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Kawakami Paint Manufacturing Co., Ltd. (JP:4616)
:4616
Japanese Market
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Kawakami Paint Manufacturing Co., Ltd. (4616) AI Stock Analysis

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JP:4616

Kawakami Paint Manufacturing Co., Ltd.

(4616)

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Neutral 62 (OpenAI - 5.2)
Rating:62Neutral
Price Target:
¥2,234.00
▲(7.25% Upside)
Action:Reiterated
Date:08/06/26
The score is held back primarily by deteriorating margins and volatile/weak free cash flow, which raise earnings-quality risk. Offsetting this, price action is strong with the stock trading above key moving averages and positive momentum indicators, and valuation is attractive with a low P/E and a reasonable dividend yield.
Positive Factors
Improving Balance Sheet Leverage
Lower leverage and continued equity growth improve financial resilience and reduce dependence on debt. This gives the company greater flexibility to absorb margin pressure, fund operations, and support future investment without proportionally increasing balance-sheet risk.
Negative Factors
Structural Margin Compression
The sharp decline in net and operating margins signals sustained pressure from costs, pricing, or product mix. With profitability already thin, further compression could materially reduce earnings resilience and make recovery dependent on successful pricing or efficiency measures.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving Balance Sheet Leverage
Lower leverage and continued equity growth improve financial resilience and reduce dependence on debt. This gives the company greater flexibility to absorb margin pressure, fund operations, and support future investment without proportionally increasing balance-sheet risk.
Read all positive factors

Kawakami Paint Manufacturing Co., Ltd. (4616) vs. iShares MSCI Japan ETF (EWJ)

Kawakami Paint Manufacturing Co., Ltd. Business Overview & Revenue Model

Company Description
Kawakami Paint Manufacturing Co., Ltd. engages in the manufacture and sale of paints. Its products include heat insulating paints, ultra low temperature powder, water based paint, construction coatings, rust prevention paint, fire proofing materia...

Kawakami Paint Manufacturing Co., Ltd. Financial Statement Overview

Summary
Fundamentals are constrained by weakening profitability and poor cash conversion. Net and EBIT margins fell sharply in 2025 (net margin ~1.2% vs ~2.9% in 2024), and free cash flow has been negative in 2023–2024 and near breakeven in 2025, indicating inconsistent cash generation. The balance sheet is a relative positive with moderate, improving leverage (debt-to-equity down to ~0.57), but lower ROE (~2.2% in 2025) limits overall strength.
Income Statement
54
Neutral
Balance Sheet
63
Positive
Cash Flow
38
Negative
BreakdownTTMNov 2025Nov 2024Nov 2023Nov 2022Nov 2021
Income Statement
Total Revenue6.27B5.93B5.91B6.14B5.63B5.31B
Gross Profit1.24B1.27B1.30B1.36B1.35B1.30B
EBITDA485.51M270.58M375.25M362.13M343.99M359.22M
Net Income238.23M72.32M170.58M203.00M162.21M146.16M
Balance Sheet
Total Assets8.83B8.67B8.69B8.58B8.18B7.82B
Cash, Cash Equivalents and Short-Term Investments2.47B1.89B1.91B1.90B2.04B2.02B
Total Debt2.06B1.91B1.91B1.86B1.89B2.00B
Total Liabilities5.31B5.34B5.48B5.53B5.46B5.29B
Stockholders Equity3.52B3.33B3.22B3.06B2.72B2.53B
Cash Flow
Free Cash Flow0.007.72M-125.00M-71.93M139.36M403.91M
Operating Cash Flow0.00283.93M139.53M165.67M206.13M447.29M
Investing Cash Flow0.00-277.39M-148.76M-242.76M-66.87M-45.54M
Financing Cash Flow0.00-33.01M20.49M-62.70M-121.80M-44.91M

Kawakami Paint Manufacturing Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2083.00
Price Trends
50DMA
1990.08
Positive
100DMA
1914.94
Positive
200DMA
1955.26
Positive
Market Momentum
MACD
45.20
Negative
RSI
69.58
Neutral
STOCH
95.17
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4616, the sentiment is Positive. The current price of 2083 is below the 20-day moving average (MA) of 2093.00, above the 50-day MA of 1990.08, and above the 200-day MA of 1955.26, indicating a bullish trend. The MACD of 45.20 indicates Negative momentum. The RSI at 69.58 is Neutral, neither overbought nor oversold. The STOCH value of 95.17 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4616.

Kawakami Paint Manufacturing Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
¥6.18B9.541.39%6.22%42.74%
77
Outperform
¥58.39B9.905.04%-3.74%19.78%
68
Neutral
¥7.11B8.773.50%14.27%13.63%
62
Neutral
¥2.19B9.182.34%8.15%137.44%
62
Neutral
¥45.02B18.293.70%25.27%-70.96%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
51
Neutral
¥4.53B-9.673.37%-81.97%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4616
Kawakami Paint Manufacturing Co., Ltd.
2,198.00
124.58
6.01%
JP:4611
Dai Nippon Toryo Company, Limited
1,612.00
378.64
30.70%
JP:4615
Shinto Paint Co., Ltd.
134.00
2.00
1.52%
JP:4619
Nihon Tokushu Toryo Co., Ltd.
2,718.00
686.75
33.81%
JP:4623
Asahipen Corporation
1,875.00
208.80
12.53%
JP:4624
Isamu Paint Co., Ltd.
4,105.00
593.21
16.89%
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 06, 2026