King Co., Ltd. (8118) AI Stock Analysis

• Market Cap: ¥20.51B
• Dividend Yield: 1.99%
• Average Volume (3M): 3.85K
• Price to Earnings (P/E): 29.4
• Beta (1Y): 0.41
• Revenue Growth: -3.60%
• EPS Growth: 15.74%
• Country: JP
• Employees: 153
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 12.30
• Shares Outstanding: 24,771,560
• 10 Day Avg. Volume: 2,630
• 30 Day Avg. Volume: 3,850
• PEG Ratio: 0.42
• Price to Book (P/B): 0.53
• Price to Sales (P/S): 1.46
• P/FCF Ratio: 21.73
• 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: 68 Neutral
• Price Target: ¥1,238.00 ▲(33.55% Upside)
• Action: Reiterated Date: 02/21/26
• Date: Action: Reiterated 02/21/26

The score is driven primarily by solid financial fundamentals—especially a strong, low-leverage balance sheet—offset by weakening recent free cash flow. Technically, the uptrend is strong, but extremely overbought momentum indicators increase pullback risk. Valuation is a meaningful headwind given the elevated P/E and modest dividend yield.

Positive Factors

Strong balance sheet and low leverage

A high equity ratio and low debt-to-equity provide durable financial flexibility to fund capex, absorb construction-cycle volatility, and pursue partnerships or selective M&A. Improved ROE noted in the summary suggests the balance sheet strength is translating into better shareholder returns over time.

Healthy gross and EBITDA margins

Sustained strong gross and EBITDA margins point to efficient cost control and pricing power in materials and prefabrication. Robust operating margins support reinvestment in product innovation and sustain profitability across project cycles, underpinning long-term cash generation capability.

Diversified revenue model with recurring contracts

A mix of direct sales, strategic alliances, and maintenance/supply contracts reduces revenue cyclicality typical in construction. Recurring contracts and partner pipelines support steadier order flow and improve predictability of revenue and cash generation across multi-year infrastructure projects.

Negative Factors

Recent revenue and EPS decline

Negative recent revenue and EPS growth indicate demand or mix pressure that can persist through a multi-quarter horizon. Continued top-line and earnings declines can erode margin leverage, reduce internally generated funds for reinvestment, and necessitate cost or strategic adjustments.

Latest-year free cash flow decline

A drop in free cash flow in the latest year weakens the company’s ability to fund growth, dividends, or offset cyclical slowdowns despite a strong balance sheet. Prolonged FCF erosion increases reliance on external financing or forces spending restraint, limiting strategic optionality.

Net profit margin volatility and recent EBIT decline

Volatile net margins and a recent dip in EBIT margin reduce earnings predictability and may signal pricing pressure or rising input costs. Persistent margin swings hinder forecasting and return consistency, raising uncertainty about sustainable profitability levels.

King Co., Ltd. Business Overview & Revenue Model

Company Description

KING Co., Ltd. manufactures and sells textile products. The company offers leather goods; artificial and synthetic leather products; synthetic fiber products; cotton, linen, cellulosic textile products; silk and hair products; pleated products, coats, etc.; and miscellaneous goods, such as bags and shoes. It provides its products under the PINORE, CECICA BLUE, JUDY, PRIDE, PRIDE BIS, MORABITO BLANC, MORABITO PREMIER, AUSTIN REED, mistico, and LUPUY brands. The company was formerly known as King Business Co., Ltd. and changed its name to KING Co., Ltd. in 1978. KING Co., Ltd. was founded in 1948 and is headquartered in Tokyo, Japan.

How the Company Makes Money

King Co., Ltd. generates revenue primarily through the sale of construction materials and prefabricated products. The company has a diversified revenue model that includes direct sales to construction firms, partnerships with major contractors, and involvement in large-scale infrastructure projects. Revenue is further bolstered by strategic alliances with key players in the construction industry, facilitating a steady flow of contracts and orders. Additionally, King Co., Ltd. benefits from ongoing maintenance and supply contracts, which provide recurring income streams. The company's commitment to innovation also allows it to capitalize on emerging market trends, enhancing its competitive edge and profitability.

King Co., Ltd. Financial Statement Overview

Summary

Income statement strength (75) reflects consistent revenue growth and solid gross/EBITDA margins, though net income and EBIT margin show some volatility. The balance sheet is robust (80) with high equity and low leverage. Cash flow is positive but softer (70) with a latest-year free cash flow decline, warranting monitoring.

Income Statement

King Co., Ltd. has shown a consistent revenue growth trend over the past few years, with a notable recovery from the dip in 2021. The gross profit margin remains strong, indicating efficient cost management. However, the net profit margin has seen fluctuations, reflecting some volatility in net income. The EBIT and EBITDA margins are healthy, suggesting operational efficiency, though there was a decline in EBIT margin in the latest year.

Balance Sheet

The balance sheet of King Co., Ltd. is robust, with a high equity ratio indicating strong financial stability. The company maintains a low debt-to-equity ratio, showcasing prudent financial management and low leverage risk. Return on equity has improved, reflecting better profitability relative to shareholder investment.

Cash Flow

The cash flow statement reveals a positive trend in free cash flow, although there was a decline in the latest year. The operating cash flow to net income ratio is strong, indicating good cash generation from operations. However, the free cash flow to net income ratio has decreased, suggesting potential challenges in maintaining free cash flow levels.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	8.13B	8.16B	8.55B	8.42B	8.05B	8.10B
Gross Profit	4.53B	4.69B	4.89B	4.70B	4.53B	4.12B
EBITDA	1.29B	1.33B	1.37B	1.53B	1.06B	309.00M
Net Income	756.00M	733.00M	533.00M	755.00M	422.00M	-129.00M
Balance Sheet
Total Assets	25.61B	25.72B	25.60B	24.61B	24.26B	23.97B
Cash, Cash Equivalents and Short-Term Investments	10.61B	10.72B	10.80B	10.67B	10.48B	10.47B
Total Debt	380.00M	380.00M	480.00M	480.00M	530.00M	430.00M
Total Liabilities	3.21B	3.24B	3.70B	3.52B	3.19B	2.96B
Stockholders Equity	22.41B	22.48B	21.90B	21.08B	21.07B	21.01B
Cash Flow
Free Cash Flow	0.00	548.00M	688.00M	1.13B	273.00M	207.00M
Operating Cash Flow	0.00	880.00M	997.00M	1.54B	1.02B	680.00M
Investing Cash Flow	0.00	-575.00M	-416.00M	-404.00M	-765.00M	26.00M
Financing Cash Flow	0.00	-387.00M	-449.00M	-946.00M	-248.00M	-252.00M

King Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 927.00
• 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:8118, the sentiment is Positive. The current price of 927 is below the 20-day moving average (MA) of 1056.00, below the 50-day MA of 980.60, and above the 200-day MA of 879.95, indicating a bullish trend. The MACD of 50.24 indicates Negative momentum. The RSI at 69.32 is Neutral, neither overbought nor oversold. The STOCH value of 63.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8118.

King Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9982	74 Outperform	¥18.38B	13.09	―	1.83%	7.83%	108.92%
3109	72 Outperform	¥14.22B	9.97	―	4.80%	4.49%	26.84%
8118	68 Neutral	¥20.51B	29.40	―	1.99%	-3.60%	15.74%
3501	68 Neutral	¥19.87B	27.62	―	3.46%	1.50%	241.33%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
8107	46 Neutral	¥9.91B	-130.77	―	―	90.06%	-98.03%