Kyushu Leasing Service Co., Ltd. (8596) AI Stock Analysis

• Market Cap: ¥27.27B
• Dividend Yield: 5.67%
• Average Volume (3M): 79.75K
• Price to Earnings (P/E): 7.4
• Beta (1Y): 0.85
• Revenue Growth: 17.40%
• EPS Growth: 17.97%
• Country: JP
• Employees: 129
• Sector: Industrials
• Sector Strength: 87
• Industry: Rental & Leasing Services
• EPS (TTM): 25.19
• Shares Outstanding: 25,952,374
• 10 Day Avg. Volume: 39,100
• 30 Day Avg. Volume: 79,746
• PEG Ratio: -0.29
• Price to Book (P/B): 0.57
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -9.97
• 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

• Rating: 78 Outperform
• Price Target: ¥1,322.00 ▲(9.44%Upside)

Kyushu Leasing Service Co., Ltd. exhibits strong technical momentum and attractive valuation metrics, making it appealing for growth and income investors. However, its financial performance is hindered by high leverage and negative cash flow, which could pose long-term risks. The stock's strong market momentum and undervaluation are significant positives.

Kyushu Leasing Service Co., Ltd. Business Overview & Revenue Model

Company Description

Kyushu Leasing Service Co., Ltd. is a Japanese company engaged in providing comprehensive leasing solutions, primarily operating in the sectors of finance and asset management. The company specializes in offering leasing services for a wide range of equipment including industrial machinery, information technology equipment, and transportation vehicles. Additionally, it provides financial services such as installment sales and factoring, catering to diverse business needs across various industries.

How the Company Makes Money

Kyushu Leasing Service Co., Ltd. generates revenue through a diverse array of financial services centered around leasing operations. The primary revenue stream is derived from leasing contracts, where the company earns income by leasing industrial machinery, IT equipment, and vehicles to businesses over fixed terms. Payments are made periodically by clients, contributing steady cash flows. Additionally, the company engages in installment sales, where clients purchase equipment through structured payment plans, and factoring services, where it purchases accounts receivable from businesses at a discount, providing them with immediate liquidity. These services not only diversify the company's revenue streams but also enhance its financial stability. Significant partnerships with manufacturers and financial institutions further bolster its offerings and market reach, enhancing its ability to cater to a broad spectrum of client needs.

Kyushu Leasing Service Co., Ltd. Financial Statement Overview

Summary

Kyushu Leasing Service Co., Ltd. shows strong revenue growth and profitability improvements with a robust gross profit margin of 22.5% and a net profit margin of 9.1%. However, the company faces challenges with high leverage, reflected in a debt-to-equity ratio of 3.30, and negative cash flows, indicating potential liquidity issues.

Income Statement

Kyushu Leasing Service Co., Ltd. has demonstrated strong revenue growth with a 17.4% increase from 2024 to 2025, indicating a positive trajectory. The gross profit margin remained robust at 22.5%, while the net profit margin improved to 9.1%, highlighting enhanced profitability. EBIT and EBITDA margins were stable at 14.4% and 17.3%, respectively, showing efficient cost management. However, the decline in net income in 2023 suggests some volatility in earnings.

Balance Sheet

The company's debt-to-equity ratio of 3.30 indicates high leverage, which could pose financial risks. Return on equity improved to 8.4%, reflecting better utilization of shareholder funds. The equity ratio of 21% suggests moderate financial stability. The high level of total debt compared to equity is a potential concern, although the company has shown consistent growth in stockholders' equity.

Cash Flow

Kyushu Leasing Service Co., Ltd. faces challenges in cash flow management, with negative operating cash flow in 2025, though improved from 2024. The free cash flow remains negative, indicating potential liquidity issues. The operating cash flow to net income ratio is negative, suggesting cash flow struggles despite profitability. The company needs to enhance cash flow generation to support ongoing operations and growth.

Breakdown
TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
41.39B	39.34B	33.51B	36.80B	29.55B	28.26B
	Gross Profit
8.96B	8.83B	8.01B	8.46B	5.97B	6.09B
	EBIT
5.53B	5.65B	4.63B	5.48B	3.25B	3.59B
	EBITDA
6.67B	6.81B	5.79B	6.72B	4.39B	4.91B
	Net Income Common Stockholders
3.44B	3.57B	3.05B	5.86B	2.13B	1.86B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.85B	4.91B	5.09B	6.09B	4.95B	4.72B
	Total Assets
198.54B	201.93B	193.40B	175.51B	169.42B	148.52B
	Total Debt
135.26B	140.28B	135.74B	119.57B	120.48B	100.04B
	Net Debt
129.41B	135.37B	130.65B	113.47B	115.53B	95.32B
	Total Liabilities
156.08B	159.30B	153.26B	137.63B	135.95B	116.49B
	Stockholders Equity
41.90B	42.49B	39.78B	37.55B	33.34B	31.89B
Cash Flow		Free Cash Flow
0.00	-3.33B	-14.93B	-1.41B	-19.89B	-1.28B
	Operating Cash Flow
0.00	-3.25B	-14.87B	-1.30B	-19.88B	-1.27B
	Investing Cash Flow
0.00	-334.00M	-903.00M	3.62B	-81.00M	-2.00M
	Financing Cash Flow
0.00	3.41B	14.73B	-1.16B	20.19B	665.00M

Kyushu Leasing Service Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1208.00
• 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:8596, the sentiment is Neutral. The current price of 1208 is above the 20-day moving average (MA) of 1177.70, above the 50-day MA of 1086.76, and above the 200-day MA of 1025.49, indicating a neutral trend. The MACD of 26.94 indicates Positive momentum. The RSI at 53.21 is Neutral, neither overbought nor oversold. The STOCH value of 42.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:8596.

Kyushu Leasing Service Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8596	78 Outperform	¥27.27B	7.39		5.67%	17.40%	17.97%
7081	78 Outperform	¥12.25B	8.21		2.71%	2.12%	-6.76%
8439	76 Outperform	¥781.64B	9.06		4.15%	1.67%	18.48%
9763	76 Outperform	¥10.28B	7.97		4.21%	6.95%	4.92%
5834	70 Outperform	¥30.81B	6.77		2.56%	-22.59%	26.95%
8424	67 Neutral	¥351.53B	7.65		3.95%	-4.25%	-4.22%
Sector *	66 Neutral	$4.51B	12.22	5.40%	3.63%	4.14%	-12.01%