Kantsu Co., Ltd. (9326) AI Stock Analysis

• Market Cap: ¥4.25B
• Dividend Yield: 2.43%
• Average Volume (3M): 32.89K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.54
• Revenue Growth: 17.65%
• EPS Growth: -5123.90%
• Country: JP
• Employees: 225
• Sector: Industrials
• Sector Strength: 72
• Industry: Integrated Freight & Logistics
• EPS (TTM): 7.29
• Shares Outstanding: 10,308,150
• 10 Day Avg. Volume: 62,030
• 30 Day Avg. Volume: 32,893
• PEG Ratio: <0.01
• Price to Book (P/B): 1.68
• Price to Sales (P/S): 0.23
• P/FCF Ratio: -8.29
• 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): 6,509.24
• Revenue Forecast (FY): ¥2.52T

• Rating: 41 Neutral
• Price Target: ¥410.00 ▼(-10.87% Downside)

Kantsu Co., Ltd. is facing significant financial and technical challenges. The financial performance is notably weak, with profitability and cash flow issues. Technical indicators suggest bearish momentum, and the valuation is unattractive due to negative earnings. These factors collectively contribute to a low overall stock score.

Positive Factors

Diversified Revenue Model

A diversified revenue model with long-term contracts in technology and infrastructure sectors provides stability and reduces risk.

Strategic Partnerships

Strategic partnerships can lead to increased market penetration and operational efficiencies, supporting long-term growth.

Commitment to Innovation

Investment in R&D for innovative products can drive higher pricing power and expand market share, contributing to sustainable growth.

Negative Factors

High Leverage

High leverage increases financial risk, potentially limiting the company's ability to invest in growth opportunities.

Declining Cash Flow

Declining cash flow can hinder the company's ability to fund operations and invest in growth, impacting long-term sustainability.

Weak Profitability

Weak profitability and negative earnings indicate challenges in cost management and revenue generation, affecting long-term viability.

Kantsu Co., Ltd. Business Overview & Revenue Model

Company Description

Kantsu Co.,Ltd. provides import and customs clearance, domestic logistics, order processing, and customer support services in Japan and internationally. The company offers logistics outsourcing services; in-house distribution center operation transfer services; frozen and refrigerated distribution center services; and logistics consulting services. It also provides consignment type distribution center agency services; EC site order management agency services; one-stop agent services; warehouse storage services; distribution center transferred management services; in-house logistics improvement program services; warehouse management system; check list system; order processing automation system; and logistics strategy consulting services. The company was founded in 1983 and is headquartered in Higashiosaka, Japan.

How the Company Makes Money

Kantsu Co., Ltd. generates revenue through a diversified model that includes direct sales of its industrial materials and components to manufacturers and construction firms. The company benefits from long-term contracts with key clients in the technology and infrastructure sectors, which provide a stable revenue stream. Additionally, Kantsu Co., Ltd. engages in strategic partnerships with suppliers and distributors, enhancing its market reach and operational efficiency. The company also invests in research and development to create innovative products, which can command higher prices and expand its market share, further contributing to its earnings.

Kantsu Co., Ltd. Financial Statement Overview

Summary

Kantsu Co., Ltd. faces significant financial challenges, particularly in profitability and cash flow management. High leverage and declining revenue growth further exacerbate these issues, suggesting a need for strategic adjustments to sustain operations and improve financial health.

Income Statement

The income statement reveals weak profitability with a negative net income and EBIT in the most recent year. Gross profit margin has decreased from previous years, and the revenue growth rate has slowed significantly. These indicators suggest challenges in maintaining cost efficiency and achieving growth.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio, indicating potential risk from high leverage. However, the equity ratio is relatively stable, suggesting that the company maintains a moderate level of assets funded by equity. Stockholders' equity has been eroded, reflecting recent financial losses.

Cash Flow

The cash flow statement highlights a decline in operating cash flow and negative free cash flow, signaling cash flow management issues. The free cash flow to net income ratio is concerning due to negative values, indicating the need for improved cash generation relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	15.59B	15.27B	11.94B	10.49B	10.10B	9.53B
Gross Profit	1.03B	1.13B	1.45B	1.37B	1.57B	1.11B
EBITDA	115.57M	-560.86M	497.90M	1.38B	1.03B	674.70M
Net Income	-896.73M	-848.22M	49.69M	628.12M	463.99M	283.01M
Balance Sheet
Total Assets	11.66B	10.32B	10.31B	9.47B	9.48B	7.53B
Cash, Cash Equivalents and Short-Term Investments	3.03B	2.18B	2.56B	3.43B	3.22B	2.59B
Total Debt	7.37B	6.21B	5.65B	4.27B	5.19B	4.68B
Total Liabilities	9.68B	8.23B	7.28B	6.21B	6.76B	5.94B
Stockholders Equity	1.98B	2.09B	3.02B	3.26B	2.73B	1.60B
Cash Flow
Free Cash Flow	0.00	-423.91M	-676.25M	-752.12M	268.43M	-482.09M
Operating Cash Flow	0.00	-96.15M	-54.30M	216.64M	805.46M	187.54M
Investing Cash Flow	0.00	-700.17M	-2.12B	1.01B	-1.09B	-650.44M
Financing Cash Flow	0.00	652.26M	1.09B	-1.02B	900.11M	675.74M

Kantsu Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 460.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9326, the sentiment is Negative. The current price of 460 is below the 20-day moving average (MA) of 463.55, below the 50-day MA of 469.18, and above the 200-day MA of 388.14, indicating a neutral trend. The MACD of -13.29 indicates Positive momentum. The RSI at 27.82 is Positive, neither overbought nor oversold. The STOCH value of 2.27 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9326.

Kantsu Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9036	77 Outperform	¥6.10B	17.14	―	1.33%	-2.89%	―
9363	72 Outperform	¥2.76B	8.62	―	2.84%	5.46%	11.93%
9366	71 Outperform	¥4.92B	9.77	―	3.56%	5.32%	8.54%
9355	68 Neutral	¥4.92B	8.89	―	1.56%	3.99%	151.49%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
9326	41 Neutral	¥4.25B	―	―	2.43%	17.65%	-5123.90%
9327	40 Underperform	¥3.27B	―	―	―	-28.30%	97.73%