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

• Market Cap: ¥15.39B
• Dividend Yield: 2.1%
• Average Volume (3M): 3.85K
• Price to Earnings (P/E): 18.1
• Beta (1Y): 0.41
• Revenue Growth: -4.20%
• EPS Growth: 64.56%
• Country: JP
• Employees: 153
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 11.04
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: ¥937.00 ▲(9.46% Upside)

King Co., Ltd. demonstrates strong financial performance with solid revenue growth and a robust balance sheet. However, technical indicators suggest a lack of strong momentum, and valuation metrics indicate the stock is fairly priced. The absence of recent earnings call insights or notable corporate events leaves the financial and valuation aspects as the primary drivers of the score.

King Co., Ltd. Business Overview & Revenue Model

Company Description

King Co., Ltd. (8118) is a Japan-based company primarily engaged in the textile business. The company specializes in the manufacture and sale of various textile products, including clothing, home textiles, and industrial fabrics. With a focus on quality and innovation, King Co., Ltd. serves a diverse range of markets, catering to both consumer and industrial needs.

How the Company Makes Money

King Co., Ltd. generates revenue through the production and sale of its textile products. The company's revenue streams include direct sales to retailers and wholesalers, as well as contracts with industrial clients for specialized fabrics. Significant partnerships with fashion brands and large retail chains contribute to its earnings, allowing the company to leverage these relationships for broader market reach. Additionally, King Co., Ltd. invests in research and development to create innovative textiles that meet evolving consumer demands, which in turn supports its profitability.

King Co., Ltd. Financial Statement Overview

Summary

King Co., Ltd. exhibits a strong financial position with consistent revenue growth and efficient operational management. The balance sheet is solid with low leverage, enhancing financial stability. While cash flow generation remains positive, attention to maintaining free cash flow levels is advisable to ensure sustained financial health.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: Negative
• Last Price: 856.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Negative. The current price of 856 is below the 20-day moving average (MA) of 865.40, below the 50-day MA of 868.12, and above the 200-day MA of 791.72, indicating a neutral trend. The MACD of -2.53 indicates Positive momentum. The RSI at 42.53 is Neutral, neither overbought nor oversold. The STOCH value of 48.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:8118.

King Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9275	78 Outperform	―	―	―	―	5.89%	11.19%
3109	72 Outperform	¥12.37B	14.10	―	4.99%	1.93%	-1.93%
9982	70 Neutral	¥17.14B	11.07	―	2.02%	7.83%	108.92%
8118	68 Neutral	¥15.39B	18.11	―	2.10%	-4.20%	64.56%
3501	68 Neutral	¥17.10B	13.69	―	2.46%	1.50%	241.33%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
8107	41 Neutral	¥10.75B	-163.23	―	―	48.75%	-620.85%