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Kanseki Co., Ltd. (JP:9903)
:9903
Japanese Market
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Kanseki Co., Ltd. (9903) AI Stock Analysis

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JP:9903

Kanseki Co., Ltd.

(9903)

Rating:63Neutral
Price Target:
¥946.00
▲(6.41% Upside)
Kanseki Co., Ltd. is on a recovery path with improved financial performance and stable technical indicators. The stock's reasonable valuation and attractive dividend yield further support its investment case. However, high leverage and the need for consistent revenue growth are key risks that need to be managed for sustained performance.

Kanseki Co., Ltd. (9903) vs. iShares MSCI Japan ETF (EWJ)

Kanseki Co., Ltd. Business Overview & Revenue Model

Company DescriptionKanseki Co., Ltd. (9903) operates in the retail industry, primarily focusing on the sale of home improvement products, gardening supplies, and DIY materials. The company provides a wide range of products including hardware, tools, building materials, and household goods, catering to both individual consumers and professional contractors. Kanseki is known for its comprehensive product offerings that support various home and lifestyle improvement projects.
How the Company Makes MoneyKanseki Co., Ltd. generates revenue through the sale of its diverse range of home improvement and gardening products. The company's primary revenue streams include retail sales from its physical store locations and online platforms. It earns income by offering a variety of products that appeal to both DIY enthusiasts and professional builders, ensuring a steady flow of customers and repeat business. Kanseki also benefits from strategic partnerships with suppliers and manufacturers, allowing them to offer competitive pricing and exclusive products. Additionally, the company may engage in seasonal promotions and marketing campaigns to boost sales during peak periods, further contributing to its revenue generation.

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
58
Neutral
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
52
Neutral
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
62
Positive
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.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue37.07B36.87B38.63B41.61B42.33B
Gross Profit10.28B8.80B11.45B12.63B13.06B
EBITDA1.24B-4.20B1.75B2.99B3.60B
Net Income518.41M-5.22B694.06M-187.45M1.80B
Balance Sheet
Total Assets24.28B25.50B29.58B27.48B28.86B
Cash, Cash Equivalents and Short-Term Investments812.45M748.49M1.12B2.18B2.77B
Total Debt11.92B13.28B12.51B11.46B11.67B
Total Liabilities18.11B19.35B18.43B17.77B18.95B
Stockholders Equity6.16B6.15B11.16B9.71B9.90B
Cash Flow
Free Cash Flow1.54B-1.03B-1.91B116.32M3.15B
Operating Cash Flow2.20B-316.02M-1.38B577.67M3.59B
Investing Cash Flow-709.34M-700.88M-1.49B-477.05M-518.10M
Financing Cash Flow-1.43B649.04M1.64B-631.49M-1.92B

Kanseki Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price889.00
Price Trends
50DMA
885.30
Positive
100DMA
878.15
Positive
200DMA
887.19
Positive
Market Momentum
MACD
0.78
Negative
RSI
54.37
Neutral
STOCH
79.17
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 889 is above the 20-day moving average (MA) of 885.65, above the 50-day MA of 885.30, and above the 200-day MA of 887.19, indicating a bullish trend. The MACD of 0.78 indicates Negative momentum. The RSI at 54.37 is Neutral, neither overbought nor oversold. The STOCH value of 79.17 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
¥5.46B10.91
3.94%3.20%13.32%
63
Neutral
¥6.16B14.70
2.25%-0.69%
61
Neutral
$17.75B12.56-5.49%3.02%1.43%-14.12%
61
Neutral
¥8.51B
1.21%-3.21%56.44%
56
Neutral
¥4.01B24.53
2.02%-0.63%-51.15%
54
Neutral
¥8.17B
1.06%3.61%24.24%
48
Neutral
¥11.47B
0.47%-1.79%-491.60%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:9903
Kanseki Co., Ltd.
889.00
-37.79
-4.08%
JP:7450
Sunday Co., Ltd.
1,064.00
-283.76
-21.05%
JP:7590
Takasho Co., Ltd.
473.00
1.25
0.26%
JP:8208
Encho Co., Ltd.
1,241.00
363.84
41.48%
JP:9835
Juntendo Co., Ltd.
492.00
-54.41
-9.96%
JP:9976
Sekichu Co., Ltd.
1,007.00
-157.27
-13.51%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 22, 2025