Kuroda Precision Industries Ltd. (7726) AI Stock Analysis

• Market Cap: ¥5.26B
• Dividend Yield: 2.17%
• Average Volume (3M): 3.13K
• Price to Earnings (P/E): 30.4
• Beta (1Y): 0.71
• Revenue Growth: -6.59%
• EPS Growth: -65.39%
• Country: JP
• Employees: 645
• Sector: Industrials
• Sector Strength: 93
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): -5.05
• Shares Outstanding: 5,719,934
• 10 Day Avg. Volume: 2,630
• 30 Day Avg. Volume: 3,133
• PEG Ratio: -0.56
• Price to Book (P/B): 0.46
• 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: ¥926.00
• Price Target Upside: -0.22% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 58 Neutral
• 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. Business Overview & Revenue Model

Company Description

Kuroda 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 Money

Kuroda 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

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

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

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.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	17.28B	18.50B	22.75B	18.04B	13.29B
Gross Profit	4.10B	4.44B	5.44B	4.91B	3.35B
EBITDA	1.56B	1.21B	2.66B	2.02B	1.17B
Net Income	172.59M	498.44M	906.71M	563.75M	126.69M
Balance Sheet
Total Assets	26.16B	25.88B	25.40B	22.05B	19.66B
Cash, Cash Equivalents and Short-Term Investments	3.29B	3.26B	4.01B	2.90B	2.16B
Total Debt	7.55B	6.58B	5.50B	4.00B	4.54B
Total Liabilities	14.58B	14.19B	14.67B	12.24B	10.35B
Stockholders Equity	11.39B	11.51B	10.52B	9.61B	9.13B
Cash Flow
Free Cash Flow	-429.10M	-968.36M	-68.92M	1.44B	-369.54M
Operating Cash Flow	1.23B	427.82M	1.35B	2.15B	531.23M
Investing Cash Flow	-1.65B	-1.31B	-1.43B	-716.43M	-887.36M
Financing Cash Flow	472.80M	214.68M	1.15B	-748.14M	315.04M

Kuroda Precision Industries Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 928.00
• 50DMA: Positive
• 100DMA: Positive
• 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: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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5966	80 Outperform	¥6.33B	9.68		3.07%	6.58%	29.17%
6157	70 Outperform	¥19.37B	15.28		3.87%	3.18%	2.22%
6165	70 Neutral	¥10.94B	11.89		4.89%	6.46%	―
5990	60 Neutral	¥4.60B	13.84		3.51%	-4.17%	-175.55%
Sector *	59 Neutral	AU$1.65B	10.07	11.24%	3.41%	6.92%	3.55%
7726	58 Neutral	¥5.26B	30.43		2.17%	-6.59%	-65.39%
6156	56 Neutral	¥6.99B	132.87		5.87%	-2.14%	-48.88%