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

• Market Cap: ¥2.44B
• Dividend Yield: 3.74%
• Average Volume (3M): 1.67K
• Price to Earnings (P/E): 3.9
• Beta (1Y): 0.36
• Revenue Growth: 0.73%
• EPS Growth: 158.45%
• Country: JP
• Employees: 203
• Sector: Consumer Cyclical
• Sector Strength: 75
• Industry: Apparel - Manufacturers
• EPS (TTM): 19.09
• Shares Outstanding: 1,861,000
• 10 Day Avg. Volume: 3,310
• 30 Day Avg. Volume: 1,670
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥1,426.00
• Price Target Upside: 6.10% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: ¥1,426.00 ▲(6.10% Upside)

The overall stock score is driven primarily by the company's strong valuation metrics and solid financial performance. While technical analysis suggests some market stability, the lack of strong momentum tempers the score. The absence of earnings call insights or significant corporate events means these factors do not influence the score. The company is positioned well, provided it manages revenue consistency and leverage prudently.

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

Company Description

T. Kawabe & Co., Ltd. (8123) is a Japan-based company engaged in the wholesale sector. The company specializes in the distribution of textile products, including clothing, accessories, and other related goods. It primarily serves retail businesses by providing high-quality products sourced from various manufacturers, ensuring a diverse range of offerings to meet the demands of its clientele.

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 a strong financial recovery with improved profitability, operational efficiency, and cash flow management. The company has a robust balance sheet with a healthy equity ratio and reduced leverage, although revenue fluctuations remain a concern.

Income Statement

The company has shown a strong recovery in recent years, with a positive net profit margin of 3.2% in 2025, up from previous losses. Gross profit margins have remained stable at around 40%, indicating effective cost control. Revenue growth has been inconsistent, with a decline in 2025 from 2024. However, the EBIT and EBITDA margins have improved, reflecting better operational efficiency.

Balance Sheet

The balance sheet is solid with an equity ratio of approximately 57%, indicating a strong equity position. The debt-to-equity ratio decreased to 0.32 in 2025, suggesting reduced leverage. Return on equity improved significantly to 5.8% in 2025, highlighting better profitability. However, the company faces challenges with liabilities increasing over the years.

Cash Flow

The cash flow statement shows a positive trend with free cash flow increasing by 17% in 2025. The operating cash flow to net income ratio is healthy, indicating sufficient cash generation from operations. The free cash flow to net income ratio also improved, showcasing effective capital expenditure management.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	12.77B	13.07B	12.55B	10.79B	11.29B
Gross Profit	5.15B	5.08B	4.52B	3.91B	3.86B
EBITDA	615.23M	548.81M	451.84M	64.74M	-399.66M
Net Income	411.81M	266.98M	124.50M	-365.96M	-433.81M
Balance Sheet
Total Assets	12.41B	12.70B	12.19B	12.30B	12.55B
Cash, Cash Equivalents and Short-Term Investments	1.36B	1.48B	1.59B	1.31B	908.88M
Total Debt	2.27B	2.49B	2.59B	3.35B	2.71B
Total Liabilities	5.32B	5.83B	5.78B	6.22B	6.16B
Stockholders Equity	7.09B	6.86B	6.41B	6.08B	6.39B
Cash Flow
Free Cash Flow	168.62M	144.10M	772.72M	-320.38M	-666.82M
Operating Cash Flow	384.75M	343.85M	837.63M	-174.56M	-579.89M
Investing Cash Flow	-140.04M	-318.12M	206.57M	-49.25M	705.43M
Financing Cash Flow	-364.98M	-131.80M	-768.21M	623.28M	51.35M

T. Kawabe & Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1344.00
• 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:8123, the sentiment is Positive. The current price of 1344 is above the 20-day moving average (MA) of 1296.30, above the 50-day MA of 1288.46, and above the 200-day MA of 1298.38, indicating a bullish trend. The MACD of 15.19 indicates Negative momentum. The RSI at 64.53 is Neutral, neither overbought nor oversold. The STOCH value of 58.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	71 Outperform	¥2.44B	3.87		3.74%	0.73%	158.45%
7112	69 Neutral	¥3.01B	42.00		―	2.06%	-29.73%
Sector *	61 Neutral	$17.23B	11.49	-5.93%	3.08%	1.37%	-15.47%
3598	60 Neutral	¥2.45B	27.24		1.74%	-4.88%	-125.21%
3600	55 Neutral	¥2.24B	―		3.12%	-2.21%	-556.13%
8166	51 Neutral	¥2.53B	5.96		―	-3.47%	-70.84%
3111	48 Neutral	¥1.89B	6.01		―	-1.50%	―