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

• Market Cap: ¥2.10B
• Dividend Yield: 3.74%
• Average Volume (3M): 5.91K
• Price to Earnings (P/E): 11.4
• Beta (1Y): 0.16
• Revenue Growth: 5.57%
• EPS Growth: 22.28%
• Country: JP
• Employees: 204
• Sector: Industrials
• Sector Strength: 79
• Industry: Specialty Business Services
• EPS (TTM): 4.13
• Shares Outstanding: 4,022,774
• 10 Day Avg. Volume: 2,710
• 30 Day Avg. Volume: 5,910
• 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: ¥634.00
• Price Target Upside: 13.01% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: ¥634.00 ▲(13.01% 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 stable gross profit margins and a strong equity position, indicating solid cost management and financial stability. However, declining net income and inconsistent revenue growth raise concerns about future profitability. The balance sheet remains robust, but cash flow volatility suggests potential challenges in cash management.

Income Statement

Kensoh Co., Ltd. shows stable gross profit margins around 28-30% over the years, indicating consistent cost management. However, net profit margins have been declining, with a notable drop in net income from 2021 to 2025. Revenue growth has been inconsistent, with a slight decline in recent years, which could be a concern for future profitability. The EBIT and EBITDA margins are relatively stable, but the downward trend in net income suggests potential challenges in maintaining profitability.

Balance Sheet

The company maintains a healthy equity ratio of over 50%, indicating strong financial stability. The debt-to-equity ratio is moderate, suggesting manageable leverage. Return on equity has decreased over the years, reflecting the decline in net income. Overall, the balance sheet shows a stable financial position, but the declining ROE could be a concern if the trend continues.

Cash Flow

Kensoh Co., Ltd. has experienced fluctuations in free cash flow, with negative free cash flow in several years, indicating potential cash management issues. The operating cash flow to net income ratio is inconsistent, reflecting volatility in cash generation relative to earnings. While there was a recovery in free cash flow in 2025, the historical volatility suggests potential challenges in sustaining positive cash flow.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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	432.50M	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: 561.00
• 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:7939, the sentiment is Positive. The current price of 561 is below the 20-day moving average (MA) of 563.55, above the 50-day MA of 546.04, and above the 200-day MA of 526.15, indicating a neutral trend. The MACD of 4.03 indicates Positive momentum. The RSI at 52.39 is Neutral, neither overbought nor oversold. The STOCH value of 68.06 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	76 Outperform	¥50.68B	10.96		4.84%	1.93%	202.39%
7939	72 Outperform	¥2.10B	11.40		3.74%	5.57%	22.28%
7919	68 Neutral	¥3.42B	6.81		3.77%	2.39%	-8.65%
3948	66 Neutral	¥7.26B	39.92		3.17%	-3.04%	-10.38%
7946	66 Neutral	¥1.25B	23.29		1.85%	3.75%	-61.56%
Sector *	64 Neutral	$10.76B	15.86	7.74%	2.00%	2.63%	-15.75%
7916	60 Neutral	¥4.58B	28.44		3.34%	-0.55%	―