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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)

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Neutral 54 (OpenAI - 5.2)
Rating:54Neutral
Price Target:
¥1,607.00
▲(64.82% Upside)
Action:Reiterated
Date:06/20/26
The score is held down primarily by weakening financial performance—especially negative operating/free cash flow and a move to losses—along with an unattractive negative P/E. These risks are partially offset by strong technical momentum, with the stock trading above key moving averages and supported by positive MACD and healthy RSI.
Positive Factors
Niche precision manufacturing
Kuroda serves a structural niche supplying high-precision motion, drive and tooling components to manufacturing and automation customers. This specialized product mix creates durable demand from capital equipment makers and tiered suppliers who value long qualification cycles and low churn, supporting steady order streams over multiple quarters.
Negative Factors
Profitability deterioration
A shift from multi-year profitability to a 2026 net loss and collapsed operating profit signals structural margin pressure. If higher costs, weaker pricing power, or mix shifts persist, earnings recovery may be prolonged, undermining retained earnings and the company's ability to self-fund investment or withstand demand shocks over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Niche precision manufacturing
Kuroda serves a structural niche supplying high-precision motion, drive and tooling components to manufacturing and automation customers. This specialized product mix creates durable demand from capital equipment makers and tiered suppliers who value long qualification cycles and low churn, supporting steady order streams over multiple quarters.
Read all positive factors

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

Kuroda Precision Industries Ltd. Business Overview & Revenue Model

Company Description
Kuroda Precision Industries Ltd. is a global manufacturer specializing in the development, production, and distribution of sophisticated industrial equipment. Its primary business encompasses advanced motion control systems, precision press and di...
How the Company Makes Money
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Kuroda Precision Industries Ltd. Financial Statement Overview

Summary
Income statement quality is weakening (profit fell to a small profit in 2025 and a loss in 2026, with operating profit collapsing). Cash flow is the main drag: operating cash flow turned negative in 2026 and free cash flow has been negative most years, creating funding pressure. The balance sheet remains only moderate, but the sharp 2026 debt increase raises risk if profitability does not recover.
Income Statement
45
Neutral
Balance Sheet
58
Neutral
Cash Flow
32
Negative
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue16.75B19.50B17.28B18.50B22.75B18.04B
Gross Profit3.66B3.89B4.10B4.44B5.44B4.91B
EBITDA961.82M1.26B1.32B1.59B2.27B2.26B
Net Income-197.79M-96.66M172.59M498.44M906.71M563.75M
Balance Sheet
Total Assets27.74B29.20B26.66B26.43B25.69B22.35B
Cash, Cash Equivalents and Short-Term Investments3.42B3.36B3.29B3.26B4.01B2.90B
Total Debt8.65B10.58B7.55B6.58B5.50B4.00B
Total Liabilities16.45B17.58B15.07B14.73B14.96B12.55B
Stockholders Equity11.12B11.46B11.39B11.51B10.52B9.61B
Cash Flow
Free Cash Flow0.00-2.53B-429.10M-968.36M-68.92M1.44B
Operating Cash Flow0.00-614.73M1.23B427.82M1.35B2.15B
Investing Cash Flow0.00-1.26B-1.62B-1.31B-1.43B-716.43M
Financing Cash Flow0.001.90B444.32M214.68M1.15B-748.14M

Kuroda Precision Industries Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price975.00
Price Trends
50DMA
1172.34
Positive
100DMA
1085.48
Positive
200DMA
1019.66
Positive
Market Momentum
MACD
56.06
Negative
RSI
63.93
Neutral
STOCH
78.82
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7726, the sentiment is Positive. The current price of 975 is below the 20-day moving average (MA) of 1326.25, below the 50-day MA of 1172.34, and below the 200-day MA of 1019.66, indicating a bullish trend. The MACD of 56.06 indicates Negative momentum. The RSI at 63.93 is Neutral, neither overbought nor oversold. The STOCH value of 78.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7726.

Kuroda Precision Industries Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
¥435.35B61.631.17%29.22%29.50%
78
Outperform
¥97.89B12.263.85%19.61%25.91%
74
Outperform
¥335.20B17.977.86%2.55%5.68%41.20%
71
Outperform
¥162.63B40.252.82%15.90%313.65%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
62
Neutral
¥143.42B26.982.64%2.30%0.90%15.74%
54
Neutral
¥8.28B-84.712.05%12.83%-156.39%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7726
Kuroda Precision Industries Ltd.
1,575.00
653.67
70.95%
JP:6136
OSG
3,661.00
2,048.26
127.00%
JP:6474
Nachi-Fujikoshi Corp.
6,050.00
3,114.51
106.10%
JP:6278
Union Tool Co.
25,090.00
20,283.59
422.01%
JP:6480
Nippon Thompson Co., Ltd.
2,230.00
1,717.78
335.36%
JP:6877
Obara Group Incorporated
6,160.00
2,848.84
86.04%
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: Jun 20, 2026