Kin-Ei Corp. (9636) AI Stock Analysis

• Market Cap: ¥11.38B
• Dividend Yield: 0.24%
• Average Volume (3M): 1.11K
• Price to Earnings (P/E): 57.1
• Beta (1Y): 0.09
• Revenue Growth: 6.28%
• EPS Growth: 13.26%
• Country: JP
• Employees: 46
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): N/A
• Shares Outstanding: 2,821,000
• 10 Day Avg. Volume: 1,640
• 30 Day Avg. Volume: 1,113
• PEG Ratio: 1.93
• Price to Book (P/B): 4.14
• Price to Sales (P/S): 3.03
• P/FCF Ratio: 33.64
• 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: 62 Neutral
• Price Target: ¥4,351.00 ▲(7.04% Upside)
• Action: Reiterated Date: 03/19/26
• Date: Action: Reiterated 03/19/26

The score is primarily supported by improving operating performance and a significantly strengthened, lower-leverage balance sheet. Offsetting this is a high valuation (P/E ~57 with a low dividend yield) and mixed/mostly neutral technical signals with limited trend strength.

Positive Factors

Stronger balance sheet (low leverage)

Material deleveraging meaningfully reduces financial risk and raises strategic flexibility. Lower leverage improves interest coverage and leaves room for cyclical shocks, targeted capex or selective investments without pressuring liquidity, supporting multi-month resilience.

Consistent revenue recovery and growth

Sustained revenue expansion after COVID-era troughs indicates recovering demand for movie exhibition and stronger market positioning. Predictable top-line improvement supports capacity utilization, underpins operating leverage and allows management to plan multi-quarter investments.

Improving operating profitability

Higher gross and EBIT margins reflect better cost control and pricing execution versus recent years. Sustained operating profitability enhances internal cash generation, strengthens return on equity and gives the company durable headroom to reinvest or buffer downturns over several quarters.

Negative Factors

Volatile free cash flow and weak cash conversion

Inconsistent cash conversion and swings in free cash flow reduce predictability for capital allocation. Volatility suggests working-capital or timing issues and limits steady funding for expansion, dividends or debt repayment, constraining multi-quarter strategic planning.

Moderate margins and mid-single-digit returns

Mid-single-digit ROE and only moderate margins constrain capital efficiency and long-term wealth creation. Limited returns reduce capacity to self-fund aggressive growth, lower competitive reinvestment ability and leave a thinner buffer against cyclical downturns over months.

Small operating scale

A very small employee base implies limited geographic and operational scale versus larger rivals. Scale limits bargaining power with content providers, reduces economies of scale in operations and capex, and can slow multi-month expansion or efficiency gains versus larger peers.

Kin-Ei Corp. Business Overview & Revenue Model

Company Description

Kin-Ei Corp. (9636) is a diversified company based in Japan that operates in various sectors including manufacturing, technology, and services. The company specializes in the production and distribution of high-quality materials and components for industries such as electronics, automotive, and construction. Kin-Ei Corp. is recognized for its innovative solutions and commitment to sustainability, offering products that enhance operational efficiency and reduce environmental impact.

How the Company Makes Money

Kin-Ei Corp. generates revenue through multiple streams, primarily by selling its manufactured products to industrial clients in various sectors. The company has established long-term contracts with key players in the electronics and automotive industries, which provide a stable income base. Additionally, Kin-Ei Corp. engages in research and development to create cutting-edge technologies, which allows it to charge premium prices for its advanced products. Strategic partnerships with other firms enhance its market reach and provide access to new customer bases, further contributing to its earnings. The company also explores international markets, diversifying its revenue sources and reducing dependency on domestic sales.

Kin-Ei Corp. Financial Statement Overview

Summary

Steady revenue expansion over 2022–2026 and improved profitability (net margin up to ~5.3% in 2026; EBIT margin ~8% in 2025–2026) support the score. A materially stronger balance sheet from deleveraging (debt-to-equity ~0.12 in 2026) is a major positive. Offsetting factors are moderate sector margins and volatile free cash flow/cash conversion versus earnings.

Income Statement

Revenue has expanded steadily from 2022–2026 (with a strong rebound after the 2021 decline), and profitability has improved meaningfully: net margin rose from ~1.9% (2021) to ~5.3% (2026), while gross margin also stepped up to ~17.8% (2026). Operating profitability is stable-to-improving (EBIT margin ~8.0% in 2025–2026). The main weakness is that margins remain moderate for the sector and growth has been uneven year-to-year (near-flat in 2025 before re-accelerating in 2026).

Balance Sheet

The balance sheet has strengthened with deleveraging and rising equity. Debt-to-equity improved materially from ~0.46 (2021) to ~0.12 (2026), indicating reduced financial risk and better flexibility. Returns on equity also trended upward (to ~7.3% in 2026), reflecting improved profitability on a growing equity base. The key limitation is that overall returns are still mid-single-digit to high-single-digit rather than exceptional, suggesting capital efficiency could be higher.

Cash Flow

Cash generation is generally positive in recent years, with operating cash flow rebuilding strongly after a weak 2021, and free cash flow positive from 2022–2026. Free cash flow was volatile, however (declines in 2024 and 2025 followed by a sharp rebound in 2026), and cash conversion is not consistently strong: operating cash flow is roughly ~37%–50% of reported earnings in 2022–2026. Free cash flow relative to net income is solid in some years (e.g., 2023) but weaker in others (notably 2025–2026), pointing to working-capital or investment-driven swings.

Breakdown	Jan 2026	Jan 2025	Jan 2024	Jan 2023	Jan 2022
Income Statement
Total Revenue	3.77B	3.57B	3.57B	3.34B	3.00B
Gross Profit	670.78M	584.47M	544.52M	451.82M	410.26M
EBITDA	596.45M	577.77M	563.55M	493.18M	440.07M
Net Income	200.28M	154.56M	154.95M	124.61M	108.02M
Balance Sheet
Total Assets	6.02B	5.96B	5.90B	5.79B	5.80B
Cash, Cash Equivalents and Short-Term Investments	134.78M	87.08M	75.25M	75.62M	84.52M
Total Debt	325.00M	493.75M	668.75M	743.75M	918.75M
Total Liabilities	3.26B	3.37B	3.45B	3.47B	3.58B
Stockholders Equity	2.76B	2.58B	2.45B	2.32B	2.22B
Cash Flow
Free Cash Flow	339.77M	181.83M	229.73M	363.32M	297.76M
Operating Cash Flow	630.64M	526.92M	463.04M	509.95M	550.83M
Investing Cash Flow	-385.92M	-311.74M	-359.87M	-315.35M	-464.25M
Financing Cash Flow	-197.02M	-203.35M	-103.54M	-203.51M	-102.89M

Kin-Ei Corp. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4065.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9636, the sentiment is Negative. The current price of 4065 is below the 20-day moving average (MA) of 4095.75, below the 50-day MA of 4115.74, and below the 200-day MA of 4089.72, indicating a bearish trend. The MACD of -4.65 indicates Negative momentum. The RSI at 45.87 is Neutral, neither overbought nor oversold. The STOCH value of 17.68 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9636.

Kin-Ei Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9605	75 Outperform	¥411.05B	15.93	―	0.33%	6.38%	38.69%
9602	69 Neutral	¥1.41T	28.41	11.19%	1.12%	10.99%	2.35%
4816	66 Neutral	¥527.26B	28.18	―	1.12%	5.90%	17.39%
9636	62 Neutral	¥11.38B	57.07	―	0.24%	6.28%	13.26%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
3791	59 Neutral	¥26.03B	124.21	―	1.11%	-4.66%	-56.66%
9601	46 Neutral	¥158.62B	52.66	―	0.26%	14.49%	―