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Kanematsu Corporation (JP:8020)
:8020
Japanese Market

Kanematsu Corporation (8020) AI Stock Analysis

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JP

Kanematsu Corporation

(8020)

Rating:80Outperform
Price Target:
¥3,094.00
▲(11.60%Upside)
Kanematsu Corporation's strong financial performance and attractive valuation are the primary drivers of its high overall score. While technical indicators suggest bullish momentum, caution is advised due to overbought signals. The absence of recent earnings call insights and corporate events means these factors do not affect the overall score.

Kanematsu Corporation (8020) vs. iShares MSCI Japan ETF (EWJ)

Kanematsu Corporation Business Overview & Revenue Model

Company DescriptionKanematsu Corporation trades in commercial products worldwide. It operates in four segments: Electronics & Devices; Foods, Meat & Grain; Steel Materials & Plant; and Motor Vehicles & Aerospace. The Electronics & Devices segment offers semiconductor equipment, semiconductor and devices, industrial electronics, electronics components and materials, ICT solutions, mobile, and CCTV systems, as well as data, AI, and SaaS. The Foods, Meat & Grain segment provides cooked and processed foods; processed and agricultural products; meat products; grain, food soyabeans, and oilseeds; feedstuff; and agricultural, marine, beverage products, etc. The Steel, Materials & Plant segment trades in steel, steel tubing, chemicals, energy, plant and ships, and machine tools and industrial machinery products. The Motor Vehicles & Aerospace segment trades in motor vehicle and parts, and aerospace parts. The company also manufactures and sells medium-density fiberboard; and sale of pet food, feed materials, feed by-products, soft drink to vending machine, metal products, formulated resin, and aircraft engines. In addition, it involved in the insurance agency and forwarding business, consigned freight forwarding business, and logistics services, as well as operates warehouse and self-storage. The company was founded in 1889 and is headquartered in Tokyo, Japan.
How the Company Makes MoneyKanematsu Corporation generates revenue through a multifaceted business model that involves trading, distribution, and value-added services across its core sectors. The company earns money by acting as an intermediary in the international trade of goods, leveraging its extensive network to facilitate import and export transactions. In the electronics sector, Kanematsu deals with components and systems used in various applications, while in the food sector, it handles the distribution of both raw and processed food products. The steel and materials sector involves the trade of metals and related products. Additionally, the chemicals sector includes the distribution of industrial chemicals and materials. The company also engages in strategic partnerships and alliances that enhance its market presence and offer growth opportunities. Revenue is further supported by its ability to adapt to market demands and provide tailored solutions to its clients.

Kanematsu Corporation Financial Statement Overview

Summary
Kanematsu Corporation exhibits a strong financial performance with solid revenue growth, effective cost management, and robust cash flow generation. The consistent upward trend in revenue and profitability, along with a strong return on equity and efficient cash operations, underpins its financial health. However, a moderately high debt-to-equity ratio slightly tempers the score.
Income Statement
85
Very Positive
Kanematsu Corporation's income statement shows strong revenue growth, with a 6.6% increase in the latest year compared to the previous year. The company maintains a robust gross profit margin of 14.7% and a net profit margin of 2.6%, which indicates effective cost management and profitability. EBIT and EBITDA margins are also healthy at 3.8% and 5.7% respectively, showcasing operational efficiency. The consistent upward trend in revenue and profitability reflects a positive trajectory for the company.
Balance Sheet
78
Positive
The balance sheet reveals a stable financial structure with a debt-to-equity ratio of 1.17, indicating moderate leverage. The return on equity is strong at 15.8%, showing effective utilization of shareholder funds. The equity ratio stands at 25.2%, suggesting a balanced approach to financing through both debt and equity. Although there is some leverage, the company's equity position remains solid, reflecting financial stability.
Cash Flow
82
Very Positive
Kanematsu Corporation demonstrates a robust cash flow position with a free cash flow to net income ratio of 1.8, highlighting efficient cash generation relative to earnings. Operating cash flow increased significantly to 58.3 billion JPY in the latest period, indicating strong cash operations. The free cash flow experienced substantial growth of 59.8% from the previous year, underpinning the company's capacity to support future investments and debt repayments.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue1.05T985.99B911.41B767.96B649.14B
Gross Profit155.01B142.56B119.61B111.80B101.52B
EBITDA59.98B51.72B54.49B40.39B35.30B
Net Income27.47B23.22B18.57B15.99B13.31B
Balance Sheet
Total Assets689.34B725.35B677.59B634.46B557.50B
Cash, Cash Equivalents and Short-Term Investments56.78B53.43B85.09B103.43B87.56B
Total Debt203.26B235.76B248.57B160.28B139.48B
Total Liabilities501.20B549.35B534.16B435.17B377.00B
Stockholders Equity173.94B159.32B128.53B159.48B143.93B
Cash Flow
Free Cash Flow49.26B30.82B-5.83B11.07B31.51B
Operating Cash Flow58.33B35.58B-296.00M15.38B36.98B
Investing Cash Flow1.49B-12.42B-16.68B-10.55B-9.93B
Financing Cash Flow-54.78B-50.10B4.75B4.25B-37.50B

Kanematsu Corporation Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2772.50
Price Trends
50DMA
2637.58
Positive
100DMA
2536.09
Positive
200DMA
2494.71
Positive
Market Momentum
MACD
32.88
Negative
RSI
67.75
Neutral
STOCH
86.80
Negative
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 2772.5 is above the 20-day moving average (MA) of 2683.05, above the 50-day MA of 2637.58, and above the 200-day MA of 2494.71, indicating a bullish trend. The MACD of 32.88 indicates Negative momentum. The RSI at 67.75 is Neutral, neither overbought nor oversold. The STOCH value of 86.80 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8020.

Kanematsu Corporation Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
¥231.55B8.43
3.79%6.59%18.36%
61
Neutral
C$6.56B9.413.50%2.82%6.99%-11.09%
$34.26B10.3713.98%3.24%
$59.18B9.9211.74%3.34%
$31.08B8.7412.19%3.26%
$5.13B6.3811.53%0.03%
$23.56B9.2714.04%0.02%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:8020
Kanematsu Corporation
2,772.50
209.58
8.18%
MARUF
Marubeni
20.60
2.24
12.20%
MITSF
Mitsui & Co
19.96
-3.27
-14.08%
SSUMF
Sumitomo
26.60
2.68
11.20%
SZHFF
Sojitz
21.50
-1.72
-7.41%
TYHOF
Toyota Tsusho
20.88
1.44
7.41%

Kanematsu Corporation Corporate Events

Kanematsu Corporation Announces Increased Dividend for Fiscal Year 2025
May 23, 2025

Kanematsu Corporation announced a dividend of 52.50 yen per share for the fiscal year ended March 31, 2025, reflecting an increase from the previous year’s 45.00 yen. This decision aligns with the company’s medium-term management plan, ‘integration 1.0,’ which targets a dividend payout ratio of 30-35%, emphasizing the importance of returning profits to shareholders while ensuring future growth investments.

Kanematsu Corporation Reports Significant Financial Gains from Strategic Asset Sales
May 8, 2025

Kanematsu Corporation reported significant differences in its non-consolidated financial results for the fiscal year ending March 31, 2025, compared to the previous year. The notable increase in profits was primarily due to extraordinary income from the sale of investment securities, specifically cross-shareholdings, which resulted in a gain of approximately ¥10.1 billion. This financial maneuver reflects the company’s strategic efforts to optimize its investment portfolio and enhance shareholder value.

Kanematsu Corporation Achieves Cross-Shareholding Reduction Ahead of Schedule
May 8, 2025

Kanematsu Corporation announced its successful reduction of cross-shareholdings by approximately ¥10.0 billion, achieving its medium-term management plan target ahead of schedule. This move aims to lower the ratio of cross-shareholdings to total consolidated net assets to 10% or less by March 2027, enhancing financial efficiency and strategic flexibility.

Kanematsu Corporation Reports Strong Fiscal Year 2025 Results
May 8, 2025

Kanematsu Corporation reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a 6.6% increase in revenue to ¥1,050,936 million. Despite a slight decline in operating profit, the company saw a significant rise in profit attributable to owners of the parent by 18.3%, reflecting strong performance in its core operations. The company also announced an increase in annual dividends per share, highlighting its commitment to returning value to shareholders.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 27, 2025