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Kanemitsu Corporation (JP:7208)
:7208
Japanese Market
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Kanemitsu Corporation (7208) AI Stock Analysis

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JP:7208

Kanemitsu Corporation

(7208)

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Outperform 77 (OpenAI - Gpt-5.6Sol)
Rating:77Outperform
Price Target:
¥1,472.00
▲(13.06% Upside)
Action:Reiterated
Date:08/18/26
The score is driven primarily by strong financial performance—improving profitability, a conservatively leveraged balance sheet, and solid free cash flow—supported by favorable valuation (low P/E and a ~2.3% dividend yield). Technicals are neutral-to-mixed, with longer-term trend support but limited near-term momentum, which tempers the overall score.
Positive Factors
Improved Profitability
The recovery from a FY2021 loss to FY2026 net income of ~¥743M, alongside stronger gross, EBIT and net margins, indicates improved operating execution. Sustaining these gains would strengthen earnings resilience even without rapid revenue growth.
Negative Factors
Weak Revenue Momentum
Revenue has been essentially flat over multiple years and declined ~1.1% in FY2026. Limited top-line momentum constrains operating leverage and leaves earnings more exposed to cost inflation, customer-volume changes, or weaker demand in internal-combustion applications.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved Profitability
The recovery from a FY2021 loss to FY2026 net income of ~¥743M, alongside stronger gross, EBIT and net margins, indicates improved operating execution. Sustaining these gains would strengthen earnings resilience even without rapid revenue growth.
Read all positive factors

Kanemitsu Corporation (7208) vs. iShares MSCI Japan ETF (EWJ)

Kanemitsu Corporation Business Overview & Revenue Model

Company Description
Established in 1947 and headquartered in Akashi, Japan, Kanemitsu Corporation is dedicated to the engineering, manufacturing, and distribution of diverse industrial components. Its core business centers on producing pulleys for the automotive and ...
How the Company Makes Money
Kanemitsu makes money by manufacturing automotive/engine components and selling them to customers (typically vehicle manufacturers and engine manufacturers, including through tiered automotive supply chains). Its core revenue stream is product sal...

Kanemitsu Corporation Financial Statement Overview

Summary
Financials show a meaningful quality improvement: profitability and margins are stronger (FY2026 gross margin ~24%, EBIT margin ~8%, net margin ~6.7%), leverage is very low after significant debt reduction (debt-to-equity ~0.03), and cash generation is robust with higher operating cash flow (~¥2.12B) and free cash flow (~¥1.67B). The main constraint is limited top-line momentum, with revenue essentially flat and slightly down in FY2026 (~-1.1%), which can limit operating leverage.
Income Statement
76
Positive
Balance Sheet
88
Very Positive
Cash Flow
82
Very Positive
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue11.01B11.04B11.12B11.09B10.02B8.76B
Gross Profit2.66B2.68B2.50B2.32B2.07B1.88B
EBITDA1.53B1.60B1.55B1.38B1.20B962.59M
Net Income675.37M742.56M540.61M632.25M538.06M163.76M
Balance Sheet
Total Assets16.32B16.21B16.10B16.11B15.41B14.37B
Cash, Cash Equivalents and Short-Term Investments5.43B5.04B4.14B3.57B3.74B3.29B
Total Debt314.90M364.93M1.12B1.76B2.32B2.43B
Total Liabilities3.54B3.48B4.43B5.14B5.45B5.10B
Stockholders Equity12.58B12.51B11.47B10.78B9.79B9.10B
Cash Flow
Free Cash Flow0.001.67B1.20B445.11M287.54M600.16M
Operating Cash Flow0.002.12B1.65B1.42B903.73M1.09B
Investing Cash Flow0.00-608.39M-1.04B-992.46M-330.12M-522.39M
Financing Cash Flow0.00-974.65M-799.70M-727.59M-273.27M-328.59M

Kanemitsu Corporation Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1302.00
Price Trends
50DMA
1285.48
Positive
100DMA
1217.47
Positive
200DMA
1143.23
Positive
Market Momentum
MACD
7.43
Negative
RSI
59.00
Neutral
STOCH
97.16
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7208, the sentiment is Positive. The current price of 1302 is below the 20-day moving average (MA) of 1303.15, above the 50-day MA of 1285.48, and above the 200-day MA of 1143.23, indicating a bullish trend. The MACD of 7.43 indicates Negative momentum. The RSI at 59.00 is Neutral, neither overbought nor oversold. The STOCH value of 97.16 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7208.

Kanemitsu Corporation Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
¥6.74B9.982.26%-1.40%2.13%
72
Outperform
¥4.42B8.344.39%10.57%148.78%
61
Neutral
¥8.85B6.494.24%-4.33%882.27%
58
Neutral
¥6.09B18.963.44%-4.43%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
52
Neutral
¥5.94B-29.014.51%4.47%58.91%
51
Neutral
¥3.97B-5.35-3.73%-330.65%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7208
Kanemitsu Corporation
1,323.00
363.03
37.82%
JP:7214
GMB Corporation
1,113.00
264.29
31.14%
JP:7215
FALTEC Co., Ltd.
425.00
40.00
10.39%
JP:7217
Tein, Inc.
457.00
71.69
18.60%
JP:7291
Nihon Plast Co., Ltd.
458.00
47.52
11.58%
JP:7297
Car Mate Mfg. Co Ltd
863.00
26.40
3.16%
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 18, 2026