Kanematsu Corporation (8020) AI Stock Analysis

• Market Cap: ¥335.53B
• Dividend Yield: 3.13%
• Average Volume (3M): 256.97K
• Price to Earnings (P/E): 11.7
• Beta (1Y): 1.08
• Revenue Growth: 1.50%
• EPS Growth: 9.82%
• Country: JP
• Employees: 8,353
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 55.03
• Shares Outstanding: 169,000,400
• 10 Day Avg. Volume: 210,670
• 30 Day Avg. Volume: 256,970
• PEG Ratio: 0.42
• Price to Book (P/B): 1.21
• Price to Sales (P/S): 0.20
• P/FCF Ratio: 4.27
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: ¥2,298.00 ▼(-33.43% Downside)

Kanematsu Corporation's stock score is driven by a strong valuation and positive technical indicators. The financial performance is stable but highlights areas for improvement, particularly in profitability and cash flow management. The absence of earnings call data and corporate events does not impact the score significantly.

Positive Factors

Diversified trading model

As a sogo shosha operating across food, electronics, chemicals, metals and machinery, Kanematsu gains durable revenue diversification and cross-selling opportunities. This multi‑sector footprint smooths cycle exposure and supports stable service and trading margins over the medium term.

Healthy return on equity

A healthy ROE indicates effective capital allocation across trading, distribution and investment activities. For a trading house, sustained ROE implies disciplined procurement and investment selection, enabling reinvestment and shareholder payouts while helping absorb sector volatility over months.

Operating cash generation

Positive operating cash flow relative to net income shows core trading and service operations convert earnings into cash. That supports working‑capital demands, funds distribution/logistics needs, and reduces reliance on external funding, improving financial flexibility over the medium term.

Negative Factors

Elevated leverage

A slightly high debt‑to‑equity ratio raises refinancing and interest‑rate exposure for a working‑capital intensive trader. Higher leverage constrains strategic flexibility, increases fixed costs, and amplifies downside in slower volumes—a persistent risk until leverage is meaningfully reduced.

Negative free cash flow growth

Negative free cash flow growth suggests investments or working‑capital needs outpace cash generation. Over months this can force greater external financing, limit capex or M&A capacity, and pressure dividends, reducing the company's ability to build buffers against cyclical downturns.

Weak profitability trend

Relatively low net margins combined with slowing revenue growth point to structural margin pressure or competitive constraints. Persistent weak profitability limits reserve accumulation and reinvestment, reducing resilience to cycles and the capacity to fund strategic initiatives over the medium term.

Kanematsu Corporation Business Overview & Revenue Model

Company Description

Kanematsu Corporation (8020) is a diversified trading company based in Japan, primarily engaged in the import and export of a wide range of products and services across various sectors, including machinery, chemicals, food, and textiles. The company operates through several divisions, focusing on core areas such as industrial machinery, information technology, and consumer goods, leveraging its extensive global network to facilitate trade and investment opportunities.

How the Company Makes Money

Kanematsu Corporation generates revenue through multiple channels, primarily by engaging in trading activities that involve the procurement and distribution of goods across its key sectors. The company earns money by importing products from international manufacturers and exporting them to domestic markets, benefiting from price differentials. Additionally, Kanematsu has established significant partnerships with various manufacturers and suppliers, allowing it to secure favorable terms and enhance its product offerings. Revenue is also generated from logistics and supply chain management services, as well as through investments in joint ventures and subsidiaries that operate in specialized sectors. The company's ability to adapt to market trends and maintain a diverse portfolio contributes to its financial stability and growth.

Kanematsu Corporation Financial Statement Overview

Summary

Kanematsu Corporation demonstrates a stable financial foundation with some areas of concern. While profitability and revenue growth have faced challenges, operational efficiency remains strong. The balance sheet shows moderate leverage, and cash flow management needs improvement. Overall, the company maintains a balanced financial position with potential for growth if revenue and cash flow issues are addressed.

Income Statement

Kanematsu Corporation's income statement shows a mixed performance. The gross profit margin is stable, but the net profit margin is relatively low, indicating limited profitability. The revenue growth rate has declined recently, which is concerning. However, the EBIT and EBITDA margins are reasonable, suggesting operational efficiency.

Balance Sheet

The balance sheet reflects a moderate financial position. The debt-to-equity ratio is slightly high, indicating leverage risk, but it has improved over time. The return on equity is healthy, showing effective use of equity. The equity ratio is stable, suggesting a balanced asset structure.

Cash Flow

Cash flow analysis reveals some challenges. The free cash flow growth rate is negative, indicating cash flow issues. However, the operating cash flow to net income ratio is positive, showing decent cash generation relative to net income. The free cash flow to net income ratio is strong, highlighting efficient cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.05T	1.05T	985.99B	911.41B	767.96B	649.14B
Gross Profit	161.04B	155.01B	142.56B	130.89B	111.80B	101.52B
EBITDA	59.07B	59.98B	58.78B	54.49B	42.94B	36.47B
Net Income	28.47B	27.47B	23.22B	18.57B	15.99B	13.31B
Balance Sheet
Total Assets	671.52B	689.34B	725.35B	677.59B	634.46B	557.50B
Cash, Cash Equivalents and Short-Term Investments	60.04B	56.78B	53.43B	79.46B	91.42B	81.05B
Total Debt	190.80B	203.26B	235.76B	248.57B	160.28B	139.48B
Total Liabilities	467.16B	501.20B	549.35B	534.16B	435.17B	377.00B
Stockholders Equity	190.24B	173.94B	159.32B	128.53B	159.48B	143.93B
Cash Flow
Free Cash Flow	38.08B	49.26B	30.82B	-5.83B	11.07B	31.51B
Operating Cash Flow	44.45B	58.33B	35.58B	-296.00M	15.38B	36.98B
Investing Cash Flow	1.16B	1.36B	-12.42B	-16.68B	-10.55B	-9.93B
Financing Cash Flow	-44.80B	-54.78B	-50.10B	4.75B	4.25B	-37.50B

Kanematsu Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3452.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8020, the sentiment is Positive. The current price of 3452 is above the 20-day moving average (MA) of 1991.78, above the 50-day MA of 1837.56, and above the 200-day MA of 1524.30, indicating a bullish trend. The MACD of 61.76 indicates Positive momentum. The RSI at 69.06 is Neutral, neither overbought nor oversold. The STOCH value of 44.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8020.

Kanematsu Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8015	77 Outperform	¥5.90T	15.81	13.49%	2.10%	5.32%	9.73%
8053	77 Outperform	¥7.33T	12.02	12.86%	2.48%	3.19%	72.26%
2768	76 Outperform	¥1.04T	9.93	11.17%	3.24%	2.12%	18.93%
8031	74 Outperform	¥14.13T	16.55	11.47%	2.28%	-1.33%	-7.40%
8020	73 Outperform	¥335.53B	11.68	―	3.13%	1.50%	9.82%
8002	71 Outperform	$8.31T	14.39	15.34%	2.29%	9.62%	25.71%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Kanematsu Corporation Corporate Events

Kanematsu Corporation’s Strategic Shift and Investment Plans

Kanematsu Corporation’s FY2026 Q2 results briefing highlighted its strategic shift towards enhancing value creation through updated Mission, Vision, and Values (MVV) and ‘integration 1.1.’ The company plans to leverage financial strategies to increase ROE and is considering significant investments in ICT and aerospace sectors, with a focus on M&A and organic growth to achieve its profit targets.

The most recent analyst rating on (JP:8020) stock is a Buy with a Yen3834.00 price target. To see the full list of analyst forecasts on Kanematsu Corporation stock, see the JP:8020 Stock Forecast page.

Kanematsu Corporation Announces Share Split and Dividend Increase

Kanematsu Corporation announced a share split to enhance share liquidity and accessibility for investors, doubling its total issued shares. The company also amended its Articles of Incorporation to increase authorized shares and revised its dividend forecast upward, reflecting stable profit growth and market expectations.

The most recent analyst rating on (JP:8020) stock is a Buy with a Yen3437.00 price target. To see the full list of analyst forecasts on Kanematsu Corporation stock, see the JP:8020 Stock Forecast page.