Kaji Technology Corporation Ltd. (6391) AI Stock Analysis

• Market Cap: ¥5.54B
• Dividend Yield: 1.19%
• Average Volume (3M): 1.97K
• Price to Earnings (P/E): 9.8
• Beta (1Y): 0.98
• Revenue Growth: 0.55%
• EPS Growth: -19.84%
• Country: JP
• Employees: 199
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 33.69
• Shares Outstanding: 1,718,000
• 10 Day Avg. Volume: 3,020
• 30 Day Avg. Volume: 1,966
• PEG Ratio: 58.80
• Price to Book (P/B): 0.74
• Price to Sales (P/S): 0.82
• P/FCF Ratio: 15.27
• 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

• Rating: 68 Neutral
• Price Target: ¥3,750.00 ▲(11.94% Upside)

Kaji Technology Corporation Ltd. scores well due to its strong financial performance and attractive valuation. The stock appears undervalued with a low P/E ratio and reasonable dividend yield. However, technical indicators suggest a lack of strong momentum, which could pose short-term challenges. The absence of recent earnings call data and corporate events limits additional insights.

Kaji Technology Corporation Ltd. Business Overview & Revenue Model

Company Description

Kaji Technology Corporation manufactures and sells high-pressure air and gas piston compressors for various applications worldwide. It offers gas, trunk-piston, hydrogen, CNG, and PET compressors; water-cooled/air-cooled type, lubrication/oil-free/oil-less, petrochemical and industrial gas, and PET bottle molding compressors; and SF6 recovery systems, as well as compressors for electric power/test/general industries. The company also provides natural gas vehicle compressors for fuel filling; compressors for fuel cell vehicle filling; and various gas collection and refining equipment. It serves the petroleum, nuclear power station, petrochemical and chemical, environmental, coal, food and beverage, energy, paper manufacturing, industrial gas, tobacco manufacturing, iron making, tire manufacture, study and research, and fine particle/fluid transportation industries. The company was formerly known as Kaji Iron Works Co., Ltd. and changed its name to Kaji Technology Corporation in 1991. Kaji Technology Corporation was founded in 1905 and is headquartered in Sakai, Japan.

How the Company Makes Money

Kaji Technology Corporation Ltd. generates revenue primarily through the sale of its electronic components and systems to various industries, including telecommunications, automotive, and consumer electronics. Their revenue model is largely based on direct sales to manufacturers and distributors, as well as long-term contracts with key clients for exclusive supply agreements. Additionally, the company has established strategic partnerships with major technology firms, which not only bolster its market presence but also provide access to new customer segments and distribution channels. The ongoing demand for advanced electronic solutions, particularly in the context of digital transformation and smart technology integration, further contributes to Kaji Technology's earnings.

Kaji Technology Corporation Ltd. Financial Statement Overview

Summary

Kaji Technology Corporation Ltd. demonstrates strong revenue growth and stable profitability. The balance sheet is healthy with a robust equity base, though there are concerns about increasing liabilities. Cash flow management shows positive trends, but improvements in capital expenditure efficiency could enhance free cash flow.

Income Statement

Kaji Technology Corporation Ltd. has shown a strong revenue growth trajectory over the years, with a noticeable increase from 2022 to 2024. The gross profit margin has been relatively stable, indicating operational efficiency. However, the net profit margin has seen fluctuations, possibly due to variable operating expenses. The EBIT and EBITDA margins indicate solid operational performance, but there's room for improvement in maintaining consistent net income growth.

Balance Sheet

The company maintains a healthy equity ratio, reflecting a strong capital base and low leverage, as evidenced by a moderate debt-to-equity ratio. The return on equity has been positive, indicating effective use of shareholder funds. However, an increase in liabilities over time suggests potential risks if not managed carefully. Overall, the balance sheet reflects financial stability with some caution needed regarding debt management.

Cash Flow

The cash flow statement highlights variability in free cash flow, with significant improvements in recent years. The operating cash flow to net income ratio suggests strong cash-generating capabilities from operations. However, the free cash flow to net income ratio could be better, indicating potential inefficiencies in capital expenditures or other cash outflows. Overall, cash flow management shows positive trends but requires attention to sustain growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.24B	7.00B	7.26B	5.98B	4.58B	5.74B
Gross Profit	2.06B	1.99B	1.96B	1.35B	1.48B	1.49B
EBITDA	858.44M	1.07B	1.09B	648.16M	632.37M	549.48M
Net Income	562.49M	578.91M	578.36M	288.51M	309.41M	307.82M
Balance Sheet
Total Assets	11.20B	11.56B	11.81B	10.99B	9.68B	8.52B
Cash, Cash Equivalents and Short-Term Investments	1.51B	1.67B	1.52B	971.51M	771.23M	819.50M
Total Debt	1.34B	1.37B	1.45B	1.52B	1.02B	10.00M
Total Liabilities	3.39B	3.74B	4.50B	4.20B	3.11B	2.19B
Stockholders Equity	7.81B	7.82B	7.31B	6.80B	6.57B	6.33B
Cash Flow
Free Cash Flow	0.00	376.50M	684.25M	-332.69M	-1.09B	-728.03M
Operating Cash Flow	0.00	542.21M	842.83M	380.69M	786.17M	70.21M
Investing Cash Flow	0.00	-245.75M	-155.18M	-611.36M	-1.77B	-89.47M
Financing Cash Flow	0.00	-148.34M	-134.83M	430.95M	932.11M	-68.43M

Kaji Technology Corporation Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3350.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6391, the sentiment is Negative. The current price of 3350 is below the 20-day moving average (MA) of 3376.00, below the 50-day MA of 3441.30, and below the 200-day MA of 3387.31, indicating a bearish trend. The MACD of -29.99 indicates Positive momentum. The RSI at 44.87 is Neutral, neither overbought nor oversold. The STOCH value of 58.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6391.

Kaji Technology Corporation Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6229	80 Outperform	¥6.89B	10.59	―	2.88%	13.41%	12.59%
6391	68 Neutral	¥5.54B	9.76	―	1.19%	0.55%	-19.84%
6292	64 Neutral	¥6.10B	8.83	―	4.49%	-13.64%	-36.27%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6408	61 Neutral	¥5.39B	8.44	―	1.39%	0.40%	―
6155	50 Neutral	¥5.02B	―	―	2.17%	-4.30%	10.69%
6495	50 Neutral	¥5.33B	78.68	―	1.80%	10.04%	339.33%