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

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JP:6742

Kyosan Electric Manufacturing Co., Ltd.

(6742)

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Outperform 70 (OpenAI - 5.2)
Rating:70Outperform
Price Target:
¥990.00
▲(62.30% Upside)
Action:Upgraded
Date:06/05/26
The score is driven by strong technical strength (price above key moving averages with positive momentum) and attractive valuation (low P/E with a reasonable yield). These positives are tempered by mixed financial performance, particularly margin compression and inconsistent/weak cash-flow conversion.
Positive Factors
Niche infrastructure product focus
Kyosan's specialization in railway signaling, control systems and related engineering/maintenance creates durable demand from infrastructure customers. Long project cycles, high switching costs and recurring service contracts support stable revenue streams and defensible market position over the medium term.
Negative Factors
Weak cash-flow conversion
Low operating cash flow relative to reported earnings and a large YoY FCF decline show weak cash conversion and timing/working-capital risks. This undermines the quality of profits, constrains funding for capex or acquisitions, and increases reliance on external financing during project cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Niche infrastructure product focus
Kyosan's specialization in railway signaling, control systems and related engineering/maintenance creates durable demand from infrastructure customers. Long project cycles, high switching costs and recurring service contracts support stable revenue streams and defensible market position over the medium term.
Read all positive factors

Kyosan Electric Manufacturing Co., Ltd. (6742) vs. iShares MSCI Japan ETF (EWJ)

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

Company Description
Kyosan Electric Manufacturing Co., Ltd., operating both domestically in Japan and across international markets, is a prominent developer, manufacturer, and distributor of electromechanical interlocking systems, road traffic signal equipment, and c...
How the Company Makes Money
null...

Kyosan Electric Manufacturing Co., Ltd. Financial Statement Overview

Summary
Financials are mixed: revenue growth improved (+5.2%) and leverage is manageable/improving (debt-to-equity ~0.56), but margins compressed (gross ~18.7% vs ~21.5%; operating ~4.8% vs ~7.2%) and cash-flow quality is weak/volatile (operating cash flow ~7% of net income; free cash flow down sharply year over year).
Income Statement
62
Positive
Balance Sheet
68
Positive
Cash Flow
45
Neutral
BreakdownMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue93.12B85.37B70.53B72.33B72.92B
Gross Profit17.46B18.38B13.90B14.29B14.21B
EBITDA6.38B8.04B4.36B4.13B4.90B
Net Income5.04B4.78B3.43B2.07B11.86B
Balance Sheet
Total Assets119.21B126.00B129.56B114.36B112.88B
Cash, Cash Equivalents and Short-Term Investments6.94B8.17B9.49B5.69B9.18B
Total Debt31.00B33.75B36.00B28.16B25.90B
Total Liabilities63.54B74.29B79.91B68.11B67.92B
Stockholders Equity55.67B51.71B49.65B46.24B44.96B
Cash Flow
Free Cash Flow2.55B2.79B-6.73B-4.53B13.01B
Operating Cash Flow3.39B3.74B-5.91B-2.91B14.96B
Investing Cash Flow-471.00M-317.00M1.72B-1.45B-15.00M
Financing Cash Flow-4.17B-4.45B7.41B800.00M-13.49B

Kyosan Electric Manufacturing Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price610.00
Price Trends
50DMA
834.78
Positive
100DMA
759.05
Positive
200DMA
656.09
Positive
Market Momentum
MACD
27.16
Positive
RSI
51.72
Neutral
STOCH
12.08
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6742, the sentiment is Positive. The current price of 610 is below the 20-day moving average (MA) of 959.70, below the 50-day MA of 834.78, and below the 200-day MA of 656.09, indicating a neutral trend. The MACD of 27.16 indicates Positive momentum. The RSI at 51.72 is Neutral, neither overbought nor oversold. The STOCH value of 12.08 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6742.

Kyosan Electric Manufacturing Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
¥40.10B6.611.95%7.56%
70
Outperform
¥57.70B8.1911.16%3.21%9.08%7.34%
68
Neutral
¥47.70B12.284.53%5.02%354.47%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
61
Neutral
¥77.13B-51.363.63%2.25%8.34%-151.37%
61
Neutral
¥300.61B45.722.18%-3.43%9.82%
51
Neutral
¥155.72B48.132.26%11.52%5651.84%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6742
Kyosan Electric Manufacturing Co., Ltd.
920.00
449.58
95.57%
JP:6768
Tamura Corporation
939.00
471.59
100.89%
JP:6997
Nippon Chemi-Con Corporation
5,570.00
4,465.41
404.26%
JP:6817
Sumida Corporation
1,450.00
562.75
63.43%
JP:6844
Shindengen Electric Mfg Co Ltd
3,890.00
1,758.75
82.52%
JP:6996
Nichicon Corporation
4,435.00
3,266.84
279.66%

Kyosan Electric Manufacturing Co., Ltd. Corporate Events

Kyosan Electric Lifts Equity, Plans Higher Dividend Despite Profit Pressure
May 15, 2026
Kyosan Electric reported consolidated net sales of ¥93.1 billion for the year ended March 31, 2026, up 9.1% year on year, while operating profit fell 26.3% to ¥4.5 billion and ordinary profit declined 21.7%, though profit attributable to...
Kyosan Electric Beats Earnings Forecasts on Early Project Revenue and Cost Gains
May 15, 2026
Kyosan Electric Manufacturing reported fiscal year 2026 consolidated results that significantly exceeded its prior guidance, with net sales, operating profit, ordinary profit and profit attributable to owners of the parent all surpassing forecasts...
Kyosan Electric Lifts Dividend and Ups Shareholder Return Target
May 15, 2026
Kyosan Electric Manufacturing Co., Ltd., a provider of signaling solutions for railways and road traffic, is positioning its brand for global recognition while balancing investment in core businesses with stable shareholder returns. The company&#8...
Kyosan Electric Reshapes Board and Audit Leadership Ahead of June Shareholders’ Meeting
Mar 27, 2026
Kyosan Electric Manufacturing announced board changes, confirming the reappointment of six current directors, including President Ryoji Kunisawa, and multiple outside directors, while director Toru Onodera will retire from the board at the June 20...
Kyosan Electric Cuts Profit Outlook as Power Electronics Inventory Losses Mount
Mar 27, 2026
Kyosan Electric Manufacturing revised its full-year consolidated forecast for the fiscal year ending March 31, 2026, projecting higher net sales of ¥88.9 billion but sharply lower profits compared with its previous outlook. Operating profit i...
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.Date of analysis: Jun 05, 2026