Kimura Kohki Co., Ltd. (6231) AI Stock Analysis

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Kimura Kohki Co., Ltd.

(TSE/TYO:6231)

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Rating:76.5Outperform

Price Target:JPY 10,215.00▲(14.65% Upside)

Action:reiterated

Date:10/21/26

The overall score is heavily supported by the company's outstanding financial performance, characterized by high growth, strong margins, and a pristine balance sheet. An attractive valuation with a low P/E ratio further bolsters the score. However, these strengths are significantly offset by a very weak technical picture, with the stock in a clear downtrend and strong bearish momentum across all key indicators.

Positive Factors

Revenue GrowthSustained revenue expansion indicates stronger demand for Kimura Kohki’s industrial equipment and engineering offerings. Growth across several years provides a durable base for operating leverage, customer development, and continued investment in capabilities over the next several quarters.

Negative Factors

Cash Flow VolatilityImproved recent cash generation is encouraging, but the multi-year swings show that accounting earnings have not converted consistently into cash. Uneven conversion can constrain internally funded expansion, complicate working-capital management, and reduce confidence in earnings quality through project cycles.

Kimura Kohki Co., Ltd. (6231) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 31.73B
Dividend Yield: 2.22%
Average Volume (3M): 17.33K
Price to Earnings (P/E): 8.6
Beta (1Y): 1.06
Revenue Growth: 20.09%
EPS Growth: 43.11%
Country: Japan
Employees: 386
Sector: Industrials
Sector Strength: 63
Industry: Electrical Equipment & Parts

Kimura Kohki Co., Ltd. Business Overview & Revenue Model

Company Description

Operating from its base in Osaka, Japan, KIMURA KOHKI Co.,Ltd. was founded in 1947 and is dedicated to the creation, production, and sale of air conditioning and heat exchange apparatus within the Japanese market. The company provides a comprehensive...

How the Company Makes Money

Kimura Kohki makes money primarily by selling industrial equipment and associated engineering services to corporate customers. Key revenue streams typically include (1) revenue from manufacturing and supplying process-related machinery and systems (e...

Kimura Kohki Co., Ltd. Financial Statement Overview

Summary

Kimura Kohki demonstrates exceptional financial health with robust double-digit revenue growth, expanding margins (49% gross, 25.6% operating), and a net income that has more than tripled since FY2021. The balance sheet is low-leveraged (debt-to-equity 0.36) with a strong 23.3% ROE, while operating cash flow of ¥3.87B exceeds net income, indicating high-quality earnings and a positive free cash flow trend.

Income Statement

95Very Positive

Balance Sheet

93Very Positive

Cash Flow

90Very Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	19.49B	17.92B	16.04B	13.85B	11.70B	10.20B
Gross Profit	9.62B	8.78B	7.19B	6.21B	4.69B	3.94B
EBITDA	5.72B	5.21B	4.22B	3.17B	1.83B	1.61B
Net Income	3.75B	3.28B	2.50B	2.07B	1.04B	877.54M
Balance Sheet
Total Assets	25.52B	24.59B	22.21B	20.17B	17.68B	15.17B
Cash, Cash Equivalents and Short-Term Investments	2.26B	2.26B	1.60B	1.72B	1.34B	2.25B
Total Debt	5.25B	5.02B	4.56B	4.47B	4.40B	3.38B
Total Liabilities	10.93B	10.52B	10.44B	10.52B	9.92B	8.19B
Stockholders Equity	14.58B	14.07B	11.76B	9.65B	7.75B	6.97B
Cash Flow
Free Cash Flow	0	1.46B	373.25M	507.08M	-1.65B	-1.23B
Operating Cash Flow	0	3.87B	2.24B	2.00B	548.27M	233.60M
Investing Cash Flow	0	-2.51B	-2.00B	-1.50B	-2.19B	-1.08B
Financing Cash Flow	0	-704.56M	-364.45M	-118.20M	733.82M	750.74M

Kimura Kohki Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price8910.00

Price Trends

50DMA11328.20Negative

100DMA11875.40Negative

200DMA12508.82Negative

Market Momentum

MACD-861.22Positive

RSI33.57Neutral

STOCH36.34Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6231, the sentiment is Negative. The current price of 8910.00 is below the 20-day moving average (MA) of 10012.00, below the 50-day MA of 11328.20, and below the 200-day MA of 12508.82, indicating a bearish trend. The MACD of -861.22 indicates Positive momentum. The RSI at 33.57 is Neutral, neither overbought nor oversold. The STOCH value of 36.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6231.

Kimura Kohki Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

JP:6231 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:6637	79Outperform	JPY 47.10B	10.72	―	1.66%	15.89%	2.08%
JP:6231	77Outperform	JPY 32.18B	8.60	―	2.22%	20.09%	43.11%
JP:6504	76Outperform	JPY 1.63T	15.33	14.39%	1.85%	9.29%	34.41%
JP:6516	64Neutral	JPY 170.04B	14.20	―	3.47%	20.05%	53.26%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
JP:6617	61Neutral	JPY 77.43B	7.23	―	2.90%	5.80%	133.22%
JP:6905	61Neutral	JPY 49.85B	-19.08	―	4.43%	17.15%	-463.16%

* Industrials Sector Average

Performance Comparison

JP:6231 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:6231	Kimura Kohki Co., Ltd.	8910.00	-3931.68	-30.62%
JP:6504	Fuji Electric Co	11620.00	1262.10	12.18%
JP:6516	Sanyo Denki Co., Ltd.	4580.00	859.67	23.11%
JP:6617	TAKAOKA TOKO CO., LTD.	5130.00	1763.85	52.40%
JP:6637	Terasaki Electric Co., Ltd.	3560.00	-928.57	-20.69%
JP:6905	Cosel Co., Ltd.	1223.00	81.17	7.11%

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: Oct 21, 2026

Kimura Kohki Co., Ltd. AI Stock Analysis