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

• Market Cap: ¥17.44B
• Dividend Yield: 1.99%
• Average Volume (3M): 3.85K
• Price to Earnings (P/E): 23.6
• Beta (1Y): 0.42
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: ¥1,044.00 ▲(12.62% 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

Robust balance sheet with low leverage

A high equity ratio and low leverage provide durable financial resilience for a construction materials firm, reducing refinancing risk through cycles. This balance-sheet strength preserves investment capacity for capex, sustainability projects, and bid competitiveness on multi-year contracts.

Diversified, contract-driven revenue model

Recurring supply and maintenance contracts plus strategic alliances smooth revenue volatility in construction cycles and create stickiness with large contractors. This structural diversification improves predictability of cash flows and supports long-term planning and investment.

Solid gross and operating margin profile

Sustained gross and healthy operating margins indicate efficient production and pricing power in prefabricated and concrete products. Margin durability funds reinvestment in process innovation and sustainability initiatives, underpinning competitive advantage over medium term.

Negative Factors

Recent revenue contraction

A negative revenue growth rate signals weaker top-line momentum that can reflect softer construction demand, lost projects, or pricing pressures. If persistent, this undermines capacity to scale overhead absorption and threatens medium-term earnings stability.

Decline in free cash flow in latest year

A falling free cash flow conversion reduces internal funding available for capex, dividends and strategic initiatives. For a capital-intensive construction materials business this raises reliance on external financing and constrains flexibility during slower demand periods.

Volatility and recent decline in profitability margins

Fluctuating net margins and a deteriorating EBIT margin point to exposure to input-cost swings, project mix risk or pricing pressure. Persistent margin erosion would weaken returns on capital and limit reinvestment capacity over the medium term.

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

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: 927.00
• 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:8118, the sentiment is Positive. The current price of 927 is below the 20-day moving average (MA) of 940.95, above the 50-day MA of 921.10, and above the 200-day MA of 852.19, indicating a bullish trend. The MACD of 11.83 indicates Negative momentum. The RSI at 78.29 is Negative, neither overbought nor oversold. The STOCH value of 93.46 is Negative, 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	¥18.03B	12.64	―	1.83%	7.83%	108.92%
3109	72 Outperform	¥13.68B	14.37	―	4.80%	4.49%	26.84%
8118	68 Neutral	¥17.44B	23.64	―	1.99%	-3.60%	15.74%
3501	68 Neutral	¥18.43B	24.80	―	3.46%	1.50%	241.33%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
8107	40 Underperform	¥9.09B	-172.50	―	―	90.06%	-98.03%