Kuramoto Co., Ltd. (5216) AI Stock Analysis

Kuramoto Co., Ltd.

(TSE/TYO:5216)

Select Model

Rating:37Underperform

Price Target:JPY 117.00▼(-4.10% Downside)

Action:downgraded

Date:10/22/26

The company is in a critical financial state, with massive losses, negative cash flows, and a rapidly eroding equity base. This fundamental weakness is compounded by a deeply bearish technical trend and a negative P/E ratio. The stock scores at the absolute minimum, reflecting extreme risk across all active evaluation criteria.

Positive Factors

Balance-sheet deleveragingThe substantial reduction in leverage is a constructive step toward balance-sheet stabilization. A lower debt burden can improve financial flexibility, reduce pressure from financing obligations, and give Kuramoto a stronger platform for managing volatility if operating performance begins to recover.

Negative Factors

Severe profitability deteriorationThe sharp swing from modest profitability to a large loss demonstrates that earnings are not yet durable. Deeply negative operating profitability can rapidly consume capital, weaken lender and supplier confidence, and make future investment dependent on external financing.

Kuramoto Co., Ltd. (5216) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 6.67B
Dividend Yield: ―
Average Volume (3M): 188.15K
Price to Earnings (P/E): -1.9
Beta (1Y): 0.76
Revenue Growth: -23.60%
EPS Growth: -1013.95%
Country: Japan
Employees: 74
Sector: Technology
Sector Strength: 61
Industry: Hardware, Equipment & Parts

Kuramoto Co., Ltd. Business Overview & Revenue Model

Company Description

Kuramoto Co., Ltd. engages in the development, processing, and sale of glass substrates in Japan. The company offers glass substrate processing, cutting, chamfering, and polishing. It also involved into quartz component repair clinic; DX lark partner...

How the Company Makes Money

Kuramoto Co., Ltd. makes money primarily by selling the products it manufactures to business customers. Its revenue model is mainly transaction-based: the company produces industrial materials (and potentially related processed products) and recogniz...

Kuramoto Co., Ltd. Financial Statement Overview

Summary

Severe financial distress. While revenue grew 28% and gross margin improved, the company posted a massive net loss (margin -153%) and deeply negative operating profit. Cash flows are negative, with no positive FCF in three years, and equity has eroded sharply. This presents a high risk of insolvency.

Income Statement

15Very Negative

Balance Sheet

35Negative

Cash Flow

10Very Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.25B	2.01B	1.57B	704.56M	1.06B	1.03B
Gross Profit	415.35M	572.29M	424.25M	-185.53M	112.84M	142.77M
EBITDA	-1.00B	-2.59B	185.04M	-465.55M	74.72M	73.07M
Net Income	-2.95B	-3.08B	31.13M	-555.26M	744.00K	9.03M
Balance Sheet
Total Assets	1.94B	1.82B	4.66B	1.12B	1.53B	1.67B
Cash, Cash Equivalents and Short-Term Investments	155.16M	97.12M	639.93M	51.63M	94.23M	204.92M
Total Debt	816.44M	659.85M	523.73M	638.08M	670.90M	784.72M
Total Liabilities	1.31B	1.09B	912.48M	919.56M	842.29M	980.51M
Stockholders Equity	630.09M	732.93M	3.74B	197.48M	689.06M	688.12M
Cash Flow
Free Cash Flow	0	-573.87M	-837.00M	-173.17M	-17.23M	-266.46M
Operating Cash Flow	0	-225.93M	-373.00M	-27.09M	230.44M	-223.12M
Investing Cash Flow	0	-451.25M	-433.72M	-46.13M	-227.31M	-9.00M
Financing Cash Flow	0	134.38M	1.40B	30.61M	-113.82M	282.18M

Kuramoto Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price122.00

Price Trends

50DMA138.66Negative

100DMA145.20Negative

200DMA158.19Negative

Market Momentum

MACD-4.70Negative

RSI36.85Neutral

STOCH15.56Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5216, the sentiment is Negative. The current price of 122.00 is below the 20-day moving average (MA) of 126.00, below the 50-day MA of 138.66, and below the 200-day MA of 158.19, indicating a bearish trend. The MACD of -4.70 indicates Negative momentum. The RSI at 36.85 is Neutral, neither overbought nor oversold. The STOCH value of 15.56 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5216.

Kuramoto Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

JP:5216 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:6866	78Outperform	JPY 120.91B	15.61	―	2.46%	16.76%	35.84%
JP:6850	72Outperform	JPY 30.96B	14.42	―	2.84%	1.92%	9.05%
JP:6853	71Outperform	JPY 18.86B	19.03	―	2.93%	2.51%	0.17%
JP:6626	68Neutral	JPY 26.31B	7.89	―	2.04%	3.68%	-4.84%
JP:6858	66Neutral	JPY 8.30B	9.75	―	3.65%	15.62%	50.30%
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
JP:5216	37Underperform	JPY 6.71B	-1.90	―	―	-23.60%	-1013.95%

* Technology Sector Average

Performance Comparison

JP:5216 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:5216	Kuramoto Co., Ltd.	122.00	-30.00	-19.74%
JP:6626	Semitec Corporation	2308.00	2.03	0.09%
JP:6850	Chino Corporation	1758.00	410.32	30.45%
JP:6853	Kyowa Electronic Instruments Co., Ltd.	735.00	67.89	10.18%
JP:6858	Ono Sokki Co., Ltd.	740.00	169.65	29.74%
JP:6866	Hioki E.E.Corporation	8960.00	3170.96	54.78%

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 22, 2026

Kuramoto Co., Ltd. AI Stock Analysis