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Kokuyo Co Ltd (JP:7984)
:7984
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Kokuyo Co (7984) AI Stock Analysis

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JP:7984

Kokuyo Co

(7984)

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Neutral 64 (OpenAI - 5.2)
Rating:64Neutral
Price Target:
¥838.00
▼(-1.05% Downside)
Action:Reiterated
Date:05/01/26
The score is driven primarily by strong financial stability (especially the very conservative balance sheet) and generally steady profitability, offset by weak recent cash-flow conversion and a clearly bearish price trend with the stock trading well below key moving averages. Valuation is supportive due to a moderate P/E and ~3.1% dividend yield but is not strong enough to outweigh the technical and cash-flow concerns.
Positive Factors
Very conservative balance sheet / low leverage
Exceptionally low leverage gives Kokuyo durable financial flexibility: it can fund operations, capital expenditure, dividends and absorb downturns without relying on external financing. This conservatism reduces insolvency risk and supports long-term strategic optionality.
Negative Factors
Weak free cash flow conversion
FCF covering roughly half of net income signals earnings quality issues: profits are not consistently translating into cash. Over time this hampers self-funding of capex, dividends and strategic investments despite a strong balance sheet, limiting growth optionality.
Read all positive and negative factors
Positive Factors
Negative Factors
Very conservative balance sheet / low leverage
Exceptionally low leverage gives Kokuyo durable financial flexibility: it can fund operations, capital expenditure, dividends and absorb downturns without relying on external financing. This conservatism reduces insolvency risk and supports long-term strategic optionality.
Read all positive factors

Kokuyo Co (7984) vs. iShares MSCI Japan ETF (EWJ)

Kokuyo Co Business Overview & Revenue Model

Company Description
Kokuyo Co., Ltd., together with its subsidiaries, manufactures, purchases, and sells office furniture products in Japan and internationally. The company operates in four segments: Furniture Business, Business Supply Distribution Business, Statione...
How the Company Makes Money
Kokuyo primarily makes money by selling branded stationery and office supplies through wholesale and retail distribution as well as direct sales to corporate customers. A key revenue stream is recurring, high-volume demand for consumable items suc...

Kokuyo Co Financial Statement Overview

Summary
Financial health is solid overall: revenue trend is positive with improving TTM growth and stable ~40% gross margin, supported by an exceptionally strong, low-leverage balance sheet. The key weakness is cash generation—free cash flow is volatile and recently declined sharply, with FCF covering only about half of net income, which reduces earnings quality and financial consistency.
Income Statement
72
Positive
Balance Sheet
90
Very Positive
Cash Flow
46
Neutral
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue368.49B359.88B338.23B328.75B300.93B320.17B
Gross Profit147.37B144.47B132.92B127.39B116.67B115.71B
EBITDA40.02B39.57B42.88B36.08B30.46B28.90B
Net Income21.55B21.47B21.79B19.07B18.24B13.70B
Balance Sheet
Total Assets352.12B355.05B362.96B358.41B337.54B324.58B
Cash, Cash Equivalents and Short-Term Investments91.14B110.75B132.34B115.62B98.46B101.29B
Total Debt3.98B3.47B7.14B11.94B12.64B11.77B
Total Liabilities91.07B99.59B98.89B104.98B97.92B94.47B
Stockholders Equity257.36B251.68B260.55B251.84B237.74B228.47B
Cash Flow
Free Cash Flow2.79B7.91B12.01B30.37B6.19B17.80B
Operating Cash Flow12.31B14.37B16.38B34.74B9.58B21.79B
Investing Cash Flow-9.41B-4.61B12.25B-3.80B-3.32B2.56B
Financing Cash Flow-32.56B-31.65B-15.62B-14.44B-8.99B-15.06B

Kokuyo Co Technical Analysis

Technical Analysis Sentiment
Positive
Last Price846.90
Price Trends
50DMA
802.33
Positive
100DMA
830.72
Positive
200DMA
854.92
Negative
Market Momentum
MACD
11.74
Negative
RSI
61.57
Neutral
STOCH
83.86
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7984, the sentiment is Positive. The current price of 846.9 is above the 20-day moving average (MA) of 814.67, above the 50-day MA of 802.33, and below the 200-day MA of 854.92, indicating a neutral trend. The MACD of 11.74 indicates Negative momentum. The RSI at 61.57 is Neutral, neither overbought nor oversold. The STOCH value of 83.86 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7984.

Kokuyo Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
¥212.77B15.472.56%1.83%-7.02%
74
Outperform
¥225.03B9.603.99%4.61%1.65%
72
Outperform
¥139.66B20.212.09%0.66%-30.89%
64
Neutral
¥361.56B16.998.83%2.33%7.82%13.39%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
61
Neutral
¥21.98B56.431.69%-2.48%161.85%
47
Neutral
¥3.72B27.852.03%-1.38%-64.66%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7984
Kokuyo Co
842.60
-28.80
-3.31%
JP:7846
Pilot Corporation
1,768.00
411.16
30.30%
JP:7962
King Jim Co., Ltd.
772.00
-50.91
-6.19%
JP:7975
LIHIT LAB., INC.
1,095.00
-38.56
-3.40%
JP:7976
Mitsubishi Pencil Company, Limited
2,696.00
697.53
34.90%
JP:7994
OKAMURA CORP
2,273.00
54.85
2.47%

Kokuyo Co Corporate Events

Kokuyo Advances Share Buyback, Repurchasing Over 9.3 Million Shares
Jul 6, 2026
Kokuyo Co., Ltd. has executed a share buyback of 2,900,900 common shares on the Tokyo Stock Exchange between June 1 and June 30, 2026, for a total consideration of approximately ¥2.35 billion. This transaction is part of a broader repurchase ...
Kokuyo to Sell Former Osaka Head Office to Boost Asset Efficiency
Jul 1, 2026
Kokuyo Co., Ltd. has decided to transfer its former Osaka head office and an adjacent guest house site as part of a broader effort to optimize asset efficiency following its recent head office relocation. The properties, located in Higashinari-ku,...
Kokuyo Revamps Shareholder Perks to Reward Long-Term Investors
Jun 5, 2026
Kokuyo Co., Ltd. will overhaul its shareholder benefit program from the fiscal year ending December 31, 2026, lowering the minimum shareholding required for perks from 2,000 to 500 shares while adding a six-month continuous holding condition for i...
Kokuyo Advances Shareholder Returns With Continued Share Buybacks
Jun 4, 2026
Kokuyo Co., Ltd. has executed a share buyback of 4,554,100 common shares for approximately ¥3.66 billion between May 1 and May 31, 2026, through open market purchases on the Tokyo Stock Exchange. The buyback falls under the authority granted ...
Kokuyo Advances Share Buyback Program With ¥1.57 Billion Repurchase
May 12, 2026
Kokuyo Co., Ltd. announced that it has repurchased 1,862,300 shares of its common stock on the Tokyo Stock Exchange between April 16 and April 30, 2026, at a total cost of approximately ¥1.57 billion. The buyback is being conducted under the ...
Kokuyo Completes Treasury Stock Disposal for Performance-Linked Employee Compensation
Apr 30, 2026
Kokuyo Co., Ltd. has completed the payment procedures for the disposal of 54,549 shares of its treasury stock to deliver performance-linked restricted stock compensation to 57 employees. The transaction, resolved by the board in March and executed...
Kokuyo Delivers Strong Q1 Sales and Raises 2026 Outlook Despite Profit Headwinds
Apr 28, 2026
Kokuyo Co., Ltd. reported consolidated net sales of ¥108.1 billion for the three months ended March 31, 2026, an 8.7% year-on-year increase, with operating income up 2.7% to ¥13.8 billion and ordinary income up 11.4% to ¥14.5 billio...
Kokuyo Completes Treasury Share Disposal for Restricted Stock Compensation
Apr 15, 2026
Kokuyo Co., Ltd. has completed the pay-in procedure for the disposal of treasury shares to deliver restricted stock compensation to its management. The move follows a March 31, 2026 board approval, aligning executive incentives more closely with s...
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: May 01, 2026