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Kurogane Kosakusho Ltd. (7997) AI Stock Analysis

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JP:7997

Kurogane Kosakusho Ltd.

(TSE/TYO:7997)

Select Model
Rating:68Neutral
Price Target:JPY 1,303.00â–²(9.04% 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
Improved Net ProfitabilityThe move to positive net income and materially higher net margin indicates improved bottom-line performance versus prior years. If retained, this stronger profitability can support reinvestment, strengthen financial resilience, and provide a better base for earnings over the next several quarters.
Negative Factors
Declining RevenueRevenue contraction signals weaker demand or project volume across the company’s office, educational, and facility-related markets. Continued top-line pressure could limit operating leverage, reduce the benefits of fixed-cost absorption, and make recent improvements in reported profitability harder to sustain.

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

-20%-10%0%10%20%30%JP:7997+13.86%EWJ+15.87%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 1.99B
Dividend Yield
1.67%
Average Volume (3M)
3,840
Price to Earnings (P/E)
21.5
Beta (1Y)
0.17
Revenue Growth
-4.02%
EPS Growth
-69.59%
Country
Japan
Employees
264
Sector
General
Sector Strength
55
Industry
Business Equipment & Supplies

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 units...

How the Company Makes Money

Kurogane Kosakusho Ltd. primarily makes money by selling its manufactured furniture and facility-related products to corporate, public-sector, and institutional customers (e.g., offices and schools). Revenue is generated through (1) product sales of...

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

58Neutral

Balance Sheet

76Positive

Cash Flow

42Neutral
Financial statement breakdown
BreakdownTTMNov 2025Nov 2024Nov 2023Nov 2022Nov 2021
Income Statement
Total Revenue6.19B6.34B7.20B7.18B6.92B8.37B
Gross Profit1.37B1.47B1.55B1.45B1.38B1.68B
EBITDA260.30M722.04M393.97M1.51B-337.08M280.31M
Net Income96.48M403.10M209.38M1.21B-566.03M-5.37M
Balance Sheet
Total Assets7.85B8.55B8.06B8.20B8.52B9.64B
Cash, Cash Equivalents and Short-Term Investments1.49B1.53B907.86M1.32B658.82M775.12M
Total Debt913.96M961.70M883.32M931.73M2.90B3.48B
Total Liabilities3.21B3.70B3.48B3.92B5.60B6.25B
Stockholders Equity4.64B4.85B4.58B4.27B2.91B3.37B
Cash Flow
Free Cash Flow029.66M-710.24M-445.98M172.22M233.90M
Operating Cash Flow076.48M-248.97M-428.43M181.12M290.34M
Investing Cash Flow0208.10M-81.60M3.01B238.81M-26.69M
Financing Cash Flow0-16.09M-61.98M-2.03B-591.22M-118.44M

Kurogane Kosakusho Ltd. Technical Analysis

Technical Analysis SentimentPositive
Last Price1195.00

Price Trends

50DMA1121.24Positive
100DMA1072.93Positive
200DMA1019.64Positive

Market Momentum

MACD17.64Positive
RSI65.54Neutral
STOCH56.97Neutral

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 1195.00 is above the 20-day moving average (MA) of 1170.65, above the 50-day MA of 1121.24, and above the 200-day MA of 1019.64, indicating a bullish trend. The MACD of 17.64 indicates Positive momentum. The RSI at 65.54 is Neutral, neither overbought nor oversold. The STOCH value of 56.97 is Neutral, 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

JP:7997 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:8130JP:813082OutperformJPY 185.10B11.25―4.87%3.91%28.69%
JP:6484JP:648473OutperformJPY 17.42B8.49―3.70%3.70%-9.08%
JP:7981JP:798172OutperformJPY 188.94B13.17―4.24%1.75%7.95%
JP:7997JP:799768NeutralJPY 2.04B21.45―1.67%-4.02%-69.59%
JP:7887JP:788765NeutralJPY 7.10B4.03―2.82%27.96%217.85%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
JP:7898JP:789851NeutralJPY 8.36B-4.32―2.68%2.16%-194.33%

* General Sector Average

Performance Comparison

0%20%40%60%JP:7997JP:6484JP:7887JP:7898JP:7981JP:8130Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:7997 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:7997Kurogane Kosakusho Ltd.1195.00145.5013.86%
JP:6484KVK Corporation2161.00-56.71-2.56%
JP:7887Nankai Plywood Co., Ltd.1418.00-42.85-2.93%
JP:7898Wood One Co., Ltd.895.0057.156.82%
JP:7981Takara Standard Co., Ltd3020.00633.6826.55%
JP:8130Sangetsu Corporation3180.00309.9510.80%
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