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

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Koike Sanso Kogyo Co., Ltd.

(TSE/TYO:6137)

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Rating:68Neutral

Price Target:JPY 1,485.00▼(-0.54% Downside)

Action:downgraded

Date:08/17/26

Koike Sanso Kogyo's overall score of 68 reflects a mixed outlook. The company's strong balance sheet and low valuation provide a solid foundation and downside protection. However, bearish technicals and recent softness in revenue and profit growth weigh on the score. The stock appears undervalued but may need a catalyst to reverse the negative momentum.

Positive Factors

Revenue RecoveryRevenue increased consistently from 2022 through 2026 after the 2021 loss, demonstrating a durable multi-year recovery in the business. Sustained top-line expansion supports continued investment in equipment, services, and customer relationships over the coming quarters.

Negative Factors

Volatile Free Cash FlowAlthough cash generation remains positive, volatile free cash flow and the lower 2026 level reduce confidence in the consistency of internally generated funding. Uneven conversion can constrain the predictability of investment, shareholder returns, and balance-sheet improvement.

Koike Sanso Kogyo Co., Ltd. (6137) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 31.33B
Dividend Yield: 3.35%
Average Volume (3M): 38.99K
Price to Earnings (P/E): 9.1
Beta (1Y): 0.98
Revenue Growth: 1.97%
EPS Growth: 6.87%
Country: Japan
Employees: 1,085
Sector: General
Sector Strength: 55
Industry: Industrial - Machinery

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

Company Description

Koike Sanso Kogyo Co., Ltd., founded in 1918 and headquartered in Tokyo, Japan, is an international enterprise focused on the development, production, and distribution of various industrial gases, alongside cutting-edge welding and cutting machines,...

How the Company Makes Money

Koike Sanso Kogyo makes money primarily by selling industrial equipment and related solutions used for metal cutting and joining, with revenue generally generated through a mix of (1) capital equipment sales, (2) recurring/aftermarket sales, and (3)...

Koike Sanso Kogyo Co., Ltd. Financial Statement Overview

Summary

Koike Sanso Kogyo's financial health is solid, with a strong balance sheet (score 88) and moderate income (74) and cash flow (72). Low debt and ample equity provide flexibility, but recent revenue growth and free cash flow have softened.

Income Statement

74Positive

Balance Sheet

88Very Positive

Cash Flow

72Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	56.09B	55.57B	55.21B	51.39B	47.87B	41.83B
Gross Profit	17.67B	17.07B	17.39B	15.64B	14.02B	12.21B
EBITDA	7.41B	6.79B	7.69B	6.62B	5.31B	3.66B
Net Income	3.46B	3.46B	3.63B	3.06B	2.06B	995.00M
Balance Sheet
Total Assets	79.20B	79.11B	74.73B	73.48B	64.93B	59.94B
Cash, Cash Equivalents and Short-Term Investments	16.04B	16.79B	16.98B	16.58B	14.99B	12.75B
Total Debt	7.37B	7.57B	7.23B	7.25B	7.55B	7.76B
Total Liabilities	28.76B	29.03B	29.16B	31.09B	28.85B	26.24B
Stockholders Equity	47.34B	46.94B	42.56B	39.35B	33.21B	30.79B
Cash Flow
Free Cash Flow	0	1.92B	2.38B	3.08B	4.50B	2.87B
Operating Cash Flow	0	4.08B	3.67B	4.46B	5.64B	3.78B
Investing Cash Flow	0	-2.17B	-1.32B	-1.43B	-2.04B	-712.00M
Financing Cash Flow	0	-2.29B	-2.22B	-1.50B	-1.69B	-1.51B

Koike Sanso Kogyo Co., Ltd. Technical Analysis

Technical Analysis SentimentPositive

Last Price1493.00

Price Trends

50DMA1479.62Positive

100DMA1487.48Positive

200DMA1669.09Negative

Market Momentum

MACD-7.99Negative

RSI58.83Neutral

STOCH89.22Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6137, the sentiment is Positive. The current price of 1493.00 is above the 20-day moving average (MA) of 1420.15, above the 50-day MA of 1479.62, and below the 200-day MA of 1669.09, indicating a neutral trend. The MACD of -7.99 indicates Negative momentum. The RSI at 58.83 is Neutral, neither overbought nor oversold. The STOCH value of 89.22 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6137.

Koike Sanso Kogyo Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:6137 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:6381	83Outperform	JPY 66.54B	11.33	―	5.04%	13.76%	38.30%
JP:6488	81Outperform	JPY 12.13B	7.47	―	3.51%	8.79%	58.86%
JP:6363	76Outperform	JPY 68.44B	9.12	―	2.50%	-1.87%	215.99%
JP:6151	71Outperform	JPY 29.25B	10.68	―	2.27%	5.95%	392.59%
JP:6517	71Outperform	JPY 71.42B	10.22	―	4.08%	9.85%	33.61%
JP:6137	68Neutral	JPY 32.45B	9.12	―	3.35%	1.97%	6.87%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

JP:6137 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:6137	Koike Sanso Kogyo Co., Ltd.	1493.00	56.85	3.96%
JP:6151	Nitto Kohki Co., Ltd.	1583.00	-93.95	-5.60%
JP:6363	Torishima Pump Mfg.Co., Ltd.	2644.00	776.14	41.55%
JP:6381	ANEST IWATA Corp.	1687.00	261.23	18.32%
JP:6488	Yoshitake Inc.	998.00	72.62	7.85%
JP:6517	Denyo Co., Ltd.	3430.00	445.77	14.94%

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

Koike Sanso Kogyo Co., Ltd. AI Stock Analysis