Kaga Electronics Co., Ltd. (8154) AI Stock Analysis

• Market Cap: €173.59B
• Dividend Yield: 3.31%
• Average Volume (3M): 154.85K
• Price to Earnings (P/E): 10.4
• Beta (1Y): 1.03
• Revenue Growth: 4.42%
• EPS Growth: -6.10%
• Country: JP
• Employees: 8,021
• Sector: Technology
• Sector Strength: 88
• Industry: Technology Distributors
• EPS (TTM): 87.80
• Shares Outstanding: 52,486,835
• 10 Day Avg. Volume: 183,200
• 30 Day Avg. Volume: 154,846
• PEG Ratio: -0.52
• Price to Book (P/B): 0.85
• Price to Sales (P/S): 0.26
• P/FCF Ratio: 7.16
• 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: €3,782.74
• Price Target Upside: 12.08% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 78 Outperform
• Price Target: ¥3,782.00 ▲(12.06% Upside)

Kaga Electronics demonstrates a strong financial foundation with solid revenue generation and cash flow management, contributing significantly to its overall score. The valuation is attractive due to a low P/E ratio and high dividend yield, enhancing its appeal to value investors. However, technical indicators suggest caution due to overbought conditions, which may lead to short-term volatility.

Kaga Electronics Co., Ltd. Business Overview & Revenue Model

Company Description

Kaga Electronics Co., Ltd. is a leading Japanese company operating in the electronics sector, primarily engaged in the manufacturing and distribution of electronic components and devices. The company offers a wide range of products, including semiconductors, electronic equipment, and information technology solutions. Kaga Electronics serves various industries, such as automotive, telecommunications, and consumer electronics, providing innovative solutions and value-added services to its diverse customer base.

How the Company Makes Money

Kaga Electronics Co., Ltd. generates revenue through several key streams, including the sale of electronic components and devices, which constitute the bulk of its income. The company maintains a robust supply chain and distribution network, leveraging partnerships with manufacturers and suppliers to ensure a steady flow of products to its clients. Additionally, Kaga Electronics offers value-added services such as design, development, and system integration, which enhance its product offerings and provide additional revenue. The company's strategic focus on high-growth industries like automotive electronics and renewable energy solutions contributes significantly to its earnings. Furthermore, Kaga Electronics collaborates with various global partners to expand its market reach and enhance its technological capabilities, thereby driving sales and profitability.

Kaga Electronics Co., Ltd. Financial Statement Overview

Summary

Kaga Electronics exhibits a robust financial profile with strong revenue generation and a stable balance sheet. While profitability margins have faced some pressure, the company remains efficient in cash flow management. The balance sheet's solid equity base and manageable leverage enhance financial stability, making the company well-positioned for future growth opportunities within the technology distribution industry.

Income Statement

Kaga Electronics has demonstrated a strong revenue base with a slight growth from the previous year. The gross profit margin is healthy, indicating efficient cost control. However, EBIT and net profit margins have decreased compared to prior periods, suggesting pressure on operating efficiency and net profitability. Overall, the company showcases solid revenue generation but faces challenges in maintaining its net margins.

Balance Sheet

The balance sheet reflects a strong equity position with a high equity ratio, showcasing stability. The company maintains a manageable debt-to-equity ratio, indicating prudent leverage use. Return on equity remains robust, reflecting the company's ability to generate profits from shareholders' investments. The financial position is stable with a solid equity base and controlled leverage.

Cash Flow

Kaga Electronics displays strong free cash flow generation, with a positive growth trajectory in recent years. The operating cash flow to net income ratio indicates effective cash flow management. The free cash flow to net income ratio further highlights the company's strong cash generation capabilities, supporting its ability to fund investments and return capital to shareholders.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	557.23B	547.78B	542.70B	608.06B	495.83B	422.37B
Gross Profit	73.13B	71.67B	70.45B	78.51B	60.55B	47.94B
EBITDA	28.91B	28.96B	33.28B	37.26B	25.51B	18.07B
Net Income	17.57B	17.08B	20.34B	23.07B	15.40B	11.40B
Balance Sheet
Total Assets	299.25B	305.67B	286.79B	286.22B	272.14B	237.00B
Cash, Cash Equivalents and Short-Term Investments	75.46B	80.34B	66.77B	52.80B	41.31B	45.94B
Total Debt	24.86B	30.39B	31.10B	40.19B	48.99B	35.97B
Total Liabilities	132.79B	139.29B	135.56B	156.48B	166.34B	141.95B
Stockholders Equity	166.35B	166.22B	150.84B	129.61B	105.68B	90.96B
Cash Flow
Free Cash Flow	0.00	19.80B	23.63B	26.41B	-6.21B	6.43B
Operating Cash Flow	0.00	25.05B	29.39B	30.57B	-1.55B	10.00B
Investing Cash Flow	0.00	-9.85B	-2.97B	-4.80B	-6.77B	-2.45B
Financing Cash Flow	0.00	-7.46B	-16.97B	-15.55B	1.16B	-6.85B

Kaga Electronics Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3375.00
• 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:8154, the sentiment is Neutral. The current price of 3375 is below the 20-day moving average (MA) of 3502.59, above the 50-day MA of 3343.14, and above the 200-day MA of 2815.35, indicating a neutral trend. The MACD of 30.86 indicates Positive momentum. The RSI at 42.98 is Neutral, neither overbought nor oversold. The STOCH value of 36.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:8154.

Kaga Electronics Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8137	78 Outperform	¥41.26B	19.02	―	4.60%	-10.70%	-50.96%
8154	78 Outperform	€173.59B	10.38	11.40%	3.31%	4.42%	-6.10%
9824	74 Outperform	¥72.62B	10.83	―	3.05%	5.44%	5.65%
3107	71 Outperform	¥270.14B	8.90	―	3.34%	21.63%	659.16%
7513	71 Outperform	¥84.06B	17.86	―	2.02%	4.79%	17.74%
6638	70 Outperform	¥50.94B	8.32	―	3.05%	5.88%	21.14%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Kaga Electronics Co., Ltd. Corporate Events

Kaga Electronics Announces Tender Offer for Kyoei Sangyo

Kaga Electronics Co., Ltd. has announced a tender offer to acquire all common shares of Kyoei Sangyo Co., Ltd., aiming to make it a wholly-owned subsidiary. This strategic move is intended to create synergies by expanding sales and improving management efficiency, allowing for more rapid and flexible decision-making. The acquisition is expected to enhance corporate value and growth for both companies, with plans for a subsequent share consolidation to streamline ownership.