Kokuyo Co (7984) AI Stock Analysis

• Market Cap: €409.74B
• Dividend Yield: 2.33%
• Average Volume (3M): 1.20M
• Price to Earnings (P/E): 20.8
• Beta (1Y): 0.70
• Revenue Growth: 2.90%
• EPS Growth: -14.49%
• Country: JP
• Employees: 7,647
• Sector: Industrials
• Sector Strength: 94
• Industry: Business Equipment & Supplies
• EPS (TTM): 22.09
• Shares Outstanding: 462,969,850
• 10 Day Avg. Volume: 1,525,460
• 30 Day Avg. Volume: 1,203,760
• PEG Ratio: -0.58
• Price to Book (P/B): 0.39
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 95.26
• 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: €3,782.53
• Price Target Upside: 310.12% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: ¥979.00 ▲(6.15%Upside)

Kokuyo Co's stock score is bolstered by robust financial performance, including strong revenue growth and a solid balance sheet. While technical indicators show strong upward momentum, caution is advised due to overbought signals, which may lead to a correction. The valuation is reasonable, though not particularly compelling, and there is no new information from earnings calls or corporate events to influence the score.

Kokuyo Co Business Overview & Revenue Model

Company Description

Kokuyo Co., Ltd. (7984) is a Japanese company primarily engaged in the manufacture and sale of office furniture, stationery, and business supplies. Founded in 1905, the company operates through several segments, including Stationery, Furniture, and Mail Order Retail. Kokuyo is known for its innovative and quality products, catering to both individual consumers and businesses. The company has a strong presence in the Asian market and continues to expand its global footprint.

How the Company Makes Money

Kokuyo Co., Ltd. generates revenue primarily through the sale of its office furniture and stationery products. The company's revenue streams are diversified across its key segments: Stationery, Furniture, and Mail Order Retail. In the Stationery segment, Kokuyo offers a wide range of products such as notebooks, pens, and filing supplies, which are sold through retail outlets and online platforms, contributing significantly to its revenue. The Furniture segment focuses on office furniture solutions, including desks, chairs, and storage units, catering to corporate clients and institutional buyers. Additionally, Kokuyo engages in the Mail Order Retail segment, which involves catalog and online sales of office supplies and related products. The company also benefits from strategic partnerships and collaborations, which enhance its product offerings and market reach, thereby contributing to its overall earnings.

Kokuyo Co Financial Statement Overview

Summary

Kokuyo Co demonstrates strong financial health with impressive revenue growth, sound profitability margins, and prudent balance sheet management. The low debt-to-equity ratio and strong equity base are significant positives. However, the recent dip in cash flow generation should be monitored.

Income Statement

Kokuyo Co demonstrates strong revenue growth with a steady increase from 2020 to TTM 2025, achieving a significant growth rate of 13.6% from 2022 to 2023. Gross profit margins are consistently robust, maintaining around 39% to 40% over the years. Despite a slight dip in net income in TTM 2025, the company holds a healthy net profit margin average of approximately 6% across the periods, indicating effective cost management.

Balance Sheet

The balance sheet reflects a solid financial structure with a low debt-to-equity ratio of roughly 0.02 in TTM 2025, highlighting minimal leverage. The equity ratio remains strong at around 73%, signifying a healthy proportion of equity financing. The return on equity is stable, averaging around 8% over recent years, indicating efficient use of shareholder funds.

Cash Flow

Kokuyo Co's cash flow statement shows variability, with a notable decline in operating cash flow in TTM 2025. The free cash flow to net income ratio remains positive, demonstrating adequate free cash generation relative to net income. However, the reduction in free cash flow from 2024 to TTM 2025 indicates potential challenges in cash flow sustainability.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	338.23B	328.75B	300.93B	320.17B	300.64B
Gross Profit	132.92B	127.39B	116.67B	115.71B	107.39B
EBITDA	42.88B	36.08B	30.45B	28.90B	18.70B
Net Income	21.79B	19.07B	18.24B	13.70B	8.30B
Balance Sheet
Total Assets	362.96B	358.41B	337.17B	324.58B	320.30B
Cash, Cash Equivalents and Short-Term Investments	132.34B	115.62B	98.46B	101.29B	90.78B
Total Debt	4.18B	9.24B	9.47B	9.32B	12.96B
Total Liabilities	98.90B	104.99B	97.42B	94.47B	93.96B
Stockholders Equity	260.55B	251.84B	237.87B	228.47B	224.62B
Cash Flow
Free Cash Flow	8.60B	28.39B	3.93B	15.75B	12.59B
Operating Cash Flow	16.38B	34.74B	9.58B	21.79B	19.22B
Investing Cash Flow	12.25B	-3.80B	-3.32B	2.56B	-6.11B
Financing Cash Flow	-15.62B	-14.44B	-8.99B	-15.06B	-5.95B

Kokuyo Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 922.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 922.3 is above the 20-day moving average (MA) of 861.64, above the 50-day MA of 806.14, and above the 200-day MA of 704.95, indicating a bullish trend. The MACD of 32.87 indicates Negative momentum. The RSI at 78.94 is Negative, neither overbought nor oversold. The STOCH value of 83.10 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7846	81 Outperform	¥164.69B	11.61		2.87%	5.42%	13.99%
7994	80 Outperform	¥228.20B	9.90		4.08%	5.44%	8.71%
7984	74 Outperform	€409.74B	20.77	7.55%	2.33%	2.90%	-14.49%
7976	73 Outperform	¥107.72B	10.56		2.16%	20.31%	6.00%
7975	70 Neutral	¥3.95B	10.46		2.15%	4.21%	―
Sector *	65 Neutral	$11.08B	15.70	5.19%	2.15%	3.13%	-24.94%
7962	51 Neutral	¥23.43B	157.61		1.70%	1.78%	-46.92%

Kokuyo Co Corporate Events

Kokuyo Co. Announces Strategic Share Buyback Following Stock Split

Kokuyo Co., Ltd. has announced a share buyback program, acquiring 610,200 shares worth approximately ¥1.96 billion through open market repurchases on the Tokyo Stock Exchange. This move follows a previous buyback plan and a recent four-for-one stock split, indicating strategic financial management aimed at optimizing shareholder value.

Kokuyo Co. Announces Board Resignation and Committee Restructuring

Kokuyo Co., Ltd. announced the resignation of Mr. Fukutaka Hashimoto from its Board of Directors due to personal circumstances, effective May 31, 2025. The company has adjusted the composition of its Nominating and Audit Committees following this change, ensuring compliance with legal requirements and maintaining effective governance.

Kokuyo Co. Announces Stock Split and Strategic Financial Adjustments

Kokuyo Co., Ltd. has announced a series of strategic financial changes, including a stock split, amendments to its Articles of Incorporation, and a revised dividend forecast, aimed at enhancing liquidity and expanding its investor base. These measures are expected to make the company’s shares more accessible to investors and adjust shareholder benefits, potentially impacting its market positioning and stakeholder engagement.

Kokuyo Co. Announces Share Buyback to Enhance Shareholder Value

Kokuyo Co., Ltd. has announced a share buyback plan, acquiring 325,100 shares worth ¥931,741,950 between April 16 and April 30, 2025. This move is part of a larger buyback initiative approved earlier in the year, allowing for the acquisition of up to 8.5 million shares, reflecting Kokuyo’s strategy to enhance shareholder value and optimize capital structure.

Kokuyo Co. Reports Q1 2025 Financial Results with Strategic Adjustments

Kokuyo Co., Ltd. reported a 3.5% increase in net sales for the first quarter of 2025, reaching ¥99,484 million, with operating income rising by 14.4%. Despite this growth, the profit attributable to owners decreased by 16.4% due to changes in accounting methods for rental income and expenses. The company forecasts continued growth in net sales and operating income for the full fiscal year 2025, reflecting strategic adjustments in financial reporting.