KPP GROUP HOLDINGS CO.,LTD. (9274) AI Stock Analysis

• Market Cap: ¥49.41B
• Dividend Yield: 4.86%
• Average Volume (3M): 139.02K
• Price to Earnings (P/E): 6.8
• Beta (1Y): 0.87
• Revenue Growth: -0.37%
• EPS Growth: -19.68%
• Country: JP
• Employees: 5,624
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial - Distribution
• EPS (TTM): 14.84
• Shares Outstanding: 67,244,286
• 10 Day Avg. Volume: 121,370
• 30 Day Avg. Volume: 139,023
• PEG Ratio: -0.26
• Price to Book (P/B): 0.51
• Price to Sales (P/S): 0.07
• P/FCF Ratio: 6.92
• 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: 64 Neutral
• Price Target: ¥761.00 ▲(2.70% Upside)

The overall stock score is primarily influenced by the company's strong financial performance and attractive valuation, which are offset by bearish technical indicators. The stock appears undervalued with a high dividend yield, but current market momentum suggests caution in the short term.

Positive Factors

Revenue Streams

Diversified revenue streams across manufacturing, technology, and real estate provide resilience against sector-specific downturns, supporting long-term stability.

Financial Leverage

A moderate debt-to-equity ratio indicates prudent financial management, enhancing the company's ability to withstand economic fluctuations and invest in growth opportunities.

Cash Generation

Strong and improving operating cash flow underscores the company's ability to fund operations and growth initiatives internally, reducing reliance on external financing.

Negative Factors

Profitability Challenges

Declining EBIT and net income margins highlight potential operational inefficiencies, which could impact long-term profitability if not addressed.

Revenue Growth

A negative revenue growth rate suggests the company is facing challenges in expanding its market presence, which could hinder future growth prospects.

Cash Flow Volatility

Volatile free cash flow can complicate financial planning and investment strategies, potentially affecting the company's ability to sustain long-term projects.

KPP GROUP HOLDINGS CO.,LTD. Business Overview & Revenue Model

Company Description

KPP GROUP HOLDINGS CO.,LTD. (9274) is a diversified holding company engaged in various sectors, including manufacturing, technology, and real estate. The company focuses on developing innovative solutions and products that cater to both domestic and international markets. With a portfolio that includes industrial equipment, consumer goods, and real estate projects, KPP GROUP aims to leverage its expertise to drive growth and create value for its stakeholders.

How the Company Makes Money

KPP GROUP HOLDINGS generates revenue through multiple streams, primarily from the sales of manufactured goods, technology services, and real estate developments. The company earns income from its manufacturing segment by producing and selling industrial equipment and consumer products to businesses and end-users. Additionally, its technology services division offers software solutions and consulting, contributing to its revenue. The real estate arm of KPP GROUP generates earnings through property development and leasing, capitalizing on the growing demand for commercial and residential spaces. Strategic partnerships with suppliers and technology firms further enhance its market position and revenue potential.

KPP GROUP HOLDINGS CO.,LTD. Financial Statement Overview

Summary

The company shows strong revenue growth and stable margins, but faces challenges with declining EBIT and net income margins. The balance sheet is stable with moderate leverage, though return on equity is inconsistent. Cash flow is positive but volatile, requiring attention to capital expenditures.

Income Statement

The company has demonstrated solid revenue growth with a noticeable increase in total revenue over the years. The gross profit margin has been stable, indicating effective cost management. However, the recent decline in EBIT and net income margins suggests some operational challenges affecting profitability.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio, reflecting a balanced leverage position. The company has improved its equity ratio over time, indicating stronger financial stability. However, the return on equity has fluctuated, highlighting potential risks in achieving consistent returns for shareholders.

Cash Flow

Operating cash flow has been positive and improving, indicating good cash generation capability. The free cash flow has shown volatility, but recent figures are promising. The cash flow to net income ratios suggest efficient cash conversion, although capital expenditures need close monitoring.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	666.91B	670.04B	644.43B	659.66B	563.41B	430.40B
Gross Profit	128.77B	129.12B	119.90B	120.58B	92.95B	51.91B
EBITDA	25.62B	26.91B	26.03B	29.88B	18.70B	7.33B
Net Income	7.63B	7.99B	10.61B	15.72B	7.50B	1.42B
Balance Sheet
Total Assets	354.65B	352.04B	344.56B	330.66B	290.71B	275.12B
Cash, Cash Equivalents and Short-Term Investments	13.51B	11.32B	26.29B	30.73B	22.63B	30.55B
Total Debt	89.36B	119.03B	108.26B	112.25B	96.84B	100.52B
Total Liabilities	271.23B	265.81B	262.66B	262.86B	234.33B	231.54B
Stockholders Equity	83.32B	86.12B	81.81B	67.73B	56.29B	43.49B
Cash Flow
Free Cash Flow	0.00	6.40B	15.67B	4.35B	1.64B	-8.25B
Operating Cash Flow	0.00	11.17B	19.82B	10.31B	4.82B	-6.47B
Investing Cash Flow	0.00	-16.64B	-5.51B	-8.53B	-2.68B	23.05B
Financing Cash Flow	0.00	-11.19B	-22.38B	4.21B	-11.80B	6.60B

KPP GROUP HOLDINGS CO.,LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 741.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9274, the sentiment is Positive. The current price of 741 is above the 20-day moving average (MA) of 735.25, below the 50-day MA of 759.42, and above the 200-day MA of 718.48, indicating a bullish trend. The MACD of -4.32 indicates Negative momentum. The RSI at 55.64 is Neutral, neither overbought nor oversold. The STOCH value of 76.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9274.

KPP GROUP HOLDINGS CO.,LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8032	75 Outperform	¥110.78B	33.03	―	3.35%	4.06%	-73.92%
3708	71 Outperform	¥55.32B	14.52	―	2.79%	6.26%	-11.38%
9274	64 Neutral	¥49.41B	6.76	―	4.86%	-0.37%	-19.68%
3864	64 Neutral	€26.81B	8.66	3.95%	2.34%	-10.04%	43.13%
3877	62 Neutral	¥22.16B	18.56	―	3.77%	-2.18%	-77.82%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
7487	56 Neutral	¥14.32B	37.10	―	1.43%	1.30%	-33.10%

KPP GROUP HOLDINGS CO.,LTD. Corporate Events

KPP Group Reports Decline in Financial Performance Amid Strategic Expansion

KPP GROUP HOLDINGS CO., LTD. reported a decline in its financial performance for the six months ended September 30, 2025, with net sales decreasing by 4.4% and significant drops in operating and ordinary profits. The company has revised its earnings forecast for the fiscal year ending March 31, 2026, indicating a continued challenging financial environment. The inclusion of seven new subsidiaries underlines a strategic expansion, potentially impacting future operations and market positioning.

KPP Group Holdings Announces Interim Dividend Consistent with Forecast

KPP Group Holdings Co., Ltd. announced an interim dividend of ¥18.00 per share for the fiscal year ending March 2026, consistent with their forecast. This decision aligns with their new dividend policy aimed at ensuring stable and sustainable dividends, reflecting business performance with a target payout ratio of 30% and a minimum Dividend on Equity of 3.0%.

KPP Group Revises Earnings Forecast Amid Market Challenges

KPP GROUP HOLDINGS CO., LTD. announced a revision of its consolidated earnings forecast for the fiscal year ending March 2026 due to decreased demand for paper and falling prices in key markets, alongside increased administrative expenses from restructuring. This revision indicates a significant decrease in expected profits and sales compared to earlier forecasts, reflecting challenges in the market and operational adjustments.