Kyokuto Boeki Kaisha, Ltd. (8093) AI Stock Analysis

• Market Cap: ¥20.37B
• Dividend Yield: 4.17%
• Average Volume (3M): 29.83K
• Price to Earnings (P/E): 4.9
• Beta (1Y): 0.86
• Revenue Growth: 32.77%
• EPS Growth: 280.02%
• Country: JP
• Employees: 589
• Sector: Technology
• Sector Strength: 89
• Industry: Technology Distributors
• EPS (TTM): 52.29
• Shares Outstanding: 12,471,836
• 10 Day Avg. Volume: 42,530
• 30 Day Avg. Volume: 29,833
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥1,858.00
• Price Target Upside: 10.66% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 67 Neutral
• Price Target: ¥1,858.00 ▲(10.66% Upside)

Kyokuto Boeki Kaisha, Ltd. scores well due to its strong valuation metrics, including a low P/E ratio and high dividend yield, which suggest the stock is undervalued. However, financial performance is hindered by cash flow challenges and moderate profitability, while technical indicators point to potential overbought conditions, which could lead to a price correction.

Kyokuto Boeki Kaisha, Ltd. Business Overview & Revenue Model

Company Description

Kyokuto Boeki Kaisha, Ltd., a technology-oriented trading firm, trades in basic industry products, electronic and control systems, and industrial materials in Japan and internationally. It offers electric instrumentation control systems and permanent-magnetic couplings to steel, non-ferrous metal, chemical, automotive, electronics, and electrical power industries; and equipment and technical services for the exploration, drilling, finishing, and production of natural resources, such as oil, natural gas, and geothermal energy, as well as develops carbon dioxide capture and storage, and methane hydrate. The company also provides mechanical parts, such as screws, springs, and spiral springs; aerospace equipment, laser equipment, and 3D scanning systems, and simulation systems and software packages with engineering and other services; and power operational amplifiers, linear ICs, electrostatic accelerators, thermal conductivity meters/dilatometers, seismometers, strain gauges, and telecommunication products, as well as various other advanced-technology products. In addition, it offers paints, plastics, metals, and related equipment primarily for automotive industry, as well as exports materials to China, Southeast Asia, and other countries; high-performance/intensity steel belts and belt equipment; advanced materials and fabrication technologies to conserve valuable resources; and food processing machinery for manufacturing ham and sausage, as well as deodorant roll towels to support food safety and environment. The company was founded in 1947 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Kyokuto Boeki Kaisha, Ltd. generates revenue primarily through its trading activities, acting as an intermediary in the supply chain by purchasing goods from manufacturers and selling them to end-users or other businesses. The company earns margins on the products it trades, which include chemicals, machinery, metals, and food items. Additionally, it may receive commissions or fees for logistics and supply chain services provided to its clients. Key partnerships with manufacturers and distributors, along with its ability to navigate international markets, significantly contribute to its earnings.

Kyokuto Boeki Kaisha, Ltd. Financial Statement Overview

Summary

Kyokuto Boeki Kaisha, Ltd. exhibits strong revenue growth and a solid balance sheet, with an equity ratio of 50.6% and conservative leverage. However, profitability challenges with a moderate net profit margin and negative cash flows indicate areas needing improvement, particularly in operational efficiency and liquidity management.

Income Statement

Kyokuto Boeki Kaisha, Ltd. has demonstrated solid revenue growth with a 21.34% increase from 2024 to 2025, alongside improving profitability metrics. The gross profit margin increased to 20.2% in 2025, reflecting efficient cost management. However, net profit margin remains moderate at 7.02%, indicating room for further profit optimization. Despite these strengths, the EBIT margin of 3.85% suggests potential operational inefficiencies that could be addressed to enhance profitability.

Balance Sheet

The company maintains a healthy equity position with an equity ratio of 50.6% in 2025, indicating a strong balance sheet. The debt-to-equity ratio is at 0.26, suggesting a conservative leverage approach. Return on Equity (ROE) improved to 12.66%, demonstrating enhanced shareholder value. However, total liabilities have grown, which necessitates careful monitoring to prevent potential financial strain.

Cash Flow

Kyokuto Boeki Kaisha, Ltd. faces challenges in cash flow management, with negative operating cash flow and free cash flow in 2025. Despite free cash flow improvement from -1,262 million to -1,041 million yen, the negative figures indicate liquidity issues. The operating cash flow to net income ratio is negative, suggesting inefficiencies in converting profits into cash.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	52.98B	43.66B	42.66B	39.70B	57.41B
Gross Profit	10.70B	9.12B	8.90B	8.20B	7.58B
EBITDA	5.02B	1.48B	1.40B	1.13B	707.00M
Net Income	3.72B	1.16B	1.02B	781.00M	278.00M
Balance Sheet
Total Assets	58.01B	49.65B	44.52B	45.51B	51.79B
Cash, Cash Equivalents and Short-Term Investments	8.83B	8.64B	9.59B	9.08B	9.01B
Total Debt	7.64B	4.26B	3.60B	4.45B	4.24B
Total Liabilities	28.65B	23.96B	20.97B	22.89B	29.53B
Stockholders Equity	29.36B	25.68B	23.55B	22.62B	22.26B
Cash Flow
Free Cash Flow	-1.04B	-1.26B	1.22B	-753.00M	332.00M
Operating Cash Flow	-798.00M	-1.01B	1.59B	-510.00M	648.00M
Investing Cash Flow	2.01B	353.00M	-37.00M	951.00M	-7.00M
Financing Cash Flow	-646.00M	-498.00M	-1.67B	-628.00M	-1.45B

Kyokuto Boeki Kaisha, Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1679.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8093, the sentiment is Positive. The current price of 1679 is above the 20-day moving average (MA) of 1548.65, above the 50-day MA of 1517.00, and above the 200-day MA of 1533.58, indicating a bullish trend. The MACD of 36.40 indicates Negative momentum. The RSI at 80.66 is Negative, neither overbought nor oversold. The STOCH value of 92.02 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8093.

Kyokuto Boeki Kaisha, Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8093	67 Neutral	¥20.37B	4.89		4.17%	32.77%	280.02%
Sector *	61 Neutral	$36.30B	7.30	-7.27%	1.97%	7.76%	-6.42%
9V2	―	€1.02B	8.86	11.40%	―	―	―
8137	78 Outperform	¥39.39B	18.16		4.40%	-10.70%	-50.96%
9880	77 Outperform	¥19.36B	20.68		4.75%	-3.90%	-44.26%
8023	75 Outperform	¥14.71B	10.17		2.78%	-5.42%	-29.21%
7537	72 Outperform	¥29.22B	6.55		5.98%	-7.46%	7.37%

Kyokuto Boeki Kaisha, Ltd. Corporate Events

Kyokuto Boeki Kaisha Reports Strong Quarterly Growth Amid Forecasted Profit Decline

Kyokuto Boeki Kaisha, Ltd. reported a significant increase in its consolidated financial results for the three months ended June 30, 2025, with net sales rising by 53% year-on-year to ¥16,041 million. Despite the impressive quarterly results, the company forecasts a decline in profits for the fiscal year ending March 31, 2026, indicating potential challenges ahead.

Kyokuto Boeki Kaisha Announces Treasury Share Disposal for Executive Compensation

Kyokuto Boeki Kaisha, Ltd. has announced the disposal of 14,649 treasury shares as restricted stock compensation for its directors and executive officers. This move is part of a broader compensation plan aimed at aligning the interests of the company’s leadership with those of its shareholders by incentivizing long-term corporate value growth. The plan, initially approved in 2018, has been updated to extend the transfer restriction period, reflecting the company’s commitment to sustained value creation.

Kyokuto Boeki Kaisha Completes Share Repurchase Program

Kyokuto Boeki Kaisha, Ltd. has completed a share repurchase program as part of its strategic financial management. The company repurchased 25,800 shares of its common stock for JPY 39,154,254 between July 1 and July 15, 2025, as part of a larger plan to repurchase up to 350,000 shares, enhancing shareholder value and optimizing capital structure.

Kyokuto Boeki Kaisha, Ltd. Receives Dividends to Boost Financial Efficiency

Kyokuto Boeki Kaisha, Ltd. announced the receipt of dividends totaling 2,460 million yen from its subsidiaries Automax Co., Ltd. and Eto Co., Ltd. This financial maneuver aims to enhance fund efficiency and financial management within the group. The dividends will be recorded as non-operating income in the individual financial statements for the fiscal year ending March 2026, with no impact on the consolidated financial results.

Kyokuto Boeki Kaisha Reports Strong Fiscal Year 2025 Results Amid Future Challenges

Kyokuto Boeki Kaisha, Ltd. reported significant growth in its financial performance for the fiscal year ended March 31, 2025, with a 21.4% increase in net sales and a substantial rise in profits. The company achieved a notable improvement in its return on equity and operating profit margins, reflecting strong operational efficiency. However, the forecast for the fiscal year ending March 31, 2026, indicates a potential decline in profits, suggesting challenges ahead in maintaining the current growth momentum.

Kyokuto Boeki Kaisha Revises Restricted Stock Plan for Directors

Kyokuto Boeki Kaisha, Ltd. announced a revision to its restricted stock compensation plan for directors, excluding outside directors and those serving on the audit and supervisory committee. The revision changes the transfer restriction period from a fixed three years to a period that lasts until the director loses all positions within the company. This move is aimed at strengthening incentives for directors to enhance corporate value and align their interests with shareholders.

Kyokuto Boeki Kaisha Reports Strong FY2025 Results, Anticipates Profit Decline in FY2026

Kyokuto Boeki Kaisha, Ltd. reported a significant financial performance for the fiscal year ending March 31, 2025, with net sales increasing by 21.4% to ¥52,982 million and profit attributable to owners of the parent soaring by 221.4% to ¥3,717 million. Despite the impressive growth in the past fiscal year, the company forecasts a decrease in profits for the upcoming fiscal year ending March 31, 2026, with a projected 57% drop in profit attributable to owners of the parent, indicating potential challenges ahead.