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

• Market Cap: ¥1.19B
• Dividend Yield: 1.98%
• Average Volume (3M): 9.07K
• Price to Earnings (P/E): 12.6
• Beta (1Y): 0.65
• Revenue Growth: 7.89%
• EPS Growth: N/A
• Country: JP
• Employees: 98
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 2.57
• Shares Outstanding: 5,160,000
• 10 Day Avg. Volume: 3,830
• 30 Day Avg. Volume: 9,073
• PEG Ratio: -0.06
• Price to Book (P/B): 0.46
• Price to Sales (P/S): 0.39
• P/FCF Ratio: 10.52
• 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: 67 Neutral
• Price Target: ¥268.00 ▲(8.94% Upside)

The overall stock score of 66.5 reflects a strong financial performance with a solid recovery in profitability and stable balance sheet metrics. However, technical indicators suggest a bearish trend, which tempers the positive financial outlook. The valuation is reasonable, providing a balanced view of the stock's potential.

Positive Factors

Revenue Growth

The consistent revenue growth indicates a positive trajectory, suggesting that the company is effectively expanding its market reach and product adoption, which is crucial for long-term sustainability.

Balance Sheet Health

A low debt-to-equity ratio highlights financial stability and provides the company with flexibility to invest in growth opportunities without the burden of excessive debt.

Cash Flow Generation

Strong cash flow generation enhances the company's ability to reinvest in its business, pay down debt, and return capital to shareholders, supporting long-term financial health.

Negative Factors

Profitability Volatility

Historical fluctuations in profitability may indicate underlying business risks or market challenges that could affect future financial performance and stability.

Operational Efficiency Risks

Inconsistent operational efficiency may impact the company's ability to maintain margins and profitability, potentially affecting its competitive position in the market.

Cash Flow Volatility

Volatile cash flows can lead to uncertainty in funding operations and investments, potentially impacting the company's ability to sustain growth and meet financial obligations.

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

Company Description

Kawase Computer Supplies Co., Ltd. (7851) is a prominent player in the technology sector, specializing in the manufacturing and distribution of computer peripherals and supplies. The company offers a wide range of products, including printers, ink cartridges, and other essential accessories that cater to both individual consumers and businesses. With a focus on innovation and quality, Kawase aims to enhance the productivity and efficiency of its clients through reliable technological solutions.

How the Company Makes Money

Kawase Computer Supplies Co., Ltd. generates revenue primarily through the sales of its computer peripherals and supplies. The company operates on a business-to-business model, supplying products to retail outlets and commercial enterprises, which constitutes a major portion of its revenue. Additionally, Kawase profits from direct sales to consumers via online platforms and retail stores. Key revenue streams include the sale of printers, ink cartridges, and other accessories, with recurring income from consumables such as ink and toner. Strategic partnerships with major retailers and online marketplaces enhance its distribution capabilities, contributing to increased sales volume and market reach. Seasonal promotions and bulk purchase discounts further stimulate sales, ensuring a steady flow of income.

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	2.88B	2.83B	2.59B	2.50B	2.50B	2.63B
Gross Profit	734.71M	732.05M	629.33M	652.29M	740.14M	743.95M
EBITDA	207.53M	219.99M	31.16M	-22.58M	64.06M	144.58M
Net Income	88.31M	100.11M	-112.97M	-136.91M	4.27M	93.92M
Balance Sheet
Total Assets	3.47B	3.42B	3.45B	3.72B	3.50B	3.62B
Cash, Cash Equivalents and Short-Term Investments	1.10B	1.11B	1.15B	1.51B	1.84B	1.92B
Total Debt	318.34M	606.81M	719.23M	816.07M	490.17M	616.99M
Total Liabilities	1.06B	1.03B	1.16B	1.33B	952.05M	1.06B
Stockholders Equity	2.41B	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: Negative
• Last Price: 246.00
• 50DMA: Positive
• 100DMA: Negative
• 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:7851, the sentiment is Negative. The current price of 246 is below the 20-day moving average (MA) of 253.75, below the 50-day MA of 251.70, and below the 200-day MA of 248.25, indicating a neutral trend. The MACD of -0.17 indicates Negative momentum. The RSI at 49.59 is Neutral, neither overbought nor oversold. The STOCH value of 69.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥16.19B	8.88	―	3.77%	7.07%	79.18%
7883	71 Outperform	¥5.44B	15.45	―	2.56%	-0.82%	29.25%
7914	69 Neutral	¥49.24B	10.64	―	4.00%	-0.04%	93.95%
7919	68 Neutral	¥3.28B	7.11	―	3.89%	0.62%	-24.08%
7851	67 Neutral	¥1.19B	12.63	―	1.98%	7.89%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7916	61 Neutral	¥5.21B	9.59	―	2.77%	-1.30%	―