Kawasaki Kisen Kaisha (9107) AI Stock Analysis

• Market Cap: ¥1.60T
• Dividend Yield: 5.12%
• Average Volume (3M): 4.91M
• Price to Earnings (P/E): 10.1
• Beta (1Y): 1.09
• Revenue Growth: -2.96%
• EPS Growth: -10.12%
• Country: JP
• Employees: 5,012
• Sector: Industrials
• Sector Strength: 72
• Industry: Marine Shipping
• EPS (TTM): 53.74
• Shares Outstanding: 639,172,060
• 10 Day Avg. Volume: 4,951,080
• 30 Day Avg. Volume: 4,907,240
• PEG Ratio: 0.02
• Price to Book (P/B): 0.81
• Price to Sales (P/S): 1.28
• P/FCF Ratio: 9.52
• 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): 173.51
• Revenue Forecast (FY): ¥1.01T

• Rating: 70 Outperform
• Price Target: ¥2,778.00 ▲(20.00% Upside)
• Action: Upgraded Date: 10/18/25
• Date: Action: Upgraded 10/18/25

Kawasaki Kisen Kaisha's overall stock score is driven by its strong financial performance and attractive valuation. The company's robust revenue growth, improved leverage ratios, and efficient cash flow management are significant strengths. However, technical analysis indicates potential short-term weakness, which slightly offsets the positive financial and valuation aspects.

Positive Factors

Improved leverage

A marked reduction in leverage materially improves financial flexibility and lowers interest burden. This stronger capital structure supports ongoing capex, dividend capacity and debt reduction plans, and increases resilience to shipping-cycle downturns over the medium term.

Strong cash generation

Consistent free cash flow growth and high operating-cash-to-net-income conversion provide durable funding for reinvestment, maintenance capex, and debt paydown. Reliable cash generation cushions cyclical revenue swings and enables strategic capital allocation over multiple quarters.

Revenue & margin expansion

Sustained revenue growth and materially higher net margins indicate strong demand, improved fleet utilization and effective cost control. Durable margin expansion across segments suggests structural operational improvements rather than one-off gains, supporting medium-term profitability.

Negative Factors

Cyclicality & spot exposure

Significant exposure to spot markets and short-term charters in parts of the business creates persistent earnings volatility. Even with stable segments, cyclical freight rates can swing revenues and margins materially, complicating planning and capital allocation across shipping cycles.

Remaining substantial liabilities

High absolute liabilities persist despite improved ratios; the capital-intensive fleet and residual debt levels create refinancing and interest-rate sensitivity risks. In a prolonged downturn, large nominal liabilities could constrain investment and require tougher cash conservation measures.

Dependence on ONE JV

Container earnings are received via an equity JV rather than direct operations, reducing K Line's control over network strategy and margin capture. Long-term strategic and operational flexibility is limited by JV governance, which can mute upside from container market recoveries.

Kawasaki Kisen Kaisha Business Overview & Revenue Model

Company Description

Kawasaki Kisen Kaisha, Ltd. provides marine, land, and air transportation services in Japan, the United States, Europe, Asia, and internationally. The company operates through Dry Bulk, Energy Resource Transport, Product Logistics, and Other segments. It offers containership services; dry bulk carrier services comprising transport of raw materials, such as coal, iron ore, wheat, soybeans, corn, etc., as well as woodchips, and pulp; car carrier services; liquefied natural gas (LNG) carrier services; marine transport of crude oil, oil derivatives, and liquefied petroleum gas (LPG) products through tankers; offshore support vessel services; offshore drilling services; and floating production storage and offloading services. In addition, the company offers logistics services, including air and sea freight forwarding, land transportation, warehousing, and buyer's consolidation services; and operates container terminals, as well as ship management services, travel agency services, and real estate rental and administration services. As of March 31, 2022, it had a fleet of 434 vessels with 36,959,893 deadweight tonnage. Kawasaki Kisen Kaisha, Ltd. was founded in 1919 and is headquartered in Tokyo, Japan.

How the Company Makes Money

'K' Line generates revenue primarily through the transportation of goods across its various shipping services. This includes charging shipping fees for containerized cargo, bulk commodities, and specialized shipments. Key revenue streams include long-term contracts with major industrial clients, spot market transactions, and logistics services that cater to supply chain needs. The company also benefits from strategic partnerships with other shipping lines and logistics companies, enhancing its service offerings and operational efficiencies. Additionally, fluctuations in freight rates, fuel prices, and global trade dynamics significantly influence its earnings.

Kawasaki Kisen Kaisha Financial Statement Overview

Summary

Kawasaki Kisen Kaisha demonstrates strong financial health with robust revenue and profit growth, improved leverage ratios, and efficient cash flow management. The company has shown significant improvements in net profit margin and debt-to-equity ratio, indicating strong operational performance and financial stability.

Income Statement

Kawasaki Kisen Kaisha has demonstrated robust revenue growth, with a notable increase from ¥756.98 billion in 2022 to ¥1.05 trillion in 2025, reflecting strong demand and operational efficiency. The company maintains healthy profitability with a gross profit margin consistently above 15% and a significant net profit margin improvement, reaching over 29% in 2025. Management's focus on cost control and revenue expansion is evident in the positive EBIT and EBITDA margins, indicating strong operational performance.

Balance Sheet

The company's balance sheet shows a solid equity base with a debt-to-equity ratio significantly improved from 5.02 in 2020 to 0.21 in 2025, indicating decreased leverage and improved financial stability. The equity ratio has increased, reflecting a stronger shareholder position, although total liabilities remain substantial. The return on equity is impressive, driven by high net income levels, suggesting effective management of equity capital.

Cash Flow

Kawasaki Kisen Kaisha's cash flow performance is strong, with a consistent increase in free cash flow from ¥184.5 billion in 2022 to ¥143.5 billion in 2025, despite significant capital expenditures. The operating cash flow to net income ratio is above 0.8, indicating efficient cash generation relative to earnings. However, fluctuations in free cash flow growth warrant careful monitoring, although overall cash flow health supports ongoing investment and debt reduction strategies.

Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	1.03T	1.05T	962.30B	942.61B	756.98B	625.49B
Gross Profit	172.86B	182.25B	161.17B	142.72B	75.38B	35.44B
EBITDA	153.42B	376.45B	185.00B	745.27B	712.22B	167.78B
Net Income	262.79B	305.38B	101.99B	694.90B	642.42B	108.69B
Balance Sheet
Total Assets	2.18T	2.21T	2.11T	2.05T	1.57T	974.61B
Cash, Cash Equivalents and Short-Term Investments	339.03B	204.72B	272.62B	349.43B	247.34B	132.37B
Total Debt	286.15B	344.86B	287.78B	351.69B	416.45B	507.00B
Total Liabilities	526.67B	532.60B	484.83B	505.94B	590.08B	658.45B
Stockholders Equity	1.62T	1.65T	1.59T	1.52T	884.63B	218.19B
Cash Flow
Free Cash Flow	0.00	141.08B	118.23B	387.54B	184.50B	-8.73B
Operating Cash Flow	0.00	273.17B	203.09B	456.05B	226.46B	33.40B
Investing Cash Flow	0.00	-126.13B	-66.91B	-46.74B	-5.85B	16.99B
Financing Cash Flow	0.00	-211.65B	-223.73B	-300.79B	-116.00B	-34.84B

Kawasaki Kisen Kaisha Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2315.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9107, the sentiment is Positive. The current price of 2315 is below the 20-day moving average (MA) of 2391.40, above the 50-day MA of 2290.13, and above the 200-day MA of 2149.15, indicating a bullish trend. The MACD of 79.83 indicates Negative momentum. The RSI at 70.17 is Negative, neither overbought nor oversold. The STOCH value of 89.47 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9107.

Kawasaki Kisen Kaisha Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9101	77 Outperform	¥2.38T	11.76	10.82%	6.25%	-3.22%	-13.20%
9119	77 Outperform	¥177.22B	7.21	―	4.08%	-10.66%	-17.73%
9110	76 Outperform	¥175.80B	5.06	12.71%	3.75%	-7.72%	27.03%
9104	73 Outperform	¥2.14T	6.29	10.90%	5.81%	0.36%	-14.86%
9107	70 Outperform	¥1.60T	10.15	11.32%	5.12%	-2.96%	-10.12%
9130	70 Neutral	¥10.86B	1,812.20	―	5.77%	3.22%	-87.75%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Kawasaki Kisen Kaisha Corporate Events

“K” LINE Centralizes Ship Management Under New Holding Company

Kawasaki Kisen Kaisha is reorganizing its ship management operations by transferring all shares of its wholly owned ship management subsidiaries, “K” Line RoRo Bulk Ship Management and K Marine Ship Management, to a newly established intermediary holding company, “K” Line Ship Management Holdings. The move is designed to centralize oversight of ship management across the group, enable more flexible use of management resources, and strengthen alignment of ship management functions with the company’s broader business strategies, without changing share capital or requiring shareholder approval.

Under the simplified absorption-type company split, effective April 1, 2026, “K” LINE will remain the splitting company while the new holding entity succeeds the ownership of the two subsidiaries and assumes related oversight roles. The company expects no issues in fulfilling obligations arising from the restructuring, signaling an internal reorganization aimed at reinforcing operational safety, quality of service, and group-wide governance in response to evolving market conditions.

The most recent analyst rating on (JP:9107) stock is a Buy with a Yen2740.00 price target. To see the full list of analyst forecasts on Kawasaki Kisen Kaisha stock, see the JP:9107 Stock Forecast page.

“K” Line Profit Slumps but Maintains Strong Balance Sheet and Higher Dividends

Kawasaki Kisen Kaisha reported a decline in performance for the nine months ended December 31, 2025, with operating revenues down 4.6% year-on-year to ¥767.7 billion and profit attributable to owners of the parent falling 64.0% to ¥102.6 billion, alongside significantly lower ordinary income and profit per share compared with the previous year. Despite the earnings deterioration, the company’s financial position remains solid with total assets of ¥2.29 trillion, a shareholders’ equity ratio of 76.1%, and an increased interim dividend for the year ending March 31, 2026, as it revised full-year forecasts downward while still planning to raise annual dividends, signaling a commitment to shareholder returns even amid weaker profitability.

The most recent analyst rating on (JP:9107) stock is a Buy with a Yen2554.00 price target. To see the full list of analyst forecasts on Kawasaki Kisen Kaisha stock, see the JP:9107 Stock Forecast page.