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Koken Ltd. (JP:7963)
:7963
Japanese Market
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Koken Ltd. (7963) AI Stock Analysis

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JP:7963

Koken Ltd.

(7963)

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Neutral 67 (OpenAI - 5.2)
Rating:67Neutral
Price Target:
¥1,905.00
▲(2.64% Upside)
Action:Downgraded
Date:02/18/26
The score is held back primarily by weak and volatile cash generation in 2025 (negative free cash flow and low operating cash flow versus earnings). Offsetting this, the stock shows a constructive technical uptrend and appears attractively valued with a low P/E and moderate dividend yield, while leverage remains manageable.
Positive Factors
Improving Leverage / Balance Sheet Resilience
Declining debt-to-equity over several years indicates a structurally stronger balance sheet, reducing financial risk and preserving borrowing capacity. This durable improvement supports capital allocation flexibility for R&D, M&A or dividends and increases resilience in downturns.
Negative Factors
Weak and Volatile Cash Generation
A sharp swing to negative free cash flow is a durable concern: it constrains internal funding for capex, product development, and shareholder returns. Persistent volatility in cash generation raises the probability of external financing or reduced capital flexibility over months.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving Leverage / Balance Sheet Resilience
Declining debt-to-equity over several years indicates a structurally stronger balance sheet, reducing financial risk and preserving borrowing capacity. This durable improvement supports capital allocation flexibility for R&D, M&A or dividends and increases resilience in downturns.
Read all positive factors

Koken Ltd. (7963) vs. iShares MSCI Japan ETF (EWJ)

Koken Ltd. Business Overview & Revenue Model

Company Description
Koken Ltd., along with its subsidiaries, specializes in the production and sale of personal protective equipment for occupational use and products designed to enhance environmental quality throughout Japan. The company organizes its diverse operat...
How the Company Makes Money
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Koken Ltd. Financial Statement Overview

Summary
Income statement and balance sheet are solid (re-accelerating revenue growth and manageable, improving leverage), but the cash flow profile is a major concern: 2025 operating cash flow fell sharply and free cash flow turned negative, raising earnings-conversion and funding-flexibility risk.
Income Statement
72
Positive
Balance Sheet
74
Positive
Cash Flow
38
Negative
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue11.85B11.86B10.76B10.59B10.60B10.20B
Gross Profit5.29B5.38B4.92B4.84B4.99B4.65B
EBITDA1.49B1.70B1.49B1.51B1.80B1.88B
Net Income768.16M885.29M722.06M701.13M833.11M862.37M
Balance Sheet
Total Assets21.53B22.44B20.95B20.87B20.62B19.64B
Cash, Cash Equivalents and Short-Term Investments3.10B2.68B2.53B2.98B2.39B2.19B
Total Debt5.46B5.79B5.18B6.05B6.13B6.13B
Total Liabilities7.87B8.65B7.91B8.52B8.80B8.52B
Stockholders Equity13.65B13.80B13.04B12.35B11.82B11.11B
Cash Flow
Free Cash Flow0.00-232.16M445.38M886.94M451.74M417.31M
Operating Cash Flow0.00136.14M666.37M1.08B618.95M655.48M
Investing Cash Flow0.00-379.51M-98.81M-206.25M-184.20M147.58M
Financing Cash Flow0.00370.84M-1.05B-307.82M-291.98M-176.25M

Koken Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1856.00
Price Trends
50DMA
1793.56
Positive
100DMA
1882.28
Negative
200DMA
1845.16
Negative
Market Momentum
MACD
1.96
Negative
RSI
61.13
Neutral
STOCH
90.22
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 1856 is above the 20-day moving average (MA) of 1729.80, above the 50-day MA of 1793.56, and above the 200-day MA of 1845.16, indicating a neutral trend. The MACD of 1.96 indicates Negative momentum. The RSI at 61.13 is Neutral, neither overbought nor oversold. The STOCH value of 90.22 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

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
83
Outperform
¥43.09B13.212.93%2.24%16.88%
78
Outperform
¥17.39B13.353.02%13.43%7.14%
72
Outperform
¥10.23B14.633.52%3.67%-30.85%
67
Neutral
¥8.95B11.821.89%6.09%-6.33%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
54
Neutral
¥23.02B94.593.12%-4.77%
47
Neutral
¥132.29B272.992.42%3.73%0.78%-95.37%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7963
Koken Ltd.
1,848.00
168.18
10.01%
JP:6523
PHC Holdings Corp.
1,051.00
164.93
18.61%
JP:5187
Create Medic Co., Ltd.
1,144.00
227.43
24.81%
JP:6678
Techno Medica Co., Ltd.
2,073.00
291.08
16.34%
JP:6823
Rion Co., Ltd.
3,585.00
1,103.41
44.46%
JP:7600
Japan Medical Dynamic Marketing, Inc.
944.00
400.44
73.67%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Feb 18, 2026