Komatsu Wall Industry Co., Ltd. (7949) AI Stock Analysis

• Market Cap: ¥46.91B
• Dividend Yield: 3.74%
• Average Volume (3M): 60.87K
• Price to Earnings (P/E): 14.3
• Beta (1Y): 0.99
• Revenue Growth: 3.70%
• EPS Growth: 12.26%
• Country: JP
• Employees: 978
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): 47.87
• Shares Outstanding: 19,721,980
• 10 Day Avg. Volume: 44,670
• 30 Day Avg. Volume: 60,870
• PEG Ratio: -4.41
• Price to Book (P/B): 0.71
• Price to Sales (P/S): 0.60
• P/FCF Ratio: 13.35
• 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: ¥3,169.00 ▲(15.45% Upside)
• Action: Reiterated Date: 10/29/25
• Date: Action: Reiterated 10/29/25

Komatsu Wall Industry's strong financial performance, characterized by robust revenue growth and low leverage, is the primary driver of its stock score. The technical analysis indicates mixed short-term signals but suggests potential long-term strength. The valuation is fair, with a reasonable P/E ratio and attractive dividend yield, supporting a balanced investment appeal.

Positive Factors

Low leverage / strong balance sheet

A low debt-to-equity ratio and strong equity base give Komatsu Wall lasting financial flexibility. This reduces refinancing and interest-rate risk during construction downturns, enables self-funding of installation projects and capex, supports competitive bidding, and preserves strategic optionality.

Operating cash flow strength

Consistent operating cash generation that exceeds net income and positive free cash flow underpin durable funding for working capital, maintenance capex, and dividends. Reliable cash conversion reduces dependence on external financing and supports reinvestment in product and installation capabilities.

Consistent revenue growth & margins

Sustained revenue gains and healthy gross margins indicate structural demand for partition systems and effective cost control. The combined product-plus-installation model supports recurring project work, customer stickiness, and pricing power, helping maintain profitability across business cycles.

Negative Factors

Variable net profit margin

Variability in net margins suggests operating-cost or SG&A volatility that could erode returns over time. If not addressed, inconsistent margins reduce earnings predictability, limit reinvestment capacity, and make results sensitive to project mix, labor and material cost swings.

Free cash flow / capex volatility

Volatile free cash flow and uneven capex raise the risk of funding stress in downcycles and complicate long-term planning. Fluctuations can force opportunistic external financing or cutbacks in maintenance and growth investments, weakening operational resilience and capacity expansion.

End-market cyclicality

Revenue dependence on office, commercial and renovation cycles exposes Komatsu Wall to macro and cyclical construction swings. Economic slowdowns or lower capex by tenants can sharply reduce orders, underutilize installation capacity, and pressure margins until the construction cycle recovers.

Komatsu Wall Industry Co., Ltd. Business Overview & Revenue Model

Company Description

Komatsu Wall Industry Co., Ltd. engages in the design, manufacture, construction, sale, and service of movable partitions, and walls in Japan. Its products include moving partitions, movable partitions, school partitions, steel lightweight doors, interior metal works, low partitions, and toilet booths. Komatsu Wall Industry Co., Ltd. was founded in 1968 and is headquartered in Komatsu, Japan.

How the Company Makes Money

Komatsu Wall Industry makes money mainly by selling interior partition products and providing related construction/installation services for building interiors. Its revenue model typically combines (1) product revenue from supplying partition systems (e.g., movable partitions and other wall/partition components) for new construction and renovation projects, and (2) service revenue from on-site installation, fitting, and project work that accompanies delivery of those products. Demand and earnings are therefore closely linked to non-residential construction and renovation cycles (such as office fit-outs, commercial facility refurbishments, and reconfiguration projects), where customers purchase partitions to create flexible layouts and may contract the company (or its designated installers) for installation and related works. Specific details such as segment revenue breakdowns, named major customers, pricing structure, or material partnerships are null.

Komatsu Wall Industry Co., Ltd. Financial Statement Overview

Summary

Komatsu Wall Industry exhibits strong financial health with consistent revenue growth, low leverage, and solid asset management. While profitability margins and cash flow management can be improved, the overall financial trajectory is positive, positioning the company well for sustainable growth in the construction industry.

Income Statement

Komatsu Wall Industry has demonstrated solid revenue growth over the years, with a notable increase from 2021 to 2025. The gross profit margin remains strong, indicating effective cost management. However, the net profit margin has shown slight variability, highlighting potential areas for improvement in managing operating expenses.

Balance Sheet

The company maintains a healthy balance sheet with a low debt-to-equity ratio, suggesting prudent financial management and low financial leverage. Consistently strong equity ratio reflects a solid asset base relative to liabilities, enhancing financial stability. Return on equity is satisfactory, but there is room to optimize profitability further.

Cash Flow

Operating cash flow is strong and consistently exceeds net income, indicating effective cash management. The free cash flow remains positive, supporting potential reinvestment opportunities. However, fluctuating free cash flow growth rates and capital expenditures suggest potential volatility in cash flow management.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	45.04B	44.62B	43.55B	37.77B	34.54B	33.56B
Gross Profit	16.02B	15.23B	14.28B	11.98B	10.88B	11.37B
EBITDA	4.86B	4.80B	4.77B	3.35B	2.85B	3.37B
Net Income	2.71B	2.65B	2.77B	1.63B	1.24B	1.62B
Balance Sheet
Total Assets	45.99B	46.91B	47.61B	44.89B	42.28B	41.69B
Cash, Cash Equivalents and Short-Term Investments	16.03B	16.71B	17.64B	15.58B	15.34B	14.12B
Total Debt	358.00M	189.00M	204.00M	195.00M	0.00	0.00
Total Liabilities	8.62B	9.11B	9.54B	8.66B	6.88B	6.75B
Stockholders Equity	37.37B	37.79B	38.07B	36.23B	35.40B	34.94B
Cash Flow
Free Cash Flow	0.00	2.00B	3.36B	1.09B	2.02B	2.30B
Operating Cash Flow	0.00	3.33B	4.27B	1.68B	2.87B	3.26B
Investing Cash Flow	0.00	-469.00M	-1.17B	-636.00M	-1.53B	-697.00M
Financing Cash Flow	0.00	-2.73B	-1.06B	-810.00M	-805.00M	-804.00M

Komatsu Wall Industry Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2745.00
• 50DMA: Negative
• 100DMA: Negative
• 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:7949, the sentiment is Negative. The current price of 2745 is below the 20-day moving average (MA) of 2843.70, below the 50-day MA of 2876.38, and above the 200-day MA of 2584.66, indicating a neutral trend. The MACD of -46.21 indicates Positive momentum. The RSI at 39.97 is Neutral, neither overbought nor oversold. The STOCH value of 22.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7949.

Komatsu Wall Industry Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7949	77 Outperform	¥46.91B	14.35	―	3.74%	3.70%	12.26%
7943	66 Neutral	¥104.70B	13.03	―	3.53%	-0.58%	-46.15%
5930	66 Neutral	¥126.22B	10.42	12.89%	3.40%	2.98%	41.11%
5262	64 Neutral	¥62.87B	20.20	―	1.49%	-8.92%	1.67%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5936	63 Neutral	¥5.96B	4.98	―	4.13%	2.76%	-10.23%
5938	50 Neutral	¥468.86B	16.11	1.44%	4.80%	0.68%	―