Koken Ltd. (7963) AI Stock Analysis

• Market Cap: ¥9.14B
• Dividend Yield: 1.88%
• Average Volume (3M): 3.99K
• Price to Earnings (P/E): 11.7
• Beta (1Y): 0.20
• Revenue Growth: 9.07%
• EPS Growth: 43.42%
• Country: JP
• Employees: 321
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 6.91
• Shares Outstanding: 5,104,003
• 10 Day Avg. Volume: 4,770
• 30 Day Avg. Volume: 3,990
• PEG Ratio: 3.58
• Price to Book (P/B): 0.58
• Price to Sales (P/S): 0.70
• P/FCF Ratio: 16.98
• 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

• Rating: 74 Outperform
• Price Target: ¥1,994.00 ▲(14.66% Upside)

Koken Ltd. scores well due to its solid financial performance and attractive valuation. The company's stable revenue growth and strong gross margins are key strengths. However, technical analysis indicates some bearish momentum, which slightly offsets the positive valuation metrics.

Koken Ltd. Business Overview & Revenue Model

Company Description

Koken Ltd., together with its subsidiaries, produces and sells occupational personal protective and environment quality improvement equipment in Japan. It operates in Mask-Related Business, Environmental- Related Businesses, and Other Businesses segments. The company offers clean air solutions, including KOACH, a clean zone creator; KOKENLAMINAR, a push-pull ventilation system; and LAMIKOACH, an air ventilation system as contamination source control. It also provides IMADEZE, a copper-based lactate antibacterial agent; masks for medical facilities and general consumers; and functional water production systems, such as electrolyzed water generators, endoscope washers/disinfectors, blood stain washer kits, and portable showers, as well as magnetically treated water. In addition, the company offers respirators for industrial use, including particulate respirators, powered air-purifying respirators, supplied air respirators, chemical cartridge respirators, and gas masks; respirators for general consumers; equipment for accident and disaster countermeasures; and protective clothes, ear plugs, face shields, etc. The company was founded in 1943 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Koken Ltd. generates revenue through the sale of its automotive service tools and equipment. Its core revenue stream comes from direct sales to automotive repair shops, dealerships, and tool distributors. The company benefits from a strong brand reputation for quality and reliability, which helps in maintaining a steady customer base. Additionally, Koken Ltd. may engage in strategic partnerships with automotive manufacturers or distributors to expand its market reach. Export sales also contribute to its earnings, allowing the company to tap into international markets where there is demand for premium automotive tools.

Koken Ltd. Financial Statement Overview

Summary

Koken Ltd. exhibits solid financial health with consistent revenue growth and strong gross margins. The balance sheet is robust with a healthy equity ratio and manageable debt levels. Cash flow generation is stable, though there was a notable decline in free cash flow in the latest period. Overall, the company is well-positioned financially, with opportunities to enhance profitability and cash flow efficiency.

Income Statement

Koken Ltd. has demonstrated stable revenue growth with a 1.65% increase in 2024 compared to 2023. The gross profit margin stands at 45.74%, indicating strong profitability. However, the net profit margin is 6.71%, which is moderate. The EBIT margin of 9.38% and EBITDA margin of 13.86% reflect efficient operations, though there is room for improvement in net profitability.

Balance Sheet

The company's balance sheet shows a solid equity position with an equity ratio of 62.47%. The debt-to-equity ratio is 0.40, indicating a manageable level of leverage. Return on equity is 5.54%, which suggests moderate efficiency in generating returns from shareholders' equity. Overall, the balance sheet is stable, but there is potential to enhance returns.

Cash Flow

Koken Ltd. experienced a decline in free cash flow by 49.79% in 2024. The operating cash flow to net income ratio is 0.92, indicating that operating cash flow is closely aligned with net income. The free cash flow to net income ratio is 0.62, showing that a significant portion of net income is converted into free cash flow. Despite the decline in free cash flow, cash flow generation remains relatively strong.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.06B	10.76B	10.59B	10.60B	10.20B	10.15B
Gross Profit	5.12B	4.92B	4.84B	4.99B	4.65B	4.89B
EBITDA	1.55B	1.49B	1.51B	1.80B	1.88B	1.69B
Net Income	777.84M	722.06M	701.13M	833.11M	862.37M	837.66M
Balance Sheet
Total Assets	20.83B	20.87B	20.82B	20.57B	19.60B	19.00B
Cash, Cash Equivalents and Short-Term Investments	3.02B	2.53B	2.98B	2.39B	2.19B	1.56B
Total Debt	5.51B	5.18B	6.05B	6.13B	6.13B	5.95B
Total Liabilities	7.71B	7.83B	8.46B	8.75B	8.49B	8.54B
Stockholders Equity	13.12B	13.04B	12.35B	11.82B	11.11B	10.47B
Cash Flow
Free Cash Flow	0.00	445.38M	886.94M	451.74M	417.31M	709.59M
Operating Cash Flow	0.00	666.37M	1.08B	618.95M	655.48M	1.37B
Investing Cash Flow	0.00	-98.81M	-206.25M	-184.20M	147.58M	-606.28M
Financing Cash Flow	0.00	-1.05B	-307.82M	-291.98M	-176.25M	-680.15M

Koken Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1739.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7963, the sentiment is Positive. The current price of 1739 is below the 20-day moving average (MA) of 1775.95, below the 50-day MA of 1782.04, and above the 200-day MA of 1673.57, indicating a bullish trend. The MACD of 11.84 indicates Negative momentum. The RSI at 64.54 is Neutral, neither overbought nor oversold. The STOCH value of 96.05 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7963.

Koken Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5187	―	¥9.28B	12.53	―	3.63%	3.38%	88.65%
7963	―	¥9.14B	11.72	―	1.88%	9.07%	43.42%
6678	―	¥16.16B	15.75	―	3.63%	-8.07%	-38.21%
6849	―	¥289.73B	21.12	―	1.82%	4.43%	-1.39%
6823	―	¥31.04B	10.51	―	2.78%	7.99%	28.81%
7600	―	¥13.54B	―	―	3.06%	4.84%	-148.94%
Sector *	―	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%