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

• Market Cap: ¥12.92B
• Dividend Yield: 3.17%
• Average Volume (3M): 98.10K
• Price to Earnings (P/E): 17.9
• Beta (1Y): 1.08
• 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: 71 Outperform
• Price Target: ¥320.00 ▲(19.40% Upside)
• Action: Upgraded Date: 03/06/26
• Date: Action: Upgraded 03/06/26

The score is driven primarily by improving profitability, strong cash conversion, and a low-leverage balance sheet. Technicals are supportive with price above key moving averages, but momentum indicators are only neutral. Valuation is reasonable with a moderate P/E and a mid-level dividend yield, tempered by uneven revenue performance.

Positive Factors

Strong cash generation

A high free cash flow to net income ratio (78.07%) signals durable cash conversion that supports reinvestment, R&D, dividends and debt service. Over 2-6 months this underpins financial flexibility and resilience through industry cycles, enabling strategic investments without heavy financing.

Improved profitability and margins

Material improvement in gross and net margins reflects better cost management, pricing power or favorable product mix in specialty electronic materials. Sustained margin expansion increases operational leverage, enhances free cash generation, and strengthens earnings quality over the medium term.

Low leverage and solid balance sheet

A low leverage profile and stable capital structure reduce refinancing and solvency risk, providing capacity for capex and R&D. Improved ROE from negative levels shows better equity utilization, supporting durable financial stability and strategic optionality across business cycles.

Negative Factors

Inconsistent revenue growth

Recurrent top-line volatility, including an 8.86% decline in 2025 and multi-year negative revenue growth, undermines predictability of earnings and capacity to scale fixed-cost investments. Over months this constrains strategic planning and can pressure margins and capital allocation choices.

Volatility in free cash flow growth

Although FCF conversion is strong, variability in free cash flow growth reduces reliability of internal funding for expansion or sustained dividends. Persistent FCF swings complicate multi-quarter investment planning and may force reliance on external financing during downturns.

Cyclical end-market exposure

Dependency on semiconductors and display supply cycles exposes revenue to capex swings and end‑market downturns. Even with niche products, demand cyclicality can cause prolonged revenue softness and inventory-driven order variability, challenging medium-term revenue stability.

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

Financials are solid overall: profitability has turned positive with improved gross and net margins, leverage is low with a stable capital structure, and cash generation is strong (free cash flow to net income at 78.07%). The main risk is inconsistent top-line performance, including an 8.86% revenue decline in 2025 and fluctuations 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	23.16B	22.73B	21.64B	23.89B	22.89B
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	7.00M	3.00M	4.00M	0.00
Total Liabilities	4.04B	4.33B	4.58B	3.95B	5.23B	4.93B
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: Positive
• RSI: Neutral
• STOCH: Neutral

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 283.20, below the 50-day MA of 275.28, and above the 200-day MA of 253.39, indicating a bullish trend. The MACD of 1.70 indicates Positive momentum. The RSI at 53.24 is Neutral, neither overbought nor oversold. The STOCH value of 37.64 is Neutral, 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
6850	80 Outperform	¥27.43B	13.32	―	2.89%	6.15%	2.98%
6866	79 Outperform	¥101.26B	15.13	―	3.23%	7.28%	4.16%
6848	73 Outperform	¥18.09B	26.81	―	2.59%	1.66%	-12.21%
6853	73 Outperform	¥19.30B	18.81	―	2.93%	-1.58%	12.24%
7908	71 Outperform	¥12.92B	17.91	―	3.17%	0.30%	4.85%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6858	59 Neutral	¥9.23B	16.72	―	2.45%	15.66%	-69.17%