Kokuyo Co (7984) AI Stock Analysis

• Market Cap: €407.03B
• Dividend Yield: 2.34%
• Average Volume (3M): 889.11K
• Price to Earnings (P/E): 20.4
• Beta (1Y): 0.68
• Revenue Growth: 3.27%
• EPS Growth: -12.28%
• Country: JP
• Employees: 7,647
• Sector: Industrials
• Sector Strength: 72
• Industry: Business Equipment & Supplies
• EPS (TTM): 8.48
• Shares Outstanding: 462,969,850
• 10 Day Avg. Volume: 1,118,790
• 30 Day Avg. Volume: 889,110
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: €1,008.23
• Price Target Upside: 11.74% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 73 Outperform
• Price Target: ¥1,008.00 ▲(11.71% Upside)

Kokuyo Co's overall stock score is driven primarily by its strong financial performance, characterized by robust revenue growth and a solid balance sheet. The technical analysis indicates mixed signals, with some bullish momentum but potential resistance. The valuation is fair, supported by a reasonable P/E ratio and a decent dividend yield. The absence of earnings call and corporate events data did not impact the score.

Kokuyo Co Business Overview & Revenue Model

Company Description

Kokuyo Co., Ltd. manufactures, purchases, and sells stationery and office furniture products in Japan. It also offers space design and consultation services. The company was founded in 1905 and is headquartered in Osaka, Japan.

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 exhibits strong revenue growth and profitability, supported by a robust balance sheet with minimal leverage. However, the significant decline in free cash flow is a potential risk that needs to be addressed. Overall, the company is in a strong financial position with opportunities for continued growth, provided it manages its cash flow challenges effectively.

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: Neutral
• Last Price: 902.30
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7984, the sentiment is Neutral. The current price of 902.3 is below the 20-day moving average (MA) of 924.84, below the 50-day MA of 921.23, and above the 200-day MA of 767.37, indicating a neutral trend. The MACD of -0.82 indicates Positive momentum. The RSI at 39.90 is Neutral, neither overbought nor oversold. The STOCH value of 9.88 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	¥243.14B	11.79	11.91%	3.83%	5.70%	-6.28%
7846	75 Outperform	¥185.46B	13.35	10.86%	2.58%	2.17%	11.48%
7984	73 Outperform	€407.03B	20.43	7.98%	2.34%	3.27%	-12.28%
7976	73 Outperform	¥115.31B	15.77	8.78%	2.07%	10.66%	-37.99%
7975	70 Neutral	¥4.15B	10.98	3.87%	2.05%	4.21%	―
7962	61 Neutral	¥24.40B	56.70	1.77%	1.63%	0.22%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Kokuyo Co Corporate Events

Kokuyo Co., Ltd. Reports First Half 2025 Financial Results with Strategic Adjustments

Kokuyo Co., Ltd. reported its consolidated financial results for the first half of 2025, showing a 3.5% increase in net sales to ¥185,207 million and an 11.1% rise in operating income to ¥17,690 million. Despite these gains, the company experienced a 3.0% decrease in ordinary income and an 11.6% drop in profit attributable to owners. The company conducted a 4-for-1 stock split on July 1, 2025, affecting earnings per share calculations. The financial forecast for the full year anticipates a 5.4% increase in net sales and an 11.0% rise in operating income, reflecting strategic adjustments in financial reporting and dividend distributions.

Kokuyo Co. Announces Increased Dividends Amid Positive Financial Outlook

Kokuyo Co., Ltd. announced an increase in its dividend payouts and revised its dividend forecasts for the year ending December 2025, reflecting its commitment to shareholder value and improved profit forecasts. The company has implemented a progressive dividend policy, ensuring dividends are at least as high as the previous year, with a payout ratio of 50%. This decision is part of Kokuyo’s strategy to enhance shareholder returns and reflects its positive financial outlook.

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.