T. Kawabe & Co., Ltd. (8123) AI Stock Analysis

• Market Cap: ¥2.49B
• Dividend Yield: 3.69%
• Average Volume (3M): 1.01K
• Price to Earnings (P/E): 3.9
• Beta (1Y): 0.39
• Revenue Growth: 0.73%
• EPS Growth: 158.45%
• Country: JP
• Employees: 203
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 19.08
• Shares Outstanding: 1,861,000
• 10 Day Avg. Volume: 980
• 30 Day Avg. Volume: 1,013
• PEG Ratio: 0.11
• Price to Book (P/B): 0.36
• Price to Sales (P/S): 0.20
• P/FCF Ratio: 15.16
• 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: ¥1,510.00
• Price Target Upside: 10.54% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: ¥1,510.00 ▲(10.54% Upside)

T. Kawabe & Co., Ltd. receives a strong overall score driven by its attractive valuation and solid financial performance. The low P/E ratio and healthy dividend yield highlight its potential value. While technical indicators suggest some short-term bearishness, the stock's fundamentals remain robust.

T. Kawabe & Co., Ltd. Business Overview & Revenue Model

Company Description

T.Kawabe & Co., Ltd. manufactures, sells, imports, and exports handkerchiefs, scarves, mufflers, towels, and fabric products in Japan. It operates in two segments, Personal Goods Business and Fragrance Business. The company also engages in the import and export, processing, and sale of chemical fiber products, general textile products, and textile fabrics; clothing design; planning and consulting of interior decoration; real estate sales, leasing, and brokerage; manufacture and sale of daily necessities; and sale and import/export of food products. In addition, it is involved in the acquisition, rental, and sale of intellectual property rights, such as trademarks and patents; warehousing and transportation; planning, development, manufacturing, sale, and import/export of medical supplies; and planning, development, manufacturing, sale, and import/export of electrical products, as well as manufactures, sells, and imports and exports perfumes. The company was founded in 1923 and is headquartered in Tokyo, Japan. T.Kawabe & Co., Ltd. is a subsidiary of Ichihiro Co., Ltd.

How the Company Makes Money

T. Kawabe & Co., Ltd. generates revenue primarily through the wholesale distribution of textile products to retail businesses. The company purchases these products in bulk from manufacturers at a lower cost and then sells them at a markup to retailers. This markup constitutes the company's gross profit margin. Additionally, the company may engage in strategic partnerships with manufacturers to secure exclusive distribution rights or favorable pricing, further enhancing its profitability. The company's earnings are influenced by factors such as market demand, supply chain efficiency, and trends in the fashion industry.

T. Kawabe & Co., Ltd. Financial Statement Overview

Summary

T. Kawabe & Co., Ltd. demonstrates solid financial performance with improving profitability and operational efficiency. The balance sheet is stable, though leverage requires monitoring. Cash flow has improved, but past volatility suggests careful management is needed.

Income Statement

T. Kawabe & Co., Ltd. has shown a positive trend in profitability with a consistent increase in net income over the past few years. The gross profit margin has remained strong, indicating effective cost management. However, revenue growth has been inconsistent, with a decline in the most recent year. The company has improved its EBIT and EBITDA margins, reflecting operational efficiency gains.

Balance Sheet

The balance sheet of T. Kawabe & Co., Ltd. shows a stable financial position with a healthy equity ratio, indicating a strong asset base relative to liabilities. The debt-to-equity ratio is moderate, suggesting manageable leverage levels. Return on equity has improved significantly, reflecting enhanced profitability. However, the total debt level remains a potential risk if not managed carefully.

Cash Flow

Cash flow analysis reveals a positive trend in operating cash flow, which has turned positive after previous negative years, indicating improved cash generation from operations. Free cash flow has also shown growth, supporting potential reinvestment and debt servicing. However, fluctuations in free cash flow and past negative figures highlight potential volatility in cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.10B	12.77B	13.07B	12.55B	10.79B	11.29B
Gross Profit	5.60B	5.15B	5.08B	4.52B	3.91B	3.86B
EBITDA	853.46M	615.23M	548.81M	451.84M	64.74M	-399.66M
Net Income	630.46M	411.81M	266.98M	124.50M	-365.96M	-433.81M
Balance Sheet
Total Assets	12.33B	12.41B	12.70B	12.19B	12.30B	12.55B
Cash, Cash Equivalents and Short-Term Investments	1.57B	1.36B	1.48B	1.59B	1.31B	908.88M
Total Debt	2.09B	2.27B	2.49B	2.59B	3.35B	2.71B
Total Liabilities	5.32B	5.32B	5.83B	5.78B	6.22B	6.16B
Stockholders Equity	7.01B	7.09B	6.86B	6.41B	6.08B	6.39B
Cash Flow
Free Cash Flow	0.00	168.62M	144.10M	772.72M	-320.38M	-666.82M
Operating Cash Flow	0.00	384.75M	343.85M	837.63M	-174.56M	-579.89M
Investing Cash Flow	0.00	-140.04M	-318.12M	206.57M	-49.25M	705.43M
Financing Cash Flow	0.00	-364.98M	-131.80M	-768.21M	623.28M	51.35M

T. Kawabe & Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1366.00
• 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:8123, the sentiment is Negative. The current price of 1366 is below the 20-day moving average (MA) of 1388.85, below the 50-day MA of 1370.60, and above the 200-day MA of 1332.15, indicating a neutral trend. The MACD of 0.87 indicates Positive momentum. The RSI at 43.73 is Neutral, neither overbought nor oversold. The STOCH value of 27.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:8123.

T. Kawabe & Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8123	73 Outperform	¥2.49B	3.95	―	3.69%	0.73%	158.45%
7112	69 Neutral	¥3.87B	54.21	―	―	6.77%	-38.13%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3600	55 Neutral	¥2.20B	―	―	3.13%	-2.21%	-556.13%
3111	50 Neutral	¥1.83B	5.78	―	―	-1.50%	―
3598	49 Neutral	¥2.38B	27.24	―	1.79%	-4.88%	-125.21%
8166	49 Neutral	¥4.51B	6.71	―	―	-5.25%	-77.53%