Kunimine Industries Co., Ltd (5388) AI Stock Analysis

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Kunimine Industries Co., Ltd

(TSE/TYO:5388)

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Rating:75Outperform

Price Target:JPY 1,559.00▲(25.52% Upside)

Action:reiterated

Date:08/11/26

The score is driven primarily by strong financial performance—especially the near debt-free balance sheet and improved FY2026 results—supported by reasonable valuation (low P/E and solid dividend yield). Technicals are only moderately positive due to mixed momentum (negative MACD alongside neutral RSI/Stoch), which tempers the overall rating.

Positive Factors

Near-debt-free balance sheetMinimal leverage gives Kunimine substantial financial flexibility and reduces exposure to interest costs or refinancing pressure. This strengthens resilience through operating cycles and preserves capacity to fund operations, investment, and shareholder returns internally.

Negative Factors

Margins remain below earlier peaksAlthough profitability improved, margins remain below earlier-cycle peaks, showing that prior earnings power has not fully returned. Sustained margin pressure could limit profit conversion from future sales growth and constrain the pace of earnings compounding.

Kunimine Industries Co., Ltd (5388) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 15.37B
Dividend Yield: 3.22%
Average Volume (3M): 7,406
Price to Earnings (P/E): 10.1
Beta (1Y): 0.43
Revenue Growth: 11.89%
EPS Growth: 34.21%
Country: Japan
Employees: 277
Sector: General
Sector Strength: 55
Industry: Construction Materials

Kunimine Industries Co., Ltd Business Overview & Revenue Model

Company Description

Established in 1943 and headquartered in Tokyo, Japan, Kunimine Industries Co., Ltd. specializes in the mining, production, and sale of bentonite and associated equipment and materials. The company's operations extend to extracting, processing, and d...

How the Company Makes Money

Kunimine Industries makes money primarily by manufacturing and selling mineral-based materials (notably bentonite-based and related clay/silica products). Revenue is generated from (1) product sales to business customers that use these materials as f...

Kunimine Industries Co., Ltd Financial Statement Overview

Summary

Financials are supported by an exceptionally conservative balance sheet (near debt-free) and an FY2026 rebound in revenue growth and profitability. Offsetting factors are margins/returns still below earlier-cycle highs and historically volatile free cash flow despite a strong most-recent year.

Income Statement

74Positive

Balance Sheet

92Very Positive

Cash Flow

70Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	17.97B	17.08B	15.71B	15.68B	15.33B	15.26B
Gross Profit	5.26B	4.87B	4.42B	4.41B	3.84B	4.70B
EBITDA	2.70B	2.50B	2.12B	2.12B	1.67B	2.50B
Net Income	1.51B	1.34B	1.08B	1.04B	842.47M	1.30B
Balance Sheet
Total Assets	26.90B	26.84B	25.84B	25.23B	24.56B	24.85B
Cash, Cash Equivalents and Short-Term Investments	8.37B	10.05B	8.30B	8.64B	8.29B	10.07B
Total Debt	45.50M	160.74M	191.89M	73.97M	96.39M	1.04B
Total Liabilities	3.35B	3.70B	3.49B	3.36B	3.21B	3.87B
Stockholders Equity	22.63B	22.27B	21.55B	21.20B	20.76B	20.51B
Cash Flow
Free Cash Flow	0	3.18B	509.21M	1.11B	-520.00M	499.02M
Operating Cash Flow	0	4.33B	1.02B	1.92B	234.07M	1.18B
Investing Cash Flow	0	-2.58B	-769.24M	-1.04B	-569.25M	-1.01B
Financing Cash Flow	0	-504.08M	-858.57M	-726.68M	-1.72B	-494.67M

Kunimine Industries Co., Ltd Technical Analysis

Technical Analysis SentimentNegative

Last Price1242.00

Price Trends

50DMA1339.75Negative

100DMA1291.12Negative

200DMA1273.58Negative

Market Momentum

MACD-18.99Positive

RSI34.33Neutral

STOCH36.23Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5388, the sentiment is Negative. The current price of 1242.00 is below the 20-day moving average (MA) of 1321.85, below the 50-day MA of 1339.75, and below the 200-day MA of 1273.58, indicating a bearish trend. The MACD of -18.99 indicates Positive momentum. The RSI at 34.33 is Neutral, neither overbought nor oversold. The STOCH value of 36.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5388.

Kunimine Industries Co., Ltd Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:5388 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:5357	77Outperform	JPY 24.34B	11.06	―	5.47%	4.27%	27.05%
JP:5388	75Outperform	JPY 16.02B	10.13	―	3.22%	11.89%	34.21%
JP:5233	63Neutral	JPY 435.42B	16.28	4.09%	2.85%	4.36%	-25.29%
JP:5232	62Neutral	JPY 156.22B	13.28	6.18%	7.38%	4.79%	25.74%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:5269	48Neutral	JPY 19.58B	21.55	―	2.58%	0.13%	―

* General Sector Average

Performance Comparison

JP:5388 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:5388	Kunimine Industries Co., Ltd	1242.00	127.40	11.43%
JP:5232	Sumitomo Osaka Cement Co	1625.00	392.49	31.85%
JP:5233	Taiheiyo Cement Corporation	3859.00	196.72	5.37%
JP:5269	Nippon Concrete Industries Co., Ltd.	349.00	23.65	7.27%
JP:5357	Yotai Refractories Co., Ltd.	1644.00	1.07	0.07%

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 11, 2026

Kunimine Industries Co., Ltd AI Stock Analysis