Kokuyo Co (7984) AI Stock Analysis

• Market Cap: ¥422.23B
• Dividend Yield: 2.26%
• Average Volume (3M): 825.06K
• Price to Earnings (P/E): 19.0
• Beta (1Y): 0.72
• Revenue Growth: 6.29%
• EPS Growth: 8.74%
• Country: JP
• Employees: 7,647
• Sector: Industrials
• Sector Strength: 72
• Industry: Business Equipment & Supplies
• EPS (TTM): 6.74
• Shares Outstanding: 462,969,850
• 10 Day Avg. Volume: 850,310
• 30 Day Avg. Volume: 825,063
• PEG Ratio: 0.23
• Price to Book (P/B): 0.30
• Price to Sales (P/S): 0.23
• P/FCF Ratio: 9.22
• 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): 47.57
• Revenue Forecast (FY): ¥357.14B

• Rating: 72 Outperform
• Price Target: ¥948.00 ▲(11.94% Upside)

Kokuyo Co's strong financial performance, characterized by robust revenue growth and profitability, is the primary driver of its score. However, technical indicators suggest potential short-term weakness, and the decline in free cash flow poses a risk. The valuation is balanced with a reasonable P/E ratio and attractive dividend yield.

Positive Factors

Revenue Growth

The significant revenue growth rate indicates robust expansion and strong market demand for Kokuyo's products, supporting long-term business sustainability.

Balance Sheet Strength

A low debt-to-equity ratio reflects financial stability and flexibility, allowing Kokuyo to invest in growth opportunities without significant financial strain.

Profitability

Strong profit margins indicate efficient cost management and pricing power, which contribute to sustained profitability and competitive advantage.

Negative Factors

Cash Flow Decline

A significant decline in free cash flow could limit Kokuyo's ability to fund operations and growth initiatives, posing a risk to long-term financial health.

Earnings Growth

Negative EPS growth suggests challenges in maintaining profitability, which could impact investor confidence and the company's ability to reinvest in its business.

Net Profit Margin Decline

A declining net profit margin may indicate rising costs or pricing pressures, potentially affecting Kokuyo's long-term profitability and market competitiveness.

Kokuyo Co Business Overview & Revenue Model

Company Description

Kokuyo Co., Ltd. (TSE: 7984) is a leading Japanese manufacturer and retailer of stationery products, office supplies, and educational materials. Established in 1905, the company operates primarily in the stationery sector, offering a wide range of products including notebooks, writing instruments, paper products, and office furniture. Kokuyo also provides solutions for corporate customers, designing and manufacturing custom products tailored to specific business needs. With a focus on innovation, Kokuyo aims to enhance productivity and creativity in educational and professional environments.

How the Company Makes Money

Kokuyo generates revenue through multiple streams, primarily by selling a diverse range of stationery and office supplies to both consumers and businesses. The company has a robust retail network, including its own stores and partnerships with various retailers, which enables it to reach a broad customer base. Additionally, Kokuyo earns revenue from its corporate solutions segment, where it provides customized products and services to businesses, including office furniture and specialized stationery. The company's commitment to innovation and quality has also led to strategic partnerships with educational institutions and corporations, further enhancing its market presence and sales opportunities. Overall, Kokuyo's revenue model is built on a combination of direct sales, business solutions, and partnerships within the education and corporate sectors.

Kokuyo Co Financial Statement Overview

Summary

Kokuyo Co shows strong revenue growth and profitability with a robust balance sheet and minimal leverage. However, the significant decline in free cash flow is a concern that needs addressing.

Income Statement

Kokuyo Co has demonstrated strong revenue growth with a TTM revenue growth rate of 87.1%, indicating robust expansion. The gross profit margin of 39.78% and net profit margin of 5.80% reflect solid profitability, although the net profit margin has slightly decreased compared to the previous year. The EBIT and EBITDA margins are healthy at 7.62% and 10.22%, respectively, showing efficient operational performance.

Balance Sheet

The company maintains a very low debt-to-equity ratio of 0.0166, indicating minimal leverage and strong financial stability. The return on equity (ROE) is 7.54%, which is decent, though slightly lower than the previous year. The equity ratio is strong, suggesting a solid capital structure with a high proportion of equity financing.

Cash Flow

Kokuyo Co's free cash flow has declined significantly by 64.65% in the TTM period, which is a concern. However, the operating cash flow to net income ratio of 0.116 indicates that the company is generating cash efficiently relative to its net income. The free cash flow to net income ratio of 0.444 suggests that a reasonable portion of earnings is being converted into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	344.75B	338.23B	328.75B	300.93B	320.17B	300.64B
Gross Profit	137.44B	132.92B	127.39B	116.67B	115.71B	107.39B
EBITDA	34.69B	43.31B	36.08B	30.45B	28.90B	18.70B
Net Income	19.97B	21.79B	19.07B	18.24B	13.70B	8.30B
Balance Sheet
Total Assets	351.10B	362.96B	358.41B	337.17B	324.58B	320.30B
Cash, Cash Equivalents and Short-Term Investments	127.56B	132.34B	115.62B	98.46B	101.29B	90.78B
Total Debt	3.93B	4.18B	9.24B	9.47B	9.32B	12.96B
Total Liabilities	85.56B	98.90B	104.99B	97.42B	94.47B	93.96B
Stockholders Equity	262.08B	260.55B	251.84B	237.87B	228.47B	224.62B
Cash Flow
Free Cash Flow	1.51B	8.60B	28.39B	3.93B	15.75B	12.59B
Operating Cash Flow	6.61B	16.38B	34.74B	9.58B	21.79B	19.22B
Investing Cash Flow	7.29B	12.25B	-3.80B	-3.32B	2.56B	-6.11B
Financing Cash Flow	-16.18B	-15.62B	-14.44B	-8.99B	-15.06B	-5.95B

Kokuyo Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 846.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 below the 20-day moving average (MA) of 915.03, below the 50-day MA of 886.43, and above the 200-day MA of 823.13, indicating a bullish trend. The MACD of 12.74 indicates Negative momentum. The RSI at 60.63 is Neutral, neither overbought nor oversold. The STOCH value of 71.14 is Neutral, 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
7994	76 Outperform	¥224.14B	9.98	―	4.09%	6.02%	18.88%
7846	75 Outperform	¥178.72B	12.86	―	2.59%	-0.26%	3.35%
7976	74 Outperform	¥107.80B	15.00	―	2.13%	6.39%	-34.84%
7984	72 Outperform	¥422.23B	19.03	8.83%	2.26%	6.29%	8.74%
7975	70 Neutral	¥4.19B	10.43	―	2.03%	3.24%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7962	58 Neutral	¥24.12B	69.24	―	1.66%	-2.71%	―

Kokuyo Co Corporate Events

Kokuyo Co. to Acquire Vietnamese Stationery Leader Thien Long Group

Kokuyo Co., Ltd. has announced its plan to acquire Thien Long Group Corporation, a prominent Vietnamese stationery manufacturer, through a stock purchase and tender offer. This acquisition aligns with Kokuyo’s strategy to expand its global presence and leverage TLG’s strong business infrastructure in the ASEAN region, contributing to sustained growth and long-term value creation for both companies.

Kokuyo Co. Announces Share Buyback Program

Kokuyo Co., Ltd. has announced a share buyback program, acquiring 1,974,400 shares valued at approximately ¥1.78 billion between November 1 and November 30, 2025. This move follows a previous buyback initiative approved in February 2025, which included a four-for-one stock split in July 2025, and reflects Kokuyo’s ongoing efforts to optimize capital structure and enhance shareholder returns.

Kokuyo Co. to Acquire and Integrate Six Sales Affiliates

Kokuyo Co., Ltd. has announced its plan to acquire six Japan-based sales companies, currently equity-method affiliates, to make them wholly owned subsidiaries and integrate them into Kokuyo Marketing Co. Ltd. This strategic move aims to consolidate resources, enhance competitive advantage, and strengthen Kokuyo’s sales network in Japan, thereby improving resilience and unlocking further growth in its B2B operations. The reorganization is expected to improve knowledge-sharing and coordination, enabling Kokuyo to deliver greater value to customers and gain a competitive edge in a changing market.

Kokuyo Co. Announces Strategic Cancellation of Treasury Shares

Kokuyo Co., Ltd. announced the cancellation of 22 million treasury shares, which represents 4.75% of its total issued shares, as part of its financial strategy to maintain treasury shares below 2% of total shares. This move is aligned with the company’s fourth medium-term plan, aiming to optimize capital structure and enhance shareholder value.

Kokuyo Co. Announces Strategic Share Buyback

Kokuyo Co., Ltd. has announced a share buyback initiative, acquiring 2,780,800 shares valued at approximately ¥2.39 billion through open market repurchases on the Tokyo Stock Exchange. This move follows a previous buyback plan and a recent stock split, indicating Kokuyo’s strategic efforts to manage its capital structure and potentially enhance shareholder value.

Kokuyo Co., Ltd Reports Increased Sales and Income for Nine Months Ending September 2025

Kokuyo Co., Ltd reported a 5.4% increase in net sales for the nine months ending September 30, 2025, reaching ¥265,650 million. Operating income rose by 20.1% to ¥21,490 million, while ordinary income increased by 13.5% to ¥21,793 million. The company also completed a 4-for-1 stock split on July 1, 2025, impacting earnings per share calculations. Despite these positive results, comprehensive income decreased by 12.7% compared to the previous year. The company forecasts continued growth in net sales and operating income for the full fiscal year ending December 31, 2025, with expected net sales of ¥357,000 million and operating income of ¥25,000 million.

Kokuyo Co. Announces Strategic Share Buyback Program

Kokuyo Co., Ltd. has announced a share buyback program, acquiring 2,218,000 shares worth approximately ¥2.06 billion on the Tokyo Stock Exchange between September 1 and September 30, 2025. This move follows a previous buyback plan approved in February 2025, which included a four-for-one stock split effective July 2025, and indicates Kokuyo’s strategic efforts to enhance shareholder value and optimize its capital structure.