Kohsai Co.Ltd. (7878) AI Stock Analysis

• Market Cap: ¥2.09B
• Dividend Yield: 3.74%
• Average Volume (3M): 35.38K
• Price to Earnings (P/E): 25.3
• Beta (1Y): 0.65
• Revenue Growth: 8.57%
• EPS Growth: -38.37%
• Country: JP
• Employees: 25
• Sector: Consumer Cyclical
• Sector Strength: 64
• Industry: Luxury Goods
• EPS (TTM): 25.47
• Shares Outstanding: 1,584,000
• 10 Day Avg. Volume: 50,870
• 30 Day Avg. Volume: 35,383
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• 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: ¥1,111.00
• Price Target Upside: -8.71% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 76 Outperform
• Price Target: ¥1,515.00 ▲(24.49%Upside)

Kohsai Co.Ltd. is in a strong financial position with robust revenue growth and profitability improvements, backed by stable technical indicators. While valuation is reasonable, the drop in free cash flow is a minor concern.

Kohsai Co.Ltd. Business Overview & Revenue Model

Company Description

Kohsai Co., Ltd. (7878) is a Japan-based company primarily engaged in the manufacturing and sale of industrial machinery and components. The company specializes in producing precision metal parts and equipment used in various sectors, including automotive, electronics, and construction. With a strong commitment to quality and innovation, Kohsai Co., Ltd. has established itself as a reliable supplier to major industries both domestically and internationally.

How the Company Makes Money

Kohsai Co., Ltd. generates revenue through the manufacturing and sale of precision metal components and industrial machinery. The company's primary revenue streams include direct sales of its products to automotive manufacturers, electronics companies, and construction firms. Key factors contributing to Kohsai's earnings include its ability to deliver high-quality components that meet the stringent requirements of its clients, as well as maintaining strong relationships with its partners. Additionally, the company may engage in strategic partnerships or collaborations to enhance its technological capabilities and expand its market reach, further supporting its revenue generation.

Kohsai Co.Ltd. Financial Statement Overview

Summary

Kohsai Co.Ltd. demonstrates strong revenue growth and improved profitability with a solid balance sheet. However, a slight decrease in net profit margin and reduced free cash flow due to increased capital expenditures indicate areas for improvement.

Income Statement

Kohsai Co.Ltd. demonstrates strong revenue growth with a 11.5% increase from the previous year. The gross profit margin improved to 18.3%, indicating efficient cost management. However, net profit margin slightly decreased to 2.2%, reflecting a need for better operational efficiency. The EBIT margin improved to 3.8%, and EBITDA margin rose to 5.2%, showcasing enhanced profitability.

Balance Sheet

The company's balance sheet shows a sound equity position with an equity ratio of 48.4%. The debt-to-equity ratio stands at 0.74, a moderate level indicating manageable leverage. Return on equity is at 6.1%, suggesting decent returns, though there is room for improvement. Overall, the balance sheet reflects stability but with potential for optimizing capital structure.

Cash Flow

Operating cash flow has improved significantly to $140.7 million, suggesting strong cash generation. However, free cash flow decreased by 48.4% due to higher capital expenditures, impacting the company's liquidity. The operating cash flow to net income ratio is 1.59, indicating healthy cash conversion. The company should focus on enhancing free cash flow to support growth initiatives.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	3.93B	3.53B	3.36B	2.99B	2.12B
Gross Profit	719.57M	600.38M	466.84M	431.64M	373.04M
EBITDA	205.16M	177.70M	110.06M	77.56M	92.99M
Net Income	88.40M	91.99M	27.75M	30.05M	24.50M
Balance Sheet
Total Assets	3.01B	2.75B	2.61B	2.46B	2.39B
Cash, Cash Equivalents and Short-Term Investments	685.48M	482.55M	448.55M	535.46M	718.39M
Total Debt	1.07B	885.85M	923.24M	682.21M	755.87M
Total Liabilities	1.55B	1.36B	1.31B	1.18B	1.13B
Stockholders Equity	1.46B	1.39B	1.30B	1.28B	1.26B
Cash Flow
Free Cash Flow	49.34M	95.56M	-304.85M	-123.42M	35.40M
Operating Cash Flow	140.69M	124.01M	-252.00M	-15.85M	61.92M
Investing Cash Flow	-102.21M	-39.91M	-25.86M	-68.45M	-44.34M
Financing Cash Flow	167.27M	-50.26M	214.05M	-88.60M	235.50M

Kohsai Co.Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1217.00
• 50DMA: Positive
• 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:7878, the sentiment is Positive. The current price of 1217 is above the 20-day moving average (MA) of 1127.75, above the 50-day MA of 1034.26, and above the 200-day MA of 1067.04, indicating a bullish trend. The MACD of 83.42 indicates Negative momentum. The RSI at 61.53 is Neutral, neither overbought nor oversold. The STOCH value of 66.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7878.

Kohsai Co.Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7878	76 Outperform	¥2.09B	25.31		3.74%	8.57%	-38.37%
2736	76 Outperform	¥2.55B	13.40		0.95%	5.68%	-60.91%
9904	76 Outperform	¥9.99B	17.55		5.36%	4.03%	13.35%
7771	67 Neutral	¥1.89B	3.49		―	6.39%	-105.12%
Sector *	63 Neutral	$17.18B	10.68	-8.50%	2.94%	1.62%	-25.72%
7810	54 Neutral	¥2.74B	37.41		0.22%	7.20%	34.29%
7872	47 Neutral	¥6.13B	―		4.68%	-1.35%	64.68%