Kanematsu Corporation (8020) AI Stock Analysis

• Market Cap: ¥259.73B
• Dividend Yield: 3.36%
• Average Volume (3M): 256.97K
• Price to Earnings (P/E): 9.1
• Beta (1Y): 1.02
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: ¥3,834.00 ▲(14.62% Upside)

Kanematsu Corporation's strong financial performance, attractive valuation, and positive technical indicators contribute to a solid overall stock score. The company's robust cash flow and efficient leverage management further enhance its investment appeal. While the technical analysis indicates bullish momentum, investors should be cautious of potential overbought conditions.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial stability.

Cash Generation

Robust cash generation enhances financial flexibility, allowing for reinvestment in growth opportunities and debt reduction.

Operational Efficiency

Strong operational efficiency reflects effective cost management and competitive positioning, supporting sustainable profitability.

Negative Factors

Modest Net Profit Margin

A modest net profit margin may limit the company's ability to absorb economic shocks and invest in future growth initiatives.

Leverage Management

While leverage has improved, maintaining optimal debt levels is crucial to avoid financial strain and ensure long-term stability.

Equity Utilization

Although ROE is strong, reliance on equity for growth can dilute shareholder value if not managed alongside debt and cash flow.

Kanematsu Corporation Business Overview & Revenue Model

Company Description

Kanematsu 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 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: 3345.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 3345 is above the 20-day moving average (MA) of 3250.00, above the 50-day MA of 3160.20, and above the 200-day MA of 2760.74, indicating a bullish trend. The MACD of 63.47 indicates Negative momentum. The RSI at 60.63 is Neutral, neither overbought nor oversold. The STOCH value of 69.64 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
8020	79 Outperform	¥259.73B	9.10	―	3.36%	1.50%	9.82%
8015	78 Outperform	$4.98T	13.48	13.49%	2.49%	5.32%	9.73%
8053	78 Outperform	$5.87T	9.64	12.86%	2.90%	3.19%	72.26%
8002	76 Outperform	$6.43T	11.13	15.34%	2.50%	9.62%	25.71%
8031	74 Outperform	$10.72T	13.36	11.47%	2.80%	-1.33%	-7.40%
2768	72 Outperform	$781.55B	7.78	11.17%	3.45%	2.12%	18.93%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Kanematsu Corporation Corporate Events

Kanematsu Corporation Reports Q1 2025 Financial Results

Kanematsu Corporation reported its consolidated financial results for the three months ended June 30, 2025, showing stable revenue but a decline in operating profit and profit before tax compared to the previous year. Despite the decrease in profits, the company maintains a strong financial position with a slight increase in total equity and a forecast for improved annual dividends, indicating a positive outlook for the fiscal year ending March 31, 2026.