Kasai Kogyo Co., Ltd. (7256) AI Stock Analysis

Kasai Kogyo Co., Ltd.

(TSE/TYO:7256)

Select Model

Rating:64Neutral

Price Target:JPY 425.00▲(9.25% Upside)

Action:downgraded

Date:10/03/26

The overall score of 64 is driven primarily by a mixed financial performance, where strong cash flow generation and a return to profitability are counterbalanced by a highly leveraged balance sheet and declining revenue. The stock's technical posture is moderately positive, trading above key long-term moving averages but lacking short-term momentum. The extremely low P/E ratio offers a potential valuation upside, though it also reflects the market's risk assessment. The most significant risk remains the company's high debt burden, which tempers the positive operational turnaround.

Positive Factors

Return to ProfitabilityThe return to positive operating profit and net income indicates that operational performance has improved from the deep losses reported in earlier years. If maintained, this recovery can rebuild retained equity, support internal funding, and improve resilience over the next several quarters.

Negative Factors

Excessive LeverageDebt that is large relative to equity materially limits financial flexibility and increases sensitivity to weaker demand or lower margins. High leverage can also constrain investment and make balance-sheet repair dependent on sustained profits and cash generation over multiple periods.

Kasai Kogyo Co., Ltd. (7256) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 15.36B
Dividend Yield: ―
Average Volume (3M): 363.94K
Price to Earnings (P/E): 3.1
Beta (1Y): 1.34
Revenue Growth: -4.40%
EPS Growth: ―
Country: Japan
Employees: 7,358
Sector: Consumer Cyclical
Sector Strength: 61
Industry: Auto - Parts

Kasai Kogyo Co., Ltd. Business Overview & Revenue Model

Company Description

Kasai Kogyo Co., Ltd. specializes in the production and global distribution of automotive interior and exterior components. Their comprehensive product portfolio encompasses various cabin trim elements, including door panels, headliners, sun visors,...

Kasai Kogyo Co., Ltd. Financial Statement Overview

Summary

Financial performance reflects a company in turnaround. Income Statement (62) shows a return to profitability with expanding margins, though revenue declined. Balance Sheet (47) is a concern due to high leverage (D/E 4.4). Cash Flow (75) is a bright spot, with strong operating cash generation and healthy free cash flow conversion. The overall financial picture is mixed, with improving operations offset by a weak balance sheet.

Income Statement

62Positive

Balance Sheet

47Neutral

Cash Flow

75Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Jun 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	203.37B	196.19B	218.80B	214.31B	175.47B	147.47B
Gross Profit	32.94B	28.41B	20.79B	23.68B	4.71B	4.61B
EBITDA	16.46B	12.80B	7.03B	12.25B	-2.29B	-9.30B
Net Income	7.73B	4.05B	-9.18B	-313.00M	-13.13B	-19.03B
Balance Sheet
Total Assets	148.75B	145.33B	144.83B	142.74B	149.23B	142.73B
Cash, Cash Equivalents and Short-Term Investments	29.36B	26.67B	27.90B	24.12B	32.88B	27.94B
Total Debt	73.59B	74.23B	77.13B	74.18B	79.83B	71.12B
Total Liabilities	117.92B	118.53B	121.92B	122.49B	128.12B	111.63B
Stockholders Equity	20.54B	16.72B	12.46B	10.18B	11.28B	21.63B
Cash Flow
Free Cash Flow	0	3.72B	-4.73B	-4.26B	-5.39B	-3.71B
Operating Cash Flow	0	9.61B	911.00M	-547.00M	-1.90B	2.07B
Investing Cash Flow	0	-7.82B	-5.17B	871.00M	2.74B	-3.60B
Financing Cash Flow	0	-4.92B	7.30B	-10.74B	2.34B	6.24B

Kasai Kogyo Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price389.00

Price Trends

50DMA445.66Negative

100DMA434.24Negative

200DMA359.82Positive

Market Momentum

MACD-17.71Positive

RSI36.58Neutral

STOCH38.72Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7256, the sentiment is Negative. The current price of 389.00 is below the 20-day moving average (MA) of 427.00, below the 50-day MA of 445.66, and above the 200-day MA of 359.82, indicating a neutral trend. The MACD of -17.71 indicates Positive momentum. The RSI at 36.58 is Neutral, neither overbought nor oversold. The STOCH value of 38.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7256.

Kasai Kogyo Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

JP:7256 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:7256	64Neutral	JPY 15.36B	3.14	―	―	-4.40%	―
JP:7218	63Neutral	JPY 11.03B	5.47	―	3.10%	13.29%	11.39%
Sector *	61Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
JP:7291	61Neutral	JPY 8.36B	6.19	―	7.44%	-4.33%	882.27%
JP:7247	59Neutral	JPY 11.65B	11.26	―	4.32%	4.00%	-58.51%
JP:7297	58Neutral	JPY 6.00B	11.91	―	2.12%	1.24%	―
JP:7214	52Neutral	JPY 5.54B	-27.00	―	3.86%	4.47%	58.91%

* Consumer Cyclical Sector Average

Performance Comparison

JP:7256 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:7256	Kasai Kogyo Co., Ltd.	389.00	259.00	199.23%
JP:7214	GMB Corporation	1017.00	193.22	23.46%
JP:7218	Tanaka Seimitsu Kogyo Co., Ltd.	1153.00	97.95	9.28%
JP:7247	Mikuni Corporation	344.00	-30.06	-8.04%
JP:7291	Nihon Plast Co., Ltd.	430.00	51.35	13.56%
JP:7297	Car Mate Mfg. Co Ltd	852.00	21.34	2.57%

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: Oct 03, 2026

Kasai Kogyo Co., Ltd. AI Stock Analysis