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

• Market Cap: ¥33.25B
• Dividend Yield: 3.49%
• Average Volume (3M): 48.56K
• Price to Earnings (P/E): 9.2
• Beta (1Y): 0.84
• Revenue Growth: -19.27%
• EPS Growth: 9.04%
• Country: JP
• Employees: 129
• Sector: Industrials
• Sector Strength: 72
• Industry: Rental & Leasing Services
• EPS (TTM): 53.84
• Shares Outstanding: 25,952,374
• 10 Day Avg. Volume: 35,620
• 30 Day Avg. Volume: 48,556
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥1,322.00
• Price Target Upside: -9.64% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 78 Outperform
• Price Target: ¥1,322.00 ▼(-9.64% Downside)

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.

Positive Factors

Profitability Improvements

Improved profitability margins indicate effective cost management and operational efficiency, which can support sustainable growth and shareholder value.

Revenue Growth

Consistent revenue growth suggests expanding market reach and demand for the company's leasing and financial services, supporting long-term business expansion.

Strategic Partnerships

Strategic partnerships enhance the company's competitive position, allowing it to offer attractive leasing solutions and expand its client base, driving future growth.

Negative Factors

High Leverage

High leverage can increase financial risk and limit flexibility, potentially impacting the company's ability to invest in growth opportunities and weather economic downturns.

Negative Cash Flow

Negative cash flow indicates potential liquidity issues, which can constrain the company's ability to fund operations and growth initiatives, affecting long-term sustainability.

Volatility in Earnings

Earnings volatility can create uncertainty in financial performance, impacting investor confidence and the company's ability to plan and execute long-term strategies effectively.

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

Company Description

Kyushu Leasing Service Co., Ltd. (8596) is a Japan-based company primarily engaged in the leasing and installment sales business. The company offers a wide range of leasing solutions, including but not limited to industrial machinery, transportation equipment, information and communication equipment, and office equipment. Additionally, it provides financial services such as loans and factoring, catering to the diverse needs of its clients across various industries.

How the Company Makes Money

Kyushu Leasing Service Co., Ltd. generates revenue primarily through its leasing and installment sales operations. The company earns income by providing leasing solutions, where clients pay periodic lease payments for the use of equipment and machinery without having to purchase them outright. This model allows businesses to manage cash flow more effectively while accessing the necessary resources. In addition to leasing, the company also offers loans and factoring services, which contribute to its revenue streams. These financial services include providing short-term financing options and managing accounts receivable, which help clients optimize their working capital. Strategic partnerships with manufacturers and equipment suppliers enable Kyushu Leasing Service to offer competitive leasing terms and expand its client base. The combination of leasing solutions and financial services forms the foundation of the company's earnings.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	39.34B	39.34B	33.51B	36.80B	29.55B	28.26B
Gross Profit	8.99B	8.99B	8.01B	8.46B	5.97B	6.09B
EBITDA	7.86B	6.81B	5.79B	6.72B	4.39B	4.91B
Net Income	3.57B	3.57B	3.05B	5.86B	2.13B	1.86B
Balance Sheet
Total Assets	201.93B	201.93B	193.40B	175.51B	169.42B	148.52B
Cash, Cash Equivalents and Short-Term Investments	4.91B	4.91B	5.09B	6.09B	4.95B	4.72B
Total Debt	140.28B	140.28B	135.74B	119.57B	120.48B	100.04B
Total Liabilities	159.30B	159.30B	153.26B	137.63B	135.95B	116.49B
Stockholders Equity	42.49B	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	-68.00M	-903.00M	3.62B	-81.00M	-2.00M
Financing Cash Flow	0.00	3.14B	14.73B	-1.16B	20.19B	665.00M

Kyushu Leasing Service Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1463.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8596, the sentiment is Positive. The current price of 1463 is above the 20-day moving average (MA) of 1423.60, above the 50-day MA of 1317.68, and above the 200-day MA of 1111.85, indicating a bullish trend. The MACD of 45.34 indicates Positive momentum. The RSI at 70.17 is Negative, neither overbought nor oversold. The STOCH value of 73.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	¥33.25B	9.24		3.49%	-19.27%	9.04%
8439	74 Outperform	¥949.41B	11.20		3.21%	2.26%	9.98%
7081	71 Outperform	¥12.91B	7.21		3.43%	1.58%	28.43%
9763	71 Outperform	¥11.68B	8.89		3.71%	9.16%	6.01%
5834	70 Outperform	¥38.33B	7.42		3.44%	14.18%	45.35%
8424	70 Outperform	¥406.61B	8.33		6.72%	-3.25%	1.65%
Sector *	63 Neutral	$10.84B	15.52	7.40%	2.00%	2.86%	-14.57%