Kyushu Leasing Service Co., Ltd. (8596) AI Stock Analysis

Kyushu Leasing Service Co., Ltd.

(TSE/TYO:8596)

Select Model

Rating:57Neutral

Price Target:JPY 1,687.00▲(15.63% Upside)

Action:reiterated

Date:08/11/26

Kyushu Leasing Service scores a moderate 57, reflecting a tension between attractive valuation metrics and concerning fundamental risks. The low P/E of 8.6x and 3.6% dividend yield provide valuation support, and the stock's technical trend is positive with price above all major moving averages. However, the score is held back by persistently negative cash flows, high financial leverage (3x+ debt-to-equity), and only moderate profitability — all of which create vulnerability to rising interest rates and credit market disruptions in Japan. Overbought technical signals (RSI >71, Stochastic >92) add near-term caution. The stock offers value characteristics but carries above-average financial risk for the leasing sector.

Positive Factors

Consistent operating profitabilitySteady gross margins in the low‑to‑mid 20% and improving EBIT into the mid‑teens show durable operating leverage for a leasing firm. These margins provide a structural buffer against credit losses and funding cost swings, supporting sustained earnings power and internal capacity to service obligations.

Negative Factors

Elevated leverageDebt at roughly 3.2–3.6x equity represents materially elevated leverage for a leasing firm. High leverage reduces financial flexibility, increases refinancing and interest‑rate sensitivity, and amplifies downside in credit stress—making the company reliant on market funding and costly to defend during tightening cycles.

Kyushu Leasing Service Co., Ltd. (8596) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 33.04B
Dividend Yield: 4.18%
Average Volume (3M): 26.53K
Price to Earnings (P/E): 7.7
Beta (1Y): 0.83
Revenue Growth: 16.61%
EPS Growth: 17.27%
Country: Japan
Employees: 189
Sector: General
Sector Strength: 55
Industry: Financial - Credit Services

Kyushu Leasing Service Co., Ltd. Business Overview & Revenue Model

Company Description

Kyushu Leasing Service Co., Ltd. functions as a diversified financial services enterprise based in Japan. The company's core activities include the leasing and deferred payment sales of industrial machinery and equipment, alongside offering corporate...

How the Company Makes Money

Kyushu Leasing Service Co., Ltd. primarily makes money by earning returns from leasing and finance transactions. Key revenue streams typically include: (1) lease income (payments received from customers under lease contracts for equipment and other l...

Kyushu Leasing Service Co., Ltd. Financial Statement Overview

Summary

Revenue growth and improving operating margins are positives, but the overall financial picture is weighed down significantly by persistently negative operating and free cash flows (Cash Flow Score: 28), high leverage with debt-to-equity above 3x (Balance Sheet Score: 40), and only moderate profitability with volatile net income (Income Statement Score: 62). The company's heavy reliance on external debt financing to fund lease portfolio growth introduces meaningful refinancing and interest rate risk, particularly as the Bank of Japan normalizes monetary policy.

Income Statement

62Positive

Balance Sheet

40Negative

Cash Flow

28Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	38.22B	35.84B	39.34B	33.51B	36.80B	29.55B
Gross Profit	9.49B	8.11B	8.99B	8.01B	8.46B	5.97B
EBITDA	7.98B	7.19B	6.81B	5.79B	6.72B	4.39B
Net Income	4.29B	3.93B	3.57B	3.05B	5.86B	2.13B
Balance Sheet
Total Assets	219.44B	219.59B	201.93B	193.40B	175.51B	169.42B
Cash, Cash Equivalents and Short-Term Investments	4.68B	6.33B	4.91B	5.09B	6.09B	4.95B
Total Debt	151.98B	153.81B	140.30B	135.83B	119.96B	120.99B
Total Liabilities	173.13B	174.09B	159.31B	153.25B	137.63B	135.95B
Stockholders Equity	46.15B	45.34B	42.49B	39.79B	37.56B	33.34B
Cash Flow
Free Cash Flow	0	-7.82B	-3.33B	-14.93B	-1.41B	-19.89B
Operating Cash Flow	0	-7.77B	-3.25B	-14.87B	-1.30B	-19.88B
Investing Cash Flow	0	-2.89B	-68.00M	-903.00M	3.62B	-81.00M
Financing Cash Flow	0	12.06B	3.14B	14.73B	-1.16B	20.19B

Kyushu Leasing Service Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price1459.00

Price Trends

50DMA1522.74Negative

100DMA1493.62Negative

200DMA1443.62Positive

Market Momentum

MACD-13.00Negative

RSI38.41Neutral

STOCH23.36Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8596, the sentiment is Negative. The current price of 1459.00 is below the 20-day moving average (MA) of 1481.65, below the 50-day MA of 1522.74, and above the 200-day MA of 1443.62, indicating a neutral trend. The MACD of -13.00 indicates Negative momentum. The RSI at 38.41 is Neutral, neither overbought nor oversold. The STOCH value of 23.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:8596.

Kyushu Leasing Service Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:8596 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:9699	85Outperform	JPY 118.51B	10.79	―	3.11%	-1.83%	-7.27%
JP:9619	84Outperform	JPY 64.67B	5.11	―	3.18%	6.28%	84.38%
JP:5834	58Neutral	JPY 39.79B	5.74	―	4.86%	47.13%	16.70%
JP:8596	57Neutral	JPY 33.43B	7.69	―	4.18%	16.61%	17.27%
JP:8424	57Neutral	JPY 387.04B	17.16	―	3.89%	18.54%	-54.13%
JP:8439	57Neutral	JPY 1.25T	9.88	―	3.54%	8.43%	47.30%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

JP:8596 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:8596	Kyushu Leasing Service Co., Ltd.	1459.00	199.00	15.79%
JP:5834	SBI Leasing Services Co.,Ltd.	2470.00	70.96	2.96%
JP:8424	Fuyo General Lease Co., Ltd.	4243.00	336.36	8.61%
JP:8439	Tokyo Century Corporation	2514.50	734.83	41.29%
JP:9619	ICHINEN HOLDINGS CO., LTD.	2736.00	743.79	37.34%
JP:9699	NISHIO HOLDINGS CO. LTD.	4245.00	8.77	0.21%

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 11, 2026

Kyushu Leasing Service Co., Ltd. AI Stock Analysis