Kanematsu Corporation (8020) AI Stock Analysis

• Market Cap: ¥293.98B
• Dividend Yield: 3.13%
• Average Volume (3M): 256.97K
• Price to Earnings (P/E): 10.3
• Beta (1Y): 1.04
• Revenue Growth: 1.50%
• EPS Growth: 9.82%
• Country: JP
• Employees: 8,353
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 110.06
• Shares Outstanding: 84,500,200
• 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: ¥3,840.00 ▲(11.24% Upside)

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

Business Model Strength

Kanematsu's diversified revenue streams and strong trading capabilities provide resilience against market fluctuations, supporting long-term stability.

Operational Efficiency

Strong operational efficiency indicates effective management and cost control, which can sustain profitability even in challenging market conditions.

Global Network

Kanematsu's extensive global network enhances its ability to capitalize on international trade opportunities, supporting long-term growth.

Negative Factors

Revenue Growth Challenges

Declining revenue growth may indicate weakening market demand or competitive pressures, potentially impacting future financial performance.

Cash Flow Management

Challenges in cash flow management could limit the company's ability to invest in growth opportunities or manage debt effectively.

Leverage Risk

Higher leverage increases financial risk, potentially affecting the company's ability to weather economic downturns or invest in strategic initiatives.

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 exhibits strong financial health with consistent revenue growth and efficient operational margins. The balance sheet shows improved leverage and strong returns on equity, while cash flow metrics highlight robust cash generation and management.

Income Statement

Kanematsu Corporation has demonstrated consistent revenue growth with a notable increase of 1% in TTM and 6.59% annually. The gross profit margin remains stable around 14.75%, indicating efficient cost management. The net profit margin is modest at 2.61%, but the EBIT and EBITDA margins are healthy at 4.03% and 5.54% respectively, reflecting strong operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved to 1.17 in TTM from higher levels in previous years, indicating better leverage management. Return on equity is strong at 16.07%, showcasing effective use of equity to generate profits. The equity ratio is stable, suggesting a balanced capital structure.

Cash Flow

Kanematsu's free cash flow has grown significantly by 103.9% in TTM, indicating robust cash generation capabilities. The operating cash flow to net income ratio is 0.16, and the free cash flow to net income ratio is 0.84, both reflecting efficient cash flow management relative to earnings.

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	158.59B	155.01B	142.56B	130.89B	111.80B	101.52B
EBITDA	58.02B	59.98B	58.78B	54.49B	42.94B	36.47B
Net Income	26.99B	27.47B	23.22B	18.57B	15.99B	13.31B
Balance Sheet
Total Assets	640.28B	689.34B	725.35B	677.59B	634.46B	557.50B
Cash, Cash Equivalents and Short-Term Investments	49.22B	56.78B	53.43B	79.46B	91.42B	81.05B
Total Debt	196.01B	203.26B	235.76B	248.57B	160.28B	139.48B
Total Liabilities	448.47B	501.20B	549.35B	534.16B	435.17B	377.00B
Stockholders Equity	178.18B	173.94B	159.32B	128.53B	159.48B	143.93B
Cash Flow
Free Cash Flow	49.77B	49.26B	30.82B	-5.83B	11.07B	31.51B
Operating Cash Flow	57.53B	58.33B	35.58B	-296.00M	15.38B	36.98B
Investing Cash Flow	1.46B	1.36B	-12.42B	-16.68B	-10.55B	-9.93B
Financing Cash Flow	-61.85B	-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 3429.45, above the 50-day MA of 3271.73, and above the 200-day MA of 2842.73, indicating a bullish trend. The MACD of 65.21 indicates Positive momentum. The RSI at 60.75 is Neutral, neither overbought nor oversold. The STOCH value of 58.61 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	¥5.69T	15.41	13.49%	2.10%	5.32%	9.73%
8053	77 Outperform	¥6.60T	10.83	12.86%	2.48%	3.19%	72.26%
2768	76 Outperform	¥926.42B	9.22	11.17%	3.24%	2.12%	18.93%
8031	74 Outperform	$13.12T	14.56	11.47%	2.28%	-1.33%	-7.40%
8020	73 Outperform	¥293.98B	10.29	―	3.13%	1.50%	9.82%
8002	71 Outperform	¥7.32T	12.67	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.

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.

Kanematsu Corporation Reports Stable Financial Performance Amid Revenue Decline

Kanematsu Corporation reported its consolidated financial results for the six months ended September 30, 2025, showing a slight decline in revenue and operating profit compared to the previous year. Despite this, the company saw an increase in profit before tax and profit attributable to owners of the parent, indicating improved efficiency and cost management. The company’s financial position remains stable with a slight increase in total equity and a higher ratio of equity attributable to owners of the parent. The company also announced an increase in dividends, reflecting confidence in its future performance.