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

Kyokuto Kaihatsu Kogyo Co., Ltd.

(TSE/TYO:7226)

Select Model

Rating:64.2Neutral

Price Target:JPY 2,517.00▲(20.43% 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

Revenue GrowthRevenue growth has remained solid across 2024–2026 and accelerated in the latest year, indicating improving demand and execution. Continued expansion across specialty vehicles and related equipment can strengthen operating scale and support sustained investment in the company’s market position.

Negative Factors

Margin CompressionThe sharp decline in net margin shows that stronger revenue has not translated proportionally into earnings. Persistent cost pressure, weaker pricing, or non-operating headwinds could limit profit conversion and make future earnings less durable even if sales continue growing.

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

Market Cap: JPY 80.48B
Dividend Yield: 6.22%
Average Volume (3M): 217.72K
Price to Earnings (P/E): 8.4
Beta (1Y): 0.81
Revenue Growth: 14.63%
EPS Growth: 40618.27%
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...

How the Company Makes Money

Kyokuto Kaihatsu Kogyo makes money primarily by selling special-purpose vehicle bodies and completed specialty vehicles built on commercial truck chassis supplied by major truck OEMs. Its core revenue streams are (1) new-vehicle/unit sales: manufactu...

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 Price2090.00

Price Trends

50DMA2202.56Negative

100DMA2190.66Negative

200DMA2519.66Negative

Market Momentum

MACD-27.83Positive

RSI34.22Neutral

STOCH8.65Positive

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 2090.00 is below the 20-day moving average (MA) of 2132.75, below the 50-day MA of 2202.56, and below the 200-day MA of 2519.66, indicating a bearish trend. The MACD of -27.83 indicates Positive momentum. The RSI at 34.22 is Neutral, neither overbought nor oversold. The STOCH value of 8.65 is Positive, 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	78Outperform	JPY 364.32B	12.03	―	3.02%	11.87%	12.20%
JP:6345	72Outperform	JPY 84.57B	13.28	―	4.81%	2.38%	14.80%
JP:7226	64Neutral	JPY 77.84B	8.40	―	6.22%	14.63%	40618.27%
JP:6390	64Neutral	JPY 14.33B	2.69	―	5.72%	-1.12%	―
JP:6305	62Neutral	JPY 1.10T	12.88	9.48%	3.67%	6.61%	-2.27%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* 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.	2090.00	-367.79	-14.96%
JP:6305	Hitachi Construction Machinery Co	5175.00	313.03	6.44%
JP:6345	Aichi Corporation	1310.00	77.94	6.33%
JP:6390	KATO WORKS CO., LTD.	1223.00	-96.71	-7.33%
JP:6432	Takeuchi Mfg.Co., Ltd.	7640.00	1533.02	25.10%

Kyokuto Kaihatsu Kogyo Co., Ltd. Corporate Events

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...

Kyokuto Kaihatsu Kogyo Posts Profit Rebound but Signals Cautious Outlook and Lower Dividend

Aug 6, 2026

Kyokuto Kaihatsu Kogyo reported consolidated net sales of ¥38.7 billion for the three months ended June 30, 2026, a 15.6% year-on-year increase, with operating profit up 38.2% to ¥1.34 billion and ordinary profit up 39.2% to ¥1.51 bill...

Kyokuto Kaihatsu Kogyo Completes Restricted Stock Treasury Share Disposal

Jul 21, 2026

Kyokuto Kaihatsu Kogyo Co., Ltd. has completed payment procedures for the disposal of 28,260 treasury shares under its restricted stock compensation plan, following a resolution approved by the Board of Directors in late June 2026. The shares, valued...

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