Kawase Computer Supplies Co., Ltd. (7851) AI Stock Analysis

• Market Cap: ¥1.23B
• Dividend Yield: 1.93%
• Average Volume (3M): 15.34K
• Price to Earnings (P/E): 13.7
• Beta (1Y): 0.65
• Revenue Growth: 10.54%
• EPS Growth: N/A
• Country: JP
• Employees: 98
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 10.96
• Shares Outstanding: 5,160,000
• 10 Day Avg. Volume: 7,900
• 30 Day Avg. Volume: 15,340
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥278.00
• Price Target Upside: 7.34% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 67 Neutral
• Price Target: ¥278.00 ▲(7.34% Upside)

Kawase Computer Supplies Co., Ltd. has a solid financial foundation with strong recovery in profitability and stable balance sheet metrics, which are the most significant factors contributing to the score. The valuation is reasonable, adding to the stock's appeal. However, mixed technical indicators suggest caution in the short term. The absence of earnings call and corporate events data means these factors did not influence the score.

Kawase Computer Supplies Co., Ltd. Business Overview & Revenue Model

Company Description

Kawase Computer Supplies Co., Ltd. (7851) is a company engaged in the wholesale and retail of office supplies and computer-related products. The company primarily serves the information technology sector, providing a wide range of products including computer accessories, consumables, and office equipment. Kawase Computer Supplies aims to support businesses in maintaining efficient and productive work environments by offering essential technological supplies.

How the Company Makes Money

Kawase Computer Supplies Co., Ltd. generates revenue through the sale of computer accessories, consumables, and office equipment. The company's primary revenue streams consist of wholesale distribution to businesses and retail sales to individual customers. By maintaining relationships with manufacturers and suppliers, Kawase Computer Supplies can offer a diverse range of products, which contributes to its earnings. Additionally, partnerships with technology vendors and a strong presence in both physical and online retail markets help to bolster the company's financial performance.

Kawase Computer Supplies Co., Ltd. Financial Statement Overview

Summary

Kawase Computer Supplies Co., Ltd. demonstrates a strong financial recovery with improved profitability, stable balance sheet metrics, and enhanced cash flow generation. The company's return to profitability and revenue growth are positive indicators, while low leverage and strong equity position provide financial stability. However, past volatility in profitability and cash flows should be considered as potential risks.

Income Statement

Kawase Computer Supplies Co., Ltd. has shown a strong recovery in its income statement metrics over the past year. The gross profit margin for 2025 was 25.85%, indicating efficient cost management. The net profit margin improved significantly to 3.54% from negative figures in previous years, reflecting a return to profitability. Revenue growth rate was 9.16% from 2024 to 2025, indicating a positive growth trajectory. EBIT and EBITDA margins also improved to 2.79% and 7.77%, respectively, showing enhanced operational efficiency. However, the company has experienced volatility in profitability in prior years, which could pose a risk.

Balance Sheet

The balance sheet of Kawase Computer Supplies Co., Ltd. is robust, with a debt-to-equity ratio of 0.25, indicating low leverage and financial stability. The return on equity (ROE) for 2025 was 4.19%, a significant improvement from previous years, suggesting effective use of equity to generate profits. The equity ratio stands at 69.84%, highlighting a strong equity base relative to total assets. These metrics suggest a solid financial position, although past fluctuations in equity and liabilities warrant cautious optimism.

Cash Flow

The cash flow statement reflects a positive trend with a free cash flow growth rate of 87.41% from 2024 to 2025, indicating improved cash generation capabilities. The operating cash flow to net income ratio is 1.21, suggesting strong cash flow relative to net income. The free cash flow to net income ratio is 1.05, further supporting the company's ability to generate cash. Despite these strengths, historical volatility in cash flows and capital expenditures should be monitored.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.83B	2.83B	2.59B	2.50B	2.50B	2.63B
Gross Profit	731.56M	732.05M	629.33M	652.29M	740.14M	743.95M
EBITDA	219.99M	219.99M	31.16M	-22.58M	64.06M	144.58M
Net Income	100.45M	100.11M	-112.97M	-136.91M	4.27M	93.92M
Balance Sheet
Total Assets	3.42B	3.42B	3.45B	3.72B	3.50B	3.62B
Cash, Cash Equivalents and Short-Term Investments	1.11B	1.11B	1.15B	1.51B	1.84B	1.92B
Total Debt	606.81M	606.81M	719.23M	816.07M	490.17M	616.99M
Total Liabilities	1.03B	1.03B	1.16B	1.33B	952.05M	1.06B
Stockholders Equity	2.39B	2.39B	2.29B	2.39B	2.55B	2.56B
Cash Flow
Free Cash Flow	0.00	104.72M	55.90M	-308.37M	62.78M	89.10M
Operating Cash Flow	0.00	120.89M	166.22M	-22.90M	101.41M	165.51M
Investing Cash Flow	0.00	-28.56M	-385.18M	-231.04M	-87.37M	41.66M
Financing Cash Flow	0.00	-129.77M	-134.46M	-41.00M	-140.96M	65.71M

Kawase Computer Supplies Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 259.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7851, the sentiment is Neutral. The current price of 259 is below the 20-day moving average (MA) of 262.45, below the 50-day MA of 259.02, and above the 200-day MA of 242.53, indicating a neutral trend. The MACD of -0.88 indicates Positive momentum. The RSI at 47.55 is Neutral, neither overbought nor oversold. The STOCH value of 38.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7851.

Kawase Computer Supplies Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7811	83 Outperform	¥17.32B	8.52	10.41%	3.50%	10.92%	170.02%
7914	76 Outperform	¥50.88B	11.00	6.36%	3.73%	1.93%	202.39%
7883	72 Outperform	¥5.44B	13.90	2.81%	2.56%	-1.10%	26.19%
7919	68 Neutral	¥3.57B	7.12	11.85%	3.61%	2.39%	-8.65%
7851	67 Neutral	¥1.23B	13.72	―	1.93%	10.54%	―
7916	60 Neutral	¥4.78B	29.68	0.40%	3.20%	-0.55%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%