Kimoto Co., Ltd. (7908) AI Stock Analysis

• Market Cap: ¥14.15B
• Dividend Yield: 3.17%
• Average Volume (3M): 98.10K
• Price to Earnings (P/E): 17.1
• Beta (1Y): 1.12
• Revenue Growth: 0.30%
• EPS Growth: 4.85%
• Country: JP
• Employees: 460
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 3.50
• Shares Outstanding: 54,772,564
• 10 Day Avg. Volume: 93,910
• 30 Day Avg. Volume: 98,103
• PEG Ratio: 0.07
• Price to Book (P/B): 0.70
• Price to Sales (P/S): 1.16
• P/FCF Ratio: 9.13
• 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: 69 Neutral
• Price Target: ¥325.00 ▲(21.27% Upside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is primarily driven by improving profitability and strong cash flow metrics alongside a solid balance sheet with low leverage. Technicals are supportive but somewhat overheated (RSI/Stoch elevated), and valuation is moderate with a supportive dividend yield.

Positive Factors

Improving margins

Rising gross and net margins indicate sustained improvement in cost control and pricing power in core electronic materials. Higher margins provide durable earnings resilience through cycles, enabling reinvestment in R&D and preserving profitability even if volumes wobble over the next several months.

Strong cash generation

High free cash flow conversion shows the business converts accounting profit into real cash efficiently, supporting capex, dividends or debt repayment without heavy refinancing. This cash strength underpins financial flexibility and funds long‑term product development and customer support.

Conservative balance sheet

Minimal leverage and a stable capital structure reduce financial risk and give management room to fund strategic initiatives or weather downturns. An improving ROE signals better capital use; the conservative sheet supports durable operational continuity and optionality for partnerships or M&A.

Negative Factors

Declining revenue

An almost 9% revenue drop and inconsistent growth create risk that improved margins may not be sustained if volumes or market share weaken. Structural demand swings in semiconductor/display customers can pressure long‑term growth and put more reliance on margin gains to drive earnings.

FCF volatility

While FCF conversion is strong, volatility in free cash flow growth complicates planning for capex, dividends, and R&D. Episodic cash swings increase the chance of funding shortfalls during downturns and make multi‑quarter investment commitments riskier for a materials supplier.

Modest ROE

ROE remains low despite improvement, suggesting the company still generates limited returns on shareholder capital versus industrial peers. This may constrain long‑term capital attraction and signals that further operational or strategic gains are needed to materially enhance shareholder value.

Kimoto Co., Ltd. Business Overview & Revenue Model

Company Description

Kimoto Co., Ltd. engages in the manufacture and sale of various film and paper products in Japan and internationally. The company offers hard coat films for use as a surface material for membrane switches; hard coat, optical, shatter-proof decorative, and conductive films for enhancing touch screen functionality; light diffusion and reflection films for LED, OLED, and LCD displays; and separator, resin based processing, process protection, photomask protection, release, and other films for various manufacturing process needs. It also provides window decoration, release, screen printing, large format printer, inkjet output, laser printer output, offset printing, and sandblasting films for various printing and output needs; design films for decorating glass, shatter proof films, sticker films for printers, and transparent roll up screens; and conductive anti-dazzle films for camera lens parts. In addition, the company offers spatial information and image editing/system development services for 3D point group data acquired from laser scanning surveys, and 2D map data utilized for surveys and land registration. Further, it is involved in the processing of computer information, and development and sale of software; production, processing, and sale of agricultural products; sale of alcoholic beverages; and consulting and publishing businesses. Kimoto Co., Ltd. was founded in 1952 and is headquartered in Saitama, Japan.

How the Company Makes Money

Kimoto Co., Ltd. generates revenue through the sale of its specialized electronic materials to manufacturers in the semiconductor and display industries. The company’s primary revenue streams come from the production of photoresists and other related chemical products, which are sold to major tech firms and manufacturers who require high-quality materials for their production processes. Additionally, Kimoto may engage in strategic partnerships and collaborations with technology companies to develop new materials, which can enhance its market offerings and create new revenue opportunities. The demand for advanced electronic materials, driven by ongoing innovations in technology and electronics, plays a crucial role in Kimoto's earnings, as it positions the company to capitalize on market trends and customer needs.

Kimoto Co., Ltd. Financial Statement Overview

Summary

Improving profitability and margins (gross margin up to 38.38% and net margin to 8.76% in 2025) plus strong cash conversion (FCF to net income at 78.07%) support the score. Offsetting this is inconsistent top-line performance, including an 8.86% revenue decline in 2025, and some volatility in free cash flow growth.

Income Statement

Kimoto Co., Ltd. has shown a mixed performance in its income statement. The gross profit margin has improved significantly over the years, reaching 38.38% in 2025 from 23.79% in 2023, indicating better cost management. The net profit margin has also improved to 8.76% in 2025 from negative margins in previous years, showcasing a turnaround in profitability. However, the revenue growth rate has been inconsistent, with a notable decline of 8.86% in 2025. The EBIT and EBITDA margins have improved, reflecting operational efficiency, but the volatility in revenue growth poses a risk.

Balance Sheet

The balance sheet of Kimoto Co., Ltd. is relatively strong, with a low debt-to-equity ratio indicating minimal leverage, which reduces financial risk. The return on equity has improved to 5.25% in 2025 from negative figures in 2023, reflecting better utilization of equity. The equity ratio remains stable, suggesting a solid capital structure. However, the company should focus on maintaining consistent ROE growth to enhance shareholder value.

Cash Flow

Kimoto Co., Ltd. has shown strong cash flow performance, with a significant improvement in operating cash flow and free cash flow. The free cash flow to net income ratio is robust at 78.07% in 2025, indicating efficient cash generation relative to net income. The operating cash flow to net income ratio is also healthy, suggesting good cash flow management. However, the company experienced fluctuations in free cash flow growth, which could impact future liquidity.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	11.27B	11.29B	9.91B	9.62B	12.23B	11.56B
Gross Profit	4.32B	4.33B	3.17B	2.29B	3.56B	3.06B
EBITDA	1.60B	1.95B	714.00M	-115.00M	1.30B	1.16B
Net Income	840.00M	989.00M	335.00M	-567.00M	684.00M	492.00M
Balance Sheet
Total Assets	22.91B	23.05B	22.60B	21.56B	23.82B	22.83B
Cash, Cash Equivalents and Short-Term Investments	12.43B	12.88B	13.17B	13.11B	14.15B	12.63B
Total Debt	23.00M	7.00M	10.00M	4.00M	6.00M	0.00
Total Liabilities	4.04B	4.21B	4.44B	3.87B	5.16B	4.87B
Stockholders Equity	18.86B	18.84B	18.16B	17.69B	18.66B	17.96B
Cash Flow
Free Cash Flow	0.00	1.44B	134.00M	-555.00M	1.45B	929.00M
Operating Cash Flow	0.00	1.84B	514.00M	-190.00M	1.57B	1.25B
Investing Cash Flow	0.00	-1.38B	-642.00M	-528.00M	-28.00M	-271.00M
Financing Cash Flow	0.00	-573.00M	-278.00M	-576.00M	-235.00M	-427.00M

Kimoto Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 268.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7908, the sentiment is Positive. The current price of 268 is below the 20-day moving average (MA) of 271.50, above the 50-day MA of 267.68, and above the 200-day MA of 249.63, indicating a bullish trend. The MACD of 7.04 indicates Negative momentum. The RSI at 70.57 is Negative, neither overbought nor oversold. The STOCH value of 83.13 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7908.

Kimoto Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7927	78 Outperform	¥17.82B	9.80	―	5.18%	4.04%	12.46%
7908	69 Neutral	¥14.15B	17.15	―	3.17%	0.30%	4.85%
6928	69 Neutral	¥22.85B	21.34	―	2.92%	9.64%	163.46%
6919	66 Neutral	¥11.86B	52.79	―	5.75%	-0.23%	-32.32%
6772	62 Neutral	¥9.88B	49.02	―	1.78%	-1.17%	-42.36%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%