Kuroda Precision Industries Ltd. (7726) AI Stock Analysis

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Kuroda Precision Industries Ltd.

(TSE/TYO:7726)

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Rating:40Underperform

Price Target:JPY 1,151.00▼(-4.08% Downside)

Action:reiterated

Date:11/13/26

The overall score is very low, driven primarily by severe financial distress. The company is unprofitable, burning cash, and taking on significant debt, which creates substantial risk. This is compounded by a bearish technical trend with the stock price well below key moving averages and weak momentum. The extremely high P/E ratio is a further red flag, as it reflects a valuation that is completely disconnected from the company's current negative earnings reality.

Positive Factors

Revenue ReboundThe 2026 revenue rebound indicates that customer demand and sales activity can recover after periods of weakness. If this improvement persists, it can provide a broader base for operating leverage and help the company rebuild profitability across the next several quarters.

Negative Factors

Profitability DeteriorationThe move from solid profits in earlier years to a 2026 loss is a material deterioration in earnings quality. Operating profit weakness indicates that revenue recovery is not yet converting into sustainable earnings, leaving results vulnerable until costs or pricing improve.

Kuroda Precision Industries Ltd. (7726) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 6.80B
Dividend Yield: 1.24%
Average Volume (3M): 8,558
Price to Earnings (P/E): 109.6
Beta (1Y): 1.07
Revenue Growth: 22.69%
EPS Growth: ―
Country: Japan
Employees: 641
Sector: General
Sector Strength: 55
Industry: Manufacturing - Tools & Accessories

Kuroda Precision Industries Ltd. Business Overview & Revenue Model

Company Description

Kuroda Precision Industries Ltd. is a global manufacturer specializing in the development, production, and distribution of sophisticated industrial equipment. Its primary business encompasses advanced motion control systems, precision press and die t...

How the Company Makes Money

Kuroda Precision Industries makes money primarily by manufacturing and selling precision industrial products to business customers (B2B). Its revenue model is mainly product-sales driven, with earnings generated from: (1) sales of precision component...

Kuroda Precision Industries Ltd. Financial Statement Overview

Summary

Financial health is weak. Revenue grew 16.4% but gross margin declined to 20.0%, leading to a net loss of ¥96.7 million. Operating cash flow is negative (-¥615 million) and free cash flow is deeply negative (-¥2.53 billion). Debt has risen sharply to ¥10.6 billion, resulting in a high debt-to-equity ratio of 0.92, which raises solvency concerns given the lack of profitability.

Income Statement

30Negative

Balance Sheet

40Negative

Cash Flow

25Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	20.55B	19.50B	17.28B	18.50B	22.75B	18.04B
Gross Profit	4.12B	3.89B	4.10B	4.44B	5.44B	4.91B
EBITDA	1.41B	1.26B	1.32B	1.59B	2.27B	2.26B
Net Income	64.25M	-96.66M	172.59M	498.44M	906.71M	563.75M
Balance Sheet
Total Assets	31.37B	29.20B	26.66B	26.43B	25.69B	22.35B
Cash, Cash Equivalents and Short-Term Investments	2.93B	3.36B	3.29B	3.26B	4.01B	2.90B
Total Debt	10.92B	10.58B	7.55B	6.58B	5.50B	4.00B
Total Liabilities	19.14B	17.58B	15.07B	14.73B	14.96B	12.55B
Stockholders Equity	12.07B	11.46B	11.39B	11.51B	10.52B	9.61B
Cash Flow
Free Cash Flow	0	-2.53B	-429.10M	-968.36M	-68.92M	1.44B
Operating Cash Flow	0	-614.73M	1.23B	427.82M	1.35B	2.15B
Investing Cash Flow	0	-1.26B	-1.62B	-1.31B	-1.43B	-716.43M
Financing Cash Flow	0	1.90B	444.32M	214.68M	1.15B	-748.14M

Kuroda Precision Industries Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price1200.00

Price Trends

50DMA1374.28Negative

100DMA1370.40Negative

200DMA1221.62Negative

Market Momentum

MACD-31.29Positive

RSI40.00Neutral

STOCH68.75Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7726, the sentiment is Negative. The current price of 1200.00 is below the 20-day moving average (MA) of 1318.70, below the 50-day MA of 1374.28, and below the 200-day MA of 1221.62, indicating a bearish trend. The MACD of -31.29 indicates Positive momentum. The RSI at 40.00 is Neutral, neither overbought nor oversold. The STOCH value of 68.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7726.

Kuroda Precision Industries Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:7726 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:6136	77Outperform	JPY 328.72B	11.25	13.79%	2.79%	20.29%	99.83%
JP:6877	77Outperform	JPY 108.47B	12.29	―	2.27%	17.28%	26.43%
JP:6278	68Neutral	JPY 229.32B	28.91	―	1.22%	46.79%	74.98%
JP:6480	67Neutral	JPY 100.26B	20.34	―	2.25%	27.02%	155.53%
JP:6474	58Neutral	JPY 126.53B	14.08	4.67%	1.89%	8.26%	102.64%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:7726	40Underperform	JPY 7.81B	109.58	―	1.24%	22.69%	―

* General Sector Average

Performance Comparison

JP:7726 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:7726	Kuroda Precision Industries Ltd.	1200.00	260.55	27.73%
JP:6136	OSG Corp	3497.00	1359.35	63.59%
JP:6474	Nachi-Fujikoshi Corp.	5250.00	1412.40	36.80%
JP:6278	Union Tool Co.	11470.00	3945.34	52.43%
JP:6480	Nippon Thompson Co., Ltd.	1423.00	731.22	105.70%
JP:6877	Obara Group Incorporated	6580.00	2788.46	73.54%

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: Nov 13, 2026

Kuroda Precision Industries Ltd. AI Stock Analysis