Kanematsu Corporation (8020) AI Stock Analysis

• Market Cap: ¥206.49B
• Dividend Yield: 4.25%
• Average Volume (3M): 374.98K
• Price to Earnings (P/E): 7.9
• Beta (1Y): 1.06
• Revenue Growth: 8.54%
• EPS Growth: 32.98%
• Country: JP
• Employees: 8,353
• Sector: Industrials
• Sector Strength: 81
• Industry: Conglomerates
• EPS (TTM): 312.10
• Shares Outstanding: 84,500,200
• 10 Day Avg. Volume: 299,400
• 30 Day Avg. Volume: 374,983
• PEG Ratio: 0.24
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Kanematsu Corporation's stock is rated at 74.0, reflecting strong financial performance characterized by solid income growth and effective cash flow management. The valuation is attractive due to a low P/E ratio and high dividend yield, which enhances its appeal. Technical indicators suggest cautious optimism, with mixed momentum signals. Overall, while the company is fundamentally strong, careful monitoring of liabilities and market momentum is advised.

Kanematsu Corporation Business Overview & Revenue Model

Company Description

Kanematsu Corporation is a prominent Japanese trading company, established in 1889, with a diverse portfolio spanning several sectors including electronics, food products, steel, materials, and chemicals. The company engages in import, export, and domestic business transactions, offering a wide array of products and services across its core sectors. It also focuses on providing solutions through its expertise in various industries and markets.

How the Company Makes Money

Kanematsu Corporation generates revenue through a multifaceted business model that involves trading, distribution, and value-added services across its core sectors. The company earns money by acting as an intermediary in the international trade of goods, leveraging its extensive network to facilitate import and export transactions. In the electronics sector, Kanematsu deals with components and systems used in various applications, while in the food sector, it handles the distribution of both raw and processed food products. The steel and materials sector involves the trade of metals and related products. Additionally, the chemicals sector includes the distribution of industrial chemicals and materials. The company also engages in strategic partnerships and alliances that enhance its market presence and offer growth opportunities. Revenue is further supported by its ability to adapt to market demands and provide tailored solutions to its clients.

Kanematsu Corporation Financial Statement Overview

Summary

Kanematsu Corporation displays a strong financial performance across all verticals. The income statement reflects robust revenue and profit growth, while the balance sheet shows a well-managed leverage position and strong equity returns. Cash flow generation is healthy, ensuring liquidity and financial flexibility. However, attention to liability management and capital expenditures will be crucial for maintaining financial health.

Income Statement

Kanematsu Corporation demonstrates strong revenue growth with a TTM revenue of ¥1,041 trillion, reflecting a significant increase from the previous fiscal year. The gross profit margin is robust at 14.57% in TTM, and the net profit margin is healthy at 2.50%, indicating efficient cost management. However, EBIT margin has slightly decreased in TTM compared to the previous year. Overall, the company shows solid growth and profitability.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 1.32 in TTM, suggesting balanced leverage. The return on equity (ROE) is strong at 14.99%, indicating effective use of equity to generate profits. The equity ratio has improved, reflecting a stable financial structure. However, the high total liabilities indicate a potential risk if not managed carefully.

Cash Flow

Kanematsu Corporation's free cash flow has grown significantly, with a TTM free cash flow of ¥43 trillion, driven by increased operating cash flows. The operating cash flow to net income ratio is satisfactory at 1.95, showing effective conversion of profits into cash. The company's ability to generate cash is strong, but ongoing capital expenditures warrant monitoring to ensure sustained free cash flow.

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
985.99B	911.41B	767.96B	649.14B	721.80B
	Gross Profit
142.56B	130.90B	111.80B	101.52B	110.91B
	EBIT
43.87B	38.90B	29.35B	23.64B	28.35B
	EBITDA
58.78B	49.65B	40.39B	35.30B	39.33B
	Net Income Common Stockholders
23.22B	18.57B	15.99B	13.31B	14.40B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
53.43B	85.09B	103.43B	87.56B	96.49B
	Total Assets
725.35B	677.59B	634.46B	557.50B	551.67B
	Total Debt
235.76B	248.57B	160.28B	139.48B	160.95B
	Net Debt
182.32B	169.11B	68.86B	58.44B	69.84B
	Total Liabilities
549.35B	534.16B	435.17B	377.00B	385.50B
	Stockholders Equity
159.32B	128.53B	159.48B	143.93B	130.83B
Cash Flow		Free Cash Flow
30.82B	-5.83B	11.07B	31.51B	16.49B
	Operating Cash Flow
35.58B	-296.00M	15.38B	36.98B	24.26B
	Investing Cash Flow
-12.42B	-16.68B	-10.55B	-9.93B	-10.21B
	Financing Cash Flow
-50.10B	4.75B	4.25B	-37.50B	-11.59B

Kanematsu Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2472.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8020, the sentiment is Positive. The current price of 2472.5 is above the 20-day moving average (MA) of 2312.75, above the 50-day MA of 2431.95, and above the 200-day MA of 2430.85, indicating a bullish trend. The MACD of 13.34 indicates Negative momentum. The RSI at 58.42 is Neutral, neither overbought nor oversold. The STOCH value of 91.91 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8020.

Kanematsu Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8031	79 Outperform	¥7.94T	9.07	11.74%	3.33%	10.04%	-13.12%
8002	77 Outperform	$4.25T	8.38	13.98%	3.52%	7.44%	8.27%
2768	74 Outperform	$712.07B	6.74	11.53%	4.63%	3.94%	13.79%
8020	74 Outperform	¥206.49B	7.92		4.25%	8.54%	32.98%
8053	73 Outperform	¥4.24T	7.55	12.19%	3.48%	5.52%	46.82%
8001	72 Outperform	$10.13T	11.44	15.55%	2.62%	4.95%	11.34%
Sector *	64 Neutral	$4.25B	11.72	5.24%	249.79%	4.07%	-9.45%

Kanematsu Corporation Corporate Events

Kanematsu Corporation Corrects Third Quarter Results

Kanematsu Corporation announced a correction to its ‘Supplementary Material Third Quarter Results for FY2025′ due to an error in the previously disclosed content. The company has provided a revised version of the document, highlighting the corrected sections, which could impact stakeholders’ understanding of the company’s financial performance.

Kanematsu Enhances Stock Compensation Plan with Additional Share Acquisition

Kanematsu Corporation has decided to enhance its performance-linked stock compensation plan by acquiring additional shares through a trust established for its directors and executive officers. This strategic move involves a significant monetary entrustment, reflecting the company’s commitment to aligning director incentives with corporate performance, which could potentially strengthen stakeholder confidence and the company’s market position.

Kanematsu Corporation Reports Revenue and Profit Growth in 2024

Kanematsu Corporation reported a growth in revenue and profits for the nine months ending December 31, 2024, with revenue increasing by 7.7% and profit before tax up by 6.3%. The company’s equity and total assets also showed improvement, indicating a strong financial position. The increase in dividends reflects a positive outlook, reinforcing confidence among stakeholders.