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

3 Followers
JP:6742

Kyosan Electric Manufacturing Co., Ltd.

(TSE/TYO:6742)

Select Model
Rating:72Outperform
Price Target:JPY 976.00â–²(0.83% Upside)
Action:reiterated
Date:08/19/26

The overall score of 72 reflects a company with strong financial recovery and attractive valuation. The most significant positive factors are the robust cash flow generation and a low P/E ratio, which are supported by a bullish technical trend. The primary risk is the historical volatility in financial performance, which prevents a higher score despite the currently positive momentum.

Positive Factors
Revenue and EPS growthStrong revenue and EPS growth indicate improving demand and operating performance. If sustained, this combination can expand the company’s earnings base, support reinvestment in safety-critical systems, and strengthen its position in railway and infrastructure projects over the next several quarters.
Negative Factors
Volatile cash generationThe return to positive cash generation is encouraging, but prior negative operating and free cash flow shows that earnings may not convert consistently across the cycle. Such volatility can complicate investment planning, debt management, and the reliable funding of long-duration railway projects.

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

-25%0%25%50%75%100%125%150%JP:6742+88.44%EWJ+15.69%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 61.15B
Dividend Yield
2.58%
Average Volume (3M)
283.50K
Price to Earnings (P/E)
7.6
Beta (1Y)
1.17
Revenue Growth
8.95%
EPS Growth
25.08%
Country
Japan
Employees
2,073
Sector
Technology
Sector Strength
61
Industry
Hardware, Equipment & Parts

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 cupr...

How the Company Makes Money

Kyosan Electric Manufacturing generates revenue primarily by designing, manufacturing, delivering, and maintaining mission-critical systems used by railway operators and infrastructure owners. A major revenue stream comes from railway signaling and t...

Kyosan Electric Manufacturing Co., Ltd. Financial Statement Overview

Summary

Financial performance is solid, driven by exceptional cash flow generation and a strengthening balance sheet. TTM free cash flow of ¥7.71B and a reduced debt-to-equity ratio of 0.46 are key strengths. However, income statement volatility and margins below historical peaks temper the score.

Income Statement

62Positive

Balance Sheet

68Positive

Cash Flow

78Positive
Financial statement breakdown
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 SentimentNegative
Last Price968.00

Price Trends

50DMA1061.26Negative
100DMA1003.44Negative
200DMA857.89Positive

Market Momentum

MACD-40.71Positive
RSI41.17Neutral
STOCH50.98Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6742, the sentiment is Negative. The current price of 968.00 is below the 20-day moving average (MA) of 1039.05, below the 50-day MA of 1061.26, and above the 200-day MA of 857.89, indicating a neutral trend. The MACD of -40.71 indicates Positive momentum. The RSI at 41.17 is Neutral, neither overbought nor oversold. The STOCH value of 50.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6742.

Kyosan Electric Manufacturing Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (61)

Financial Indicators

JP:6742 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:6742JP:674272OutperformJPY 61.15B7.5511.85%2.58%8.95%25.08%
JP:6844JP:684467NeutralJPY 27.10B6.91―3.85%9.76%257.74%
JP:6996JP:699662NeutralJPY 138.34B13.44―1.96%8.34%187.11%
Sector *61Neutral$37.18B12.37-10.20%1.83%8.50%-7.62%
JP:6817JP:681755NeutralJPY 34.65B15.80―4.99%14.18%9.84%
JP:6768JP:676853NeutralJPY 59.72B19.374.51%2.26%13.96%37.70%
JP:6997JP:699736UnderperformJPY 44.28B16.963.56%1.29%18.67%752.67%

* Technology Sector Average

Performance Comparison

0%100%200%300%JP:6742JP:6768JP:6997JP:6817JP:6844JP:6996Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:6742 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:6742Kyosan Electric Manufacturing Co., Ltd.968.00444.6684.97%
JP:6768Tamura Corporation709.0079.5312.64%
JP:6997Nippon Chemi-Con Corporation1546.00280.6522.18%
JP:6817Sumida Corporation1063.00-53.50-4.79%
JP:6844Shindengen Electric Mfg Co Ltd2600.00-345.00-11.71%
JP:6996Nichicon Corporation1941.00654.9150.92%

Kyosan Electric Manufacturing Co., Ltd. Corporate Events

Kyosan Electric Secures ¥25 Billion Syndicated Commitment Line with Financial Covenants

Sep 25, 2026

Kyosan Electric Manufacturing Co., Ltd. has entered into a syndicated commitment line agreement to secure business capital, reflecting a move to bolster liquidity and financial flexibility ahead of the next fiscal year. The agreement is structured wi...

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