Stock Analysis

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JP:7726

Kuroda Precision Industries Ltd.

(7726)

Rating:58Neutral
Price Target:
¥958.00
▲(3.23%Upside)
Kuroda Precision Industries Ltd.'s stock score reflects mixed financial performance and valuation concerns, partly offset by positive technical indicators. The company's financial stability is challenged by increasing leverage and cash flow issues. Technical analysis shows short-term bullish momentum, but valuation metrics suggest the stock could be overvalued.

Kuroda Precision Industries Ltd. (7726) vs. iShares MSCI Japan ETF (EWJ)

Kuroda Precision Industries Ltd. Business Overview & Revenue Model

Company DescriptionKuroda Precision Industries Ltd. is a Japanese company that specializes in the manufacturing and distribution of precision machinery components, measuring instruments, and control devices. The company operates primarily within the machinery and industrial equipment sectors, providing high-quality products that cater to the needs of various industries, including automotive, electronics, and aerospace. Kuroda is known for its expertise in precision technology and engineering, offering solutions that enhance production efficiency and product quality for its clients.
How the Company Makes MoneyKuroda Precision Industries Ltd. generates revenue through the sale of its precision machinery components, measuring instruments, and control devices. These products are sold directly to manufacturers in industries such as automotive, electronics, and aerospace, which require high-precision components for their production processes. The company may also engage in contractual manufacturing agreements and collaborations with other industrial firms, enhancing its revenue streams. Additionally, Kuroda's investment in research and development enables it to maintain a competitive edge, providing innovative solutions that meet the evolving needs of its clients, thereby sustaining and growing its market share.

Kuroda Precision Industries Ltd. Financial Statement Overview

Summary
Kuroda Precision Industries Ltd. shows mixed financial performance with challenges in revenue growth and profitability. While the balance sheet is stable, increasing leverage poses risks if profitability does not improve. Cash flow management is concerning, with negative free cash flow and inconsistent operating cash flow.
Income Statement
55
Neutral
Kuroda Precision Industries Ltd. has experienced fluctuating revenues with a notable decline in the most recent year, impacting profitability. Gross Profit Margin is reasonable but declining, and both EBIT and net profit margins have decreased, indicating potential operational inefficiencies.
Balance Sheet
62
Positive
The company maintains a relatively healthy equity ratio, suggesting a stable financial structure. However, the increase in total debt over recent years has raised the debt-to-equity ratio, which could pose a risk if profitability continues to decline. Return on Equity is moderate but could be improved.
Cash Flow
48
Neutral
Cash flow performance is concerning, with negative free cash flow and inconsistent operating cash flow over the periods. The operating cash flow to net income ratio is varied, reflecting fluctuating cash management efficiency.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue17.28B18.50B22.75B18.04B13.29B
Gross Profit4.10B4.44B5.44B4.91B3.35B
EBITDA1.56B1.21B2.66B2.02B1.17B
Net Income172.59M498.44M906.71M563.75M126.69M
Balance Sheet
Total Assets26.16B25.88B25.40B22.05B19.66B
Cash, Cash Equivalents and Short-Term Investments3.29B3.26B4.01B2.90B2.16B
Total Debt7.55B6.58B5.50B4.00B4.54B
Total Liabilities14.58B14.19B14.67B12.24B10.35B
Stockholders Equity11.39B11.51B10.52B9.61B9.13B
Cash Flow
Free Cash Flow-429.10M-968.36M-68.92M1.44B-369.54M
Operating Cash Flow1.23B427.82M1.35B2.15B531.23M
Investing Cash Flow-1.65B-1.31B-1.43B-716.43M-887.36M
Financing Cash Flow472.80M214.68M1.15B-748.14M315.04M

Kuroda Precision Industries Ltd. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price928.00
Price Trends
50DMA
901.78
Positive
100DMA
906.97
Positive
200DMA
997.83
Negative
Market Momentum
MACD
7.54
Positive
RSI
51.46
Neutral
STOCH
62.37
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7726, the sentiment is Neutral. The current price of 928 is above the 20-day moving average (MA) of 918.25, above the 50-day MA of 901.78, and below the 200-day MA of 997.83, indicating a neutral trend. The MACD of 7.54 indicates Positive momentum. The RSI at 51.46 is Neutral, neither overbought nor oversold. The STOCH value of 62.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7726.

Kuroda Precision Industries Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
¥6.33B9.68
3.07%6.58%29.17%
70
Outperform
¥19.37B15.28
3.87%3.18%2.22%
70
Neutral
¥10.94B11.89
4.89%6.46%
60
Neutral
¥4.60B13.84
3.51%-4.17%-175.55%
59
Neutral
AU$1.65B10.0711.24%3.41%6.92%3.55%
58
Neutral
¥5.26B30.43
2.17%-6.59%-65.39%
56
Neutral
¥6.99B132.87
5.87%-2.14%-48.88%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7726
Kuroda Precision Industries Ltd.
920.00
-682.17
-42.58%
JP:5966
Kyoto Tool Co., Ltd.
2,603.00
-50.05
-1.89%
JP:5990
Super Tool Co., Ltd.
1,995.00
-81.11
-3.91%
JP:6156
A-One Seimitsu, Inc.
1,705.00
6.84
0.40%
JP:6157
NS Tool Co., Ltd.
776.00
-113.11
-12.72%
JP:6165
Punch Industry Co., Ltd.
400.00
-34.61
-7.96%
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.Date of analysis: Jul 10, 2025