Kurogane Kosakusho Ltd. (7997) AI Stock Analysis

• Market Cap: ¥1.50B
• Dividend Yield: 2.27%
• Average Volume (3M): 7.70K
• Price to Earnings (P/E): 9.8
• Beta (1Y): 0.50
• Revenue Growth: -9.93%
• EPS Growth: -83.97%
• Country: JP
• Employees: 254
• Sector: Consumer Cyclical
• Sector Strength: 79
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 75.82
• Shares Outstanding: 1,857,113
• 10 Day Avg. Volume: 11,530
• 30 Day Avg. Volume: 7,696
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥788.00
• Price Target Upside: -10.76% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 61 Neutral
• Price Target: ¥788.00 ▼(-10.76% Downside)

The stock scores a 61, primarily driven by its mixed financial performance and attractive valuation. While technical indicators show some bullish trends, the financial risks due to operational inefficiencies and negative cash flows remain significant concerns. The absence of notable earnings call highlights or corporate events leaves the focus on existing financial and market data.

Kurogane Kosakusho Ltd. Business Overview & Revenue Model

Company Description

Kurogane Kosakusho Ltd. is a Japan-based company primarily engaged in the manufacturing and sale of office furniture and store display fixtures. It offers a broad range of products, including desks, chairs, filing cabinets, and other office equipment, as well as store fixtures like shelves and counters. The company caters to both domestic and international markets, focusing on delivering high-quality, functional, and aesthetically pleasing products to its customers.

How the Company Makes Money

Kurogane Kosakusho Ltd. generates revenue primarily through the sale of its office furniture and store display fixtures. The company designs, manufactures, and distributes these products to a wide range of customers, including corporate offices, retail chains, and educational institutions. Sales are made directly to clients and through a network of distributors and retailers. Additionally, Kurogane Kosakusho Ltd. benefits from its reputation for quality and reliability, which helps maintain a steady customer base and fosters repeat business. International sales also contribute to its revenue, leveraging the company's ability to meet diverse global market demands.

Kurogane Kosakusho Ltd. Financial Statement Overview

Summary

Kurogane Kosakusho Ltd. shows steady revenue growth and improved leverage, but persistent operational inefficiencies and negative cash flows pose significant risks. The positive net income in 2024 is a notable improvement, yet the overall financial health is challenged by cash flow concerns and profitability issues.

Income Statement

Kurogane Kosakusho Ltd. has demonstrated steady revenue growth from 2022 to 2024, with a modest increase in gross profit margin. However, persistent negative EBIT margins indicate ongoing operational challenges. The company has managed to improve its net income significantly in 2024, but overall profitability remains a concern due to negative EBIT and EBITDA margins in several years.

Balance Sheet

The company's debt-to-equity ratio has improved over the years, indicating better leverage management. However, the equity ratio remains moderate, reflecting a balanced capital structure. Return on equity has seen a positive turnaround in 2024, but prior negative net income has impacted historical ROE. Overall, the balance sheet shows signs of stabilization with a strong equity base.

Cash Flow

Kurogane Kosakusho Ltd. faces challenges in generating positive operating cash flow, with negative figures in recent years. Free cash flow has been consistently negative, indicating potential liquidity issues. The operating cash flow to net income ratio shows volatility, pointing to issues in translating profits into cash flow. While there are improvements, cash flow stability remains a concern.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.20B	7.18B	6.92B	8.37B	8.22B
Gross Profit	1.55B	1.45B	1.38B	1.68B	1.72B
EBITDA	393.97M	1.51B	-337.08M	280.31M	-208.35M
Net Income	209.38M	1.21B	-566.03M	-5.37M	-508.42M
Balance Sheet
Total Assets	8.06B	8.20B	8.52B	9.64B	9.62B
Cash, Cash Equivalents and Short-Term Investments	907.86M	1.32B	658.82M	775.12M	629.90M
Total Debt	883.32M	931.73M	2.86B	3.43B	3.52B
Total Liabilities	3.48B	3.92B	5.60B	6.25B	6.21B
Stockholders Equity	4.58B	4.27B	2.91B	3.37B	3.40B
Cash Flow
Free Cash Flow	-710.24M	-445.98M	172.22M	233.90M	-664.01M
Operating Cash Flow	-248.97M	-428.43M	181.12M	290.34M	-604.08M
Investing Cash Flow	-81.60M	3.01B	238.81M	-26.69M	-59.59M
Financing Cash Flow	-61.98M	-2.03B	-591.22M	-118.44M	136.63M

Kurogane Kosakusho Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 883.00
• 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:7997, the sentiment is Positive. The current price of 883 is above the 20-day moving average (MA) of 827.40, above the 50-day MA of 792.66, and above the 200-day MA of 781.06, indicating a bullish trend. The MACD of 23.80 indicates Negative momentum. The RSI at 75.11 is Negative, neither overbought nor oversold. The STOCH value of 82.14 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7997.

Kurogane Kosakusho Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7807	80 Outperform	¥4.01B	6.69		1.51%	0.28%	-27.08%
7791	75 Outperform	¥3.70B	8.11		3.67%	15.75%	44.95%
7898	74 Outperform	¥8.33B	4.07		2.72%	0.90%	―
7887	72 Outperform	¥6.70B	12.51		2.17%	7.48%	10.02%
Sector *	61 Neutral	$17.78B	13.97	-5.49%	3.03%	1.50%	-15.71%
7997	61 Neutral	¥1.50B	9.77		2.27%	-9.93%	-83.97%
7822	56 Neutral	¥11.98B	427.71		3.85%	0.89%	-99.30%