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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 78 (OpenAI - Gpt-5.6Sol)
Rating:78Outperform
Price Target:
¥1,208.00
▲(98.03% Upside)
Action:Reiterated
Date:08/19/26
The score is driven by attractive valuation (low P/E with a solid dividend) and strong technical uptrend (price above key moving averages with positive MACD). Financial performance is improving in TTM across margins, leverage, and cash flow, but the overall score is capped by historical volatility in cash flows and profitability.
Positive Factors
Revenue and Earnings Growth
TTM revenue reached 95.7B, while reported revenue and EPS growth indicate improving demand conversion and earnings leverage. Sustaining this trajectory would strengthen the company’s capacity to fund rail-system investment, engineering, and maintenance activities.
Negative Factors
Cash Flow Volatility
The history of negative operating and free cash flow shows that reported earnings have not translated consistently into liquidity. Such volatility can constrain investment, dividend reliability, and working-capital flexibility if project timing or customer payments deteriorate.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and Earnings Growth
TTM revenue reached 95.7B, while reported revenue and EPS growth indicate improving demand conversion and earnings leverage. Sustaining this trajectory would strengthen the company’s capacity to fund rail-system investment, engineering, and maintenance activities.
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 show a clear TTM improvement in profitability (net margin ~6.5% and EBIT margin ~6.5%) and better leverage (debt-to-equity ~0.46) with rebounding cash generation (FCF 7.7B, ~0.91x net income). The key constraint is historical volatility, including prior periods of negative operating/free cash flow and uneven margins, which reduces confidence in durability.
Income Statement
74
Positive
Balance Sheet
68
Positive
Cash Flow
70
Positive
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue95.67B93.12B85.37B70.53B72.33B72.92B
Gross Profit19.20B17.46B18.38B13.90B14.29B14.21B
EBITDA8.08B6.38B8.04B4.36B4.13B4.90B
Net Income6.25B5.04B4.78B3.43B2.07B11.86B
Balance Sheet
Total Assets107.71B119.21B126.00B129.56B114.36B112.88B
Cash, Cash Equivalents and Short-Term Investments6.94B6.94B8.17B9.49B5.69B9.18B
Total Debt25.05B31.00B33.75B36.00B28.16B25.90B
Total Liabilities53.46B63.54B74.29B79.91B68.11B67.92B
Stockholders Equity54.25B55.67B51.71B49.65B46.24B44.96B
Cash Flow
Free Cash Flow7.71B2.55B2.79B-6.73B-4.53B13.01B
Operating Cash Flow8.49B3.39B3.74B-5.91B-2.91B14.96B
Investing Cash Flow-162.00M-471.00M-317.00M1.72B-1.45B-15.00M
Financing Cash Flow-8.78B-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
951.26
Positive
100DMA
857.76
Positive
200DMA
739.46
Positive
Market Momentum
MACD
32.28
Positive
RSI
57.51
Neutral
STOCH
53.59
Neutral
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 1006.65, below the 50-day MA of 951.26, and below the 200-day MA of 739.46, indicating a bullish trend. The MACD of 32.28 indicates Positive momentum. The RSI at 57.51 is Neutral, neither overbought nor oversold. The STOCH value of 53.59 is Neutral, 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
78
Outperform
¥65.10B8.0811.16%3.21%8.95%25.08%
72
Outperform
¥32.00B6.321.95%7.29%
64
Neutral
¥40.20B18.234.53%9.71%23.67%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
59
Neutral
¥179.22B24.202.18%0.36%45.02%
51
Neutral
¥67.60B45.16-2.26%2.25%7.59%-34.90%
45
Neutral
¥75.51B19.594.16%15.81%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6742
Kyosan Electric Manufacturing Co., Ltd.
1,036.00
528.95
104.32%
JP:6768
Tamura Corporation
811.00
324.03
66.54%
JP:6997
Nippon Chemi-Con Corporation
2,824.00
1,465.94
107.94%
JP:6817
Sumida Corporation
1,208.00
220.03
22.27%
JP:6844
Shindengen Electric Mfg Co Ltd
3,090.00
52.97
1.74%
JP:6996
Nichicon Corporation
2,736.00
1,418.16
107.61%

Kyosan Electric Manufacturing Co., Ltd. Corporate Events

Kyosan Electric Swings Back to Profit and Lifts Dividend Outlook
Aug 7, 2026
Kyosan Electric reported consolidated net sales of ¥14.8 billion for the three months ended June 30, 2026, up 20.8% year on year, marking a recovery from the prior-year period’s losses. Operating profit swung to ¥97 million from a ...
Kyosan Electric Lifts Interim Earnings Forecast on Strong Signalling and Power Electronics Demand
Aug 7, 2026
Kyosan Electric Manufacturing revised upward its consolidated earnings forecast for the interim period ending September 30, 2026, citing stronger-than-expected performance. The company now expects net sales of ¥34 billion, a swing to operatin...
Kyosan Electric Returns to Profit and Raises Dividend Outlook
Aug 7, 2026
Kyosan Electric reported consolidated net sales of ¥14.8 billion for the three months ended June 30, 2026, up 20.8% year on year, with a return to profitability as operating profit reached ¥97 million and profit attributable to owners ca...
Kyosan Electric Raises Interim Earnings Forecast on Strong Demand and Efficiency Gains
Aug 7, 2026
Kyosan Electric Manufacturing has sharply upgraded its earnings forecast for the six months to September 30, 2026, now expecting net sales of ¥34.0 billion and a return to a small operating profit, compared with its earlier projection of lowe...
Kyosan Electric Tightens Governance with Updated Internal Control Policy
Jun 24, 2026
Kyosan Electric Manufacturing has revised its Basic Policy on Internal Control System, affirming an unchanged overall governance philosophy that prioritizes long-term corporate value, stakeholder interests, and the balance of environmental and soc...
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: Aug 19, 2026