Kamei Corporation (8037) AI Stock Analysis

• Market Cap: ¥103.89B
• Dividend Yield: 3.16%
• Average Volume (3M): 37.41K
• Price to Earnings (P/E): 9.7
• Beta (1Y): 0.93
• Revenue Growth: 3.28%
• EPS Growth: 20.32%
• Country: JP
• Employees: 4,777
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Refining & Marketing
• EPS (TTM): 84.65
• Shares Outstanding: 32,991,970
• 10 Day Avg. Volume: 33,200
• 30 Day Avg. Volume: 37,413
• PEG Ratio: 0.72
• Price to Book (P/B): 0.41
• Price to Sales (P/S): 0.11
• P/FCF Ratio: 2.48
• 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: 75 Outperform
• Price Target: ¥3,819.00 ▲(26.46% Upside)
• Action: Reiterated Date: 11/15/25
• Date: Action: Reiterated 11/15/25

Kamei Corporation's strong financial performance and attractive valuation are the primary drivers of its overall score. While technical indicators show some bearish momentum, the stock's undervaluation and solid dividend yield offer significant upside potential. The absence of earnings call and corporate events data did not impact the score.

Positive Factors

Strong operating cash generation

Operating cash flow growth that outpaced net income indicates durable cash conversion from core operations. This strengthens the company’s ability to fund capex, pay down debt, sustain dividends, and invest in strategic initiatives without relying on external financing, improving long-term resilience.

Healthy capital structure and ROE

A healthy equity ratio combined with strong ROE implies efficient use of shareholder capital and a conservative capital base. This supports financial flexibility for strategic investments and cushions against cyclical shocks, enabling steady capital allocation and long-term shareholder returns.

Stable and improving profit margins

Stable gross margins and improving net margins reflect sustained operational efficiency and pricing or cost control benefits. Consistent EBIT/EBITDA performance supports cash generation, funds reinvestment and provides a structural buffer that helps the business withstand demand fluctuations over the medium term.

Negative Factors

Slight upward leverage trend

A rising trend in leverage, even if currently manageable, can increase interest expense and reduce financial flexibility over time. If cash generation slows or rates rise, higher leverage could constrain capital allocation, raise refinancing risk and limit the company's ability to pursue growth or de-lever.

Exposure to energy/commodity cycles

Significant exposure to energy-related distribution ties revenues and margins to commodity price swings and demand cycles. This structural cyclicality can create longer-term volatility in working capital, inventory risk and profitability, requiring active risk management and pricing discipline.

Modest reported revenue growth rate

A roughly 3.1% revenue growth rate suggests limited top-line momentum absent further product or market expansion. Slower organic growth can constrain operating leverage and put pressure on return targets, meaning improvements must come from margin expansion, efficiency gains or strategic M&A for durable EPS growth.

Kamei Corporation Business Overview & Revenue Model

Company Description

Kamei Corporation operates as a general trading company in Japan and internationally. The company operates through Corporate Sales, Residential, Carlife, Food, Construction Materials, and Pharmacy divisions. It provides eco-friendly products, including LED lighting, eco pumps, and warm glasses; energy management-related products, such as solar power generation systems, lithium-ion storage batteries, etc.; chemical products comprising industrial chemicals, water treatment agents, alcohol, etc.; industrial materials and equipment consisting of logistics materials, compressors, generators, Karcher products, etc.; office supplies; ICT solutions and services; insurance products; and emergency earthquake warning systems, fire extinguishers, and fire-extinguishing equipment. The company also supplies automobile and industrial lubricants, oil products, LNG and LPG products, and home-use propane gas and kerosene; kitchen and hot water supply systems, as well as equipment; household fuel cells; built-in kitchens and baths; and alcoholic beverages, soft drinks, food products, restaurant ingredients, processing ingredients, etc. In addition, it operates a network of service stations that offer refueling services, as well as car wash, tire change, oil change, safety and vehicle inspection, coating, and other maintenance services; provides auto leasing services; and undertakes steel frame, exterior cladding, and metal siding construction works. Further, the company operates pharmacies; and offers renovation services. As of October 1, 2020, it operated 291 gas stations, 34 oil depots, 16 gas terminals, 6 automobile LPG stations, 2 food distribution centers, 104 pharmacies, and 1 supermarket. The company was formerly known as Kamei Shoten Co. and changed its name to Kamei Corporation in 1985. Kamei Corporation was founded in 1903 and is headquartered in Sendai, Japan.

How the Company Makes Money

Kamei Corporation generates revenue primarily through the manufacturing and sale of precision metal components and materials. Its key revenue streams include direct sales of metal stamped parts and precision machined components to major customers in the automotive and electronics sectors. The company also engages in long-term contracts with various manufacturers, which provide a steady stream of income. Additionally, Kamei Corporation invests in research and development to innovate its product offerings, which helps in maintaining competitiveness and attracting new clients. Strategic partnerships with key industry players further bolster its market presence and contribute to revenue growth.

Kamei Corporation Financial Statement Overview

Summary

Kamei Corporation exhibits strong revenue growth, stable margins, and efficient cash flow management. The balance sheet is robust, though a slight upward trend in leverage warrants attention. Overall, the company is well-positioned for future growth with potential risks primarily associated with debt levels.

Income Statement

Kamei Corporation demonstrated strong revenue growth with consistent increases in total revenue over the past years. The gross profit margin showed stability while the net profit margin improved, reflecting enhanced profitability. EBIT and EBITDA margins also indicated solid operational performance, contributing to a robust income statement.

Balance Sheet

The balance sheet showed a healthy equity ratio, indicating a strong capital structure. The debt-to-equity ratio is at a manageable level, but there has been a slight increase, which could pose future risk if not monitored. Return on Equity (ROE) remained strong, reflecting effective utilization of equity to generate profits.

Cash Flow

Cash flow analysis reveals strong operating cash flow growth, which outpaced net income, indicating efficient cash generation from operations. Free cash flow showed significant improvement, providing flexibility for investments or debt reduction. The company maintains a good balance between operating cash flow and net income.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	586.65B	575.79B	573.50B	552.24B	483.42B	404.86B
Gross Profit	95.04B	93.04B	88.11B	84.43B	73.92B	70.24B
EBITDA	30.76B	31.29B	29.02B	26.20B	23.31B	22.05B
Net Income	11.39B	10.69B	10.11B	8.56B	8.51B	7.85B
Balance Sheet
Total Assets	308.21B	320.71B	324.61B	307.56B	285.30B	256.49B
Cash, Cash Equivalents and Short-Term Investments	62.97B	62.26B	54.96B	45.08B	39.80B	43.49B
Total Debt	40.19B	57.42B	67.90B	69.97B	59.55B	58.51B
Total Liabilities	141.82B	154.24B	165.54B	163.26B	153.30B	136.59B
Stockholders Equity	158.02B	158.12B	151.00B	137.07B	125.46B	113.63B
Cash Flow
Free Cash Flow	0.00	26.13B	15.38B	5.01B	8.10B	12.08B
Operating Cash Flow	0.00	38.36B	25.04B	13.65B	18.36B	21.26B
Investing Cash Flow	0.00	-13.62B	-11.66B	-9.72B	-17.84B	-10.84B
Financing Cash Flow	0.00	-21.27B	-6.50B	-1.87B	-4.53B	-3.33B

Kamei Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3020.00
• 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:8037, the sentiment is Positive. The current price of 3020 is below the 20-day moving average (MA) of 3267.50, below the 50-day MA of 3182.10, and above the 200-day MA of 2807.67, indicating a bullish trend. The MACD of 51.84 indicates Negative momentum. The RSI at 64.22 is Neutral, neither overbought nor oversold. The STOCH value of 73.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8037.

Kamei Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8037	75 Outperform	¥103.89B	9.67	―	3.16%	3.28%	20.32%
8131	74 Outperform	¥131.32B	11.31	―	2.57%	7.46%	153.98%
8097	71 Outperform	¥152.30B	19.34	―	4.76%	1.07%	-28.19%
5019	68 Neutral	¥1.92T	62.58	2.23%	3.07%	-7.68%	-73.03%
8132	67 Neutral	¥71.05B	25.58	―	1.37%	-5.02%	186.97%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
8133	63 Neutral	¥235.36B	16.46	―	3.45%	-4.87%	26.27%

Kamei Corporation Corporate Events

Kamei Lifts Year-End Dividend Forecast, Extending 11-Year Streak of Payout Increases

Kamei Corporation has revised its dividend policy for the fiscal year ending March 31, 2026, raising the forecast year-end dividend from ¥50 to ¥55 per share. Combined with an interim dividend of ¥50 per share already paid, the company now expects total annual dividends of ¥105 per share, compared with ¥73 per share in the previous fiscal year.

Management framed the increase as part of a long-standing commitment to progressive dividends and shareholder returns, aligned with its updated Long-term Management Policy from May 2025. The move also reflects the company’s current business performance and its intent to balance higher payouts with efforts to strengthen its financial position and maintain appropriate internal reserves, marking the 11th consecutive year of dividend growth.

The most recent analyst rating on (JP:8037) stock is a Hold with a Yen3531.00 price target. To see the full list of analyst forecasts on Kamei Corporation stock, see the JP:8037 Stock Forecast page.

Kamei Lifts Dividend Outlook on Solid Nine-Month Earnings

Kamei Corporation reported consolidated net sales of ¥421.8 billion for the nine months ended December 31, 2025, up 3.2% year on year, with operating profit rising 5.6% to ¥10.8 billion and profit attributable to owners of parent increasing 3.1% to ¥7.3 billion. The company also strengthened its financial base, with total assets climbing to ¥327.8 billion, equity improving to ¥163.8 billion, and the equity ratio reaching 50.0%, underscoring a solid balance sheet.

Reflecting stronger earnings and balance sheet metrics, Kamei raised its dividend outlook for the year ending March 31, 2026 to a total of ¥105 per share, up from ¥73 in the previous year, signaling a more shareholder-friendly capital policy. The company left its full-year forecast unchanged, projecting modest growth in net sales and profit attributable to owners of parent despite expected declines in operating and ordinary profit, suggesting management sees current performance as broadly on track amid a stable but competitive operating environment.

The most recent analyst rating on (JP:8037) stock is a Hold with a Yen3531.00 price target. To see the full list of analyst forecasts on Kamei Corporation stock, see the JP:8037 Stock Forecast page.