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Kurogane Kosakusho Ltd. (JP:7997)
:7997
Japanese Market
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Kurogane Kosakusho Ltd. (7997) AI Stock Analysis

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JP:7997

Kurogane Kosakusho Ltd.

(7997)

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Neutral 68 (OpenAI - 5.2)
Rating:68Neutral
Price Target:
¥1,145.00
▲(21.16% Upside)
Action:Reiterated
Date:08/06/26
The score is driven primarily by a mixed fundamental profile: improving reported profitability and a healthier, low-leverage balance sheet are offset by weak cash conversion and historical cash-flow volatility, plus recent revenue contraction and inconsistent operating profits. Technicals add support with an above-average uptrend and positive momentum, while valuation is a clear positive due to a very low P/E and a modest dividend yield.
Positive Factors
Conservative leverage
The company’s low debt-to-equity (~0.19) and growing equity provide durable financial flexibility. This conservatism supports capital spending, cushions against cyclical downturns in manufacturing, and reduces refinancing risk, enabling stable operations and strategic investments over months.
Negative Factors
Weak cash conversion
Operating cash flow is very small relative to reported earnings, indicating low quality of earnings and reliance on noncash items or working-capital swings. This weak conversion undermines free cash flow resilience and constrains sustainable reinvestment, dividends, or debt reduction.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative leverage
The company’s low debt-to-equity (~0.19) and growing equity provide durable financial flexibility. This conservatism supports capital spending, cushions against cyclical downturns in manufacturing, and reduces refinancing risk, enabling stable operations and strategic investments over months.
Read all positive factors

Kurogane Kosakusho Ltd. (7997) vs. iShares MSCI Japan ETF (EWJ)

Kurogane Kosakusho Ltd. Business Overview & Revenue Model

Company Description
Kurogane Kosakusho Ltd. manufactures and sells furniture for offices, medical and welfare facilities, schools, public facilities, and residential use. The company also provides a building accessory equipment segment that offers air conditioning un...
How the Company Makes Money
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Kurogane Kosakusho Ltd. Financial Statement Overview

Summary
Financials are mixed. Reported profitability improved (net margin ~6.4% in 2025 vs ~2.9% in 2024) and the balance sheet looks conservatively levered recently (debt-to-equity ~0.19), but revenue declined (~4.8% YoY) and operating performance is inconsistent (EBIT negative in 2024–2025). Cash flow quality is the main drag: cash conversion is very weak (operating cash flow to net income ~0.04) and prior-year OCF/FCF volatility remains a concern.
Income Statement
58
Neutral
Balance Sheet
76
Positive
Cash Flow
42
Neutral
BreakdownTTMNov 2025Nov 2024Nov 2023Nov 2022Nov 2021
Income Statement
Total Revenue6.35B6.34B7.20B7.18B6.92B8.37B
Gross Profit1.45B1.47B1.55B1.45B1.38B1.68B
EBITDA647.34M722.04M393.97M1.51B-337.08M280.31M
Net Income409.48M403.10M209.38M1.21B-566.03M-5.37M
Balance Sheet
Total Assets8.24B8.55B8.06B8.20B8.52B9.64B
Cash, Cash Equivalents and Short-Term Investments1.97B1.53B907.86M1.32B658.82M775.12M
Total Debt1.03B961.70M883.32M931.73M2.90B3.48B
Total Liabilities3.50B3.70B3.48B3.92B5.60B6.25B
Stockholders Equity4.73B4.85B4.58B4.27B2.91B3.37B
Cash Flow
Free Cash Flow0.0029.66M-710.24M-445.98M172.22M233.90M
Operating Cash Flow0.0076.48M-248.97M-428.43M181.12M290.34M
Investing Cash Flow0.00208.10M-81.60M3.01B238.81M-26.69M
Financing Cash Flow0.00-16.09M-61.98M-2.03B-591.22M-118.44M

Kurogane Kosakusho Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price945.00
Price Trends
50DMA
1036.90
Positive
100DMA
1009.45
Positive
200DMA
989.54
Positive
Market Momentum
MACD
14.19
Negative
RSI
73.21
Negative
STOCH
98.39
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7997, the sentiment is Positive. The current price of 945 is below the 20-day moving average (MA) of 1059.35, below the 50-day MA of 1036.90, and below the 200-day MA of 989.54, indicating a bullish trend. The MACD of 14.19 indicates Negative momentum. The RSI at 73.21 is Negative, neither overbought nor oversold. The STOCH value of 98.39 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7997.

Kurogane Kosakusho Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
¥186.26B11.324.91%3.91%28.69%
73
Outperform
¥195.51B13.643.41%2.58%26.69%
68
Neutral
¥1.85B4.552.23%-4.68%168.73%
65
Neutral
¥7.72B4.351.66%27.96%217.85%
63
Neutral
¥17.97B8.813.46%3.70%-9.08%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
48
Neutral
¥8.74B-4.572.65%2.16%-194.33%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7997
Kurogane Kosakusho Ltd.
1,099.00
245.68
28.79%
JP:6484
KVK Corporation
2,241.00
137.97
6.56%
JP:7887
Nankai Plywood Co., Ltd.
1,532.00
151.66
10.99%
JP:7898
Wood One Co., Ltd.
946.00
80.32
9.28%
JP:7981
Takara Standard Co., Ltd
3,115.00
562.72
22.05%
JP:8130
Sangetsu Corporation
3,210.00
278.88
9.51%
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: Aug 06, 2026