Kimura Unity Co., Ltd. (9368) AI Stock Analysis

• Market Cap: ¥43.65B
• Dividend Yield: 3.83%
• Average Volume (3M): 40.55K
• Price to Earnings (P/E): 7.4
• Beta (1Y): 0.68
• Revenue Growth: -1.58%
• EPS Growth: 5.54%
• Country: JP
• Employees: 2,395
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 30.34
• Shares Outstanding: 47,087,600
• 10 Day Avg. Volume: 24,870
• 30 Day Avg. Volume: 40,549
• PEG Ratio: 1.38
• Price to Book (P/B): 0.87
• Price to Sales (P/S): 0.56
• P/FCF Ratio: 8.24
• 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: 74 Outperform
• Price Target: ¥1,042.00 ▲(16.82% Upside)
• Action: Reiterated Date: 11/01/25
• Date: Action: Reiterated 11/01/25

Kimura Unity Co., Ltd. demonstrates strong financial performance with effective cash flow management and a solid balance sheet, which are the most significant factors contributing to its score. The valuation is reasonable with a good dividend yield. However, technical analysis indicates mixed signals, with short-term weakness but longer-term support, slightly dampening the overall score.

Positive Factors

Balance Sheet Strength

A very low debt-to-equity ratio and a ~61% equity ratio create a conservative capital structure that reduces refinancing risk and interest burden. This durable financial strength supports steady dividends, cushions cyclical shocks, and provides capacity for targeted investments or opportunistic M&A over the medium term.

Cash Generation

Operating cash flow converts earnings at a strong rate and free cash flow remains above net income, indicating reliable cash generation. Persistent cash conversion supports capex, dividends and debt servicing without relying heavily on external financing, giving management flexibility for strategic initiatives over several quarters.

Operational Efficiency

Robust gross and operating margins point to effective cost controls and pricing power in its specialty services. Consistent profitability trends since 2020 imply durable operational fundamentals that can sustain reinvestment, maintain cash returns to shareholders, and absorb modest revenue volatility.

Negative Factors

Recent Revenue Weakness

A year-over-year revenue decline, even if small, is a durable red flag for growth runway. If the trend persists it can limit scale economies and revenue-linked margin expansion. Management must reverse or offset this with new sales, offerings, or market share gains to sustain medium-term earnings growth.

Declining Free Cash Flow

A double-digit drop in FCF reduces available internal funding for capex, dividends or debt reduction. Even with healthy conversion ratios, a continuing FCF decline would constrain capital allocation choices and weaken the balance sheet buffer, making the company more sensitive to operational setbacks.

Moderate Return on Equity

An ROE in the high-single digits is modest and suggests limited ability to generate high returns on shareholder capital. Absent stronger revenue growth or margin improvement, this level can cap long-term shareholder value creation versus higher-return peers and may require strategic changes to lift capital efficiency.

Kimura Unity Co., Ltd. Business Overview & Revenue Model

Company Description

Kimura Unity Co., Ltd. provides logistics, car, information, and staffing services in Japan and internationally. Its logistics services include distribution center operations, container equipment production, warehousing and packing, etc. The company also offers car management, maintenance, and rental services; and vehicle leasing and insurance agency services, as well as purchases and sells automobiles. In addition, it provides consulting and system development, system maintenance, and temporary staffing services; and temporary staff placement, jobseeker referral, and hiring support services. The company was formerly known as Kimura Unity and changed its name to Kimura Unity Co., Ltd. in November 1990. Kimura Unity Co., Ltd. was founded in 1881 and is headquartered in Nagoya, Japan.

How the Company Makes Money

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Kimura Unity Co., Ltd. Financial Statement Overview

Summary

Kimura Unity Co., Ltd. is in a strong financial position, with robust profitability, efficient operations, and a solid balance sheet. The company has a healthy debt-to-equity ratio and strong equity base, providing financial stability. Cash flow management remains effective, supporting strategic initiatives despite a slight revenue decline last year.

Income Statement

Kimura Unity Co., Ltd. has displayed a solid financial performance with consistent revenue growth over the past few years. The gross profit margin stands at 20.33% for the most recent year, indicating effective cost management. The net profit margin is 5.40%, reflecting stable profitability. The revenue growth rate is slightly negative for the last year at -0.59%, but the company has shown an upward trajectory overall since 2020. EBIT and EBITDA margins are robust at 7.53% and 12.49%, respectively, suggesting strong operational efficiency.

Balance Sheet

The balance sheet of Kimura Unity Co., Ltd. demonstrates financial strength and stability. The company has a healthy debt-to-equity ratio of 0.15, indicating a conservative leverage position with ample equity backing. The return on equity is 8.42%, reflecting efficient use of shareholder funds to generate profits. Additionally, the equity ratio is 60.74%, indicative of a strong equity base relative to total assets, which enhances financial resilience.

Cash Flow

Kimura Unity Co., Ltd.'s cash flow statement reveals solid cash generation capabilities. The operating cash flow to net income ratio is strong at 1.47, showing good cash conversion from earnings. While the free cash flow decreased by 16.24% over the past year, the company maintains a strong free cash flow to net income ratio of 1.26, highlighting effective cash management despite the decrease. This provides flexibility for reinvestment and debt servicing.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	61.13B	61.13B	61.49B	59.14B	57.08B	51.78B
Gross Profit	12.30B	12.43B	11.97B	10.76B	10.32B	9.34B
EBITDA	7.69B	7.63B	7.18B	6.06B	5.51B	4.43B
Net Income	3.16B	3.30B	3.17B	2.47B	2.18B	1.60B
Balance Sheet
Total Assets	63.65B	64.55B	64.71B	57.77B	56.02B	54.06B
Cash, Cash Equivalents and Short-Term Investments	11.06B	12.19B	12.44B	9.73B	8.69B	8.43B
Total Debt	6.07B	5.87B	7.00B	6.84B	6.34B	6.37B
Total Liabilities	22.72B	23.38B	24.26B	22.66B	22.51B	23.33B
Stockholders Equity	39.01B	39.21B	38.67B	33.45B	31.97B	29.42B
Cash Flow
Free Cash Flow	0.00	4.16B	4.96B	3.57B	1.28B	2.75B
Operating Cash Flow	0.00	4.84B	5.54B	4.49B	2.03B	3.25B
Investing Cash Flow	0.00	-1.04B	-219.00M	-1.17B	-613.00M	-409.00M
Financing Cash Flow	0.00	-4.68B	-2.83B	-2.53B	-1.58B	-928.00M

Kimura Unity Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 892.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9368, the sentiment is Neutral. The current price of 892 is below the 20-day moving average (MA) of 946.30, below the 50-day MA of 923.92, and above the 200-day MA of 857.26, indicating a neutral trend. The MACD of 6.11 indicates Positive momentum. The RSI at 46.53 is Neutral, neither overbought nor oversold. The STOCH value of 37.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:9368.

Kimura Unity Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9307	78 Outperform	¥16.30B	15.74	―	1.49%	1.23%	0.12%
9368	74 Outperform	¥43.65B	7.35	―	3.83%	-1.58%	5.54%
9319	65 Neutral	¥35.02B	18.51	―	2.59%	4.02%	18.12%
9325	65 Neutral	¥12.65B	8.30	―	2.63%	18.27%	-4.07%
9322	65 Neutral	¥21.59B	30.65	―	1.13%	3.37%	9.00%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
9313	56 Neutral	¥6.02B	19.21	―	2.29%	0.08%	105.25%