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Kawase Computer Supplies Co., Ltd. (JP:7851)
:7851
Japanese Market
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Kawase Computer Supplies Co., Ltd. (7851) AI Stock Analysis

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JP:7851

Kawase Computer Supplies Co., Ltd.

(7851)

Rating:69Neutral
Price Target:
¥273.00
▲(2.25% Upside)
Kawase Computer Supplies Co., Ltd. has a solid financial foundation with a strong recovery in profitability and stable balance sheet metrics, contributing significantly to the overall score. Technical analysis presents mixed signals, with potential short-term weakness but also a possible buying opportunity due to oversold conditions. Valuation metrics indicate a fair valuation with a modest dividend yield, providing a balanced risk-reward profile.

Kawase Computer Supplies Co., Ltd. (7851) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionKawase 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 MoneyKawase 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
75
Positive
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
80
Positive
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
70
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.83B2.83B2.59B2.50B2.50B2.63B
Gross Profit731.56M732.05M629.33M652.29M740.14M743.95M
EBITDA219.99M219.99M31.16M-22.58M64.06M144.58M
Net Income100.45M100.11M-112.97M-136.91M4.27M93.92M
Balance Sheet
Total Assets3.42B3.42B3.45B3.72B3.50B3.62B
Cash, Cash Equivalents and Short-Term Investments1.11B1.11B1.15B1.51B1.84B1.92B
Total Debt606.81M606.81M719.23M816.07M490.17M616.99M
Total Liabilities1.03B1.03B1.16B1.33B952.05M1.06B
Stockholders Equity2.39B2.39B2.29B2.39B2.55B2.56B
Cash Flow
Free Cash Flow0.00104.72M55.90M-308.37M62.78M89.10M
Operating Cash Flow0.00120.89M166.22M-22.90M101.41M165.51M
Investing Cash Flow0.00-28.56M-385.18M-231.04M-87.37M41.66M
Financing Cash Flow0.00-129.77M-134.46M-41.00M-140.96M65.71M

Kawase Computer Supplies Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price267.00
Price Trends
50DMA
255.16
Positive
100DMA
248.80
Positive
200DMA
238.81
Positive
Market Momentum
MACD
3.52
Negative
RSI
62.28
Neutral
STOCH
64.17
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7851, the sentiment is Positive. The current price of 267 is above the 20-day moving average (MA) of 261.45, above the 50-day MA of 255.16, and above the 200-day MA of 238.81, indicating a bullish trend. The MACD of 3.52 indicates Negative momentum. The RSI at 62.28 is Neutral, neither overbought nor oversold. The STOCH value of 64.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7851.

Kawase Computer Supplies Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
83
Outperform
¥17.40B8.56
3.32%10.92%170.02%
76
Outperform
¥50.68B10.96
4.84%1.93%202.39%
71
Outperform
¥5.32B13.58
2.33%-1.10%26.19%
69
Neutral
¥1.26B14.15
1.87%10.54%
68
Neutral
¥3.42B6.81
3.77%2.39%-8.65%
64
Neutral
$10.84B16.108.24%1.99%2.74%-14.89%
60
Neutral
¥4.58B28.44
3.34%-0.55%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7851
Kawase Computer Supplies Co., Ltd.
267.00
48.65
22.28%
JP:7811
Nakamoto Packs Co. Ltd.
1,951.00
406.62
26.33%
JP:7883
Sun Messe Co., Ltd.
343.00
-25.25
-6.86%
JP:7914
Kyodo Printing Co., Ltd.
1,548.00
691.56
80.75%
JP:7916
Mitsumura Printing Co., Ltd.
1,496.00
-3.58
-0.24%
JP:7919
Nozaki Insatsu Shigyo Co., Ltd.
199.00
51.00
34.46%
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 28, 2025