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Kitz
(6498)
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Rating:63Neutral
Price Target:
¥2,227.00
▲(13.10% Upside)
Action:Downgraded
Date:08/10/26
The score is driven primarily by solid underlying profitability and steady revenue growth, tempered by weaker cash conversion and a recent uptick in leverage. Technical signals are notably bearish (below key moving averages with negative MACD), while valuation is supportive with a moderate P/E and ~2.9% dividend yield.
Positive Factors
Stable profitability
KITZ shows steady top-line growth and durable margins across recent years; consistent gross and EBIT margins indicate the core valves business earns reliable spreads. That stability supports long-term earnings predictability, capacity to invest in product lines, and sustained operating leverage through cycles.
Negative Factors
Weak cash conversion
Earnings are not fully translating into discretionary cash: FCF at ~34% of net income and low OCF coverage versus debt limit financial flexibility. Over time this constrains investment, debt paydown, and dividend support, making the company more sensitive to shocks despite accounting profits.
Read all positive and negative factors
Positive Factors
Negative Factors
Stable profitability
KITZ shows steady top-line growth and durable margins across recent years; consistent gross and EBIT margins indicate the core valves business earns reliable spreads. That stability supports long-term earnings predictability, capacity to invest in product lines, and sustained operating leverage through cycles.
Read all positive factors
Kitz (6498) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥168.59B
Dividend Yield3.1%
Average Volume (3M)321.75K
Price to Earnings (P/E)14.4
Beta (1Y)1.25
Revenue Growth7.97%
EPS Growth-1.68%
CountryJP
Employees5,469
SectorGeneral
Sector StrengthN/A
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)138.51
Shares Outstanding87,565,610
10 Day Avg. Volume453,540
30 Day Avg. Volume321,746
Financial Highlights & Ratios
PEG Ratio-22.14
Price to Book (P/B)1.28
Price to Sales (P/S)0.86
P/FCF Ratio46.62
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)157.94
Revenue Forecast (FY)¥201.67B
Kitz Business Overview & Revenue Model
Company Description
KITZ Corporation operates as a global enterprise, primarily focusing on the creation and distribution of valves, fluid regulation systems, and related industrial products across Japan and international territories. The company organizes its activi...
How the Company Makes Money
KITZ makes money primarily by selling valves and related fluid-control products to customers across industrial and building-services markets. Revenue is generated through (1) product sales of valves (e.g., for water, gas, oil, chemicals, and other...
Kitz Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
68
Positive
Cash Flow
52
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 188.53B | 176.68B | 172.04B | 166.94B | 159.91B | 135.79B |
| Gross Profit | 48.84B | 46.96B | 43.88B | 42.42B | 37.86B | 33.71B |
| EBITDA | 25.66B | 23.91B | 23.84B | 22.93B | 19.24B | 14.74B |
| Net Income | 12.05B | 11.47B | 11.82B | 10.59B | 8.55B | 4.96B |
Balance Sheet | ||||||
| Total Assets | 215.62B | 184.32B | 172.41B | 166.69B | 152.57B | 143.42B |
| Cash, Cash Equivalents and Short-Term Investments | 33.24B | 28.24B | 30.73B | 29.00B | 24.37B | 27.94B |
| Total Debt | 52.36B | 36.30B | 36.09B | 37.94B | 38.38B | 39.71B |
| Total Liabilities | 89.87B | 64.53B | 62.59B | 64.48B | 61.52B | 62.16B |
| Stockholders Equity | 124.10B | 118.16B | 108.39B | 100.87B | 89.96B | 80.37B |
Cash Flow | ||||||
| Free Cash Flow | 4.64B | 3.24B | 9.15B | 7.66B | 1.52B | 4.80B |
| Operating Cash Flow | 13.63B | 13.63B | 18.56B | 16.01B | 8.54B | 8.28B |
| Investing Cash Flow | -20.27B | -10.29B | -7.84B | -7.41B | -7.47B | -3.24B |
| Financing Cash Flow | 10.75B | -6.07B | -9.91B | -5.19B | -5.57B | -11.53B |
Kitz Technical Analysis
Negative
1969.00
Price Trends
2298.86
Negative
2209.64
Negative
2022.97
Negative
Market Momentum
-96.06
Positive
39.69
Neutral
26.49
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6498, the sentiment is Negative. The current price of 1969 is below the 20-day moving average (MA) of 2087.60, below the 50-day MA of 2298.86, and below the 200-day MA of 2022.97, indicating a bearish trend. The MACD of -96.06 indicates Positive momentum. The RSI at 39.69 is Neutral, neither overbought nor oversold. The STOCH value of 26.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6498.
Kitz Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
84 Outperform | ¥7.08B | 7.29 | ― | 2.80% | 16.55% | 39.73% | |
81 Outperform | ¥12.56B | 8.29 | ― | 2.82% | 3.76% | 59.72% | |
68 Neutral | ¥243.53B | 22.31 | ― | 2.50% | 10.09% | 30.15% | |
63 Neutral | ¥168.59B | 14.40 | 10.64% | 2.68% | 7.97% | -1.68% | |
58 Neutral | ¥23.82B | 9.64 | ― | 0.72% | ― | ― | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
50 Neutral | ¥5.86B | 65.95 | ― | 1.65% | 9.69% | 29.00% |
* General Sector Average
JP:6498
Kitz
1,969.00
521.89
36.06%
JP:6267
General Packer Co., Ltd.
4,030.00
942.84
30.54%
JP:6488
Yoshitake Inc.
1,035.00
164.97
18.96%
JP:6490
Nippon Pillar Packing Co., Ltd.
10,000.00
6,036.70
152.32%
JP:6492
Okano Valve Mfg. Co., Ltd.
13,960.00
5,316.75
61.51%
JP:6495
Miyairi Valve Mfg.Co., Ltd.
120.00
1.11
0.93%
Kitz Corporate Events
KITZ Lifts 2026 Earnings and Dividend Forecasts on Strong Valve and Metal Businesses
Aug 7, 2026
KITZ has raised its full-year consolidated earnings forecast for the fiscal year ending December 31, 2026, citing robust demand in its Valve Manufacturing Business from the semiconductor equipment market and the expected profit contribution from n...
KITZ Raises Earnings and Dividend Outlook on Strong First-Half Results
Aug 7, 2026
KITZ CORPORATION reported consolidated net sales of ¥98.2 billion for the six months ended June 30, 2026, up 13.7% year on year, with operating profit rising to ¥8.1 billion and profit attributable to owners of parent increasing 9.7% to ...
Kitz Completes ¥9.37 Billion Takeover of Industrial Valve Maker V TEX
Jun 1, 2026
Kitz Corporation has completed the acquisition of all shares of V TEX Corporation for an estimated total of JPY 9.37 billion, making the Tokyo-based maker of industrial special valves and rupture disks a wholly owned subsidiary. V TEX will be cons...
Kitz Posts Strong Q1 Results and Lifts Dividend Outlook for 2026
May 13, 2026
Kitz Corporation reported solid growth for the quarter ended March 31, 2026, with net sales rising 11.7% year on year to ¥46.6 billion and profit attributable to owners of parent climbing 26.5% to ¥3.7 billion. Earnings per share improve...
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.