Kanematsu Corporation (8020) AI Stock Analysis

• Market Cap: ¥231.55B
• Dividend Yield: 3.79%
• Average Volume (3M): 249.20K
• Price to Earnings (P/E): 8.4
• Beta (1Y): 1.05
• Revenue Growth: 6.59%
• EPS Growth: 18.36%
• Country: JP
• Employees: 8,353
• Sector: Industrials
• Sector Strength: 86
• Industry: Conglomerates
• EPS (TTM): 328.95
• Shares Outstanding: 84,500,200
• 10 Day Avg. Volume: 263,250
• 30 Day Avg. Volume: 249,200
• PEG Ratio: 0.46
• Price to Book (P/B): 1.07
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -23.51
• 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

• Rating: 80 Outperform
• 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 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 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

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

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

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.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.05T	985.99B	911.41B	767.96B	649.14B
Gross Profit	155.01B	142.56B	119.61B	111.80B	101.52B
EBITDA	59.98B	51.72B	54.49B	40.39B	35.30B
Net Income	27.47B	23.22B	18.57B	15.99B	13.31B
Balance Sheet
Total Assets	689.34B	725.35B	677.59B	634.46B	557.50B
Cash, Cash Equivalents and Short-Term Investments	56.78B	53.43B	85.09B	103.43B	87.56B
Total Debt	203.26B	235.76B	248.57B	160.28B	139.48B
Total Liabilities	501.20B	549.35B	534.16B	435.17B	377.00B
Stockholders Equity	173.94B	159.32B	128.53B	159.48B	143.93B
Cash Flow
Free Cash Flow	49.26B	30.82B	-5.83B	11.07B	31.51B
Operating Cash Flow	58.33B	35.58B	-296.00M	15.38B	36.98B
Investing Cash Flow	1.49B	-12.42B	-16.68B	-10.55B	-9.93B
Financing Cash Flow	-54.78B	-50.10B	4.75B	4.25B	-37.50B

Kanematsu Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2772.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8020	80 Outperform	¥231.55B	8.43		3.79%	6.59%	18.36%
Sector *	61 Neutral	C$6.56B	9.41	3.50%	2.82%	6.99%	-11.09%
MARUF		$34.26B	10.37	13.98%	3.24%	―	―
MITSF		$59.18B	9.92	11.74%	3.34%	―	―
SSUMF		$31.08B	8.74	12.19%	3.26%	―	―
SZHFF		$5.13B	6.38	11.53%	0.03%	―	―
TYHOF		$23.56B	9.27	14.04%	0.02%	―	―

Kanematsu Corporation Corporate Events

Kanematsu Corporation Announces Increased Dividend for Fiscal Year 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

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

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

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.