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

• Market Cap: ¥29.84B
• Dividend Yield: 4%
• Average Volume (3M): 33.14K
• Price to Earnings (P/E): 8.1
• Beta (1Y): 0.88
• Revenue Growth: -13.01%
• EPS Growth: 9.74%
• Country: JP
• Employees: 129
• Sector: Industrials
• Sector Strength: 72
• Industry: Rental & Leasing Services
• EPS (TTM): 38.92
• Shares Outstanding: 25,952,374
• 10 Day Avg. Volume: 31,100
• 30 Day Avg. Volume: 33,140
• PEG Ratio: 0.36
• Price to Book (P/B): 0.54
• Price to Sales (P/S): 0.58
• P/FCF Ratio: -6.85
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: ¥1,497.00 ▲(12.81% Upside)

Kyushu Leasing Service Co., Ltd. scores well due to strong revenue growth and profitability, coupled with an attractive valuation. However, high leverage and negative cash flows present significant risks. Technical indicators show mild bullish momentum, but potential bearish trends could emerge.

Positive Factors

Revenue Growth

The significant revenue growth indicates a positive trajectory, suggesting the company's ability to expand its market presence and enhance its service offerings.

Profitability Improvements

Improved profitability margins reflect efficient cost management and operational effectiveness, which can support sustainable long-term growth.

Operational Efficiency

Stable EBIT and EBITDA margins indicate effective cost control and operational efficiency, which are crucial for maintaining competitive advantage and profitability.

Negative Factors

High Leverage

High leverage can pose financial risks, limiting the company's ability to invest in growth opportunities and increasing vulnerability to economic downturns.

Negative Cash Flow

Negative cash flow indicates potential liquidity issues, which could hinder the company's ability to fund operations and growth initiatives without external financing.

Financial Stability Concerns

A low equity ratio implies limited financial stability, potentially affecting the company's ability to withstand financial stress and pursue strategic investments.

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

Company Description

Kyushu Leasing Service Co., Ltd. (8596) is a prominent leasing company based in Japan, primarily engaged in providing financial services including leasing and installment sales across various sectors. The company focuses on equipment leasing, real estate leasing, and providing financing solutions to businesses, thereby supporting capital investment and operational efficiency for its clients.

How the Company Makes Money

Kyushu Leasing Service generates revenue through multiple streams, primarily from leasing contracts in which it provides equipment, vehicles, and real estate to clients in exchange for regular lease payments. The company profits from the difference between the acquisition cost of the leased assets and the income generated from lease payments. Additionally, it may earn income from installment sales, where customers purchase equipment through financing options. Strategic partnerships with manufacturers and suppliers enhance its offerings, allowing for competitive lease terms and expanded market reach, contributing significantly to its overall 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, high leverage with a debt-to-equity ratio of 3.30 and negative cash flows are significant concerns, indicating financial risks and 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	32.77B	39.34B	33.51B	36.80B	29.55B	28.26B
Gross Profit	8.59B	8.99B	8.01B	8.46B	5.97B	6.09B
EBITDA	7.47B	6.81B	5.79B	6.72B	4.39B	4.91B
Net Income	3.65B	3.57B	3.05B	5.86B	2.13B	1.86B
Balance Sheet
Total Assets	209.69B	201.93B	193.40B	175.51B	169.42B	148.52B
Cash, Cash Equivalents and Short-Term Investments	5.57B	4.91B	5.09B	6.09B	4.95B	4.72B
Total Debt	147.10B	140.28B	135.74B	119.57B	120.48B	100.04B
Total Liabilities	166.67B	159.30B	153.26B	137.63B	135.95B	116.49B
Stockholders Equity	42.87B	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: 1327.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 1327 is above the 20-day moving average (MA) of 1308.90, below the 50-day MA of 1346.82, and above the 200-day MA of 1176.53, indicating a neutral trend. The MACD of -11.86 indicates Negative momentum. The RSI at 52.57 is Neutral, neither overbought nor oversold. The STOCH value of 87.21 is Negative, 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
8439	72 Outperform	¥946.96B	6.97	―	3.62%	5.24%	69.92%
9763	72 Outperform	¥12.40B	8.03	―	3.83%	6.66%	13.62%
7081	72 Outperform	¥12.74B	7.12	―	3.27%	5.72%	60.38%
8596	68 Neutral	¥29.84B	8.12	―	4.00%	-13.01%	9.74%
5834	64 Neutral	¥39.68B	6.80	―	4.19%	0.17%	58.30%
8424	64 Neutral	¥367.30B	7.53	―	3.79%	-0.03%	-42.34%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%