IKK Holdings Co., Ltd (2198) AI Stock Analysis

• Market Cap: ¥22.06B
• Dividend Yield: 3.21%
• Average Volume (3M): 25.81K
• Price to Earnings (P/E): 18.9
• Beta (1Y): 0.23
• Revenue Growth: -1.02%
• EPS Growth: -32.57%
• Country: JP
• Employees: 1,026
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Personal Products & Services
• EPS (TTM): 8.30
• Shares Outstanding: 29,956,800
• 10 Day Avg. Volume: 23,840
• 30 Day Avg. Volume: 25,810
• PEG Ratio: 0.42
• Price to Book (P/B): 2.00
• Price to Sales (P/S): 0.91
• P/FCF Ratio: 6.26
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: ¥841.00 ▲(12.43% Upside)

IKK Holdings Co., Ltd exhibits strong financial performance with high profitability and robust cash flow management, which are the most significant factors driving the score. However, bearish technical indicators and a moderate valuation score due to the P/E ratio and dividend yield slightly offset the overall score.

IKK Holdings Co., Ltd Business Overview & Revenue Model

Company Description

IKK Holdings Co., Ltd (2198) is a diversified company based in Japan that operates primarily in the sectors of manufacturing and real estate. The company is known for its innovative solutions in construction materials and has expanded its portfolio to include investment in various real estate projects. Core products include high-quality building materials and construction services, leveraging advanced technology to enhance efficiency and sustainability in the construction industry.

How the Company Makes Money

IKK Holdings generates revenue through multiple streams, primarily from the sale of construction materials, which contribute significantly to its top line. The company also earns income from its real estate investments, including rental income from properties it owns and manages. Additionally, IKK Holdings engages in strategic partnerships with construction firms and developers, allowing it to capitalize on large-scale projects and secure long-term contracts. The company's emphasis on innovation and sustainable practices further enhances its competitive advantage, attracting more clients and enabling premium pricing for its products and services.

IKK Holdings Co., Ltd Financial Statement Overview

Summary

IKK Holdings Co., Ltd displays robust financial health characterized by strong revenue growth, high profitability margins, and efficient cash flow management. The balance sheet reflects financial stability with low leverage and strong equity positioning.

Income Statement

IKK Holdings Co., Ltd has demonstrated impressive revenue growth with a consistent upward trajectory in total revenue over the years, culminating in a high gross profit margin of 60.3% in 2024. The net profit margin also improved to 7.3%, reflecting strong profitability. EBIT and EBITDA margins are healthy at 10.7% and 15.9% respectively, indicating efficient operational management.

Balance Sheet

The company maintains a solid balance sheet with a healthy equity ratio of 51.1% in 2024, showcasing financial stability. The debt-to-equity ratio is well managed at 0.34, signifying low leverage risk. Return on equity has improved to 16.1%, reflecting effective use of shareholders' funds.

Cash Flow

IKK Holdings exhibits strong cash flow management, with a significant free cash flow growth of 2023%, resulting in a robust free cash flow of 3.38 billion yen in 2024. The operating cash flow to net income ratio of 2.32 highlights effective cash generation from operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	22.77B	23.26B	21.99B	19.06B	11.53B	8.75B
Gross Profit	13.78B	14.02B	12.89B	11.24B	6.47B	4.24B
EBITDA	3.08B	3.70B	3.21B	3.11B	519.42M	-2.65B
Net Income	1.27B	1.70B	1.34B	1.40B	-411.23M	-4.23B
Balance Sheet
Total Assets	18.72B	20.70B	20.01B	20.25B	17.60B	17.90B
Cash, Cash Equivalents and Short-Term Investments	4.03B	6.73B	5.01B	5.89B	3.51B	1.87B
Total Debt	2.95B	3.60B	4.40B	4.80B	5.31B	6.23B
Total Liabilities	8.41B	10.08B	9.96B	11.08B	10.00B	9.98B
Stockholders Equity	10.26B	10.57B	10.01B	9.14B	7.58B	7.89B
Cash Flow
Free Cash Flow	-689.00M	3.38B	-175.50M	2.76B	2.39B	-4.91B
Operating Cash Flow	-288.00M	3.95B	1.67B	3.50B	2.63B	-4.36B
Investing Cash Flow	-1.33B	-308.15M	-1.69B	-750.41M	-151.26M	-442.00M
Financing Cash Flow	-1.09B	-1.92B	-874.86M	-426.76M	-935.93M	1.63B

IKK Holdings Co., Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 748.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2198, the sentiment is Negative. The current price of 748 is below the 20-day moving average (MA) of 764.38, below the 50-day MA of 770.25, and below the 200-day MA of 774.95, indicating a bearish trend. The MACD of -5.84 indicates Positive momentum. The RSI at 32.38 is Neutral, neither overbought nor oversold. The STOCH value of 2.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2198.

IKK Holdings Co., Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4331	69 Neutral	¥11.84B	4.10	―	4.96%	0.81%	61.06%
2424	69 Neutral	¥3.63B	8.28	―	1.26%	6.57%	52.89%
2198	67 Neutral	¥22.06B	18.92	―	3.21%	-1.02%	-32.57%
2418	67 Neutral	€29.91B	4.58	20.87%	1.91%	16.16%	13.88%
2438	64 Neutral	¥5.75B	―	―	2.05%	0.84%	-256.50%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
2196	57 Neutral	¥2.70B	21.34	―	―	-3.96%	-73.55%

IKK Holdings Co., Ltd Corporate Events

IKK Holdings Announces Strategic Organizational Change

IKK Holdings Co., Ltd. has announced an organizational change aimed at improving the medium-to-long-term corporate value of its group companies. Effective November 1, 2025, the company will establish a Management Strategy Office to enhance decision-making and respond swiftly to business environment changes, business domain expansion, and growth in existing businesses.

The most recent analyst rating on (JP:2198) stock is a Buy with a Yen897.00 price target. To see the full list of analyst forecasts on IKK Holdings Co., Ltd stock, see the JP:2198 Stock Forecast page.

IKK Holdings Expands into Overseas Human Resources with New Subsidiary

IKK Holdings Co., Ltd announced the establishment of a new subsidiary, IKK United Link Corporation, to develop its overseas human resources business. This strategic move aims to address the domestic human resource shortage and improve service quality and business speed. The company also announced organizational and personnel changes to support this new business direction, with no immediate material impact expected on its financial results.

The most recent analyst rating on (JP:2198) stock is a Buy with a Yen882.00 price target. To see the full list of analyst forecasts on IKK Holdings Co., Ltd stock, see the JP:2198 Stock Forecast page.