Kohsai Co.Ltd. (7878) AI Stock Analysis

• Market Cap: ¥1.92B
• Dividend Yield: 3.96%
• Average Volume (3M): 14.68K
• Price to Earnings (P/E): 23.3
• Beta (1Y): 0.69
• Revenue Growth: 8.57%
• EPS Growth: -38.37%
• Country: JP
• Employees: 25
• Sector: Consumer Cyclical
• Sector Strength: 80
• Industry: Luxury Goods
• EPS (TTM): 25.47
• Shares Outstanding: 1,584,000
• 10 Day Avg. Volume: 3,050
• 30 Day Avg. Volume: 14,680
• 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: ¥1,329.00
• Price Target Upside: 8.05% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 66 Neutral
• Price Target: ¥1,329.00 ▲(8.05% Upside)

Kohsai Co.Ltd. is in a solid financial position with strong revenue growth and profitability. However, technical indicators suggest bearish momentum, and the stock is moderately valued. The attractive dividend yield adds to its appeal, but the decline in free cash flow needs attention.

Kohsai Co.Ltd. Business Overview & Revenue Model

Company Description

Kohsai Co., Ltd. (7878) is a Japanese company engaged in the manufacturing and sale of precision components and materials. The company operates in sectors such as electronics, automotive, and industrial machinery, providing high-quality components and materials essential for the production and functioning of advanced machinery and devices. Kohsai is known for its innovation and commitment to quality, serving a diverse range of industries with its specialized products.

How the Company Makes Money

Kohsai Co., Ltd. makes money primarily through the production and sale of precision components and materials. The company's revenue streams include the sale of its products to manufacturers in the electronics, automotive, and industrial machinery sectors. Kohsai's business model relies on its ability to deliver high-quality and reliable components that meet the stringent requirements of its clients. Additionally, the company may engage in strategic partnerships with other firms to enhance its product offerings and expand its market reach. Factors such as technological innovation, manufacturing efficiency, and a strong customer base contribute significantly to its earnings.

Kohsai Co.Ltd. Financial Statement Overview

Summary

Kohsai Co.Ltd. shows strong revenue growth and improved profitability with a stable balance sheet. However, the decline in free cash flow and the need for better operational efficiency are 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: Negative
• Last Price: 1230.00
• 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:7878, the sentiment is Negative. The current price of 1230 is below the 20-day moving average (MA) of 1305.55, below the 50-day MA of 1258.50, and above the 200-day MA of 1096.19, indicating a neutral trend. The MACD of -15.28 indicates Positive momentum. The RSI at 45.95 is Neutral, neither overbought nor oversold. The STOCH value of 59.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7878.

Kohsai Co.Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9904	72 Outperform	¥9.99B	20.67		5.36%	3.88%	0.84%
7771	69 Neutral	¥2.25B	3.49		―	-1.41%	-155.66%
7878	66 Neutral	¥1.92B	23.29		3.96%	8.57%	-38.37%
2736	62 Neutral	¥2.17B	11.40		1.16%	5.68%	-60.91%
Sector *	61 Neutral	$18.02B	12.77	-0.74%	3.01%	1.30%	-13.03%
7872	56 Neutral	¥6.36B	―		4.52%	-1.15%	47.80%
7810	54 Neutral	¥2.76B	37.41		0.22%	7.20%	34.29%