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

• Market Cap: ¥16.23B
• Dividend Yield: 1.99%
• Average Volume (3M): 3.85K
• Price to Earnings (P/E): 22.3
• Beta (1Y): 0.43
• Revenue Growth: -3.60%
• EPS Growth: 15.74%
• Country: JP
• Employees: 153
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 5.93
• 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 ▲(3.77% 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.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and the ability to meet consumer demand, supporting long-term business stability.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial stability, providing resilience against economic fluctuations and supporting future growth.

Operational Efficiency

Efficient cost management and strong gross margins reflect operational strength, allowing for better profitability and competitive pricing strategies.

Negative Factors

Revenue Decline

A recent decline in revenue growth could signal challenges in market demand or competitive pressures, potentially impacting future earnings.

Free Cash Flow Challenges

Decreasing free cash flow relative to net income may limit reinvestment opportunities and affect the company's ability to fund growth initiatives.

Net Profit Margin Volatility

Volatility in net profit margins can indicate inconsistent profitability, which may affect investor confidence and long-term financial planning.

King Co., Ltd. Business Overview & Revenue Model

Company Description

King Co., Ltd. (8118) is a Japan-based company that primarily operates in the construction and building materials sector. The company specializes in producing and selling various construction materials, including high-quality concrete products and prefabricated structures. King Co., Ltd. is recognized for its innovative approach in the industry, focusing on sustainability and efficiency in construction processes.

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

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: Positive
• Last Price: 903.00
• 50DMA: Positive
• 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 Positive. The current price of 903 is above the 20-day moving average (MA) of 900.15, above the 50-day MA of 881.26, and above the 200-day MA of 820.86, indicating a bullish trend. The MACD of 6.50 indicates Positive momentum. The RSI at 55.75 is Neutral, neither overbought nor oversold. The STOCH value of 42.00 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
9275	78 Outperform	―	―	―	―	5.89%	11.19%
9982	74 Outperform	¥18.20B	12.01	―	1.90%	7.83%	108.92%
3109	72 Outperform	¥12.90B	13.88	―	4.81%	4.49%	26.84%
8118	68 Neutral	¥16.23B	22.28	―	1.99%	-3.60%	15.74%
3501	68 Neutral	¥17.05B	13.45	―	3.41%	1.50%	241.33%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
8107	40 Underperform	¥7.94B	-162.05	―	―	90.06%	-98.03%