Koyosha Inc. (7946) AI Stock Analysis

• Market Cap: ¥2.73B
• Dividend Yield: 1.68%
• Average Volume (3M): 2.35K
• Price to Earnings (P/E): 5.8
• Beta (1Y): 1.32
• Revenue Growth: 3.07%
• EPS Growth: -32.45%
• Country: JP
• Employees: 181
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 17.79
• Shares Outstanding: 4,250,500
• 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: ¥740.00 ▼(-64.08% Downside)
• 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

Steady Revenue Growth

Consistent mid-single-digit revenue growth over successive years indicates stable demand and execution in the company's niche. That persistence supports predictable top-line expansion, enabling planning for reinvestment and signaling resilience in core services across economic cycles.

Low Leverage / Strong Capital Structure

A low debt-to-equity ratio and strong equity ratio provide durable financial flexibility, lowering refinancing and solvency risk. This capital structure supports investment through downturns, helps preserve credit optionality, and reduces vulnerability to interest rate shocks.

Healthy Gross Margin

A healthy gross margin implies the business retains meaningful value after direct costs, supporting long-term pricing power or margin cushions. Even with modest operating margins, solid gross profitability underpins potential for operating leverage if SG&A efficiency improves.

Negative Factors

Falling Net Profitability

A sharp drop in net margin signals pressure on the firm's ability to convert revenue into shareholder earnings. If sustained, weaker net profitability limits retained earnings for reinvestment, reduces buffer against shocks, and may reflect structural cost or pricing challenges needing strategic fixes.

Severe Cash Flow Deterioration

A material decline in operating cash flow and negative free cash flow indicate cash generation has weakened and capital spending outpaced cash from operations. This reduces internal funding for growth, raises external financing needs, and increases execution risk over the medium term.

Declining Return on Equity

A falling ROE reflects reduced efficiency in converting equity into profits, potentially from margin compression or asset underutilization. Persistently lower ROE undermines long-term shareholder returns and suggests management must improve operating performance or capital allocation.

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: Neutral
• STOCH: Neutral

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 above the 20-day moving average (MA) of 546.87, above the 50-day MA of 474.55, and above the 200-day MA of 382.55, indicating a bullish trend. The MACD of 70.05 indicates Negative momentum. The RSI at 65.91 is Neutral, neither overbought nor oversold. The STOCH value of 44.70 is Neutral, 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	¥17.46B	6.60	―	3.62%	7.07%	79.18%
7946	71 Outperform	¥2.73B	5.76	―	1.68%	3.07%	-32.45%
7987	69 Neutral	¥16.36B	6.15	―	3.79%	-0.03%	84.08%
7914	68 Neutral	¥43.35B	7.42	―	3.71%	-0.04%	93.95%
7919	66 Neutral	¥3.66B	6.84	―	3.69%	0.62%	-24.08%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7916	61 Neutral	¥5.74B	-22.35	―	2.72%	-1.30%	―