KU Holdings Co., Ltd. (9856) AI Stock Analysis

• Market Cap: ¥40.07B
• Dividend Yield: 5.21%
• Average Volume (3M): 56.21K
• Price to Earnings (P/E): 6.9
• Beta (1Y): 0.73
• Revenue Growth: 3.66%
• EPS Growth: -6.67%
• Country: JP
• Employees: 1,383
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Dealerships
• EPS (TTM): 49.66
• Shares Outstanding: 44,126,022
• 10 Day Avg. Volume: 71,100
• 30 Day Avg. Volume: 56,206
• PEG Ratio: 1.21
• Price to Book (P/B): 0.53
• Price to Sales (P/S): 0.23
• P/FCF Ratio: 6.15
• 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: 82 Outperform
• Price Target: ¥1,519.00 ▲(24.71% Upside)

KU Holdings Co., Ltd. demonstrates strong financial performance and attractive valuation, with a low P/E ratio and high dividend yield. Technical analysis supports a positive outlook with bullish momentum. These factors contribute to a robust overall stock score.

Positive Factors

Low leverage and strong equity base

A very low debt-to-equity ratio and high equity ratio provide durable financial flexibility, lowering default and refinancing risk. This balance-sheet strength supports continued investments in subsidiaries, cushions cyclical downturns, and enables strategic M&A or shareholder returns over the medium term.

Improving free cash flow generation

A material rise in FCF and operating cash flow exceeding net income indicate reliable cash conversion. Sustained cash generation underpins dividends, reinvestment into portfolio companies, and capital allocation flexibility, strengthening the firm's ability to fund growth without increasing leverage.

Diversified holding-company model

Broad industry exposure across technology, manufacturing and consumer services reduces single-sector concentration risk and smooths earnings volatility. Multiple income streams (dividends, management fees, investment returns) support stable cash flow and create cross-subsidiary synergy potential over time.

Negative Factors

Negative EPS growth

Declining EPS growth signals potential pressure on underlying profitability or share count dilution at subsidiaries. If persistent, negative EPS trends can limit retained earnings for reinvestment and weaken investor confidence, requiring strategic operational fixes to restore sustainable earnings growth.

Slight decrease in gross profit

A noted decline in gross profit points to margin compression risk at the operational level. Over time, ongoing gross margin erosion reduces operating leverage and free cash flow unless offset by pricing power, cost efficiencies, or product mix improvements across subsidiaries.

Modest net profit margin

A low net margin provides a limited profitability buffer against revenue shocks and constrains internal funding for capex or acquisitions. In cyclical sectors like auto-related retail, sustaining growth with thin net margins requires disciplined cost control and stronger operational leverage to improve long-term resilience.

KU Holdings Co., Ltd. Business Overview & Revenue Model

Company Description

Ku Holdings Co., Ltd. sells new and used cars in Japan. The company was founded in 1972 and is headquartered in Machida, Japan.

How the Company Makes Money

KU Holdings Co., Ltd. generates revenue through a multi-faceted business model that includes income from investments in its subsidiaries, dividends, and management fees. The company earns a significant portion of its revenue from the operational success of its portfolio companies, which contribute profits that are reinvested or distributed to KU Holdings. Additionally, the company may engage in strategic partnerships and collaborations that enhance its market presence and lead to new revenue opportunities. The diverse nature of its investments across various industries helps to mitigate risks and stabilize earnings, making it resilient to market fluctuations.

KU Holdings Co., Ltd. Financial Statement Overview

Summary

KU Holdings Co., Ltd. exhibits strong financial health with consistent revenue and profit growth, a stable balance sheet with low leverage, and efficient cash management. Minor areas for improvement include maintaining gross profit levels.

Income Statement

KU Holdings Co., Ltd. has demonstrated strong revenue growth, with a 4.2% increase from 2024 to 2025. The gross profit margin stands at 15.8%, indicating efficient cost management. The net profit margin improved to 4.1%, reflecting enhanced profitability. EBIT and EBITDA margins are healthy at 5.7% and 8.0%, respectively, showcasing operational efficiency. Overall, the income statement reflects a robust financial performance with consistent growth and profitability.

Balance Sheet

The company's balance sheet is solid, with a debt-to-equity ratio of 0.14, indicating low leverage and financial stability. Return on equity is 9.6%, showing effective use of shareholder funds. The equity ratio is 73.3%, highlighting a strong equity base. While the balance sheet is stable, the slight decrease in gross profit suggests a need for cautious cost management.

Cash Flow

KU Holdings Co., Ltd. has shown a significant improvement in free cash flow, growing by 25.9% from 2024 to 2025. The operating cash flow to net income ratio is 1.12, indicating strong cash generation relative to net income. The free cash flow to net income ratio is 0.90, reflecting efficient cash management. Overall, the cash flow statement indicates healthy liquidity and cash management practices.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	163.81B	159.96B	154.56B	153.35B	131.12B	116.66B
Gross Profit	25.04B	27.11B	26.66B	26.32B	23.91B	20.64B
EBITDA	10.86B	12.82B	12.14B	12.04B	10.87B	8.63B
Net Income	6.15B	6.53B	6.17B	6.70B	5.74B	3.89B
Balance Sheet
Total Assets	88.07B	92.74B	85.53B	81.30B	78.66B	74.82B
Cash, Cash Equivalents and Short-Term Investments	8.75B	13.26B	10.50B	7.37B	13.97B	15.46B
Total Debt	8.06B	9.18B	10.56B	10.30B	10.90B	12.46B
Total Liabilities	20.40B	24.77B	22.43B	22.68B	25.05B	25.99B
Stockholders Equity	67.67B	67.97B	63.11B	58.62B	53.61B	48.83B
Cash Flow
Free Cash Flow	0.00	5.89B	4.67B	-3.51B	1.40B	8.05B
Operating Cash Flow	0.00	7.33B	7.72B	-1.21B	3.62B	11.03B
Investing Cash Flow	0.00	-849.00M	-2.88B	-1.62B	-3.19B	-3.00B
Financing Cash Flow	0.00	-3.42B	-2.00B	-2.77B	-2.93B	-2.51B

KU Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1218.00
• 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:9856, the sentiment is Positive. The current price of 1218 is below the 20-day moving average (MA) of 1275.25, below the 50-day MA of 1238.82, and above the 200-day MA of 1157.63, indicating a neutral trend. The MACD of 6.85 indicates Positive momentum. The RSI at 49.62 is Neutral, neither overbought nor oversold. The STOCH value of 22.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9856.

KU Holdings Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9856	82 Outperform	¥40.07B	6.91	―	5.21%	3.66%	-6.67%
8291	76 Outperform	¥27.61B	9.55	―	4.79%	-6.89%	-50.31%
7593	73 Outperform	¥64.49B	11.39	―	4.49%	8.56%	-13.47%
7134	71 Outperform	¥8.78B	12.31	―	2.82%	6.55%	1.07%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3186	61 Neutral	¥253.94B	20.26	―	1.24%	21.79%	9.89%
9268	55 Neutral	¥24.20B	-19.07	―	5.36%	23.82%	-151.12%