Kokusai Electric Corporation (6525) AI Stock Analysis

• Market Cap: ¥1.17T
• Dividend Yield: 0.68%
• Average Volume (3M): 6.53M
• Price to Earnings (P/E): 37.2
• Beta (1Y): 1.89
• Revenue Growth: 5.69%
• EPS Growth: -10.53%
• Country: JP
• Employees: 2,483
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 29.08
• Shares Outstanding: 238,115,620
• 10 Day Avg. Volume: 5,647,220
• 30 Day Avg. Volume: 6,529,006
• PEG Ratio: 0.26
• Price to Book (P/B): 2.88
• Price to Sales (P/S): 2.36
• P/FCF Ratio: 43.42
• 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: ¥3,585.00
• Price Target Upside: -36.79% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 65 Neutral
• Price Target: ¥5,925.00 ▲(4.46% Upside)

Kokusai Electric Corporation's overall stock score is driven by its solid financial performance, characterized by strong profitability and cash flow metrics. However, technical indicators suggest potential overbought conditions, and the high P/E ratio raises concerns about valuation. The absence of earnings call data and corporate events limits additional insights.

Kokusai Electric Corporation Business Overview & Revenue Model

Company Description

Kokusai Electric Corporation engages in the development, manufacture, sale, repair, and maintenance of semiconductor manufacturing equipment worldwide. The company offers deposition process equipment, treatment process equipment, measuring systems, and ultrasonic generators. It also sells related parts; and new and used equipment for wafers. The company was founded in 1949 and is based in Chiyoda, Japan.

How the Company Makes Money

Kokusai Electric Corporation generates revenue primarily through the sale of its semiconductor manufacturing equipment and related services. The company’s key revenue streams include the direct sale of machinery for semiconductor fabrication, ongoing maintenance and support services, and the provision of spare parts. Additionally, Kokusai Electric benefits from long-term contracts and partnerships with leading semiconductor manufacturers, which provide a stable revenue base. The company also invests in research and development to enhance its product offerings, ensuring competitiveness in the rapidly evolving semiconductor industry.

Kokusai Electric Corporation Financial Statement Overview

Summary

Kokusai Electric Corporation demonstrates strong profitability and cash flow metrics, with a robust free cash flow growth rate of 45.69%. Despite a decline in revenue growth rate by 5.62%, the company maintains healthy margins and a stable balance sheet with moderate leverage.

Income Statement

Kokusai Electric Corporation has shown a mixed performance in its income statement. The TTM data indicates a decline in revenue growth rate by 5.62%, which is a concern. However, the company maintains strong profitability metrics with a gross profit margin of 42.58% and a net profit margin of 15.07%. The EBIT and EBITDA margins are also healthy at 21.42% and 26.71% respectively, indicating efficient operational management. Despite the revenue decline, the company remains profitable, which is a positive sign.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.31, indicating moderate leverage. The return on equity (ROE) is 18.80%, showcasing effective use of equity to generate profits. The equity ratio stands at 58.24%, suggesting a strong equity base relative to total assets. However, the decrease in stockholders' equity over the periods indicates potential risks if the trend continues.

Cash Flow

The cash flow statement shows a robust free cash flow growth rate of 45.69% in the TTM period, highlighting improved cash generation capabilities. The operating cash flow to net income ratio is 0.47, and the free cash flow to net income ratio is 0.34, indicating good cash conversion from profits. The company has improved its cash flow position significantly compared to previous periods, which is a positive indicator of financial health.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	225.50B	238.93B	180.84B	245.72B	245.43B
Gross Profit	94.61B	101.74B	68.00B	93.97B	100.36B
EBITDA	56.22B	64.85B	42.03B	67.28B	80.61B
Net Income	29.48B	36.00B	22.37B	40.30B	51.34B
Balance Sheet
Total Assets	341.51B	341.51B	375.43B	373.54B	356.53B
Cash, Cash Equivalents and Short-Term Investments	42.77B	44.76B	92.62B	106.05B	108.40B
Total Debt	60.30B	60.18B	93.02B	99.21B	123.19B
Total Liabilities	142.59B	145.34B	188.04B	212.66B	237.01B
Stockholders Equity	198.92B	196.17B	187.39B	160.88B	119.52B
Cash Flow
Free Cash Flow	18.93B	12.99B	-9.03B	22.15B	70.29B
Operating Cash Flow	39.33B	38.48B	2.94B	29.99B	73.61B
Investing Cash Flow	-23.07B	-27.71B	-11.95B	-7.83B	-3.35B
Financing Cash Flow	-60.39B	-58.11B	-6.31B	-25.11B	-3.51B

Kokusai Electric Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5672.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6525, the sentiment is Positive. The current price of 5672 is above the 20-day moving average (MA) of 4855.55, above the 50-day MA of 3972.38, and above the 200-day MA of 3144.39, indicating a bullish trend. The MACD of 378.74 indicates Negative momentum. The RSI at 72.92 is Negative, neither overbought nor oversold. The STOCH value of 93.38 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6525.

Kokusai Electric Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7729	―	€421.17B	15.96	16.10%	2.37%	10.24%	28.30%
6890	―	$195.62B	14.43	6.22%	3.16%	22.01%	-13.47%
6966	―	¥138.71B	14.86	―	2.33%	6.31%	-37.42%
7735	―	$1.24T	13.44	24.92%	2.10%	16.20%	22.07%
6723	―	¥3.39T	―	-2.51%	1.47%	-10.97%	-118.87%
6525	―	¥1.17T	37.20	―	0.68%	5.69%	-10.53%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Kokusai Electric Corporation Corporate Events

Kokusai Electric Announces Change in Largest Shareholder

Kokusai Electric Corporation has announced a change in its largest and principal shareholder. Applied Materials Europe B.V. has sold 10,700,000 shares of Kokusai Electric to Goldman Sachs Securities Co., Ltd., resulting in KKR HKE Investment L.P. becoming the new largest shareholder with 10.36% of the company’s common shares. This change may impact the company’s shareholder dynamics and influence its strategic direction.

The most recent analyst rating on (JP:6525) stock is a Hold with a Yen5099.00 price target. To see the full list of analyst forecasts on Kokusai Electric Corporation stock, see the JP:6525 Stock Forecast page.

Kokusai Electric Completes Treasury Share Disposal with Adjustments

Kokusai Electric Corporation has completed the payment process for the disposal of treasury shares to its Employee Shareholding Association, initially resolved in May 2025. The number of shares and the aggregate disposal price were adjusted due to partial forfeiture, with the final impact on the company’s financial results expected to be minimal.

The most recent analyst rating on (JP:6525) stock is a Hold with a Yen3022.00 price target. To see the full list of analyst forecasts on Kokusai Electric Corporation stock, see the JP:6525 Stock Forecast page.

Kokusai Electric Reports Q1 Financials Amid Currency Risks

Kokusai Electric Corporation released its financial briefings for the first quarter of the fiscal year ending March 2026, highlighting the use of adjusted operating profit and adjusted net income as key performance indicators. The company faces currency risk due to its substantial overseas revenue and foreign currency-denominated assets and liabilities, which are affected by exchange rate fluctuations.

The most recent analyst rating on (JP:6525) stock is a Buy with a Yen6150.00 price target. To see the full list of analyst forecasts on Kokusai Electric Corporation stock, see the JP:6525 Stock Forecast page.

Kokusai Electric Reports Decline in Q1 Financial Performance

Kokusai Electric Corporation reported a significant decline in its financial performance for the first quarter of the fiscal year ending March 2026, with revenue and net income dropping by 20.6% and 49.1% respectively compared to the previous year. The company anticipates continued challenges in the upcoming quarters, as reflected in their forecasts, which predict further declines in operating profit and net income, indicating potential impacts on their market positioning and stakeholder confidence.

The most recent analyst rating on (JP:6525) stock is a Buy with a Yen6150.00 price target. To see the full list of analyst forecasts on Kokusai Electric Corporation stock, see the JP:6525 Stock Forecast page.