Koyosha Inc. (7946) AI Stock Analysis

• Market Cap: ¥3.10B
• Dividend Yield: 1.68%
• Average Volume (3M): 2.35K
• Price to Earnings (P/E): 5.8
• Beta (1Y): 1.41
• 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): 0.54
• 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: 77 Outperform
• Price Target: ¥863.00 ▼(-58.11% Downside)
• Action: Reiterated Date: 03/20/26
• Date: Action: Reiterated 03/20/26

The score is driven primarily by solid financial stability and very attractive valuation (low P/E and strong dividend yield). These positives are partly offset by weaker profitability and a significant decline in operating/free cash flow, while technicals remain constructive but somewhat stretched due to a high RSI.

Positive Factors

Low leverage / strong capital structure

A low debt-to-equity ratio and a 56.2% equity ratio provide durable financial stability, lowering default risk and preserving borrowing capacity. This structural strength supports sustained investment, dividend payments, or opportunistic M&A over the next several months.

Steady revenue growth

Consistent mid-single-digit top-line growth indicates steady market demand and gradual expansion of sales. Such persistent revenue increases provide a base for margin recovery and scale benefits if management controls costs and invests in growth initiatives.

Resilient gross margins

A roughly 21.5% gross margin shows the business has sustainable unit economics, enabling it to absorb some input cost volatility. Strong gross margins are a durable buffer for operating profit improvement if SG&A and overhead are optimized.

Negative Factors

Declining net profitability

A sharp decline in net margin signals persistent pressure on bottom-line profitability from higher costs, pricing or one-off items. This weakens retained earnings and constrains reinvestment and dividend capacity unless margins recover through structural cost or pricing actions.

Severe cash flow deterioration

A collapse in operating cash flow and a negative free cash flow position materially reduce financial flexibility. Over several months this can force reliance on external funding, delay capex or dividends, and limit the firm's ability to invest in growth initiatives or weather cyclical downside.

Weakened return on equity

A halving of ROE reflects diminished effectiveness in generating profits from shareholder capital. Persistently lower ROE reduces investor returns and indicates that the company may struggle to fund growth internally, increasing pressure to 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

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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 generation 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	203.61M	220.40M	207.34M	161.94M	108.68M	15.47M
Net Income	54.46M	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	-3.00K	33.44M	167.15M	134.43M
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: 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 633.35, above the 50-day MA of 518.50, and above the 200-day MA of 399.80, indicating a bullish trend. The MACD of 42.77 indicates Negative momentum. The RSI at 71.92 is Negative, neither overbought nor oversold. The STOCH value of 72.86 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
7946	77 Outperform	¥3.10B	5.76	―	1.68%	3.07%	-32.45%
3958	70 Outperform	¥3.27B	5.78	―	3.30%	-3.41%	-24.95%
7914	68 Neutral	¥41.21B	7.42	―	3.71%	-0.04%	93.95%
7919	66 Neutral	¥3.61B	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	¥5.60B	-22.35	―	2.72%	-1.30%	―
3948	53 Neutral	¥6.78B	45.76	―	2.94%	-2.81%	57.37%