Kuroda Precision Industries Ltd. (7726) AI Stock Analysis

• Market Cap: ¥5.54B
• Dividend Yield: 2.07%
• Average Volume (3M): 4.08K
• Price to Earnings (P/E): 31.1
• Beta (1Y): 0.65
• Revenue Growth: -7.53%
• EPS Growth: -136.56%
• Country: JP
• Employees: 645
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): -29.94
• Shares Outstanding: 5,743,286
• 10 Day Avg. Volume: 4,280
• 30 Day Avg. Volume: 4,083
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥973.00
• Price Target Upside: 0.72% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 55 Neutral
• Price Target: ¥973.00 ▲(0.72% Upside)

The overall stock score for Kuroda Precision Industries Ltd. is primarily influenced by its mixed financial performance and valuation concerns. The company faces challenges in revenue growth and profitability, with increasing leverage posing potential risks. Technical analysis shows positive momentum, but the negative P/E ratio raises concerns about profitability. The dividend yield provides some support, but overall, the stock's outlook is cautious.

Kuroda Precision Industries Ltd. Business Overview & Revenue Model

Company Description

Kuroda Precision Industries Ltd. manufactures and sells motion control systems, press tools and die systems, and machine tools and measurement systems worldwide. It offers support tools, precision ground ball screws, and custom ball/JIS standard screws; ball screw actuators; line motion guides, support-units, greases, and feed screws; surface grinding machines; laminated precision press tools for motor core; and precision metal press products/motor core products. The company also provides parallel thread, taper thread/taper pipe thread, oil country, master/plain, and taper gauges; gauge blocks, test bars, and measuring instruments; wafer flatness measuring systems, wafer flatness/SORI measuring systems, and surface and flatness measuring systems, as well as surface and flatness measuring systems for large discs. In addition, it offers hydraulic tools; and minimal quantity lubrication systems, as well as clamping force tester and machine gauge. The company was formerly known as Kuroda Gauge Manufacturing Co., Ltd. and changed its name to Kuroda Precision Industries Ltd. in June 1965. Kuroda Precision Industries Ltd. was founded in 1925 and is headquartered in Kawasaki, Japan.

How the Company Makes Money

Kuroda Precision Industries Ltd. generates revenue through the sale of its precision machinery components, measuring instruments, and control devices. These products are sold directly to manufacturers in industries such as automotive, electronics, and aerospace, which require high-precision components for their production processes. The company may also engage in contractual manufacturing agreements and collaborations with other industrial firms, enhancing its revenue streams. Additionally, Kuroda's investment in research and development enables it to maintain a competitive edge, providing innovative solutions that meet the evolving needs of its clients, thereby sustaining and growing its market share.

Kuroda Precision Industries Ltd. Financial Statement Overview

Summary

Kuroda Precision Industries Ltd. shows a mixed financial performance with challenges in revenue growth and profitability. The balance sheet remains relatively stable, but increasing leverage could pose risks if profitability does not improve. Cash flow management needs attention, particularly in generating positive free cash flow.

Income Statement

Kuroda Precision Industries Ltd. has experienced fluctuating revenues with a notable decline in the most recent year, impacting profitability. Gross Profit Margin is reasonable but declining, and both EBIT and net profit margins have decreased, indicating potential operational inefficiencies.

Balance Sheet

The company maintains a relatively healthy equity ratio, suggesting a stable financial structure. However, the increase in total debt over recent years has raised the debt-to-equity ratio, which could pose a risk if profitability continues to decline. Return on Equity is moderate but could be improved.

Cash Flow

Cash flow performance is concerning, with negative free cash flow and inconsistent operating cash flow over the periods. The operating cash flow to net income ratio is varied, reflecting fluctuating cash management efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	17.28B	17.28B	18.50B	22.75B	18.04B	13.29B
Gross Profit	4.10B	4.10B	4.44B	5.44B	4.91B	3.35B
EBITDA	1.55B	1.56B	1.21B	2.66B	2.02B	1.17B
Net Income	172.21M	172.59M	498.44M	906.71M	563.75M	126.69M
Balance Sheet
Total Assets	26.16B	26.16B	25.88B	25.40B	22.05B	19.66B
Cash, Cash Equivalents and Short-Term Investments	3.29B	3.29B	3.26B	4.01B	2.90B	2.16B
Total Debt	7.55B	7.55B	6.58B	5.50B	4.00B	4.54B
Total Liabilities	14.58B	14.58B	14.19B	14.67B	12.24B	10.35B
Stockholders Equity	11.39B	11.39B	11.51B	10.52B	9.61B	9.13B
Cash Flow
Free Cash Flow	0.00	-429.10M	-968.36M	-68.92M	1.44B	-369.54M
Operating Cash Flow	0.00	1.23B	427.82M	1.35B	2.15B	531.23M
Investing Cash Flow	0.00	-1.65B	-1.31B	-1.43B	-716.43M	-887.36M
Financing Cash Flow	0.00	468.15M	214.68M	1.15B	-748.14M	315.04M

Kuroda Precision Industries Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 966.00
• 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:7726, the sentiment is Positive. The current price of 966 is above the 20-day moving average (MA) of 948.30, above the 50-day MA of 941.22, and above the 200-day MA of 954.24, indicating a bullish trend. The MACD of 6.57 indicates Negative momentum. The RSI at 62.36 is Neutral, neither overbought nor oversold. The STOCH value of 77.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7726.

Kuroda Precision Industries Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5966	80 Outperform	6.05B	11.20	0.00%	3.21%	7.33%	-8.26%
6157	70 Outperform	20.64B	15.67	0.00%	3.63%	3.38%	-2.80%
6165	70 Neutral	12.20B	13.57	3.94%	4.39%	7.19%	0.00%
6156	57 Neutral	7.32B	-40.48	-2.96%	5.60%	-0.67%	-283.43%
7726	55 Neutral	¥5.54B	31.09		2.07%	-7.53%	-136.56%
5990	54 Neutral	4.51B	-18.72	-2.32%	3.58%	-4.17%	-175.55%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%