Kanseki Co., Ltd. (9903) AI Stock Analysis

• Market Cap: ¥6.14B
• Dividend Yield: 2.25%
• Average Volume (3M): 1.13K
• Price to Earnings (P/E): 14.7
• Beta (1Y): 0.17
• Revenue Growth: -0.69%
• EPS Growth: N/A
• Country: JP
• Employees: 336
• Sector: Consumer Cyclical
• Sector Strength: 66
• Industry: Home Improvement
• EPS (TTM): 17.09
• Shares Outstanding: 8,050,000
• 10 Day Avg. Volume: 740
• 30 Day Avg. Volume: 1,133
• PEG Ratio: 0.11
• Price to Book (P/B): 1.08
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥920.00
• Price Target Upside: 4.07% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 57 Neutral
• Price Target: ¥915.00 ▲(3.51%Upside)

Kanseki Co., Ltd.'s overall stock score reflects a moderately positive outlook. The company's financial recovery, indicated by improved profitability and cash flow, is a key strength. Technical analysis shows neutral trends, while valuation metrics suggest fair pricing. However, high leverage and stagnant revenue growth remain risks. The absence of significant new corporate events or earnings call highlights limits the upward potential of the score.

Kanseki Co., Ltd. Business Overview & Revenue Model

Company Description

Kanseki Co., Ltd. (9903) is a Japanese company primarily engaged in the retail sector, operating a chain of home improvement and general merchandise stores. The company offers a wide range of products, including household goods, DIY equipment, gardening supplies, and automotive goods. Kanseki Co., Ltd. is known for its commitment to providing quality products and services that cater to the daily needs of its customers.

How the Company Makes Money

Kanseki Co., Ltd. generates revenue through its extensive retail operations, which include both physical store sales and online sales channels. The company's primary revenue streams come from the sale of home improvement products, gardening supplies, and general household goods. By maintaining a diverse product range and ensuring competitive pricing, Kanseki attracts a broad customer base. Additionally, the company may engage in strategic partnerships with suppliers to enhance its product offerings and optimize supply chain efficiencies, further contributing to its profitability. Promotional activities and seasonal sales events also play a significant role in driving customer traffic and increasing sales volumes.

Kanseki Co., Ltd. Financial Statement Overview

Summary

Kanseki Co., Ltd. is showing signs of recovery with improved profitability and cash flow metrics. The company has managed to improve its margins and cash generation. However, stagnant revenue growth and high leverage remain concerns for long-term stability.

Income Statement

Kanseki Co., Ltd. demonstrated a recovery in profitability with a positive net income of ¥518 million in the most recent period, bouncing back from a significant loss in the prior year. The gross profit margin improved to 27.7% from 23.8% in the previous year, reflecting better cost management. However, the revenue growth was stagnant, with a marginal increase of only 0.5% from the previous year. EBIT and EBITDA margins also showed improvement, indicating better operational efficiency. The company's performance shows signs of stabilization, but the lack of strong revenue growth could be a concern for future profitability.

Balance Sheet

The balance sheet indicates a moderate financial position with a debt-to-equity ratio of 1.93, reflecting a significant level of leverage. The equity ratio stands at 25.4%, suggesting a reasonable proportion of equity financing relative to total assets. Return on equity improved to 8.4% from a negative figure in the previous year, indicating better utilization of shareholders' funds. While improvements are noted, the high leverage poses a risk to financial stability, especially if earnings do not continue to recover.

Cash Flow

Cash flow analysis shows a positive turn in free cash flow to ¥1.54 billion from a negative figure last year, mainly due to improved operating cash flow. The operating cash flow to net income ratio is 4.25, indicating strong cash generation relative to reported profits. The free cash flow to net income ratio is 2.97, signifying healthy cash conversion. The company's cash flow position appears robust, supporting its capacity to manage debt and reinvest in growth opportunities.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	37.07B	36.87B	38.63B	41.61B	42.33B
Gross Profit	10.28B	8.80B	11.45B	12.63B	13.06B
EBITDA	1.24B	-4.20B	1.75B	2.99B	3.60B
Net Income	518.41M	-5.22B	694.06M	-187.45M	1.80B
Balance Sheet
Total Assets	24.28B	25.50B	29.58B	27.48B	28.86B
Cash, Cash Equivalents and Short-Term Investments	812.45M	748.49M	1.12B	2.18B	2.77B
Total Debt	11.92B	13.28B	12.51B	11.46B	11.67B
Total Liabilities	18.11B	19.35B	18.43B	17.77B	18.95B
Stockholders Equity	6.16B	6.15B	11.16B	9.71B	9.90B
Cash Flow
Free Cash Flow	1.54B	-1.03B	-1.91B	116.32M	3.15B
Operating Cash Flow	2.20B	-316.02M	-1.38B	577.67M	3.59B
Investing Cash Flow	-709.34M	-700.88M	-1.49B	-477.05M	-518.10M
Financing Cash Flow	-1.43B	649.04M	1.64B	-631.49M	-1.92B

Kanseki Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 884.00
• 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:9903, the sentiment is Positive. The current price of 884 is below the 20-day moving average (MA) of 886.45, above the 50-day MA of 881.10, and below the 200-day MA of 887.63, indicating a bullish trend. The MACD of 2.32 indicates Positive momentum. The RSI at 55.04 is Neutral, neither overbought nor oversold. The STOCH value of 40.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9903.

Kanseki Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	67 Neutral	¥261.79B	13.64	6.45%	2.57%	5.11%	-13.15%
9976	65 Neutral	¥5.41B	10.81		2.01%	3.20%	13.32%
8208	61 Neutral	¥8.18B	―		1.27%	-2.88%	88.38%
9903	57 Neutral	¥6.14B	14.66		2.25%	-0.69%	―
9835	56 Neutral	¥3.98B	24.43		2.04%	-0.63%	-51.15%
7590	54 Neutral	¥7.50B	―		1.18%	6.82%	-80.98%
7450	46 Neutral	¥11.33B	―		0.47%	-1.79%	-491.60%