Koike Sanso Kogyo Co., Ltd. (6137) AI Stock Analysis

• Market Cap: ¥24.79B
• Dividend Yield: 4.67%
• Average Volume (3M): 33.98K
• Price to Earnings (P/E): 6.5
• Beta (1Y): 0.78
• Revenue Growth: 8.77%
• EPS Growth: 32.52%
• Country: JP
• Employees: 1,034
• Sector: Industrials
• Sector Strength: 91
• Industry: Industrial - Machinery
• EPS (TTM): 31.63
• Shares Outstanding: 22,614,664
• 10 Day Avg. Volume: 43,850
• 30 Day Avg. Volume: 33,980
• PEG Ratio: 0.11
• Price to Book (P/B): 0.13
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Koike Sanso Kogyo Co., Ltd. demonstrates strong financial performance with robust revenue and profit growth and a stable balance sheet. However, the lack of recent cash flow data introduces some uncertainty. The technical indicators suggest mixed momentum, while the valuation metrics indicate the stock is undervalued relative to peers, supported by a solid dividend yield. These factors collectively position the stock favorably in the industrial machinery sector.

Koike Sanso Kogyo Co., Ltd. Business Overview & Revenue Model

Company Description

Koike Sanso Kogyo Co., Ltd. (6137) is a Japanese company specializing in the manufacturing and distribution of welding and cutting equipment, as well as related industrial machinery. The company operates in sectors such as industrial gases, cutting machines, and welding machines, providing solutions that cater to various industries including automotive, construction, and shipbuilding. Koike Sanso Kogyo is known for its innovative technologies in gas control and cutting systems, offering a range of products from portable cutting machines to large-scale automated systems.

How the Company Makes Money

Koike Sanso Kogyo Co., Ltd. generates revenue primarily through the sale of its welding and cutting equipment, as well as industrial gases. The company's key revenue streams include the manufacturing and distribution of cutting machines, welding machines, and peripheral equipment. Sales of industrial gases and related gas control equipment also contribute significantly to its earnings. Koike Sanso Kogyo collaborates with various industrial partners and distributors to reach a wide customer base, enhancing its market presence and driving sales. Additionally, the company invests in research and development to innovate and improve its product offerings, which helps maintain its competitive edge and sustain revenue growth.

Koike Sanso Kogyo Co., Ltd. Financial Statement Overview

Summary

Koike Sanso Kogyo Co., Ltd. exhibits strong financial health, characterized by robust revenue and profit growth, a stable balance sheet with low leverage, and solid profitability metrics. However, the cash flow score is impacted by the lack of current cash flow data, introducing some uncertainty.

Income Statement

Koike Sanso Kogyo Co., Ltd. has demonstrated strong growth in its revenue and profitability metrics over the years. The company achieved a significant revenue growth rate of 10.3% from 2023 to 2024 TTM, coupled with a robust gross profit margin of 31.5% and a net profit margin of 6.8% in the TTM period. These metrics reflect effective cost management and pricing strategies. The EBIT and EBITDA margins also showed healthy performance at 9.7% and 13.1%, respectively, indicating strong operational efficiency.

Balance Sheet

The balance sheet of Koike Sanso Kogyo Co., Ltd. is marked by a solid equity base, with an equity ratio of 55.0% as of 2024 TTM, indicating financial stability and a strong capital structure. The debt-to-equity ratio stands at 0.17, showcasing prudent leverage management. Return on equity is at 9.0% for the TTM, reflecting effective use of shareholders' equity to generate profit. However, maintaining a high level of cash and short-term investments further strengthens the company's financial flexibility.

Cash Flow

The cash flow statement reveals a mixed performance, with a lack of reported operating and free cash flow data in the 2024 TTM period. Previously, the company demonstrated a good operating cash flow to net income ratio of 1.46 in 2023, indicating effective conversion of income into cash. The free cash flow to net income ratio was also strong at 1.47 in 2023, showing efficient capital expenditure management. However, the absence of recent data poses a challenge to accurately assess the current cash flow health.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
54.24B	51.39B	47.87B	41.83B	39.25B	43.33B
	Gross Profit
17.08B	15.64B	14.02B	12.21B	11.48B	11.91B
	EBIT
5.27B	4.31B	3.29B	1.69B	1.14B	771.00M
	EBITDA
7.09B	6.62B	4.92B	3.32B	2.83B	2.35B
	Net Income Common Stockholders
3.70B	3.06B	2.06B	995.00M	-61.00M	278.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
15.03B	16.58B	14.99B	12.75B	11.54B	349.00M
	Total Assets
75.05B	73.48B	64.93B	59.94B	56.22B	55.14B
	Total Debt
6.89B	7.25B	7.55B	7.76B	8.61B	6.39B
	Net Debt
-8.15B	-6.33B	-7.45B	-4.99B	-2.61B	-3.18B
	Total Liabilities
30.25B	31.09B	28.86B	26.25B	24.31B	23.89B
	Stockholders Equity
41.31B	39.34B	33.21B	30.78B	29.44B	28.94B
Cash Flow		Free Cash Flow
0.00	3.08B	4.50B	2.87B	1.56B	1.88B
	Operating Cash Flow
0.00	4.46B	5.64B	3.78B	3.14B	3.69B
	Investing Cash Flow
0.00	-1.43B	-2.04B	-712.00M	-2.16B	-2.27B
	Financing Cash Flow
0.00	-1.50B	-1.69B	-1.51B	318.00M	-379.00M

Koike Sanso Kogyo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1117.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6137, the sentiment is Negative. The current price of 1117 is below the 20-day moving average (MA) of 1150.05, below the 50-day MA of 1183.73, and below the 200-day MA of 1154.60, indicating a bearish trend. The MACD of -4.52 indicates Positive momentum. The RSI at 43.01 is Neutral, neither overbought nor oversold. The STOCH value of 4.31 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6137.

Koike Sanso Kogyo Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6113	78 Outperform	¥459.72B	14.70	6.10%	4.11%	0.28%	-10.20%
6137	76 Outperform	¥24.79B	6.46		4.67%	8.77%	32.52%
7011	74 Outperform	$9.80T	39.92	10.53%	0.76%	9.25%	26.69%
6486	73 Outperform	¥90.44B	17.13		5.43%	1.06%	-4.26%
7013	71 Outperform	$1.94T	17.25	25.94%	0.89%	23.00%	―
7012	69 Neutral	$1.50T	17.00	12.94%	1.61%	15.31%	―
Sector *	64 Neutral	$4.44B	11.99	5.16%	249.23%	4.01%	-11.87%