Kensoh Co., Ltd. (7939) AI Stock Analysis

• Market Cap: ¥2.12B
• Dividend Yield: 3.7%
• Average Volume (3M): 5.86K
• Price to Earnings (P/E): 11.5
• Beta (1Y): 0.18
• Revenue Growth: 5.57%
• EPS Growth: 22.28%
• Country: JP
• Employees: 204
• Sector: Industrials
• Sector Strength: 86
• Industry: Specialty Business Services
• EPS (TTM): 4.13
• Shares Outstanding: 4,022,774
• 10 Day Avg. Volume: 12,470
• 30 Day Avg. Volume: 5,856
• 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: ¥575.00
• Price Target Upside: 1.41% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 72 Outperform
• Price Target: ¥634.00 ▲(11.82%Upside)

Kensoh Co., Ltd. shows strong technical indicators and an attractive valuation, with the stock trading above key moving averages and a low P/E ratio. However, financial performance concerns, particularly declining net income and cash flow volatility, weigh on the overall score. The absence of earnings call data and corporate events means these factors do not influence the score.

Kensoh Co., Ltd. Business Overview & Revenue Model

Company Description

Kensoh Co., Ltd. (7939) is a Japanese company primarily engaged in the manufacturing and selling of innovative thermal insulation products and materials. The company operates within the construction and building materials sector, focusing on providing high-quality, energy-efficient solutions. Kensoh's core products include thermal insulation panels, soundproofing materials, and eco-friendly construction solutions aimed at enhancing energy conservation and sustainability in the built environment.

How the Company Makes Money

Kensoh Co., Ltd. generates revenue primarily through the sale of its thermal insulation products to construction companies, contractors, and builders in both domestic and international markets. The company benefits from a diversified revenue model that includes direct sales, bulk orders for large construction projects, and partnerships with industry stakeholders. Key revenue streams involve not only product sales but also potential licensing agreements for proprietary technologies. Kensoh's commitment to sustainability has led to collaborations with governmental and environmental organizations, further enhancing its market presence and contributing positively to its earnings.

Kensoh Co., Ltd. Financial Statement Overview

Summary

Kensoh Co., Ltd. demonstrates a solid financial position with a strong equity base and consistent profit margins. Despite a decline in net profit margin and negative revenue growth, the company maintains positive cash flows and profitability. Strategic enhancements in revenue and capital management could further improve performance.

Income Statement

Kensoh Co., Ltd. shows a stable financial performance with a consistent gross profit margin of around 28.5% over the years, indicating effective cost management. Although the net profit margin decreased slightly from 5.3% in 2024 to 3.0% in 2025, the company maintains a positive EBIT and EBITDA margin. However, the revenue growth rate is negative for recent years, signaling a need for strategic initiatives to drive revenue.

Balance Sheet

The balance sheet of Kensoh Co., Ltd. reflects a strong equity base, with a debt-to-equity ratio decreasing from 0.55 in 2024 to 0.43 in 2025, indicating reduced leverage. The equity ratio remains stable around 58-56%, showing a robust financial structure. Return on equity, while slightly declining, still supports profitability. The company is well-capitalized and appears to manage its liabilities effectively.

Cash Flow

Cash flow analysis indicates improvement with a positive free cash flow in 2025 compared to negative in previous years. The operating cash flow to net income ratio suggests effective conversion of income into cash, improving from past years. However, the fluctuating investing and financing cash flows highlight potential volatility in capital management.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	5.87B	5.89B	6.02B	5.40B	5.12B
Gross Profit	1.68B	1.74B	1.80B	1.74B	1.61B
EBITDA	426.71M	421.45M	475.55M	444.26M	499.29M
Net Income	175.03M	183.94M	252.48M	186.20M	321.56M
Balance Sheet
Total Assets	5.55B	5.76B	6.06B	5.72B	5.85B
Cash, Cash Equivalents and Short-Term Investments	575.44M	610.60M	640.08M	594.97M	816.98M
Total Debt	1.40B	1.74B	1.34B	904.61M	1.23B
Total Liabilities	2.29B	2.61B	3.05B	2.91B	3.19B
Stockholders Equity	3.27B	3.15B	3.01B	2.81B	2.65B
Cash Flow
Free Cash Flow	392.75M	-440.08M	-306.78M	169.04M	194.70M
Operating Cash Flow	485.17M	-223.25M	-213.87M	269.30M	344.15M
Investing Cash Flow	-124.80M	-144.39M	-125.43M	-128.59M	207.71M
Financing Cash Flow	-405.53M	338.15M	384.41M	-362.72M	-219.19M

Kensoh Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 567.00
• 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:7939, the sentiment is Positive. The current price of 567 is above the 20-day moving average (MA) of 542.05, above the 50-day MA of 523.44, and above the 200-day MA of 521.20, indicating a bullish trend. The MACD of 13.78 indicates Negative momentum. The RSI at 64.45 is Neutral, neither overbought nor oversold. The STOCH value of 56.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7939.

Kensoh Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7914	79 Outperform	¥45.12B	11.99		5.45%	3.08%	131.08%
7946	75 Outperform	¥2.41B	39.32		1.37%	5.17%	-57.42%
7939	72 Outperform	¥2.12B	11.52		3.70%	5.57%	22.28%
7919	69 Neutral	¥3.16B	6.30		2.72%	2.39%	-8.65%
3948	66 Neutral	¥6.86B	65.12		3.40%	-15.74%	-80.43%
Sector *	65 Neutral	$10.84B	16.29	5.52%	2.09%	3.14%	-29.96%
7916	60 Neutral	¥4.35B	61.68		3.52%	0.38%	24.47%