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Kanefusa Corporation (5984) AI Stock Analysis

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JP:5984

Kanefusa Corporation

(TSE/TYO:5984)

Select Model
Rating:72Outperform
Price Target:JPY 840.00â–²(10.38% Upside)
Action:upgraded
Date:08/17/26

The score is driven by attractive valuation (low P/E and healthy dividend) and supportive technical momentum (price above key moving averages, positive MACD). Offsetting these positives, overall financial performance is held back by inconsistent cash generation and moderating operating profitability, despite a strong, low-risk balance sheet.

Positive Factors
Conservative balance sheetVery low leverage and a growing equity base reduce financial risk and provide resilience during machinery-sector cyclicality. This gives Kanefusa flexibility to fund operations and absorb weaker demand without excessive reliance on creditors.
Negative Factors
Weak and inconsistent cash conversionRecent weak cash conversion means reported profits are not consistently becoming usable cash. Working-capital swings or elevated cash needs could constrain investment, dividends, and debt-free growth even with a sound balance sheet.

Kanefusa Corporation (5984) vs. iShares MSCI Japan ETF (EWJ)

-5%0%5%10%15%20%25%30%35%JP:5984+16.04%EWJ+15.87%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 10.58B
Dividend Yield
3.42%
Average Volume (3M)
5,680
Price to Earnings (P/E)
8.3
Beta (1Y)
0.29
Revenue Growth
8.07%
EPS Growth
59.38%
Country
Japan
Employees
1,135
Sector
General
Sector Strength
55
Industry
Industrial - Machinery

Kanefusa Corporation Business Overview & Revenue Model

Company Description

Kanefusa Corporation engages in the manufacture and sale of industrial and machine knives, sawblades, tools, and machinery parts in Japan and internationally. The company offers saw blades, router and dowel bits, cutters, ace cutters and bits, finger...

How the Company Makes Money

null

Kanefusa Corporation Financial Statement Overview

Summary

Financials are mixed: the balance sheet is a clear strength (low leverage, solid equity base), but earnings momentum has softened (lower EBIT margin vs prior peaks) and cash-flow quality is the main weakness (recently volatile/mostly negative free cash flow and low cash conversion vs net income).

Income Statement

66Positive

Balance Sheet

82Very Positive

Cash Flow

46Neutral
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue21.79B20.95B20.23B20.08B21.12B19.67B
Gross Profit6.30B6.02B5.69B6.00B6.40B6.31B
EBITDA3.14B2.85B3.55B3.26B3.62B3.54B
Net Income1.27B1.03B984.45M886.44M1.28B1.35B
Balance Sheet
Total Assets38.86B38.40B38.47B34.77B33.87B31.61B
Cash, Cash Equivalents and Short-Term Investments7.84B7.89B8.06B5.54B6.84B7.16B
Total Debt3.08B3.13B3.27B1.50B1.44B1.28B
Total Liabilities7.11B7.06B7.91B6.34B6.47B6.07B
Stockholders Equity31.75B31.34B30.56B28.43B27.40B25.54B
Cash Flow
Free Cash Flow027.83M-86.55M-1.06B-466.39M1.14B
Operating Cash Flow01.09B2.64B1.43B2.22B1.91B
Investing Cash Flow0-936.19M-1.75B-2.46B-2.28B-764.12M
Financing Cash Flow0-609.75M1.41B-548.53M-500.37M881.49M

Kanefusa Corporation Technical Analysis

Technical Analysis SentimentNeutral
Last Price761.00

Price Trends

50DMA769.49Negative
100DMA746.83Positive
200DMA758.11Positive

Market Momentum

MACD-2.74Positive
RSI45.28Neutral
STOCH38.57Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5984, the sentiment is Neutral. The current price of 761.00 is below the 20-day moving average (MA) of 768.75, below the 50-day MA of 769.49, and above the 200-day MA of 758.11, indicating a neutral trend. The MACD of -2.74 indicates Positive momentum. The RSI at 45.28 is Neutral, neither overbought nor oversold. The STOCH value of 38.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:5984.

Kanefusa Corporation Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

JP:5984 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:6159JP:615981OutperformJPY 11.73B8.08―2.05%-10.45%48.68%
JP:5984JP:598472OutperformJPY 10.58B8.32―3.42%8.07%59.38%
JP:6349JP:634966NeutralJPY 88.83B13.425.60%4.89%4.12%-20.11%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
JP:6125JP:612551NeutralJPY 29.37B31.21―3.64%-6.36%-61.60%
JP:6757JP:675751NeutralJPY 4.62B117.11―4.49%1.06%-25.88%

* General Sector Average

Performance Comparison

-20%0%20%40%60%JP:5984JP:6349JP:6125JP:6159JP:6757Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:5984 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:5984Kanefusa Corporation761.00113.8917.60%
JP:6349Komori Corporation1738.00354.0225.58%
JP:6125Okamoto Machine Tool Works,Ltd.4395.00-238.34-5.14%
JP:6159Micron Machinery Co., Ltd.1955.00246.1614.40%
JP:6757OSG Corporation Co., Ltd.890.00-16.70-1.84%
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