Kurotani Corporation (3168) AI Stock Analysis

• Market Cap: ¥7.68B
• Dividend Yield: 3.72%
• Average Volume (3M): 21.62K
• Price to Earnings (P/E): 23.3
• Beta (1Y): 0.67
• Revenue Growth: 6.77%
• EPS Growth: -163.73%
• Country: JP
• Employees: 126
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): -14.92
• Shares Outstanding: 14,337,200
• 10 Day Avg. Volume: 11,090
• 30 Day Avg. Volume: 21,620
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥557.00
• Price Target Upside: 2.96% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 54 Neutral
• Price Target: ¥557.00 ▲(2.96% Upside)

Kurotani Corporation's overall stock score is primarily influenced by its moderate financial performance and mixed technical indicators. The company's high leverage and inconsistent cash flows are significant risks. The negative P/E ratio is a concern, although the dividend yield offers some compensation. Technical analysis suggests potential short-term weakness, contributing to a cautious outlook.

Kurotani Corporation Business Overview & Revenue Model

Company Description

Kurotani Corporation engages in the collection, processing, manufacture, and sale of various metals in Japan, Kores, rest of Asia, Europe, and internationally. The company operates through two segments, Nonferrous Metals; and Arts and Crafts. It recycles and sells industrial materials and metal scraps, as well as produces base metals that are used as raw materials to manufacture electrical wires and semiconductor base plates. The company also manufactures and sells copper alloy ingots, which are used in marine propellers, plumbing hardware, valves, and industrial machinery parts; and manufactures and sells works of fine arts, miniature gold statues, and bronze Buddha statues. Kurotani Corporation was founded in 1870 and is headquartered in Imizu, Japan.

How the Company Makes Money

Kurotani Corporation generates revenue primarily through the sale of non-ferrous metal products to industrial clients. The company's key revenue streams include the wholesale distribution of metals such as copper and aluminum, which are integral to manufacturing processes in sectors like automotive, electronics, and construction. Additionally, Kurotani Corporation benefits from its recycling operations, which allow it to offer recycled metal materials back to the market. This dual approach not only aids in revenue generation but also supports environmental sustainability. Strategic partnerships with suppliers and clients further enhance Kurotani's market reach and sales capabilities.

Kurotani Corporation Financial Statement Overview

Summary

Kurotani Corporation presents a moderate financial profile with strengths in improving gross margins and ROE, but faces challenges with revenue stability and cash flow consistency. The high leverage could be a potential risk, and the company needs to focus on enhancing profitability and managing cash flows effectively to improve its financial health.

Income Statement

Kurotani Corporation shows a mixed performance in the income statement. The gross profit margin has improved over the years, indicating better cost management, but the net profit margin remains low. Revenue growth is inconsistent, with a decline in the most recent year, suggesting potential market challenges or competitive pressures. EBIT and EBITDA margins are positive but require improvement for better profitability.

Balance Sheet

The company maintains a high debt-to-equity ratio, indicating significant leverage that could pose risk during economic downturns. However, the return on equity has shown improvement, suggesting effective use of equity capital to generate profits. The equity ratio is relatively stable, reflecting a balanced approach to financing assets with equity.

Cash Flow

Cash flow analysis reveals fluctuations with periods of negative free cash flow, which is concerning for long-term sustainability. The operating cash flow to net income ratio indicates variability in converting income to cash flow. Free cash flow to net income shows inconsistency, highlighting challenges in maintaining positive cash flows.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	89.73B	82.07B	84.59B	89.10B	62.06B	42.75B
Gross Profit	2.83B	3.12B	2.09B	2.57B	4.58B	1.92B
EBITDA	964.32M	1.28B	606.90M	1.15B	2.35B	853.56M
Net Income	341.04M	532.50M	170.26M	547.08M	1.35B	378.30M
Balance Sheet
Total Assets	26.82B	26.61B	25.07B	25.73B	23.64B	16.74B
Cash, Cash Equivalents and Short-Term Investments	6.05B	1.54B	1.26B	1.28B	1.81B	2.09B
Total Debt	14.90B	12.79B	12.68B	13.63B	11.48B	7.40B
Total Liabilities	17.57B	17.13B	15.97B	16.51B	14.96B	9.19B
Stockholders Equity	9.25B	9.48B	9.10B	9.22B	8.68B	7.55B
Cash Flow
Free Cash Flow	0.00	539.95M	1.25B	-2.30B	-4.11B	1.36B
Operating Cash Flow	0.00	828.00M	1.60B	-2.07B	-3.90B	1.50B
Investing Cash Flow	0.00	-206.10M	57.24M	-343.58M	31.34M	-97.84M
Financing Cash Flow	0.00	-172.29M	-1.38B	1.67B	3.83B	-1.32B

Kurotani Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 541.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3168, the sentiment is Positive. The current price of 541 is above the 20-day moving average (MA) of 539.60, below the 50-day MA of 551.32, and above the 200-day MA of 530.78, indicating a neutral trend. The MACD of -3.46 indicates Negative momentum. The RSI at 45.72 is Neutral, neither overbought nor oversold. The STOCH value of 76.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3168.

Kurotani Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3945	81 Outperform	¥4.25B	4.21	20.70%	3.24%	1.64%	17.47%
3955	73 Outperform	¥9.80B	8.93	4.65%	3.07%	6.70%	12.10%
3892	70 Outperform	¥7.77B	9.03	6.17%	2.57%	0.09%	-31.12%
3895	66 Neutral	¥3.44B	6.50	9.26%	4.14%	-0.52%	-30.18%
9929	59 Neutral	¥4.29B	42.99	1.18%	2.70%	-0.62%	-28.02%
3168	54 Neutral	¥7.68B	23.33	―	3.72%	6.77%	-163.73%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%