Kitagawa Corporation (6317) AI Stock Analysis

• Market Cap: ¥15.50B
• Dividend Yield: 3.02%
• Average Volume (3M): 29.76K
• Price to Earnings (P/E): 5.3
• Beta (1Y): 0.82
• Revenue Growth: -6.23%
• EPS Growth: 405.48%
• Country: JP
• Employees: 2,535
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 214.79
• Shares Outstanding: 9,650,803
• 10 Day Avg. Volume: 38,780
• 30 Day Avg. Volume: 29,760
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥1,502.00
• Price Target Upside: -9.30% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: ¥1,502.00 ▼(-9.30% Downside)

Kitagawa Corporation's overall stock score reflects a stable financial foundation with strong equity and low leverage. Its attractive valuation, characterized by a low P/E ratio and high dividend yield, contributes positively. However, technical indicators are mixed, suggesting caution, and challenges in revenue growth and consistent profitability highlight potential risks.

Kitagawa Corporation Business Overview & Revenue Model

Company Description

Kitagawa Corporation (6317) is a prominent Japanese company specializing in manufacturing and supplying industrial machinery and equipment. The company primarily operates in sectors such as machine tool accessories, robotics, and automation systems. Kitagawa is renowned for its high-quality products, including power chucks, rotary tables, and other precision machinery components, which are utilized in various industries, including automotive, aerospace, and manufacturing.

How the Company Makes Money

Kitagawa Corporation generates revenue through the design, production, and sale of its industrial machinery and equipment. The company's main revenue streams include the sale of machine tool accessories such as chucks and rotary tables, as well as automation systems and robotic solutions. Kitagawa's products are essential for precision manufacturing processes, thereby ensuring a steady demand across various industries. The corporation also benefits from strategic partnerships and collaborations with other industrial manufacturers, enhancing its market reach and product offerings. Additionally, Kitagawa invests in research and development to innovate and expand its product line, further contributing to its revenue generation.

Kitagawa Corporation Financial Statement Overview

Summary

Kitagawa Corporation exhibits a balanced financial position with strong equity and low leverage, providing stability. However, revenue growth and profitability are inconsistent, and cash flows, while improving, remain volatile.

Income Statement

Kitagawa Corporation has shown a mixed performance on its income statement. The gross profit margin for the latest year was 15.66%, indicating moderate profitability. The net profit margin was 2.18%, reflecting a modest level of net income relative to revenue. Revenue growth has been inconsistent, with a slight decline in the latest period. EBIT and EBITDA margins are relatively stable, but overall profitability could be improved.

Balance Sheet

The balance sheet of Kitagawa Corporation is quite strong with a debt-to-equity ratio of 0.34, indicating low leverage and a solid financial structure. The equity ratio stands at 50.91%, which demonstrates financial stability. Return on Equity (ROE) was 2.99%, which suggests room for improvement in generating returns for shareholders.

Cash Flow

The cash flow statement shows positive trends with free cash flow turning positive in the latest year. The operating cash flow to net income ratio is favorable at 4.94, indicating strong cash generation relative to net income. However, the free cash flow growth rate is volatile, reflecting potential challenges in maintaining consistent cash flows.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	57.28B	57.28B	61.57B	59.70B	58.68B	48.75B
Gross Profit	8.97B	8.97B	8.47B	6.51B	8.35B	6.50B
EBITDA	5.86B	5.91B	6.29B	3.63B	3.29B	4.66B
Net Income	1.25B	1.25B	1.27B	-418.00M	-951.00M	244.00M
Balance Sheet
Total Assets	82.00B	82.00B	80.14B	74.48B	73.31B	72.90B
Cash, Cash Equivalents and Short-Term Investments	11.50B	11.50B	10.65B	8.41B	8.85B	10.58B
Total Debt	14.04B	14.04B	16.24B	13.82B	13.40B	13.19B
Total Liabilities	40.26B	40.26B	40.11B	37.41B	36.58B	34.55B
Stockholders Equity	41.73B	41.73B	40.03B	36.86B	36.33B	37.18B
Cash Flow
Free Cash Flow	0.00	2.94B	1.93B	-171.00M	-1.15B	-478.00M
Operating Cash Flow	0.00	6.15B	4.88B	2.81B	3.50B	3.10B
Investing Cash Flow	0.00	-2.73B	-3.08B	-2.80B	-4.70B	-3.30B
Financing Cash Flow	0.00	-2.84B	292.00M	-686.00M	-675.00M	1.10B

Kitagawa Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1656.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6317, the sentiment is Positive. The current price of 1656 is above the 20-day moving average (MA) of 1630.20, above the 50-day MA of 1517.42, and above the 200-day MA of 1303.96, indicating a bullish trend. The MACD of 50.59 indicates Positive momentum. The RSI at 60.26 is Neutral, neither overbought nor oversold. The STOCH value of 40.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6317.

Kitagawa Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6373	79 Outperform	14.58B	15.25	3.88%	1.87%	2.44%	163.48%
6203	72 Outperform	17.08B	18.56	4.00%	1.45%	29.02%	0.00%
6317	71 Outperform	¥15.50B	5.30		3.02%	-6.23%	405.48%
6496	68 Neutral	17.89B	10.21	6.80%	2.00%	27.72%	70.12%
6312	67 Neutral	18.07B	16.02	4.13%	1.85%	8.71%	96.54%
6210	54 Neutral	13.95B	-29.19	-4.93%	5.15%	-1.14%	68.17%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Kitagawa Corporation Corporate Events

Kitagawa Corporation Reports Fiscal Year 2025 Financial Results

Kitagawa Corporation reported its consolidated financial results for the fiscal year ending March 31, 2025. The company experienced a slight decrease in net sales and operating profit compared to the previous year. Despite the decline, the company has maintained a stable financial position with a slight increase in cash and cash equivalents. The announcement highlights the company’s ongoing efforts to adapt to changes in accounting policies and its focus on maintaining shareholder value through consistent dividend payments.