Kobayashi Yoko Co., Ltd. (8742) AI Stock Analysis

• Market Cap: ¥6.25B
• Dividend Yield: 1.13%
• Average Volume (3M): 21.37K
• Price to Earnings (P/E): 12.8
• Beta (1Y): 0.64
• Revenue Growth: 6.30%
• EPS Growth: -43.53%
• Country: JP
• Employees: 138
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 8.83
• Shares Outstanding: 12,554,379
• 10 Day Avg. Volume: 21,920
• 30 Day Avg. Volume: 21,370
• PEG Ratio: -0.43
• Price to Book (P/B): 0.37
• Price to Sales (P/S): 0.78
• P/FCF Ratio: 11.41
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: ¥512.00 ▲(13.27% Upside)
• Action: Reiterated Date: 01/15/26
• Date: Action: Reiterated 01/15/26

The score is driven primarily by strong financial health (notably low leverage and solid margins) and a clear uptrend above key moving averages. It is held back by overextended technical momentum (very high RSI/Stoch) and a relatively expensive valuation (P/E 31.49) with only a modest dividend yield.

Positive Factors

Very low leverage / strong equity base

Extremely low leverage and a near-47% equity ratio provide durable financial flexibility, lowering bankruptcy risk and enabling the company to fund growth, absorb shocks, or pursue selective M&A without reliance on external debt markets.

High gross margins with consistent revenue growth

A sustained gross margin above 65% together with multi-year revenue growth indicates structural pricing power or advantaged cost economics, supporting long-term profitability and the ability to invest in product/service differentiation.

Improving cash generation

Free cash flow reversal to positive and strong OCF-to-net-income conversion demonstrate improved cash conversion capacity, creating durable internal funding for capex, dividends, or balance sheet strengthening without recurring external financing.

Negative Factors

Declining net income / EPS

A material drop in net income and a large negative EPS growth rate signal pressure at the bottom line that may reflect rising operating costs or one-offs; sustained earnings weakness would limit reinvestment and shareholder returns over the medium term.

Volatile free cash flow history

Historical swings in free cash flow, including recent prior-year deficits, point to inconsistent cash generation. That volatility can constrain reliable funding for growth, dividends, or debt repayment and complicate long-term planning.

Low net profit margin and recent deterioration

Despite strong gross margins, a comparatively low and falling net margin suggests elevated operating expenses, tax, or non-operating costs. Persistently compressed net margins reduce retained earnings and weaken long-term capital accumulation.

Kobayashi Yoko Co., Ltd. Business Overview & Revenue Model

Company Description

Kobayashi Yoko Co., Ltd. engages in the commodity futures trading activity in Japan. The company also engages in the exchange margin trading activities; sale of gold bullion; provision of life and non-life insurance services; sale of solar power generation machines and LED lighting products; wholesale of electrical installation materials for advertising; and operation of golf courses. In addition, it is involved in the rental of properties, such as business hotels and one-room apartments; advertising agency business, including SEO consulting services; and sales of computer hardware and software. The company was founded in 1913 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Kobayashi Yoko Co., Ltd. generates revenue through the sale of its diverse product range, which includes over-the-counter medications, dietary supplements, and personal care items. The company's revenue model is primarily based on direct sales to consumers and partnerships with retail outlets and pharmacies, which allow for widespread distribution of its products. Key revenue streams include the sales of health-related products in both domestic and international markets. Additionally, the company may benefit from collaborations with other firms for co-branding opportunities or joint ventures, further enhancing its market presence and profitability.

Kobayashi Yoko Co., Ltd. Financial Statement Overview

Summary

Overall fundamentals are solid: consistent revenue growth and strong gross margin (65.27% in 2025) support profitability, and the balance sheet is a key strength with very low leverage (debt-to-equity 0.007) and a healthy equity ratio (46.77%). Offsetting this, net income declined from 2024 to 2025 and cash flow has shown volatility despite free cash flow turning positive in 2025.

Income Statement

The company has demonstrated consistent revenue growth with a notable increase from 2022 to 2025, achieving a steady rise in gross profit margins, reaching 65.27% in 2025. The net profit margin is also strong at 5.05% in 2025, although it has decreased from the previous year. The EBIT and EBITDA margins show healthy profitability, indicating operational efficiency. Despite these strengths, the drop in net income from 2024 to 2025 suggests potential challenges in maintaining net profitability.

Balance Sheet

Kobayashi Yoko Co., Ltd. maintains a solid balance sheet with a strong equity ratio, as stockholders' equity represents 46.77% of total assets in 2025, reflecting financial stability. The debt-to-equity ratio is low at 0.007, showcasing minimal leverage and reduced financial risk. However, the slight increase in total liabilities over the years may indicate a need for careful debt management. Overall, the company exhibits strong financial health and stability.

Cash Flow

The cash flow statement indicates a positive trend in free cash flow, reversing from negative in 2024 to positive in 2025, reflecting improved cash generation. The operating cash flow to net income ratio is robust at 1.85 in 2025, signaling efficient cash conversion. However, fluctuations in free cash flow growth and negative free cash flow in prior years suggest potential volatility in cash management, warranting attention.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	4.81B	4.68B	4.49B	4.11B	3.60B	3.45B
Gross Profit	3.14B	3.18B	3.07B	2.80B	2.40B	2.27B
EBITDA	925.09M	375.25M	431.07M	292.80M	-109.05M	-122.40M
Net Income	216.47M	239.41M	370.62M	200.25M	-91.36M	-122.33M
Balance Sheet
Total Assets	22.26B	20.88B	18.47B	16.96B	15.07B	14.20B
Cash, Cash Equivalents and Short-Term Investments	3.12B	3.02B	3.22B	3.28B	3.35B	3.66B
Total Debt	0.00	70.00M	100.00M	19.80M	60.20M	160.60M
Total Liabilities	12.41B	11.11B	8.95B	8.09B	6.45B	5.49B
Stockholders Equity	9.86B	9.77B	9.52B	8.87B	8.62B	7.79B
Cash Flow
Free Cash Flow	0.00	320.77M	-78.00M	117.46M	-120.96M	383.44M
Operating Cash Flow	0.00	443.98M	240.50M	270.71M	-12.25M	543.37M
Investing Cash Flow	0.00	-327.93M	-342.48M	-250.01M	-124.71M	-173.59M
Financing Cash Flow	0.00	-92.61M	36.04M	-71.78M	-133.47M	-53.23M

Kobayashi Yoko Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 452.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8742, the sentiment is Positive. The current price of 452 is below the 20-day moving average (MA) of 525.30, below the 50-day MA of 501.14, and above the 200-day MA of 371.56, indicating a neutral trend. The MACD of 13.16 indicates Positive momentum. The RSI at 51.57 is Neutral, neither overbought nor oversold. The STOCH value of 8.07 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8742.

Kobayashi Yoko Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8747	81 Outperform	¥17.67B	1.75	―	4.13%	-9.87%	4.37%
7175	74 Outperform	¥7.02B	4.16	―	4.08%	-10.65%	-19.65%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8742	67 Neutral	¥6.25B	12.80	―	1.13%	6.30%	-43.53%
8700	65 Neutral	¥6.93B	6.67	―	3.66%	4.48%	19.69%
8617	50 Neutral	¥5.01B	12.65	―	1.12%	-34.90%	-1619.67%
8746	50 Neutral	¥3.85B	-0.78	―	―	42.97%	-335.79%