Kawanishi Warehouse Co., Ltd. (9322) AI Stock Analysis

• Market Cap: ¥22.57B
• Dividend Yield: 1.13%
• Average Volume (3M): 7.47K
• Price to Earnings (P/E): 30.4
• Beta (1Y): 0.72
• Revenue Growth: 3.37%
• EPS Growth: 9.00%
• Country: JP
• Employees: 617
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 21.54
• Shares Outstanding: 8,258,322
• 10 Day Avg. Volume: 18,850
• 30 Day Avg. Volume: 7,470
• PEG Ratio: -1.68
• Price to Book (P/B): 0.37
• Price to Sales (P/S): 0.31
• P/FCF Ratio: 8.21
• 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: 65 Neutral
• Price Target: ¥3,141.00 ▲(21.98% Upside)

The overall stock score of 64.5 reflects a stable financial performance and strong technical momentum, tempered by valuation concerns. The company's solid financial foundation and cash flow management are positive, but the high P/E ratio and overbought technical indicators suggest caution. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Operating cash generation

A high operating cash flow to net income ratio (3.3x) and positive free cash flow coverage indicate persistent cash conversion from operations. That strength supports reinvestment, debt service and resilience through cycles, underpinning long-term financial flexibility and capital allocation.

Conservative balance sheet

Moderate leverage (D/E ~0.4) and a strong equity ratio (55.5%) point to conservative financing and asset backing. This structure reduces solvency risk, preserves borrowing capacity for strategic investments, and supports the company’s ability to weather industry downturns over the medium term.

Stable revenue and operational margins

Consistent revenue expansion and double-digit EBITDA margins reflect a steady core logistics business and operational efficiency. Predictable warehousing/handling demand and maintained margins support durable cash flow generation and provide a platform for incremental margin or service mix improvements.

Negative Factors

Low return on equity

A ROE of ~3.5% suggests the company is delivering modest returns on shareholder capital. Over time, low ROE can indicate limited profitability leverage or slow asset productivity versus peers, constraining long-term equity value creation unless operational or strategic changes raise returns.

Thin net profitability

A sub-3% net margin signals limited bottom-line retention after operating costs and overhead. Persistently thin net margins reduce the company’s buffer against cost inflation and competitive pressure, limiting retained earnings and the ability to fund growth or meaningful shareholder returns.

Weak free cash flow growth

A large negative FCF growth rate year-over-year indicates volatility in cash available after investments. Even with strong operating cash conversion ratios, declining FCF can constrain strategic spending, dividend flexibility or deleveraging, raising medium-term funding and growth execution risks.

Kawanishi Warehouse Co., Ltd. Business Overview & Revenue Model

Company Description

Kawanishi Warehouse Co.,Ltd. provides logistic services in Japan and internationally. The company offers frozen and refrigerated warehouses, as well as normal warehouses that include constant temperature and humidity warehouses, room temperature warehouses, fumigated warehouses, and auto-rack warehouses. It also provides transport and delivery services, including marine container, to-door, refrigerated, and consolidated cargo transport services; port transport services comprising ship's agent services, import and export procedures, and export packing services; and international logistics that include intermodal transport services and air freight handling services, as well as cargo management logistics services. In addition, the company offers distribution processing services, such as assortment of automobile related products, sorting work for beans, label and price tag affixing for a range of products, and arrangement of gift sets; and customs clearance services. Further, it provides trunk room for storage and recycling of confidential documents. Kawanishi Warehouse Co.,Ltd. was founded in 1918 and is headquartered in Kobe, Japan.

How the Company Makes Money

Kawanishi Warehouse Co., Ltd. generates revenue primarily through its warehousing and logistics services. The company charges clients for storage space, handling, and transportation of goods. Key revenue streams include long-term contracts with retail and manufacturing companies that require consistent warehousing solutions, as well as one-off projects that may involve specialized handling or expedited shipping. Additionally, partnerships with e-commerce businesses have expanded their service offerings and customer base, contributing to increased earnings. The company also benefits from economies of scale, allowing it to optimize operational efficiencies and reduce costs, further enhancing profitability.

Kawanishi Warehouse Co., Ltd. Financial Statement Overview

Summary

Kawanishi Warehouse Co., Ltd. demonstrates a stable financial position with balanced revenue growth and strong cash flow generation. While profitability metrics suggest moderate efficiency, the company's solid balance sheet and effective cash management practices provide a strong foundation for future growth and financial resilience.

Income Statement

The company's income statement indicates stable but slow revenue growth, with a slight increase in total revenue from the previous year. Gross profit margin stands at 14.8%, and net profit margin is 2.9%, suggesting moderate profitability. EBIT and EBITDA margins are at 4.0% and 10.1% respectively, showing an efficient operational performance but with room for improvement in net income growth.

Balance Sheet

The balance sheet reveals a solid equity base with a debt-to-equity ratio of 0.40, indicating a balanced approach to financing. The return on equity is relatively low at 3.5%, highlighting a potential area for enhancing shareholder returns. Equity ratio at 55.5% reflects a strong asset base supported by equity, suggesting financial stability.

Cash Flow

Cash flow analysis shows a healthy operating cash flow to net income ratio of 3.3, reflecting strong cash generation ability. Free cash flow to net income ratio is 1.3, indicating effective capital expenditure management. The free cash flow showed significant improvement, with a growth rate of -39.6% compared to the previous year, reflecting strategic financial management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	25.84B	25.54B	24.99B	27.11B	23.62B	22.44B
Gross Profit	3.94B	3.85B	3.80B	3.54B	3.07B	2.69B
EBITDA	2.64B	2.59B	2.50B	3.46B	1.92B	1.88B
Net Income	757.03M	746.44M	796.77M	1.49B	523.15M	542.24M
Balance Sheet
Total Assets	37.19B	38.38B	38.14B	37.84B	36.88B	33.78B
Cash, Cash Equivalents and Short-Term Investments	4.73B	5.27B	5.61B	5.03B	4.11B	5.01B
Total Debt	8.39B	8.54B	9.48B	10.34B	10.85B	9.45B
Total Liabilities	13.18B	13.96B	14.59B	15.92B	16.80B	14.37B
Stockholders Equity	21.09B	21.31B	20.62B	19.28B	17.64B	17.07B
Cash Flow
Free Cash Flow	0.00	966.62M	1.60B	1.80B	-2.07B	-1.17B
Operating Cash Flow	0.00	2.45B	2.15B	2.68B	1.32B	1.37B
Investing Cash Flow	0.00	-1.18B	-754.05M	-1.65B	-2.13B	-3.91B
Financing Cash Flow	0.00	-1.14B	-1.02B	-948.09M	1.21B	1.09B

Kawanishi Warehouse Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2575.00
• 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:9322, the sentiment is Positive. The current price of 2575 is below the 20-day moving average (MA) of 2855.45, below the 50-day MA of 2689.64, and above the 200-day MA of 1627.98, indicating a bullish trend. The MACD of 85.42 indicates Positive momentum. The RSI at 75.44 is Negative, neither overbought nor oversold. The STOCH value of 79.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9322.

Kawanishi Warehouse Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9319	75 Outperform	¥32.77B	17.42	―	2.59%	4.02%	18.12%
9324	66 Neutral	¥68.24B	17.82	―	2.18%	12.03%	30.12%
9307	65 Neutral	¥15.89B	16.19	―	1.49%	1.23%	0.12%
9325	65 Neutral	¥12.13B	14.03	―	2.63%	18.27%	-4.07%
9322	65 Neutral	¥22.57B	30.38	―	1.13%	3.37%	9.00%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
9313	56 Neutral	¥6.13B	19.65	―	2.29%	0.08%	105.25%