Kuraray Co (KURRY) AI Stock Analysis

• Market Cap: $3.18B
• Dividend Yield: 2.56%
• Average Volume (3M): 0.00
• Price to Earnings (P/E): 59.5
• Beta (1Y): 0.67
• Revenue Growth: -1.09%
• EPS Growth: -83.56%
• Country: US
• Employees: 11,941
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 0.57
• Shares Outstanding: 102,654,530
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: -1.04
• Price to Book (P/B): 1.04
• Price to Sales (P/S): 0.96
• P/FCF Ratio: 12.71
• Enterprise Value/Market Cap: 221.14
• Enterprise Value/Revenue: 0.86
• Enterprise Value/Gross Profit: 2.79
• Enterprise Value/Ebitda: 6.48
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: $32.00 ▲(4.40% Upside)

Kuraray Co's overall stock score is primarily influenced by its strong financial performance, which is offset by bearish technical indicators and a high valuation. The company's solid financial fundamentals and cash generation capabilities are positive, but the current technical analysis suggests caution due to bearish momentum. The high P/E ratio also raises concerns about the stock's valuation.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion and competitiveness.

Cash Generation

Robust cash generation provides financial flexibility for investments, debt reduction, and shareholder returns, enhancing business resilience.

Financial Health

A strong equity position ensures stability and lowers financial risk, enabling sustainable growth and investment opportunities.

Negative Factors

Profit Margin Pressure

Declining profit margins indicate challenges in cost management or pricing power, potentially impacting long-term profitability and competitiveness.

Leverage Management

Moderate leverage can pose risks if not managed well, potentially affecting financial flexibility and increasing vulnerability to economic downturns.

Return on Equity

Decreasing ROE suggests inefficiencies in generating returns for shareholders, which may affect investor confidence and capital allocation strategies.

Kuraray Co Business Overview & Revenue Model

Company Description

Kuraray Co., Ltd. engages in the production and sale of resins, chemicals, fibers, activated carbon, and high-performance membranes and systems worldwide. The Vinyl Acetate segment manufactures and markets functional resins and films, including PVA, PVB and EVAL. The Isoprene segment engages in the manufacture and marketing of SEPTON thermoplastic elastomer, isoprene-related products, and GENESTAR. The Functional Materials segment manufactures and markets methacrylic resin, medical products, and carbon materials. The Fibers and Textiles segment manufactures and sells synthetic fibers and textiles, CLARINO manmade leather, non-woven fabrics, and other products. The Trading segment mainly processes and sells synthetic fibers and manmade leathers. The company was founded in 1926 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Kuraray generates revenue through the production and sale of specialty chemicals and materials across several key segments. The company’s primary revenue streams include the sale of PVA resins, which are a cornerstone of its business, as well as other chemicals and materials utilized in various industries, such as automotive, healthcare, and consumer goods. Additionally, Kuraray has established significant partnerships and joint ventures that enhance its market reach and product offerings. For instance, collaborations with companies in the healthcare sector allow it to expand its dental and medical product lines, contributing further to its earnings. The company also focuses on innovation and development of new materials that meet evolving market demands, which aids in maintaining a competitive edge and drives sales growth.

Kuraray Co Financial Statement Overview

Summary

Kuraray Co demonstrates a strong financial position with consistent revenue growth and effective cost management. The income statement shows steady growth, though profitability margins have room for improvement. The balance sheet reflects a healthy equity position, but leverage management is crucial. The cash flow statements indicate excellent cash generation capabilities, supporting future growth and investment.

Income Statement

Kuraray Co has shown a commendable revenue growth in recent years, with a 5.88% increase from 2023 to 2024. The gross profit margin for 2024 is solid at 32.35%, reflecting strong cost management. However, the net profit margin has declined from previous years, standing at 3.84% for 2024, indicating challenges in converting revenue into net profit. The EBIT and EBITDA margins are stable, showing operational efficiency. Overall, the income statement reflects steady growth with some pressure on profitability.

Balance Sheet

The balance sheet of Kuraray Co is relatively stable, with an equity ratio of 59.21% in 2024, demonstrating financial health and a strong equity position. However, the debt-to-equity ratio of 0.32 indicates a moderate level of leverage, which could pose risks if not managed well. The return on equity (ROE) has decreased over time, reaching 4.15% in 2024, suggesting room for improvement in generating shareholder returns.

Cash Flow

Kuraray Co's cash flow position is robust, with an operating cash flow to net income ratio of 4.36 in 2024, indicating strong cash generation relative to profits. The free cash flow has improved significantly from a negative position in prior years to positive free cash flow in 2024, though it did decrease from the previous year. This reflects effective cash management and investment strategies.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	815.64B	826.89B	780.94B	756.38B	629.37B	541.80B
Gross Profit	251.87B	267.52B	239.98B	241.66B	204.14B	165.41B
EBITDA	108.56B	141.17B	141.25B	144.91B	131.26B	106.80B
Net Income	15.32B	31.72B	42.45B	54.31B	37.26B	2.57B
Balance Sheet
Total Assets	1.26T	1.29T	1.25T	1.22T	1.09T	1.05T
Cash, Cash Equivalents and Short-Term Investments	115.00B	121.69B	134.62B	128.58B	155.80B	192.24B
Total Debt	265.64B	244.28B	282.02B	324.40B	307.44B	341.39B
Total Liabilities	510.33B	509.45B	518.33B	553.00B	511.41B	536.11B
Stockholders Equity	730.12B	764.28B	714.63B	647.09B	560.40B	499.13B
Cash Flow
Free Cash Flow	0.00	62.52B	68.75B	-20.93B	8.04B	-4.97B
Operating Cash Flow	0.00	138.29B	129.30B	51.73B	78.22B	79.95B
Investing Cash Flow	0.00	-76.01B	-63.15B	-68.62B	-65.59B	-64.03B
Financing Cash Flow	0.00	-82.50B	-64.96B	-12.05B	-47.45B	91.51B

Kuraray Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 30.65
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KURRY, the sentiment is Negative. The current price of 30.65 is above the 20-day moving average (MA) of 30.53, below the 50-day MA of 30.75, and below the 200-day MA of 34.70, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 50.81 is Neutral, neither overbought nor oversold. The STOCH value of 76.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KURRY.

Kuraray Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
CE	57 Neutral	$4.82B	-1.56	-54.74%	0.29%	-7.34%	-382.79%
TROX	57 Neutral	$892.65M	-2.60	-18.65%	8.27%	-7.81%	-334.15%
KURRY	56 Neutral	$3.18B	59.51	2.06%	2.56%	-1.09%	-83.56%
HUN	56 Neutral	$1.97B	-6.25	-10.65%	8.44%	-3.46%	-191.77%
DOW	49 Neutral	$18.42B	-16.04	-6.39%	9.17%	-5.25%	-208.14%
BAK	47 Neutral	$1.21B	-1.29	―	―	-10.68%	36.31%