KG Intelligence Co., Ltd. (2408) AI Stock Analysis

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KG Intelligence Co., Ltd.

(TSE/TYO:2408)

Select Model

Rating:67Neutral

Price Target:JPY 876.00▲(6.57% Upside)

Action:downgraded

Date:11/07/26

The company's financial foundation is its greatest strength, driven by a debt-free balance sheet and solid profitability, which supports a high financial performance score. However, the current technical picture is weak, with the stock in a downtrend and showing bearish momentum, significantly dragging down the overall score. Attractive valuation and a high dividend yield provide a partial buffer. The overall score reflects a fundamentally sound company facing near-term market headwinds.

Positive Factors

Very Low LeverageAn essentially debt-free balance sheet reduces financial risk and interest burdens, giving the company resilience through industry cycles. Low leverage also preserves flexibility to invest in its information-services business, maintain distributions, or withstand weaker operating periods without refinancing pressure.

Negative Factors

Recent Revenue ContractionThe sharp 2025 revenue decline signals weakening demand or reduced business activity across the company’s information and analytics services. Continued top-line contraction could limit operating leverage, reduce reinvestment capacity, and make recent profitability improvements harder to sustain over coming quarters.

KG Intelligence Co., Ltd. (2408) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 5.88B
Dividend Yield: 4.39%
Average Volume (3M): 4,331
Price to Earnings (P/E): 11.0
Beta (1Y): 0.36
Revenue Growth: 13.67%
EPS Growth: 119.72%
Country: Japan
Employees: 176
Sector: Communication Services
Sector Strength: 60
Industry: Publishing

KG Intelligence Co., Ltd. Business Overview & Revenue Model

Company Description

KG Intelligence Co. Ltd., established in 1950 with headquarters in Okayama, Japan, operates as a multifaceted content and service provider across numerous sectors. The company’s diverse offerings include a suite of recruitment solutions, such as the...

KG Intelligence Co., Ltd. Financial Statement Overview

Summary

The balance sheet is exceptional with zero debt and a strong equity base of ¥6.0B, providing high financial stability. The income statement shows solid recovery and healthy net margins of 12.3%, though some revenue volatility exists. Cash flow is the weakest link due to historical inconsistency, but the latest year was positive. Overall, financial health is good, anchored by a fortress-like balance sheet.

Income Statement

78Positive

Balance Sheet

92Very Positive

Cash Flow

68Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.02B	2.74B	2.47B	2.66B	2.49B	2.17B
Gross Profit	992.40M	824.39M	657.60M	737.28M	582.43M	341.52M
EBITDA	637.65M	480.86M	351.98M	413.03M	308.21M	96.40M
Net Income	547.41M	335.81M	241.04M	371.43M	337.66M	72.46M
Balance Sheet
Total Assets	6.90B	6.89B	6.74B	7.45B	7.16B	6.59B
Cash, Cash Equivalents and Short-Term Investments	5.12B	5.04B	5.08B	5.71B	5.53B	4.53B
Total Debt	0	0	0	0	0	1.64M
Total Liabilities	938.05M	867.52M	835.91M	1.50B	1.49B	1.20B
Stockholders Equity	5.97B	6.02B	5.91B	5.96B	5.66B	5.39B
Cash Flow
Free Cash Flow	234.31M	234.31M	-311.04M	273.30M	503.85M	359.57M
Operating Cash Flow	349.32M	349.32M	-293.17M	282.31M	504.99M	364.83M
Investing Cash Flow	-130.12M	-130.12M	167.77M	-238.52M	-235.09M	183.64M
Financing Cash Flow	-262.77M	-262.77M	-295.13M	-84.73M	-73.92M	-75.93M

KG Intelligence Co., Ltd. Technical Analysis

Technical Analysis SentimentNeutral

Last Price822.00

Price Trends

50DMA829.02Negative

100DMA836.14Negative

200DMA790.67Positive

Market Momentum

MACD-4.13Negative

RSI48.14Neutral

STOCH75.76Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2408, the sentiment is Neutral. The current price of 822.00 is above the 20-day moving average (MA) of 820.60, below the 50-day MA of 829.02, and above the 200-day MA of 790.67, indicating a neutral trend. The MACD of -4.13 indicates Negative momentum. The RSI at 48.14 is Neutral, neither overbought nor oversold. The STOCH value of 75.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:2408.

KG Intelligence Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (60)

Financial Indicators

JP:2408 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:3678	68Neutral	JPY 19.40B	18.89	―	3.22%	7.90%	-53.96%
JP:6176	68Neutral	JPY 12.25B	5.84	―	1.70%	-0.88%	210.15%
JP:2408	67Neutral	JPY 5.93B	10.95	―	4.39%	13.67%	119.72%
JP:9478	65Neutral	JPY 7.32B	7.99	―	0.83%	-1.13%	144.03%
Sector *	60Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
JP:3641	59Neutral	JPY 7.45B	-29.59	―	1.05%	-2.80%	-358.64%
JP:2376	48Neutral	JPY 4.12B	-40.88	―	1.93%	-4.60%	-218.38%

* Communication Services Sector Average

Performance Comparison

JP:2408 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:2408	KG Intelligence Co., Ltd.	822.00	152.48	22.77%
JP:2376	Scinex Corporation	742.00	-5.62	-0.75%
JP:3641	PAPYLESS CO., LTD.	955.00	21.81	2.34%
JP:3678	MEDIA DO Co., Ltd.	1249.00	-481.48	-27.82%
JP:6176	Brangista, Inc.	879.00	136.43	18.37%
JP:9478	SE Holdings & Incubations Co., Ltd.	489.00	92.38	23.29%

KG Intelligence Co., Ltd. Corporate Events

KG Intelligence Posts Strong Profit Surge and Stable Capital Base in Q3 FY2026

Oct 8, 2026

KG Intelligence Co., Ltd. reported a solid increase in operating revenues to ¥2,276 million for the third quarter of fiscal 2026, up 14.1% year on year, with operating profit climbing 62.0% to ¥400 million and ordinary profit rising 61.6% to ¥421 mil...

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: Nov 07, 2026

KG Intelligence Co., Ltd. AI Stock Analysis