Kyosan Electric Manufacturing Co., Ltd. (6742) AI Stock Analysis

• Market Cap: ¥30.23B
• Dividend Yield: 4.31%
• Average Volume (3M): 148.30K
• Price to Earnings (P/E): 7.6
• Beta (1Y): 0.88
• Revenue Growth: 20.13%
• EPS Growth: 83.20%
• Country: JP
• Employees: 2,054
• Sector: Technology
• Sector Strength: 67
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 63.65
• Shares Outstanding: 62,844,254
• 10 Day Avg. Volume: 90,320
• 30 Day Avg. Volume: 148,300
• PEG Ratio: 0.09
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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

Kyosan Electric Manufacturing Co., Ltd. receives a solid score of 72, driven by strong financial performance with notable revenue growth and profitability, despite concerns over cash flow and debt reliance. The stock's valuation is attractive with a low P/E ratio and high dividend yield, making it appealing to investors. Technical analysis indicates mixed momentum, with some caution warranted due to potential overbought conditions.

Kyosan Electric Manufacturing Co., Ltd. Business Overview & Revenue Model

Company Description

Kyosan Electric Manufacturing Co., Ltd. (6742) is a Japanese company specializing in the production and development of railway signal systems, traffic control systems, and other electronic equipment. The company operates in the transportation infrastructure sector, focusing on providing advanced technology solutions for safe and efficient railway and road traffic management. Its core products include railway signal control systems, level crossing protection systems, and traffic management systems, which are integral to maintaining the safety and efficiency of transportation networks.

How the Company Makes Money

Kyosan Electric Manufacturing Co., Ltd. generates revenue primarily through the sale and maintenance of its railway signal and traffic control systems. The company engages in long-term contracts with railway operators and government agencies, providing them with essential infrastructure technology necessary for the safe operation of trains and road traffic. Additionally, Kyosan Electric offers after-sales services, including system maintenance and upgrades, which form a recurring revenue stream. Partnerships with transportation authorities and infrastructure companies play a significant role in securing contracts and expanding its market presence, thereby contributing significantly to its earnings.

Kyosan Electric Manufacturing Co., Ltd. Financial Statement Overview

Summary

Kyosan Electric Manufacturing Co., Ltd. displays strong revenue growth and improving profitability, with stable margins and returns on equity. However, there are concerns regarding cash flow management and reliance on debt. The company needs to focus on improving cash flow generation and managing debt levels to enhance financial stability and leverage growth opportunities.

Income Statement

Kyosan Electric Manufacturing Co., Ltd. shows stable gross profit margins with a TTM (Trailing-Twelve-Months) gross profit margin of 21.89%. The net profit margin has improved from past years, reaching 5.12% TTM, indicating better profitability. Revenue growth is positive, with a 10.57% increase from the previous year, showcasing strong sales performance. However, the EBIT margin of 6.25% suggests room for operational efficiency improvements. EBITDA margin is healthy at 8.71% TTM, indicating good earnings before interest, taxes, depreciation, and amortization.

Balance Sheet

The company's balance sheet is relatively stable with a manageable debt-to-equity ratio of 0.93. The return on equity stands at 8.44% TTM, showing decent returns on shareholders' investments. The equity ratio is 35.77%, reflecting a solid capital structure with adequate equity backing. However, there is a significant reliance on debt, which could pose risks in a high-interest environment.

Cash Flow

Kyosan Electric faces challenges in cash flow management, with negative free cash flow of -2163 million yen TTM. The operating cash flow to net income ratio is unfavorable at -0.31, indicating that net income is not translating to cash flows effectively. Although past periods showed growth in free cash flow, the recent negative trend raises concerns about cash flow sustainability.

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
70.53B	72.33B	72.92B	62.22B	72.81B
	Gross Profit
14.29B	14.68B	15.37B	13.41B	15.64B
	EBIT
2.49B	2.21B	3.67B	1.21B	3.04B
	EBITDA
7.15B	4.13B	4.90B	-7.48B	5.03B
	Net Income Common Stockholders
3.43B	2.07B	11.86B	-7.92B	1.97B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
9.49B	5.69B	9.18B	7.60B	6.12B
	Total Assets
129.56B	114.36B	113.36B	102.70B	106.76B
	Total Debt
36.00B	27.26B	25.15B	37.61B	30.93B
	Net Debt
26.51B	21.56B	15.97B	30.00B	24.81B
	Total Liabilities
79.92B	68.12B	67.94B	65.32B	61.35B
	Stockholders Equity
49.65B	46.24B	45.41B	37.39B	45.41B
Cash Flow		Free Cash Flow
-6.83B	-4.71B	12.87B	-4.01B	-510.00M
	Operating Cash Flow
-5.91B	-2.91B	14.96B	-1.43B	1.21B
	Investing Cash Flow
1.72B	-1.45B	-15.00M	-2.78B	-2.73B
	Financing Cash Flow
7.41B	800.00M	-13.49B	5.57B	2.10B

Kyosan Electric Manufacturing Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 482.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6742, the sentiment is Neutral. The current price of 482 is above the 20-day moving average (MA) of 450.95, above the 50-day MA of 471.79, and below the 200-day MA of 510.14, indicating a neutral trend. The MACD of 3.16 indicates Negative momentum. The RSI at 58.88 is Neutral, neither overbought nor oversold. The STOCH value of 95.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6742.

Kyosan Electric Manufacturing Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6504	79 Outperform	$909.30B	9.91	14.10%	2.39%	1.83%	21.82%
6701	78 Outperform	¥4.75T	26.58	8.97%	0.76%	-1.55%	17.24%
6501	77 Outperform	¥16.77T	27.44	10.50%	1.09%	0.56%	5.32%
6503	75 Outperform	¥5.91T	18.05	8.40%	1.75%	5.02%	14.73%
6742	72 Outperform	¥30.23B	7.57	8.58%	4.31%	20.13%	83.20%
6505	66 Neutral	¥12.24B	7.24		2.19%	19.77%	108.68%
Sector *	60 Neutral	$10.78B	10.47	-6.71%	2.99%	7.58%	-12.08%