Koyosha Inc. (7946) AI Stock Analysis

• Market Cap: ¥2.55B
• Dividend Yield: 1.68%
• Average Volume (3M): 2.35K
• Price to Earnings (P/E): 34.5
• Beta (1Y): 1.31
• Revenue Growth: 3.07%
• EPS Growth: -32.45%
• Country: JP
• Employees: 181
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 88.95
• Shares Outstanding: 850,100
• 10 Day Avg. Volume: 1,550
• 30 Day Avg. Volume: 2,350
• PEG Ratio: -0.28
• Price to Book (P/B): 0.55
• Price to Sales (P/S): 0.21
• P/FCF Ratio: -12.42
• 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: ¥3,613.00 ▲(75.39% Upside)
• Action: Reiterated Date: 02/26/26
• Date: Action: Reiterated 02/26/26

The score is driven primarily by solid underlying financial stability and steady revenue growth, tempered by weaker profitability and a sharp decline in cash flow (including negative free cash flow). Technically the trend is strong, but overbought readings increase near-term risk, and valuation appears relatively expensive with a modest dividend yield.

Positive Factors

Balance Sheet Strength

Low leverage and a >56% equity ratio provide durable financial flexibility, lowering solvency risk and enabling investment or downturn absorption without relying heavily on external financing. This capital structure supports long-term strategic optionality and creditor confidence.

Steady Revenue Growth

Consistent mid-single-digit revenue growth across consecutive years indicates stable market demand and recurring business strength. That pace supports predictable top-line expansion, aiding multi-quarter planning and reducing dependence on sporadic large contracts.

Healthy Gross and EBITDA Margins

Sustained gross margin around 21% and positive EBITDA margin suggest the company retains pricing power or cost control in core operations. These mid-term margin cushions can absorb modest revenue pressure while preserving operating cash generation potential when efficiencies are improved.

Negative Factors

Declining Profitability

A marked drop in net margin and ROE signals weakening bottom-line conversion of revenue into shareholder returns. If persistent, lower profitability limits reinvestment capacity, reduces retained earnings growth, and may force strategic trade-offs on pricing or cost structures.

Severe Cash Flow Deterioration

A sharp fall in operating cash flow and a switch to negative free cash flow reflect weaker cash conversion and elevated capex. Over months, persistently negative FCF strains liquidity, heightens reliance on financing, and constrains dividends, share buybacks, or organic investment.

Reduced Cash Conversion Efficiency

The collapse in cash conversion ratio indicates earnings are producing far less actual cash, raising concerns about quality of earnings and working capital management. Structurally poor cash conversion can increase financing costs and limit the firm's ability to fund growth internally.

Koyosha Inc. Business Overview & Revenue Model

Company Description

Koyosha Inc. engages in the planning, design, DTP, plate making, printing, digital content production, display, on-demand POP, and novelty production in Japan. The company provides wide color gamut printing, image correction, photo retouching, e-book creation service, 3D photography service, digital proofing machine, UV and solvent inkjet printing, banana paper/inkjet media, antibacterial/antivirus/deodorant functional inkjet media, functionality antibacterial varnish printing, and creators picture book services. It also offers offset and on-demand digital printing, and processing and binding services; DTP support services, such as scanning, film output for platemaking, CTP plate output, color proofreading, data production, editing, design production, and e-book production; large format inkjet output, display post-processing, changing 3D panel, cutting sheet, and copy and print services; and CD-ROM, DVD-ROM Press, CD-R, DVD-R copy, and other processing services. Koyosha Inc. was incorporated in 1949 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Koyosha Inc. generates revenue through the sale of its printing and imaging products, which include printers, ink, and related consumables. The company also derives income from providing maintenance services and technical support for its equipment. A significant portion of its revenue is attributed to partnerships with other companies in the printing and packaging industries, allowing Koyosha to expand its market reach and enhance its product offerings. Additionally, Koyosha invests in research and development to innovate new technologies, which further drives sales and customer retention in a competitive market.

Koyosha Inc. Financial Statement Overview

Summary

Revenue growth remained steady, and the balance sheet is strong with low leverage and a solid equity ratio. However, profitability weakened (net margin fell to 1.3%) and cash flow deteriorated sharply, with operating cash flow dropping and free cash flow turning negative.

Income Statement

Koyosha Inc. demonstrated a steady revenue growth rate of 5.2% from 2024 to 2025 and a 4.5% increase from 2023 to 2024, highlighting a positive growth trajectory. The gross profit margin remained healthy at approximately 21.5% in 2025, though there was a decline in net profit margin from 3.3% in 2024 to 1.3% in 2025, indicating some pressure on profitability. EBIT and EBITDA margins in 2025 were modest at 1.3% and 5.6% respectively, suggesting room for operational efficiency improvements.

Balance Sheet

The company's debt-to-equity ratio improved to 0.24 in 2025, reflecting strong financial stability and low leverage. Return on Equity (ROE) declined to 3.4% in 2025 from 7.5% in 2024, due to decreased net income. The equity ratio stood strong at 56.2% in 2025, indicating a solid capital structure with sufficient equity backing.

Cash Flow

Operating cash flow decreased significantly to ¥14.1 million in 2025 from ¥217.95 million in 2024, impacting cash flow stability. Free cash flow turned negative at -¥78.5 million in 2025, reflecting increased capital expenditures. The operating cash flow to net income ratio dropped to 0.23 in 2025 from 1.49 in 2024, indicating reduced cash conversion efficiency.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	4.71B	4.73B	4.49B	4.30B	4.06B	3.83B
Gross Profit	1.01B	1.01B	981.83M	874.96M	797.08M	662.88M
EBITDA	261.20M	265.68M	323.13M	221.59M	186.59M	103.58M
Net Income	53.79M	60.69M	146.46M	58.36M	33.80M	-112.23M
Balance Sheet
Total Assets	2.91B	3.18B	3.50B	3.59B	4.07B	4.20B
Cash, Cash Equivalents and Short-Term Investments	975.31M	1.01B	1.27B	1.27B	1.81B	1.75B
Total Debt	411.55M	433.51M	352.86M	514.00M	585.73M	661.89M
Total Liabilities	1.15B	1.39B	1.54B	1.77B	2.32B	1.97B
Stockholders Equity	1.76B	1.79B	1.96B	1.82B	1.76B	2.23B
Cash Flow
Free Cash Flow	0.00	-78.50M	-675.00K	29.66M	137.37M	130.13M
Operating Cash Flow	0.00	14.13M	217.95M	58.29M	179.97M	202.34M
Investing Cash Flow	0.00	-77.00M	97.63M	-124.34M	-103.26M	-60.12M
Financing Cash Flow	0.00	-148.57M	-161.21M	-566.96M	-76.54M	181.25M

Koyosha Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2060.00
• 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:7946, the sentiment is Positive. The current price of 2060 is below the 20-day moving average (MA) of 2408.30, below the 50-day MA of 2217.44, and above the 200-day MA of 1860.79, indicating a bullish trend. The MACD of 245.32 indicates Negative momentum. The RSI at 83.97 is Negative, neither overbought nor oversold. The STOCH value of 88.57 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7946.

Koyosha Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7811	83 Outperform	¥17.84B	8.66	―	3.62%	7.07%	79.18%
7946	71 Outperform	¥2.55B	34.49	―	1.68%	3.07%	-32.45%
7987	69 Neutral	¥16.61B	8.50	―	3.79%	-0.03%	84.08%
7914	68 Neutral	¥45.17B	13.14	―	3.71%	-0.04%	93.95%
7919	66 Neutral	¥3.64B	10.58	―	3.69%	0.62%	-24.08%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7916	61 Neutral	¥5.77B	19.83	―	2.72%	-1.30%	―