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Kawakami Paint Manufacturing Co., Ltd. (4616) AI Stock Analysis

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JP:4616

Kawakami Paint Manufacturing Co., Ltd.

(TSE/TYO:4616)

Select Model
Rating:59Neutral
Price Target:JPY 3,924.00â–¼(-5.67% Downside)
Action:reiterated
Date:10/20/26

The overall score is constrained by poor financial performance, marked by collapsing profitability and weak cash flow. However, strong technical momentum and an attractive low P/E valuation provide significant offsets, resulting in a moderate score.

Positive Factors
Industrial coatings nicheKawakami operates in an industrial coatings niche where products protect and finish manufactured goods and infrastructure. These performance-led applications can support recurring customer demand because durability, corrosion resistance, and finishing quality are important operating requirements.
Negative Factors
Margin compressionProfitability has deteriorated materially, with both net and operating margins falling from 2024 and earlier levels. Thin margins leave limited room to absorb cost pressure or weaker pricing, making earnings more vulnerable and reducing the cash available for reinvestment.

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

-25%0%25%50%75%100%JP:4616+77.72%EWJ+13.61%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 4.15B
Dividend Yield
1.08%
Average Volume (3M)
10.62K
Price to Earnings (P/E)
8.4
Beta (1Y)
0.12
Revenue Growth
12.28%
EPS Growth
310.34%
Country
Japan
Employees
132
Sector
General
Sector Strength
55
Industry
Industrial - Specialties

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 materials,...

Kawakami Paint Manufacturing Co., Ltd. Financial Statement Overview

Summary

Financial performance is weak. While the balance sheet shows improved leverage, profitability has deteriorated sharply with net income falling 58% YoY and margins contracting. Cash flow generation is critically low, with free cash flow at only 2.7% of net income and volatile in recent years.

Income Statement

40Negative

Balance Sheet

45Neutral

Cash Flow

30Negative
Financial statement breakdown
BreakdownTTMNov 2025Nov 2024Nov 2023Nov 2022Nov 2021
Income Statement
Total Revenue6.57B5.93B5.91B6.14B5.63B5.31B
Gross Profit1.56B1.27B1.30B1.36B1.35B1.30B
EBITDA795.95M270.58M375.25M362.13M343.99M359.22M
Net Income492.03M72.32M170.58M203.00M162.21M146.16M
Balance Sheet
Total Assets9.03B8.67B8.69B8.58B8.18B7.82B
Cash, Cash Equivalents and Short-Term Investments2.48B1.89B1.91B1.90B2.04B2.02B
Total Debt1.91B1.91B1.91B1.86B1.89B2.00B
Total Liabilities5.22B5.34B5.48B5.53B5.46B5.29B
Stockholders Equity3.81B3.33B3.22B3.06B2.72B2.53B
Cash Flow
Free Cash Flow07.72M-125.00M-71.93M139.36M403.91M
Operating Cash Flow0283.93M139.53M165.67M206.13M447.29M
Investing Cash Flow0-277.39M-148.76M-242.76M-66.87M-45.54M
Financing Cash Flow0-33.01M20.49M-62.70M-121.80M-44.91M

Kawakami Paint Manufacturing Co., Ltd. Technical Analysis

Technical Analysis SentimentPositive
Last Price4160.00

Price Trends

50DMA3140.48Positive
100DMA2557.77Positive
200DMA2223.28Positive

Market Momentum

MACD259.45Positive
RSI65.20Neutral
STOCH68.72Neutral

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 4160.00 is above the 20-day moving average (MA) of 3933.50, above the 50-day MA of 3140.48, and above the 200-day MA of 2223.28, indicating a bullish trend. The MACD of 259.45 indicates Positive momentum. The RSI at 65.20 is Neutral, neither overbought nor oversold. The STOCH value of 68.72 is Neutral, 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

JP:4616 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:4619JP:461976OutperformJPY 57.04B9.58―4.94%-0.09%11.08%
JP:4623JP:462374OutperformJPY 5.89B8.84―3.40%30.70%20.84%
JP:4624JP:462467NeutralJPY 6.03B7.97―1.27%6.21%51.54%
JP:4616JP:461659NeutralJPY 4.07B8.41―1.08%12.28%310.34%
JP:4611JP:461156NeutralJPY 51.65B13.96―3.20%20.42%-54.42%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
JP:4615JP:461550NeutralJPY 4.94B-13.68――1.61%-84.56%

* General Sector Average

Performance Comparison

0%25%50%75%JP:4616JP:4611JP:4615JP:4619JP:4623JP:4624Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:4616 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:4616Kawakami Paint Manufacturing Co., Ltd.4160.001846.8179.84%
JP:4611Dai Nippon Toryo Company, Limited1813.00592.0648.49%
JP:4615Shinto Paint Co., Ltd.145.0018.0014.17%
JP:4619Nihon Tokushu Toryo Co., Ltd.2630.00582.1528.43%
JP:4623Asahipen Corporation1765.00105.306.34%
JP:4624Isamu Paint Co., Ltd.3945.00446.0912.75%
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: Oct 20, 2026