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

• Market Cap: ¥50.18B
• Dividend Yield: 3.74%
• Average Volume (3M): 60.87K
• Price to Earnings (P/E): 16.9
• Beta (1Y): 0.95
• 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: ¥3,218.00 ▲(17.23% Upside)

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 Financial Leverage

Persistently low leverage and a strong equity ratio give the company lasting financial flexibility. This reduces bankruptcy risk in downturns, supports capital investment or M&A without heavy borrowing, and underpins long-term stability for construction cycle exposure.

Consistent Revenue Growth

Sustained top-line expansion indicates secular demand for partition and interior solutions and suggests effective commercial execution. Over a multi-quarter horizon this supports operating leverage, scale in installation services, and durable cash generation versus peers.

Robust Operating Cash Flow

Consistently positive OCF above reported earnings and positive FCF provide a durable funding source for reinvestment, maintenance capex, and working capital. This reduces reliance on external financing and supports steady operational investments over time.

Negative Factors

Cyclical Revenue Exposure

Revenue dependence on office, commercial and renovation cycles creates structural sensitivity to macro and property-market downturns. Multi-month to multi-quarter weakness in non-residential construction can materially depress order flow and utilization for installations.

Net Margin Variability

Variability in net margins signals exposure to cost-pressure or pricing volatility in materials and installation services. Over time inconsistent margins impair earnings predictability, constrain reinvestment, and require management action to stabilize operating expense control.

Volatile Free Cash Flow & Capex

Variation in FCF and capex implies planning uncertainty for maintenance and growth investments. Persistent volatility can force stop-start investment cycles, raise short-term financing needs, and complicate dividend or buyback policies, weakening long-term strategic execution.

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 Co., Ltd. generates revenue primarily through the sale of its core products, including wall panels and other construction materials. The company operates a business model that capitalizes on both direct sales to construction companies and partnerships with builders and architects, allowing for a steady stream of orders. Additionally, the company may offer customized solutions and services, further enhancing its value proposition and revenue potential. Strategic partnerships with key players in the construction industry and participation in large-scale projects also serve as significant revenue drivers, enabling the company to secure long-term contracts and increase its market presence.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	45.04B	44.62B	43.55B	37.77B	34.54B	33.56B
Gross Profit	16.02B	15.76B	14.75B	12.41B	11.30B	11.79B
EBITDA	4.95B	4.96B	4.77B	3.48B	2.91B	3.37B
Net Income	2.71B	2.65B	2.77B	1.63B	1.24B	1.62B
Balance Sheet
Total Assets	45.99B	46.76B	47.45B	44.76B	42.14B	41.56B
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	8.96B	9.39B	8.54B	6.75B	6.63B
Stockholders Equity	37.37B	37.79B	38.07B	36.22B	35.40B	34.93B
Cash Flow
Free Cash Flow	0.00	2.00B	3.23B	973.00M	1.89B	2.15B
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: Positive
• Last Price: 2745.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7949, the sentiment is Positive. The current price of 2745 is below the 20-day moving average (MA) of 2855.15, above the 50-day MA of 2723.68, and above the 200-day MA of 2413.25, indicating a neutral trend. The MACD of 38.45 indicates Positive momentum. The RSI at 52.67 is Neutral, neither overbought nor oversold. The STOCH value of 15.37 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
7971	79 Outperform	¥41.52B	11.39	―	3.59%	6.91%	13.17%
5237	78 Outperform	¥12.46B	12.31	―	3.90%	0.58%	-9.72%
7949	77 Outperform	¥50.18B	16.90	―	3.74%	3.70%	12.26%
5262	67 Neutral	¥86.09B	26.30	―	1.49%	-8.92%	1.67%
7943	66 Neutral	¥115.01B	32.52	―	3.53%	-0.58%	-46.15%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5337	53 Neutral	¥17.44B	15.53	―	―	-5.45%	―