Kuroda Precision Industries Ltd. (7726) AI Stock Analysis

• Market Cap: ¥5.74B
• Dividend Yield: 2.05%
• Average Volume (3M): 3.93K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.71
• Revenue Growth: -6.69%
• EPS Growth: -80.28%
• Country: JP
• Employees: 645
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): -17.36
• Shares Outstanding: 5,743,286
• 10 Day Avg. Volume: 3,980
• 30 Day Avg. Volume: 3,933
• PEG Ratio: -0.50
• Price to Book (P/B): 0.50
• Price to Sales (P/S): 0.33
• P/FCF Ratio: -13.18
• 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: 63 Neutral
• Price Target: ¥1,065.00 ▲(9.23% Upside)
• Action: Reiterated Date: 12/11/25
• Date: Action: Reiterated 12/11/25

The overall stock score is primarily influenced by strong technical analysis, indicating bullish momentum. However, financial performance challenges and high valuation concerns weigh down the score. The lack of earnings call and corporate events data limits additional insights.

Positive Factors

Niche precision B2B model

Kuroda's focus on high-accuracy, engineered parts for industrial customers creates durable, project-based and recurring revenue streams. Specialized tooling and precision components build long sales cycles, technical stickiness and customer switching costs that support repeat business over multiple quarters.

Relatively healthy equity ratio

A healthy equity ratio indicates a stable capital structure that can absorb cyclical downturns and support capex or R&D investment. This structural balance provides flexibility to pursue new projects and sustain operations over the medium term, improving resilience versus highly leveraged peers.

Exposure to automation demand

Modest positive revenue growth and product exposure to factory automation and industrial equipment align Kuroda with a structural industry trend: ongoing factory automation and replacement cycles. This end-market relevance supports steady demand for precision components over several quarters.

Negative Factors

Negative free cash flow

Persistent negative free cash flow and volatile operating cash flow weaken the firm's ability to self-fund capex, repay debt, or return capital to shareholders. Over 2-6 months this can limit investment in tooling, slow new order fulfillment, and constrain strategic flexibility if cash generation doesn't stabilize.

Rising leverage risk

An increasing debt burden elevates financial risk, reducing headroom for downturns and making the company more sensitive to interest costs. If profitability remains pressured, higher leverage could force cost cutting or asset sales, impairing long-term competitiveness and ability to invest in precision manufacturing capabilities.

Declining margins & revenue volatility

Declining gross and operating margins alongside recent revenue declines point to structural margin pressure—likely from pricing, mix, or inefficiencies. Sustained margin erosion reduces cash flow and reinvestment capacity, harming long-term competitiveness in high-precision, cost-sensitive industrial markets.

Kuroda Precision Industries Ltd. Business Overview & Revenue Model

Company Description

Kuroda Precision Industries Ltd. manufactures and sells motion control systems, press tools and die systems, and machine tools and measurement systems worldwide. It offers support tools, precision ground ball screws, and custom ball/JIS standard screws; ball screw actuators; line motion guides, support-units, greases, and feed screws; surface grinding machines; laminated precision press tools for motor core; and precision metal press products/motor core products. The company also provides parallel thread, taper thread/taper pipe thread, oil country, master/plain, and taper gauges; gauge blocks, test bars, and measuring instruments; wafer flatness measuring systems, wafer flatness/SORI measuring systems, and surface and flatness measuring systems, as well as surface and flatness measuring systems for large discs. In addition, it offers hydraulic tools; and minimal quantity lubrication systems, as well as clamping force tester and machine gauge. The company was formerly known as Kuroda Gauge Manufacturing Co., Ltd. and changed its name to Kuroda Precision Industries Ltd. in June 1965. Kuroda Precision Industries Ltd. was founded in 1925 and is headquartered in Kawasaki, Japan.

How the Company Makes Money

Kuroda Precision Industries makes money primarily by manufacturing and selling precision industrial products to corporate customers (B2B). Key revenue streams generally include: (1) sales of precision molds/dies and related tooling used by manufacturers to produce parts at scale, where revenue is driven by project-based orders that reflect customers’ production programs and new model launches; (2) sales of precision mechanical components used in machinery and factory automation, where revenue is driven by unit shipments tied to customers’ equipment builds, maintenance cycles, and capital-expenditure demand. Earnings are influenced by the mix of custom/engineered-to-order work (typically priced per project/specification) versus repeat component shipments (priced per unit and volume). Significant partnerships, customer concentration, segment-level revenue breakdowns, and the company’s disclosed major end-markets are null.

Kuroda Precision Industries Ltd. Financial Statement Overview

Summary

Kuroda Precision Industries Ltd. shows a mixed financial performance with challenges in revenue growth and profitability. The balance sheet remains relatively stable, but increasing leverage could pose risks if profitability does not improve. Cash flow management needs attention, particularly in generating positive free 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	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	16.75B	17.28B	18.50B	22.75B	18.04B	13.29B
Gross Profit	3.66B	4.10B	4.44B	5.44B	4.91B	3.35B
EBITDA	961.82M	1.32B	1.59B	2.27B	2.26B	1.20B
Net Income	-197.79M	172.59M	498.44M	906.71M	563.75M	126.69M
Balance Sheet
Total Assets	27.74B	26.66B	26.43B	25.69B	22.35B	19.99B
Cash, Cash Equivalents and Short-Term Investments	3.42B	3.29B	3.26B	4.01B	2.90B	2.16B
Total Debt	8.65B	7.55B	6.58B	5.50B	4.00B	4.54B
Total Liabilities	16.45B	15.07B	14.73B	14.96B	12.55B	10.69B
Stockholders Equity	11.12B	11.39B	11.51B	10.52B	9.61B	9.13B
Cash Flow
Free Cash Flow	0.00	-429.10M	-968.36M	-68.92M	1.44B	-369.54M
Operating Cash Flow	0.00	1.23B	427.82M	1.35B	2.15B	531.23M
Investing Cash Flow	0.00	-1.62B	-1.31B	-1.43B	-716.43M	-900.72M
Financing Cash Flow	0.00	444.32M	214.68M	1.15B	-748.14M	328.40M

Kuroda Precision Industries Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 975.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 975 is below the 20-day moving average (MA) of 995.15, below the 50-day MA of 1011.46, and above the 200-day MA of 958.78, indicating a neutral trend. The MACD of -7.11 indicates Negative momentum. The RSI at 50.53 is Neutral, neither overbought nor oversold. The STOCH value of 59.57 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6278	76 Outperform	¥256.03B	24.11	―	1.17%	29.51%	48.81%
6877	74 Outperform	¥85.08B	7.58	―	3.85%	9.38%	8.88%
6136	72 Outperform	¥235.48B	13.29	7.86%	2.55%	0.57%	4.54%
6480	67 Neutral	¥63.79B	11.27	―	2.82%	8.75%	177.16%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7726	63 Neutral	¥5.74B	-14.04	―	2.05%	-6.69%	-80.28%
6474	62 Neutral	¥111.43B	17.03	2.64%	2.30%	-4.11%	46.76%