Kurogane Kosakusho Ltd. (7997) AI Stock Analysis

Kurogane Kosakusho Ltd.

(TSE/TYO:7997)

Select Model

Rating:76Outperform

Price Target:JPY 1,350.00▲(15.48% Upside)

Action:reiterated

Date:08/06/26

The overall score of 76 is driven by an attractive valuation, robust technical momentum, and a fortress-like balance sheet. The primary risks stem from weak core operational performance and revenue contraction, meaning the company must demonstrate top-line recovery and sustainable operating profits to support long-term upside.

Positive Factors

Improved ProfitabilityThe return to positive net income and stronger margins indicate that the company has improved its bottom-line economics versus earlier loss years. If maintained, this provides more internal capacity to fund operations and supports resilience across its office, educational, and industrial furnishing activities.

Negative Factors

Revenue ContractionRecent top-line contraction indicates that demand or project volume has not yet established a durable growth trajectory. Continued revenue weakness could reduce operating leverage, make fixed costs harder to absorb, and limit the company’s ability to compound earnings even if margins remain improved.

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

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

Demonstrates exceptional balance sheet stability with minimal debt (debt-to-equity of 0.19) and recovering cash flows. However, contracting revenue and negative operating profit offset these strengths, highlighting a reliance on non-operating income.

Income Statement

50Neutral

Balance Sheet

90Very Positive

Cash Flow

60Neutral

Financial statement breakdown
Breakdown	TTM	Nov 2025	Nov 2024	Nov 2023	Nov 2022	Nov 2021
Income Statement
Total Revenue	6.19B	6.34B	7.20B	7.18B	6.92B	8.37B
Gross Profit	1.37B	1.47B	1.55B	1.45B	1.38B	1.68B
EBITDA	260.30M	722.04M	393.97M	1.51B	-337.08M	280.31M
Net Income	96.48M	403.10M	209.38M	1.21B	-566.03M	-5.37M
Balance Sheet
Total Assets	7.85B	8.55B	8.06B	8.20B	8.52B	9.64B
Cash, Cash Equivalents and Short-Term Investments	1.49B	1.53B	907.86M	1.32B	658.82M	775.12M
Total Debt	913.96M	961.70M	883.32M	931.73M	2.90B	3.48B
Total Liabilities	3.21B	3.70B	3.48B	3.92B	5.60B	6.25B
Stockholders Equity	4.64B	4.85B	4.58B	4.27B	2.91B	3.37B
Cash Flow
Free Cash Flow	0	29.66M	-710.24M	-445.98M	172.22M	233.90M
Operating Cash Flow	0	76.48M	-248.97M	-428.43M	181.12M	290.34M
Investing Cash Flow	0	208.10M	-81.60M	3.01B	238.81M	-26.69M
Financing Cash Flow	0	-16.09M	-61.98M	-2.03B	-591.22M	-118.44M

Kurogane Kosakusho Ltd. Technical Analysis

Technical Analysis SentimentPositive

Last Price1169.00

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 1169.00 is below 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
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:8130	82Outperform	JPY 185.10B	11.25	―	4.87%	3.91%	28.69%
JP:7997	76Outperform	JPY 2.04B	21.45	―	1.67%	-4.02%	-69.59%
JP:6484	73Outperform	JPY 17.42B	8.49	―	3.70%	3.70%	-9.08%
JP:7981	72Outperform	JPY 188.94B	13.17	―	4.24%	1.75%	7.95%
JP:7887	65Neutral	JPY 7.10B	4.03	―	2.82%	27.96%	217.85%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:7898	51Neutral	JPY 8.36B	-4.32	―	2.68%	2.16%	-194.33%

* General Sector Average

Performance Comparison

JP:7997 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:7997	Kurogane Kosakusho Ltd.	1195.00	145.50	13.86%
JP:6484	KVK Corporation	2161.00	-56.71	-2.56%
JP:7887	Nankai Plywood Co., Ltd.	1418.00	-42.85	-2.93%
JP:7898	Wood One Co., Ltd.	895.00	57.15	6.82%
JP:7981	Takara Standard Co., Ltd	3020.00	633.68	26.55%
JP:8130	Sangetsu Corporation	3180.00	309.95	10.80%

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

Kurogane Kosakusho Ltd. AI Stock Analysis