Kyokuto Kaihatsu Kogyo Co., Ltd. (7226) AI Stock Analysis

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Kyokuto Kaihatsu Kogyo Co., Ltd.

(TSE/TYO:7226)

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Rating:64.2Neutral

Price Target:JPY 2,517.00▲(19.86% Upside)

Action:downgraded

Date:08/19/26

The overall score is driven mainly by solid but pressured financial performance and an attractive valuation, while technical indicators show improving, moderately strong momentum without a clear long-term uptrend. With no usable earnings-call or corporate-event inputs, the assessment rests on the balance of decent fundamentals, inconsistent cash and returns, supportive price action, and a compelling dividend and earnings multiple.

Positive Factors

Accelerating revenue growthSustained revenue growth across several years indicates improving demand and execution in Kyokuto Kaihatsu Kogyo’s specialty-vehicle markets. Acceleration in 2026 supports a stronger base for future operating scale, customer expansion, and continued investment in its commercial vehicle product portfolio.

Negative Factors

Sharp net margin compressionThe sharp decline in net margin shows that revenue growth is not currently translating proportionally into bottom-line earnings. Higher costs, weaker pricing, or non-operating headwinds could limit profit scalability, making future earnings more sensitive to execution and operating conditions.

Kyokuto Kaihatsu Kogyo Co., Ltd. (7226) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 80.86B
Dividend Yield: 6.19%
Average Volume (3M): 225.41K
Price to Earnings (P/E): 11.1
Beta (1Y): 0.75
Revenue Growth: 14.12%
EPS Growth: 472.38%
Country: Japan
Employees: 3,585
Sector: General
Sector Strength: 55
Industry: Industrial - Machinery

Kyokuto Kaihatsu Kogyo Co., Ltd. Business Overview & Revenue Model

Company Description

Kyokuto Kaihatsu Kogyo Co.,Ltd. is a Japanese enterprise specializing in the development, manufacture, and distribution of specialized vehicles, environmental technologies, and automated car parking systems. Its operations are divided into three prim...

Kyokuto Kaihatsu Kogyo Co., Ltd. Financial Statement Overview

Summary

Revenue and gross profitability are on a healthy upward trajectory, but compressed net margins, rising leverage, weaker returns on equity, and volatile cash generation keep overall financial strength in the mid range.

Income Statement

58Neutral

Balance Sheet

62Positive

Cash Flow

47Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	161.33B	161.33B	140.45B	128.03B	113.09B	116.91B
Gross Profit	29.84B	29.84B	24.75B	20.70B	16.01B	21.17B
EBITDA	11.77B	14.62B	13.22B	8.56B	8.27B	23.71B
Net Income	3.69B	3.69B	5.82B	3.50B	3.58B	14.27B
Balance Sheet
Total Assets	203.30B	203.30B	187.75B	170.42B	158.16B	154.35B
Cash, Cash Equivalents and Short-Term Investments	22.50B	22.50B	20.29B	19.44B	33.63B	37.31B
Total Debt	41.42B	41.42B	30.18B	11.94B	11.17B	1.33B
Total Liabilities	88.39B	88.39B	70.47B	52.72B	46.19B	41.34B
Stockholders Equity	113.33B	113.33B	116.11B	117.04B	111.54B	112.69B
Cash Flow
Free Cash Flow	0	3.37B	-2.65B	-12.66B	-14.84B	1.23B
Operating Cash Flow	0	3.37B	5.22B	-1.84B	-3.42B	6.87B
Investing Cash Flow	0	-7.29B	-15.07B	-9.41B	-6.82B	10.66B
Financing Cash Flow	0	6.55B	10.79B	-1.56B	5.12B	-1.55B

Kyokuto Kaihatsu Kogyo Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price2100.00

Price Trends

50DMA2165.73Negative

100DMA2192.58Negative

200DMA2472.37Negative

Market Momentum

MACD-25.62Negative

RSI47.55Neutral

STOCH67.16Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7226, the sentiment is Negative. The current price of 2100.00 is below the 20-day moving average (MA) of 2106.35, below the 50-day MA of 2165.73, and below the 200-day MA of 2472.37, indicating a bearish trend. The MACD of -25.62 indicates Negative momentum. The RSI at 47.55 is Neutral, neither overbought nor oversold. The STOCH value of 67.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7226.

Kyokuto Kaihatsu Kogyo Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:7226 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:6432	82Outperform	JPY 357.65B	11.78	―	3.08%	11.87%	12.20%
JP:6345	72Outperform	JPY 83.35B	13.17	―	4.85%	2.38%	14.80%
JP:7226	64Neutral	JPY 77.91B	11.12	―	6.19%	14.12%	472.38%
JP:6305	62Neutral	JPY 1.10T	12.72	9.48%	3.73%	6.61%	-2.27%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:6390	43Neutral	JPY 14.24B	2.44	―	5.87%	1.28%	―

* General Sector Average

Performance Comparison

JP:7226 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:7226	Kyokuto Kaihatsu Kogyo Co., Ltd.	2100.00	-485.29	-18.77%
JP:6305	Hitachi Construction Machinery Co	5097.00	655.42	14.76%
JP:6345	Aichi Corporation	1299.00	55.47	4.46%
JP:6390	KATO WORKS CO., LTD.	1193.00	-15.46	-1.28%
JP:6432	Takeuchi Mfg.Co., Ltd.	7480.00	1219.63	19.48%

Kyokuto Kaihatsu Kogyo Co., Ltd. Corporate Events

Kyokuto Kaihatsu Plans Employee Share Incentive Treasury-Share Disposal

Nov 11, 2026

Kyokuto Kaihatsu Kogyo Co., Ltd. announced that its board decided on November 11, 2026, to implement a transfer-restricted share incentive plan for its employee shareholding association. The company plans a third-party allotment on February 1, 2027,...

Kyokuto Kaihatsu Reports Six-Month Consolidated Results

Nov 11, 2026

Kyokuto Kaihatsu Kogyo Co., Ltd., listed on the Tokyo Stock Exchange, reported consolidated net sales of ¥84,735 million for the six months ended September 30, 2026, up 14.2% year on year; operating profit was ¥3,870 million, up 4.6%, while ordinary...

Kyokuto Kaihatsu Kogyo Restores Subsidiary Operations After Cyber Incident

Sep 30, 2026

Kyokuto Kaihatsu Kogyo Co., Ltd., a Japanese industrial manufacturer with subsidiaries such as Nippon Trex Co., Ltd., provides products and services to corporate customers and business partners that rely on secure and uninterrupted system operations....

Kyokuto Kaihatsu Kogyo Subsidiary Hit by Cyber-Linked System Failure

Sep 11, 2026

Kyokuto Kaihatsu Kogyo Co., Ltd. reported that its subsidiary Nippon Trex Co., Ltd. suffered a system failure on September 8, 2026 due to unauthorized access, disrupting several digital business functions. While there is currently no confirmed leakag...

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: Sep 26, 2026

Kyokuto Kaihatsu Kogyo Co., Ltd. AI Stock Analysis