KNC Laboratories Co.,Ltd. (6568) AI Stock Analysis

• Market Cap: ¥9.02B
• Dividend Yield: 2.84%
• Average Volume (3M): 4.10K
• Price to Earnings (P/E): 13.4
• Beta (1Y): 0.32
• Revenue Growth: -3.57%
• EPS Growth: -47.05%
• Country: JP
• Employees: 219
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): -1.46
• Shares Outstanding: 7,779,900
• 10 Day Avg. Volume: 3,460
• 30 Day Avg. Volume: 4,096
• 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: ¥1,245.00
• Price Target Upside: 7.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 77 Outperform
• Price Target: ¥1,245.00 ▲(7.33% Upside)

The stock's strong valuation and positive technical indicators are the most significant factors, supported by a solid financial performance despite recent revenue and cash flow challenges.

KNC Laboratories Co.,Ltd. Business Overview & Revenue Model

Company Description

KNC Laboratories Co., Ltd. (6568) is a Japan-based company primarily engaged in the research and development of innovative chemical materials. The company operates in sectors such as pharmaceuticals, electronics, and energy, providing specialized chemical products and solutions tailored to meet the needs of its clients. With a strong emphasis on cutting-edge technology and quality, KNC Laboratories is dedicated to advancing scientific applications and contributing to various industrial advancements.

How the Company Makes Money

KNC Laboratories Co., Ltd. generates revenue through the development and sale of proprietary chemical products and materials designed for specific applications across multiple industries. The company's key revenue streams include contract research services for custom chemical synthesis and the commercialization of its patented technologies. Additionally, strategic partnerships and collaborations with industry leaders enhance its market reach and contribute to its earnings. KNC Laboratories leverages its expertise in chemical innovation to create value-added solutions, thereby maintaining a competitive edge and ensuring a steady flow of income.

KNC Laboratories Co.,Ltd. Financial Statement Overview

Summary

The company has shown strong revenue growth over the years, though 2025 saw a decline. The balance sheet is solid with low leverage, but negative free cash flow due to high capital expenditures poses a risk.

Income Statement

The company has shown strong revenue growth over the years with a notable increase from 2020 to 2024. However, the latest period (2025) saw a decline in revenue compared to 2024. Gross profit margins have been relatively stable, but EBIT and net profit margins saw a dip in the most recent year, indicating some pressure on profitability.

Balance Sheet

The company maintains a solid equity base with a consistent equity ratio above 65%. The debt-to-equity ratio is low, suggesting prudent leverage management. Return on equity is reasonable, though it has decreased slightly in the latest year, which could indicate some efficiency challenges.

Cash Flow

Operating cash flow to net income ratio is strong, reflecting good conversion of earnings to cash. However, free cash flow has been negative in the latest periods, primarily due to high capital expenditures. This poses potential risks if not managed carefully.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.18B	9.15B	8.63B	7.44B	6.03B
Gross Profit	2.32B	3.30B	3.30B	2.11B	1.76B
EBITDA	1.83B	3.02B	3.10B	1.86B	1.54B
Net Income	737.33M	1.49B	1.54B	643.46M	399.68M
Balance Sheet
Total Assets	20.15B	18.62B	15.40B	13.95B	12.78B
Cash, Cash Equivalents and Short-Term Investments	2.39B	3.31B	2.30B	1.97B	1.96B
Total Debt	3.12B	1.97B	1.54B	1.68B	1.44B
Total Liabilities	6.63B	5.53B	3.66B	3.38B	2.66B
Stockholders Equity	13.52B	13.09B	11.75B	10.58B	10.12B
Cash Flow
Free Cash Flow	-1.82B	850.16M	863.73M	-248.27M	434.68M
Operating Cash Flow	1.49B	3.20B	1.99B	585.11M	1.33B
Investing Cash Flow	-3.32B	-2.37B	-1.15B	-613.51M	-660.05M
Financing Cash Flow	909.60M	178.87M	-523.39M	39.02M	-180.14M

KNC Laboratories Co.,Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1160.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6568, the sentiment is Positive. The current price of 1160 is above the 20-day moving average (MA) of 1131.55, above the 50-day MA of 1108.38, and above the 200-day MA of 1075.79, indicating a bullish trend. The MACD of 11.07 indicates Negative momentum. The RSI at 68.78 is Neutral, neither overbought nor oversold. The STOCH value of 68.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6568.

KNC Laboratories Co.,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4366	81 Outperform	10.81B	12.60	5.52%	1.59%	13.02%	0.00%
6568	77 Outperform	¥9.02B	13.39		2.84%	-3.57%	-47.05%
4531	73 Outperform	6.07B	8.46	6.84%	3.24%	19.66%	-13.42%
4960	69 Neutral	4.78B	33.36	2.68%	1.20%	-5.30%	-6.24%
4040	67 Neutral	6.76B	6.57	12.10%	1.90%	6.80%	-19.87%
9227	54 Neutral	10.28B	104.67	15.18%	―	-13.47%	0.00%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%