KEL Corporation (6919) AI Stock Analysis

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KEL Corporation

(TSE/TYO:6919)

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Rating:66Neutral

Price Target:JPY 1,561.00▲(7.43% Upside)

Action:reiterated

Date:08/17/26

The score is driven primarily by solid financial resilience from a low-leverage balance sheet, but is held back by sharp profitability deterioration and weaker recent free-cash-flow quality. Technicals are supportive with price above key moving averages and positive MACD, while valuation is a drag due to a high P/E despite a strong dividend yield.

Positive Factors

Strong Revenue ReboundThe sharp 2026 revenue rebound demonstrates that KEL can regain sales momentum in its connector and interface-product markets, supporting longer-term operating scale if customer demand remains durable.

Negative Factors

Severe Margin CompressionThe sustained decline in gross and net margins shows that higher sales are not translating efficiently into profit. Unless pricing, product mix, or cost pressures improve, earnings may remain disproportionately weak relative to revenue.

KEL Corporation (6919) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 10.61B
Dividend Yield: 5.51%
Average Volume (3M): 10.62K
Price to Earnings (P/E): 33.7
Beta (1Y): 0.61
Revenue Growth: 22.83%
EPS Growth: -4.57%
Country: Japan
Employees: 334
Sector: General
Sector Strength: 55
Industry: Hardware, Equipment & Parts

KEL Corporation Business Overview & Revenue Model

Company Description

KEL Corporation, based in Tama, Japan, is a company primarily focused on the production and distribution of industrial connectors within Japan. Its diverse product portfolio encompasses board-to-board, board-to-cable, and on-board power connectors. T...

How the Company Makes Money

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KEL Corporation Financial Statement Overview

Summary

Mixed fundamentals: strong 2026 revenue rebound (+46.6%) and very conservative leverage (debt-to-equity ~0.03), but profitability deteriorated sharply (gross margin ~31.5% to ~21.8%; net margin ~11.9% to ~1.6%) and free cash flow turned slightly negative in 2026, indicating weaker earnings quality and cash conversion.

Income Statement

62Positive

Balance Sheet

86Very Positive

Cash Flow

55Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	13.44B	12.86B	11.87B	12.23B	14.50B	12.79B
Gross Profit	3.04B	2.80B	2.87B	3.23B	4.51B	4.10B
EBITDA	1.49B	1.49B	1.55B	2.12B	3.34B	2.98B
Net Income	227.59M	210.39M	401.55M	852.37M	1.73B	1.46B
Balance Sheet
Total Assets	19.37B	18.96B	18.91B	19.23B	20.00B	18.63B
Cash, Cash Equivalents and Short-Term Investments	4.47B	4.73B	5.07B	5.52B	5.30B	5.39B
Total Debt	797.56M	514.52M	470.20M	450.00M	450.00M	450.00M
Total Liabilities	4.13B	3.66B	3.68B	3.84B	4.96B	4.78B
Stockholders Equity	15.23B	15.30B	15.22B	15.39B	15.04B	13.85B
Cash Flow
Free Cash Flow	0	-26.93M	234.93M	1.01B	732.97M	862.63M
Operating Cash Flow	0	1.45B	1.16B	2.32B	1.67B	1.58B
Investing Cash Flow	0	-1.38B	-1.07B	-1.48B	-1.08B	-603.29M
Financing Cash Flow	0	-590.23M	-641.30M	-740.25M	-732.92M	-312.69M

KEL Corporation Technical Analysis

Technical Analysis SentimentPositive

Last Price1453.00

Price Trends

50DMA1400.69Positive

100DMA1378.07Positive

200DMA1391.63Positive

Market Momentum

MACD11.28Negative

RSI70.24Negative

STOCH77.28Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6919, the sentiment is Positive. The current price of 1453.00 is above the 20-day moving average (MA) of 1408.00, above the 50-day MA of 1400.69, and above the 200-day MA of 1391.63, indicating a bullish trend. The MACD of 11.28 indicates Negative momentum. The RSI at 70.24 is Negative, neither overbought nor oversold. The STOCH value of 77.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6919.

KEL Corporation Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:6919 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:6859	85Outperform	JPY 81.99B	13.33	―	3.09%	7.92%	11.54%
JP:6850	72Outperform	JPY 32.60B	12.06	―	2.79%	6.98%	38.45%
JP:6658	69Neutral	JPY 7.87B	8.57	―	6.73%	6.21%	-50.19%
JP:6919	66Neutral	JPY 10.63B	33.70	―	5.51%	22.83%	-4.57%
JP:6858	65Neutral	JPY 8.14B	9.79	―	3.63%	15.62%	50.30%
JP:6853	60Neutral	JPY 18.20B	26.99	―	2.93%	-3.37%	-32.05%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

JP:6919 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:6919	KEL Corporation	1453.00	158.43	12.24%
JP:6658	Shirai Electronics Industrial Co., Ltd.	520.00	-124.58	-19.33%
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:6859	Espec Corp.	3720.00	481.91	14.88%

KEL Corporation Corporate Events

KEL Corporation Delivers Strong Q1 Profit Rebound but Guides for Softer Full-Year Earnings

Aug 17, 2026

KEL Corporation reported that consolidated net sales for the three months ended June 30, 2026 rose 19.7% year on year to ¥3.52 billion, with operating profit jumping more than fourfold to ¥80 million and profit attributable to owners of parent climbi...

KEL Corporation Corrects Cash Flow Figures in FY2025 Financial Results

Jun 24, 2026

KEL Corporation has issued a partial correction to its previously disclosed consolidated financial results for the fiscal year ended March 2026, addressing errors in its consolidated statement of cash flows. The company has also updated the associate...

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

KEL Corporation AI Stock Analysis