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Kyoto Tool Co., Ltd. (5966) AI Stock Analysis

JP:5966

Kyoto Tool Co., Ltd.

(TSE/TYO:5966)

Select Model
Rating:77Outperform
Price Target:JPY 3,221.00â–²(19.30% Upside)
Action:reiterated
Date:08/17/26

Strong valuation and positive technical momentum drive the score upward, supported by stable financials despite recent revenue dips and cash flow volatility; low beta adds stability for long-term holding.

Positive Factors
Conservative balance sheetVery low leverage and a high equity share provide financial resilience and flexibility. This reduces solvency pressure, supports continued investment in the KTC business, and gives management greater capacity to withstand weaker demand or fund opportunities without relying heavily on borrowing.
Negative Factors
Recent revenue contractionThe latest top-line contraction shows that demand or pricing has recently weakened after modest growth in earlier years. If this persists, lower revenue can reduce operating leverage, limit investment capacity, and pressure profitability despite the company’s otherwise steady margin profile.

Kyoto Tool Co., Ltd. (5966) vs. iShares MSCI Japan ETF (EWJ)

-5%0%5%10%15%20%25%JP:5966+15.26%EWJ+15.87%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 6.52B
Dividend Yield
3.15%
Average Volume (3M)
571
Price to Earnings (P/E)
8.3
Beta (1Y)
0.30
Revenue Growth
-3.85%
EPS Growth
188.71%
Country
Japan
Employees
248
Sector
General
Sector Strength
55
Industry
Manufacturing - Tools & Accessories

Kyoto Tool Co., Ltd. Business Overview & Revenue Model

Company Description

Kyoto Tool Co., Ltd. is a Japanese-based manufacturer and global distributor of various work tools. The company primarily supplies tools for automotive repair and general utility, along with associated equipment. In addition to these core offerings,...

How the Company Makes Money

Kyoto Tool Co., Ltd. primarily makes money by selling hand tools and related tool products under its KTC brand (and associated product lines) to professional users and tool distributors. Revenue is generated mainly from (1) product sales of individua...

Kyoto Tool Co., Ltd. Financial Statement Overview

Summary

Stable balance sheet with low debt and growing equity scores highly at 85, offset by moderate income growth with recent declines at 62 and volatile cash flows with negative trends at 48, averaging to a fair financial health amid market challenges.

Income Statement

62Positive

Balance Sheet

85Very Positive

Cash Flow

48Neutral
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue8.56B8.33B9.05B8.43B8.40B7.94B
Gross Profit3.28B3.22B3.37B3.34B3.25B3.07B
EBITDA1.26B1.19B1.34B1.33B1.15B1.13B
Net Income786.04M501.81M544.80M645.59M593.97M505.42M
Balance Sheet
Total Assets16.36B15.79B16.29B16.62B14.72B14.31B
Cash, Cash Equivalents and Short-Term Investments3.51B3.08B3.04B3.42B3.31B3.72B
Total Debt1.63B900.00M940.00M923.90M913.02M927.53M
Total Liabilities3.33B3.17B4.04B4.18B3.54B3.61B
Stockholders Equity13.03B12.62B12.25B12.43B11.18B10.71B
Cash Flow
Free Cash Flow0-287.91M-88.48M299.62M-31.46M620.06M
Operating Cash Flow0229.72M1.07B503.23M193.65M1.03B
Investing Cash Flow0141.22M-1.25B-203.71M-423.79M-270.14M
Financing Cash Flow0-208.49M-318.28M-182.31M-181.76M-193.66M

Kyoto Tool Co., Ltd. Technical Analysis

Technical Analysis SentimentNeutral
Last Price2700.00

Price Trends

50DMA2680.60Positive
100DMA2585.18Positive
200DMA2501.74Positive

Market Momentum

MACD10.34Positive
RSI44.81Neutral
STOCH35.00Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5966, the sentiment is Neutral. The current price of 2700.00 is below the 20-day moving average (MA) of 2759.75, above the 50-day MA of 2680.60, and above the 200-day MA of 2501.74, indicating a neutral trend. The MACD of 10.34 indicates Positive momentum. The RSI at 44.81 is Neutral, neither overbought nor oversold. The STOCH value of 35.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:5966.

Kyoto Tool Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

JP:5966 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:5966JP:596677OutperformJPY 6.56B8.30―3.15%-3.85%188.71%
JP:5957JP:595773OutperformJPY 26.30B10.41―3.51%6.59%20.64%
JP:6136JP:613670OutperformJPY 324.83B11.1113.79%2.82%20.29%99.83%
JP:6278JP:627868NeutralJPY 239.25B23.78―1.18%39.69%58.96%
JP:5945JP:594567NeutralJPY 22.65B12.83―3.83%4.34%9.28%
JP:6474JP:647464NeutralJPY 127.48B14.244.67%1.87%8.26%102.64%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%

* General Sector Average

Performance Comparison

0%50%100%150%200%JP:5966JP:6136JP:6474JP:5945JP:5957JP:6278Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:5966 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:5966Kyoto Tool Co., Ltd.2700.00338.2014.32%
JP:6136OSG Corp3508.001353.0262.79%
JP:6474Nachi-Fujikoshi Corp.5360.001507.7739.14%
JP:5945Tenryu Saw Manufacturing Co., Ltd.2220.00184.939.09%
JP:5957Nitto Seiko Co., Ltd.712.0045.866.88%
JP:6278Union Tool Co.12280.004162.0651.27%
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 17, 2026