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

• Market Cap: ¥2.48B
• Dividend Yield: 3.7%
• Average Volume (3M): 1.01K
• Price to Earnings (P/E): 3.9
• Beta (1Y): 0.39
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: ¥1,472.00 ▲(8.55% 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

Profitability Improvements

The company's enhanced profitability and operational efficiency suggest a robust business model and effective cost management, supporting long-term financial health.

Strong Balance Sheet

A strong balance sheet with a healthy equity ratio indicates financial stability and the ability to withstand economic fluctuations, supporting sustainable growth.

Positive Cash Flow Trend

Improved cash generation from operations enhances the company's ability to reinvest in growth opportunities and manage debt, contributing to long-term financial resilience.

Negative Factors

Revenue Growth Inconsistency

Inconsistent revenue growth could signal challenges in market expansion or product demand, potentially impacting future profitability and market position.

Debt Management Concerns

While leverage is currently manageable, high debt levels could strain financial resources and limit strategic flexibility if not addressed.

Cash Flow Volatility

Volatile cash flow can hinder long-term planning and investment, posing risks to financial stability and operational execution.

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

Company Description

T. Kawabe & Co., Ltd. (8123) is a diversified trading company based in Japan, primarily engaged in the import and export of a wide range of products, including textiles, chemicals, and machinery. The company operates in various sectors, focusing on providing high-quality goods and services to both domestic and international markets. T. Kawabe & Co. aims to leverage its extensive network and expertise to enhance its presence in the global marketplace.

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: 1356.00
• 50DMA: Negative
• 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 1356 is below the 20-day moving average (MA) of 1359.30, below the 50-day MA of 1372.80, and above the 200-day MA of 1346.82, indicating a neutral trend. The MACD of -7.70 indicates Negative momentum. The RSI at 49.60 is Neutral, neither overbought nor oversold. The STOCH value of 56.02 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
7112	69 Neutral	¥3.67B	198.41	―	―	6.54%	-58.94%
8123	68 Neutral	¥2.48B	3.93	―	3.70%	2.89%	35.17%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3600	55 Neutral	$2.21B	―	―	3.08%	-1.83%	16.87%
8166	47 Neutral	¥4.42B	6.57	―	―	-5.25%	-77.53%
3598	43 Neutral	¥2.41B	30.24	―	1.69%	-4.17%	9.23%
3111	39 Underperform	¥1.80B	5.70	―	―	-3.03%	46.85%