Kanseki Co., Ltd. (9903) AI Stock Analysis

Kanseki Co., Ltd.

(TSE/TYO:9903)

Select Model

Rating:43Neutral

Price Target:JPY 850.00▼(-1.16% Downside)

Action:reiterated

Date:09/13/26

The overall score is low, driven primarily by significant financial weaknesses including declining revenue, thin margins, and high leverage. Persistent technical weakness across all major moving averages and momentum indicators further confirms a bearish trend. The attractive 3.4% dividend yield provides some support but is not enough to offset the fundamental and technical headwinds.

Positive Factors

Profitability recoveryReturning to profitability demonstrates that the business has regained some operating stability after the FY2024 loss. Although earnings remain modest, maintaining positive results over FY2025–FY2026 provides a foundation for further improvement if merchandising and store operations continue to strengthen.

Negative Factors

Weak revenue trendA flat-to-declining revenue base limits the company’s ability to spread store and operating costs across greater sales. Continued contraction would make the recent profit recovery harder to sustain and would increase reliance on margin improvement rather than healthy demand-driven growth.

Kanseki Co., Ltd. (9903) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 6.41B
Dividend Yield: 3.49%
Average Volume (3M): 2,113
Price to Earnings (P/E): 19.6
Beta (1Y): 0.04
Revenue Growth: -1.59%
EPS Growth: -36.98%
Country: Japan
Employees: 336
Sector: General
Sector Strength: 55
Industry: Home Improvement

Kanseki Co., Ltd. Business Overview & Revenue Model

Company Description

Kanseki Co., Ltd. is a Japanese retail group managing a diverse portfolio of businesses, including home improvement centers, specialty retail outlets, and related services. Its operations encompass pet stores that stock a wide variety of animals, fro...

How the Company Makes Money

Kanseki primarily makes money through retail sales to consumers at its specialty stores. Its core revenue stream is the sale of merchandise across its retail formats, generating gross profit from the spread between wholesale procurement costs and ret...

Kanseki Co., Ltd. Financial Statement Overview

Summary

Financial health is weak. Revenue is declining, profit margins are razor-thin (net margin 0.85%), and the balance sheet is highly leveraged with a debt-to-equity ratio of 1.74. While the company returned to profitability and reduced debt slightly, cash flow generation is volatile and insufficient to comfortably service debt.

Income Statement

35Negative

Balance Sheet

30Negative

Cash Flow

30Negative

Financial statement breakdown
Breakdown	TTM	Feb 2026	Feb 2025	Feb 2024	Feb 2023	Feb 2022
Income Statement
Total Revenue	39.94B	35.98B	37.07B	36.87B	38.63B	41.61B
Gross Profit	11.89B	10.04B	9.80B	8.21B	11.45B	12.63B
EBITDA	503.57M	964.99M	1.24B	-4.20B	1.75B	1.21B
Net Income	-711.63M	307.58M	518.41M	-5.22B	694.06M	-187.45M
Balance Sheet
Total Assets	30.41B	24.98B	24.48B	25.77B	30.15B	28.01B
Cash, Cash Equivalents and Short-Term Investments	1.21B	991.89M	812.45M	748.49M	1.12B	2.18B
Total Debt	13.15B	11.84B	11.92B	13.28B	12.51B	11.40B
Total Liabilities	19.21B	18.18B	18.31B	19.62B	19.00B	18.30B
Stockholders Equity	11.20B	6.80B	6.16B	6.15B	11.16B	9.71B
Cash Flow
Free Cash Flow	0	-34.68M	1.54B	-899.63M	-1.89B	171.37M
Operating Cash Flow	0	783.07M	2.20B	-316.02M	-1.38B	577.67M
Investing Cash Flow	0	-395.56M	-709.34M	-700.88M	-1.49B	-477.05M
Financing Cash Flow	0	-209.13M	-1.43B	649.04M	1.64B	-631.49M

Kanseki Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price860.00

Price Trends

50DMA885.90Negative

100DMA921.67Negative

200DMA910.91Negative

Market Momentum

MACD-8.26Positive

RSI42.97Neutral

STOCH27.27Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9903, the sentiment is Negative. The current price of 860.00 is below the 20-day moving average (MA) of 871.00, below the 50-day MA of 885.90, and below the 200-day MA of 910.91, indicating a bearish trend. The MACD of -8.26 indicates Positive momentum. The RSI at 42.97 is Neutral, neither overbought nor oversold. The STOCH value of 27.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9903.

Kanseki Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:9903 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:3191	76Outperform	JPY 139.00B	15.59	―	3.61%	3.06%	10.38%
JP:7516	68Neutral	JPY 146.43B	9.48	―	2.90%	6.28%	2.40%
JP:8218	60Neutral	JPY 192.13B	11.74	―	1.46%	2.97%	8.67%
JP:3050	59Neutral	JPY 221.04B	13.28	―	2.98%	5.43%	-7.20%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:2790	45Neutral	JPY 56.35B	134.03	0.24%	2.94%	-2.53%	―
JP:9903	43Neutral	JPY 5.98B	19.62	―	3.49%	-1.59%	-36.98%

* General Sector Average

Performance Comparison

JP:9903 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:9903	Kanseki Co., Ltd.	860.00	27.28	3.28%
JP:2790	NAFCO Co., Ltd.	1973.00	25.69	1.32%
JP:3050	DCM Holdings Co., Ltd.	1610.00	220.64	15.88%
JP:3191	Joyful Honda Co. Ltd.	2328.00	365.34	18.61%
JP:7516	Kohnan Shoji Co., Ltd.	4660.00	1038.56	28.68%
JP:8218	KOMERI CO., LTD.	3910.00	749.04	23.70%

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: Sep 13, 2026

Kanseki Co., Ltd. AI Stock Analysis