Kyowa Electronic Instruments Co., Ltd. (6853) AI Stock Analysis

Kyowa Electronic Instruments Co., Ltd.

(TSE/TYO:6853)

Select Model

Rating:65Neutral

Price Target:JPY 875.00▲(18.40% Upside)

Action:downgraded

Date:08/06/26

Kyowa Electronic Instruments receives a score of 65, driven primarily by its strong balance sheet and improving profitability. The main concerns are the volatility in cash flows and a fair valuation that limits upside. Technically, the stock is in an uptrend but appears overbought in the near term, which may lead to consolidation.

Positive Factors

Conservative balance sheetExceptionally low leverage and a strong equity base provide durable financial flexibility: the company can fund working capital, capital expenditures, or targeted investments without reliance on external debt. That resilience lowers solvency risk and supports continuity through industrial cycles.

Negative Factors

Cash-flow inconsistencyIrregular cash conversion driven by working-capital swings and episodic outflows undermines predictability of internal funding. Even with a strong balance sheet, volatile operating cash flow complicates budgeting for capex, dividends, or strategic investments and raises execution risk.

Kyowa Electronic Instruments Co., Ltd. (6853) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 18.65B
Dividend Yield: 2.91%
Average Volume (3M): 24.64K
Price to Earnings (P/E): 19.1
Beta (1Y): 0.88
Revenue Growth: 2.51%
EPS Growth: 0.17%
Country: Japan
Employees: 763
Sector: General
Sector Strength: 55
Industry: Hardware, Equipment & Parts

Kyowa Electronic Instruments Co., Ltd. Business Overview & Revenue Model

Company Description

Kyowa Electronic Instruments Co., Ltd. engages in the manufacture and distribution of stress measurement devices in Japan, Asia, Europe, the United States, and internationally. The company operates through Measuring Instrument and Consulting segments...

How the Company Makes Money

Kyowa Electronic Instruments generates revenue primarily by selling measurement hardware and related solutions. Key revenue streams typically include: (1) sensors and transducers (including strain gauges and related sensing elements used to measure s...

Kyowa Electronic Instruments Co., Ltd. Financial Statement Overview

Summary

Composite score derived from income statement (68), balance sheet (85), and cash flow (55). The company has a strong, nearly debt-free balance sheet and improving profitability, but cash flow generation has been inconsistent, with a sharp drop in the most recent year. Overall financial health is solid but could be improved by stabilizing cash flows.

Income Statement

68Positive

Balance Sheet

85Very Positive

Cash Flow

55Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	16.24B	16.27B	15.35B	14.90B	13.82B	14.50B
Gross Profit	6.14B	6.22B	7.03B	6.67B	5.95B	5.89B
EBITDA	1.91B	2.04B	1.98B	1.85B	1.37B	1.70B
Net Income	986.43M	1.03B	1.07B	898.58M	576.43M	694.53M
Balance Sheet
Total Assets	24.25B	23.74B	24.10B	24.66B	24.21B	24.04B
Cash, Cash Equivalents and Short-Term Investments	4.68B	4.36B	6.32B	6.28B	7.70B	7.69B
Total Debt	919.43M	400.00M	837.36M	1.37B	1.77B	1.76B
Total Liabilities	5.50B	5.53B	5.94B	7.00B	7.15B	6.95B
Stockholders Equity	18.75B	18.21B	18.16B	17.60B	16.92B	16.98B
Cash Flow
Free Cash Flow	0	226.26M	1.40B	-523.64M	427.94M	1.63B
Operating Cash Flow	0	563.43M	1.62B	-256.80M	582.80M	1.95B
Investing Cash Flow	0	-384.08M	-314.00M	-370.65M	-188.24M	-180.17M
Financing Cash Flow	0	-1.95B	-1.23B	-982.63M	-448.48M	-600.84M

Kyowa Electronic Instruments Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price739.00

Price Trends

50DMA766.80Negative

100DMA784.24Negative

200DMA775.95Negative

Market Momentum

MACD-8.15Positive

RSI32.15Neutral

STOCH28.63Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6853, the sentiment is Negative. The current price of 739.00 is below the 20-day moving average (MA) of 767.90, below the 50-day MA of 766.80, and below the 200-day MA of 775.95, indicating a bearish trend. The MACD of -8.15 indicates Positive momentum. The RSI at 32.15 is Neutral, neither overbought nor oversold. The STOCH value of 28.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6853.

Kyowa Electronic Instruments Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:6853 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:6859	78Outperform	JPY 94.85B	15.54	―	2.71%	8.67%	11.23%
JP:6866	78Outperform	JPY 120.91B	15.44	―	2.48%	16.76%	35.84%
JP:6850	72Outperform	JPY 30.96B	14.32	―	2.86%	1.92%	9.05%
JP:6874	69Neutral	JPY 19.05B	9.53	―	3.96%	-3.24%	-10.28%
JP:6858	66Neutral	JPY 8.30B	9.75	―	3.65%	15.62%	50.30%
JP:6853	65Neutral	JPY 18.86B	19.14	―	2.91%	2.51%	0.17%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

JP:6853 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:6853	Kyowa Electronic Instruments Co., Ltd.	739.00	64.11	9.50%
JP:6850	Chino Corporation	1746.00	404.14	30.12%
JP:6858	Ono Sokki Co., Ltd.	740.00	167.72	29.31%
JP:6859	Espec Corp.	4240.00	842.42	24.79%
JP:6866	Hioki E.E.Corporation	8860.00	3080.71	53.31%
JP:6874	Kyoritsu Electric Corporation	2270.00	-183.41	-7.48%

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 06, 2026

Kyowa Electronic Instruments Co., Ltd. AI Stock Analysis