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

• Market Cap: ¥2.72B
• Dividend Yield: 3.56%
• Average Volume (3M): 1.01K
• Price to Earnings (P/E): 5.7
• Beta (1Y): 0.40
• Revenue Growth: 2.89%
• EPS Growth: 35.17%
• Country: JP
• Employees: 203
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 24.07
• 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: 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: ¥1,624.00 ▲(9.66% Upside)

The overall stock score for T. Kawabe & Co., Ltd. is driven primarily by its strong financial performance and attractive valuation. However, technical analysis indicates bearish momentum, which could pose short-term challenges. The low P/E ratio and high dividend yield suggest the stock is undervalued, offering potential upside for long-term investors.

Positive Factors

Healthy balance sheet / equity base

A healthy equity ratio provides a durable capital buffer that supports operations through apparel cycles, funds working capital needs and reduces default risk. This strengthens the company's ability to pursue partnerships, absorb shocks and finance selective investments without immediate external funding.

Improved operating cash generation

Sustained positive operating cash flow improves self-funding for inventory and capex, lowers reliance on external credit, and enables consistent dividend or debt repayment policies. Over months this enhances financial flexibility and reduces vulnerability to funding cost swings.

Margin and profitability improvements

Consistently strong gross margins and rising EBIT/EBITDA indicate structural cost controls or procurement advantages in manufacturing accessories. Durable margin strength supports profitability even if volumes fluctuate, enabling reinvestment, modest shareholder returns, and resilience to input-cost variability.

Negative Factors

Inconsistent revenue trend

Irregular top-line performance undermines forecasting and operating leverage. For a wholesaler to department stores, falling revenue can rapidly erode fixed-cost coverage and margin benefits. Continued inconsistency limits capacity to scale investments and could force tighter working capital management.

Outstanding debt level risk

While leverage is described as moderate, existing debt magnifies risk if cash generation reverts to prior negative levels. Debt servicing could crowd out capex or inventory financing and increase solvency pressure during apparel demand downturns, constraining strategic flexibility.

Concentration in neckwear and retail channels

A narrow product focus and reliance on department stores/specialty retailers create structural concentration risk. Shifts in fashion trends or retail distribution can materially impact sales; limited product and channel diversification may hinder growth and weaken bargaining power with large retail customers.

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 through several key streams, including the sale of imported goods such as textiles and chemicals, as well as the export of machinery and equipment. The company benefits from its established relationships with manufacturers and suppliers, enabling it to negotiate favorable pricing and terms. Additionally, T. Kawabe may engage in value-added services such as logistics and supply chain management, which further contribute to its earnings. Strategic partnerships with other businesses and entities in various industries also play a significant role in expanding its market reach and enhancing revenue potential.

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

Summary

T. Kawabe & Co., Ltd. demonstrates solid financial performance with improvements in profitability and operational efficiency. The company maintains a stable balance sheet with a strong equity position, although leverage needs monitoring. Cash flow improvements are promising, yet past volatility suggests the need for careful cash management.

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: Positive
• Last Price: 1481.00
• 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:8123, the sentiment is Positive. The current price of 1481 is below the 20-day moving average (MA) of 1483.55, above the 50-day MA of 1423.62, and above the 200-day MA of 1356.97, indicating a bullish trend. The MACD of 11.67 indicates Positive momentum. The RSI at 58.56 is Neutral, neither overbought nor oversold. The STOCH value of 24.64 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	68 Neutral	¥2.72B	5.69	―	3.56%	2.89%	35.17%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3600	59 Neutral	¥2.28B	-24.86	―	3.12%	-1.83%	16.87%
7112	59 Neutral	¥4.82B	260.46	―	―	6.54%	-58.94%
8166	47 Neutral	¥4.38B	4.06	―	―	-5.25%	-77.53%
3111	43 Neutral	¥1.66B	-3.38	―	―	-3.03%	46.85%
3598	43 Neutral	¥2.41B	30.24	―	1.78%	-4.17%	9.23%