Kinki Sharyo Co., Ltd. (7122) AI Stock Analysis

• Market Cap: ¥10.56B
• Dividend Yield: 3.26%
• Average Volume (3M): 12.96K
• Price to Earnings (P/E): 5.3
• Beta (1Y): 1.10
• Revenue Growth: -9.30%
• EPS Growth: -19.61%
• Country: JP
• Employees: 1,229
• Sector: Industrials
• Sector Strength: 83
• Industry: Industrial - Machinery
• EPS (TTM): -64.97
• Shares Outstanding: 6,908,359
• 10 Day Avg. Volume: 20,010
• 30 Day Avg. Volume: 12,956
• PEG Ratio: -0.27
• Price to Book (P/B): 0.32
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Kinki Sharyo Co., Ltd. shows strong valuation metrics with a low P/E ratio and high dividend yield, offering an attractive entry point. Financial performance is solid but hampered by revenue and cash flow challenges. Technical analysis suggests stability but limited momentum.

Kinki Sharyo Co., Ltd. Business Overview & Revenue Model

Company Description

Kinki Sharyo Co., Ltd. (7122) is a Japanese company primarily engaged in the manufacturing and sale of railway vehicles and related equipment. With a focus on innovation and quality, Kinki Sharyo provides a range of products, including light rail vehicles, commuter trains, and other specialized rail solutions. The company is known for its engineering excellence and commitment to delivering safe and efficient transportation solutions to its clients worldwide.

How the Company Makes Money

Kinki Sharyo Co., Ltd. generates revenue through the design, manufacturing, and sale of railway vehicles and related equipment. The company's key revenue streams include contracts with public and private transportation authorities for the supply of rail vehicles. This includes the sale of new trains, maintenance services, and after-sales support. Additionally, Kinki Sharyo collaborates with international partners and participates in joint ventures to expand its market reach. The company's earnings are significantly influenced by large-scale transportation infrastructure projects and ongoing maintenance contracts, ensuring a steady flow of income from both new sales and recurring services.

Kinki Sharyo Co., Ltd. Financial Statement Overview

Summary

Kinki Sharyo Co., Ltd. demonstrates solid profitability and financial stability, with strengths in equity position and profitability margins. However, revenue decline and cash flow challenges pose risks to future performance.

Income Statement

Kinki Sharyo Co., Ltd. has shown strong profitability with a steady increase in gross profit and net income over the years. The TTM data indicates a gross profit margin of 15.44%, and a net profit margin of 5.73%, which are decent for the industry. However, revenue has declined from previous periods, indicating a potential challenge in maintaining growth.

Balance Sheet

The company maintains a healthy balance sheet with a decreasing debt-to-equity ratio, now at 0.19, and strong stockholders' equity. The equity ratio is 54.84%, indicating financial stability. However, the total assets have slightly decreased, showing a need for asset management improvement.

Cash Flow

Cash flow analysis shows inconsistencies, with free cash flow at zero in the TTM period. The company has previously demonstrated strong free cash flow, but recent data indicates a need for improvement in operational efficiency.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
34.96B	43.15B	35.87B	39.33B	49.42B	41.05B
	Gross Profit
5.40B	8.25B	4.63B	5.20B	3.40B	2.71B
	EBIT
1.43B	4.31B	1.23B	1.79B	320.00M	-295.00M
	EBITDA
2.70B	6.35B	2.56B	4.09B	1.50B	1.05B
	Net Income Common Stockholders
2.00B	4.37B	1.18B	2.77B	662.00M	704.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
8.03B	11.72B	7.63B	9.94B	4.35B	5.22B
	Total Assets
59.73B	59.56B	55.49B	61.50B	66.02B	75.91B
	Total Debt
6.10B	4.92B	9.10B	15.72B	22.43B	23.44B
	Net Debt
-1.93B	-6.81B	1.46B	5.78B	18.08B	18.21B
	Total Liabilities
26.97B	27.06B	28.20B	37.02B	44.70B	53.46B
	Stockholders Equity
32.76B	32.50B	27.29B	24.47B	21.32B	22.45B
Cash Flow		Free Cash Flow
0.00	8.26B	5.22B	12.10B	-408.00M	13.82B
	Operating Cash Flow
0.00	8.93B	5.92B	12.95B	24.00M	14.37B
	Investing Cash Flow
0.00	2.58B	-652.00M	-4.03B	-128.00M	774.00M
	Financing Cash Flow
0.00	-4.62B	-8.26B	-6.48B	-695.00M	-11.83B

Kinki Sharyo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1535.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7122, the sentiment is Positive. The current price of 1535 is above the 20-day moving average (MA) of 1455.75, above the 50-day MA of 1476.93, and above the 200-day MA of 1444.83, indicating a bullish trend. The MACD of 19.70 indicates Negative momentum. The RSI at 66.76 is Neutral, neither overbought nor oversold. The STOCH value of 64.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7122.

Kinki Sharyo Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7203	78 Outperform	¥35.57T	7.56	13.59%	3.33%	6.94%	15.37%
6501	77 Outperform	$17.52T	28.67	10.50%	1.06%	0.56%	5.32%
7011	74 Outperform	¥9.20T	37.46	10.53%	0.40%	9.25%	26.69%
7012	69 Neutral	$1.39T	15.74	12.94%	1.73%	15.31%	―
7122	66 Neutral	¥10.56B	5.27		3.26%	-9.30%	-19.61%
Sector *	64 Neutral	$4.36B	12.05	5.23%	249.94%	4.13%	-10.23%
7205	45 Neutral	$257.45B	―	-77.14%	―	11.94%	-1374.36%