KUWAZAWA Holdings Corp. (8104) AI Stock Analysis

• Market Cap: ¥8.84B
• Dividend Yield: 3.04%
• Average Volume (3M): 20.45K
• Price to Earnings (P/E): 11.5
• Beta (1Y): 0.83
• Revenue Growth: 0.70%
• EPS Growth: 5.27%
• Country: JP
• Employees: 1,009
• Sector: Basic Materials
• Sector Strength: 61
• Industry: Construction Materials
• EPS (TTM): 2.66
• Shares Outstanding: 16,694,496
• 10 Day Avg. Volume: 14,340
• 30 Day Avg. Volume: 20,446
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥655.00
• Price Target Upside: 11.39% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 73 Outperform
• Price Target: ¥655.00 ▲(11.39% Upside)

KUWAZAWA Holdings Corp. receives a strong overall score driven by solid financial performance and attractive valuation. The technical analysis supports a positive outlook with bullish momentum. The absence of earnings call data and corporate events does not detract from the stock's favorable position.

Positive Factors

Revenue Growth

Steady revenue growth indicates a consistent demand for KUWAZAWA's products, supporting long-term business stability and market presence.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial stability, providing the company with flexibility to invest in growth opportunities.

Cash Generation

Improved cash flow generation strengthens the company's ability to fund operations, reduce debt, and invest in future growth initiatives.

Negative Factors

Operational Efficiency

Low operational efficiency may hinder profitability improvements, limiting the company's ability to compete effectively in the market.

Cash Flow Volatility

Volatile cash flow generation can lead to uncertainty in funding operations and investments, impacting long-term financial planning.

Profit Margins

Despite slight improvements, low net profit margins may limit reinvestment in business growth and reduce competitive edge.

KUWAZAWA Holdings Corp. Business Overview & Revenue Model

Company Description

KUWAZAWA Holdings Corp. (8104) is a Japan-based company primarily engaged in the wholesale of building materials. The company operates through several divisions, focusing on the supply of construction-related products ranging from basic building materials to specialized equipment. It serves a variety of clients in the construction industry, including contractors and developers, offering products that support residential, commercial, and infrastructure projects.

How the Company Makes Money

KUWAZAWA Holdings Corp. generates revenue through the sale of building materials and construction-related products. The company's key revenue streams include wholesale distribution agreements with manufacturers, retail sales to construction companies, and supplying materials for large-scale construction projects. Additionally, the company may establish partnerships with construction firms and developers to ensure a steady demand for its products. These partnerships, combined with a broad distribution network, help the company maintain a competitive edge in the market, thereby contributing to its earnings.

KUWAZAWA Holdings Corp. Financial Statement Overview

Summary

KUWAZAWA Holdings Corp. exhibits stable financial health with steady revenue growth and improved profitability. The company's balance sheet is strong, with low leverage and effective use of equity, although operational efficiencies could be enhanced. Cash flow generation has improved significantly, but sustainability remains a concern due to previous volatility.

Income Statement

The income statement shows stable revenue with moderate growth, evidenced by a 0.88% revenue growth in the latest year. The gross profit margin improved to 14.00%, and the net profit margin increased slightly to 1.14%, indicating enhanced profitability. However, both EBIT and EBITDA margins remain relatively low, reflecting limited operational efficiency enhancements.

Balance Sheet

The balance sheet demonstrates a solid equity base with an equity ratio of 38.73% and a manageable debt-to-equity ratio of 0.13. The company has improved its ROE to 4.68%, highlighting better utilization of shareholders' equity. The financial position is stable, with good liquidity and low leverage risk.

Cash Flow

The cash flow statement shows a significant improvement in free cash flow, turning positive from the previous year. The operating cash flow to net income ratio is 3.43, indicating robust cash generation relative to net income. However, free cash flow growth rate is high at 224.46%, suggesting volatility in cash flow generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	65.41B	65.41B	64.83B	64.31B	62.95B	93.94B
Gross Profit	9.16B	9.16B	8.81B	8.22B	8.08B	8.36B
EBITDA	1.46B	1.48B	1.70B	1.56B	1.53B	1.54B
Net Income	748.00M	748.00M	741.00M	601.00M	559.00M	108.00M
Balance Sheet
Total Assets	41.24B	41.24B	41.75B	40.14B	39.02B	42.98B
Cash, Cash Equivalents and Short-Term Investments	7.51B	7.51B	5.87B	8.61B	8.10B	9.15B
Total Debt	2.06B	2.06B	2.51B	3.20B	3.77B	5.51B
Total Liabilities	25.15B	25.15B	26.26B	25.43B	24.74B	29.09B
Stockholders Equity	15.98B	15.98B	15.38B	14.60B	14.15B	13.75B
Cash Flow
Free Cash Flow	0.00	2.21B	-1.77B	1.14B	674.00M	2.08B
Operating Cash Flow	0.00	2.57B	-1.31B	1.32B	760.00M	2.17B
Investing Cash Flow	0.00	-193.00M	-563.00M	-92.00M	24.00M	161.00M
Financing Cash Flow	0.00	-727.00M	-876.00M	-720.00M	-1.83B	-832.00M

KUWAZAWA Holdings Corp. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 588.00
• 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:8104, the sentiment is Positive. The current price of 588 is above the 20-day moving average (MA) of 579.55, above the 50-day MA of 560.30, and above the 200-day MA of 570.60, indicating a bullish trend. The MACD of 6.33 indicates Negative momentum. The RSI at 59.89 is Neutral, neither overbought nor oversold. The STOCH value of 71.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8104.

KUWAZAWA Holdings Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5284	83 Outperform	¥15.77B	6.59		3.57%	14.44%	28.75%
5282	81 Outperform	¥10.95B	14.48		3.14%	-1.67%	-38.73%
5283	76 Outperform	¥5.64B	8.35		1.50%	3.08%	-11.20%
8104	73 Outperform	¥8.84B	11.46		3.04%	0.70%	5.27%
5268	62 Neutral	¥13.67B	37.58		1.35%	-0.66%	-11.08%
Sector *	61 Neutral	$10.29B	7.21	-0.05%	2.89%	2.87%	-36.73%
5269	55 Neutral	¥20.26B	98.19		3.65%	-6.24%	-146.29%