Kyoritsu Electric Corporation (6874) AI Stock Analysis

0 Followers

Kyoritsu Electric Corporation

(TSE/TYO:6874)

Select Model

Rating:69Neutral

Price Target:JPY 2,269.00▲(4.56% Upside)

Action:downgraded

Date:08/17/26

The score is driven primarily by strong financial footing (low leverage and solid recent free cash flow) and supportive valuation (low P/E and attractive dividend). These positives are partially offset by weak technical momentum (below major moving averages with negative MACD) and the latest-year revenue/profit slowdown that reduces near-term visibility.

Positive Factors

Very Low LeverageKyoritsu Electric has a conservatively financed balance sheet, with debt representing a very small share of equity and equity compounding over time. This reduces financial strain, preserves flexibility for investment, and improves resilience if operating conditions weaken.

Negative Factors

Sharp Revenue ReversalThe latest-year revenue reversal interrupts the prior expansion trend and weakens visibility into demand and future scale. A sustained top-line slowdown could limit operating leverage, reduce the benefit of fixed-cost absorption, and pressure the company’s ability to grow earnings.

Kyoritsu Electric Corporation (6874) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 17.50B
Dividend Yield: 4.15%
Average Volume (3M): 4,945
Price to Earnings (P/E): 8.9
Beta (1Y): 0.75
Revenue Growth: -3.00%
EPS Growth: -10.03%
Country: Japan
Employees: 867
Sector: Technology
Sector Strength: 61
Industry: Hardware, Equipment & Parts

Kyoritsu Electric Corporation Business Overview & Revenue Model

Company Description

Kyoritsu Electric Corporation provides various systems, testing and measuring instruments, etc. primarily in Japan. It offers Andon, digital picking, AGV, HAISHIN, barcode / RF-ID, smart card, automated storage, transport control, inventory managemen...

Kyoritsu Electric Corporation Financial Statement Overview

Summary

Overall fundamentals are solid: multi-year margin improvement (gross margin up to ~21.5% and net margin to ~5.2% by 2026), very low leverage (debt-to-equity ~0.03), and strong recent free cash flow (~3.3B in 2026). The main offset is the sharp revenue decline in 2026 and lower profits/ROE versus 2025, which increases near-term earnings visibility risk.

Income Statement

62Positive

Balance Sheet

86Very Positive

Cash Flow

74Positive

Financial statement breakdown
Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	37.01B	37.01B	38.25B	34.36B	33.62B	28.33B
Gross Profit	7.97B	7.97B	7.87B	6.65B	6.32B	5.29B
EBITDA	3.16B	3.16B	3.60B	2.71B	2.47B	1.67B
Net Income	1.92B	1.92B	2.14B	1.77B	1.53B	1.06B
Balance Sheet
Total Assets	34.84B	34.84B	32.59B	30.94B	29.76B	25.51B
Cash, Cash Equivalents and Short-Term Investments	11.37B	11.37B	8.53B	8.06B	6.70B	6.81B
Total Debt	649.00M	649.00M	814.20M	1.40B	1.88B	1.88B
Total Liabilities	11.65B	11.65B	11.58B	12.17B	12.67B	10.51B
Stockholders Equity	22.15B	22.15B	20.12B	17.95B	16.19B	14.35B
Cash Flow
Free Cash Flow	0	3.32B	1.54B	2.32B	218.26M	560.31M
Operating Cash Flow	0	3.60B	2.47B	2.57B	624.21M	1.21B
Investing Cash Flow	0	-254.82M	-1.23B	-350.40M	-780.25M	-458.88M
Financing Cash Flow	0	-737.11M	-953.00M	-879.87M	-226.54M	-224.99M

Kyoritsu Electric Corporation Technical Analysis

Technical Analysis SentimentNegative

Last Price2170.00

Price Trends

50DMA2297.86Negative

100DMA2396.90Negative

200DMA2528.75Negative

Market Momentum

MACD-41.25Positive

RSI39.23Neutral

STOCH51.08Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6874, the sentiment is Negative. The current price of 2170.00 is below the 20-day moving average (MA) of 2232.60, below the 50-day MA of 2297.86, and below the 200-day MA of 2528.75, indicating a bearish trend. The MACD of -41.25 indicates Positive momentum. The RSI at 39.23 is Neutral, neither overbought nor oversold. The STOCH value of 51.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6874.

Kyoritsu Electric Corporation Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

JP:6874 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:7745	77Outperform	JPY 73.23B	12.21	―	2.29%	3.02%	-8.01%
JP:6850	72Outperform	JPY 32.60B	12.06	―	2.79%	6.98%	38.45%
JP:6874	69Neutral	JPY 18.47B	8.93	―	4.15%	-3.00%	-10.03%
JP:6858	65Neutral	JPY 8.14B	9.79	―	3.63%	15.62%	50.30%
JP:6866	63Neutral	JPY 118.32B	15.05	―	2.55%	16.76%	35.84%
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
JP:6853	60Neutral	JPY 18.20B	26.99	―	2.93%	-3.37%	-32.05%

* Technology Sector Average

Performance Comparison

JP:6874 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:6874	Kyoritsu Electric Corporation	2170.00	-180.99	-7.70%
JP:6850	Chino Corporation	1793.00	470.53	35.58%
JP:6853	Kyowa Electronic Instruments Co., Ltd.	735.00	96.10	15.04%
JP:6858	Ono Sokki Co., Ltd.	743.00	166.86	28.96%
JP:6866	Hioki E.E.Corporation	8640.00	3045.88	54.45%
JP:7745	A&D HOLON Holdings Company. Limited	2625.00	879.22	50.36%

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 17, 2026

Kyoritsu Electric Corporation AI Stock Analysis