Kitazawa Sangyo Co., Ltd. (9930) AI Stock Analysis

Kitazawa Sangyo Co., Ltd.

(TSE/TYO:9930)

Select Model

Rating:64Neutral

Price Target:JPY 415.00▲(11.56% Upside)

Action:reiterated

Date:08/18/26

The overall score reflects a solid technical uptrend and a reasonable valuation, counterbalanced by concerning fundamental headwinds. While the balance sheet remains exceptionally strong with minimal debt, declining revenues and persistent cash burn present significant operational risks.

Positive Factors

Conservative Balance SheetLow leverage and a growing equity base provide financial flexibility during weaker earnings periods. This reduces refinancing risk and gives the company capacity to maintain operations, support customer projects, and absorb cyclical pressure.

Negative Factors

Two-Year Revenue DeclineSustained revenue contraction indicates weaker demand, customer activity, or competitive positioning in the foodservice equipment market. If the decline persists, lower sales volume could limit operating leverage and make fixed-cost absorption more difficult.

Kitazawa Sangyo Co., Ltd. (9930) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 6.92B
Dividend Yield: 2.69%
Average Volume (3M): 7,496
Price to Earnings (P/E): 16.9
Beta (1Y): 0.17
Revenue Growth: -6.21%
EPS Growth: -14.36%
Country: Japan
Employees: 382
Sector: General
Sector Strength: 55
Industry: Industrial - Machinery

Kitazawa Sangyo Co., Ltd. Business Overview & Revenue Model

Company Description

Founded in Tokyo, Japan, in 1951, Kitazawa Sangyo Co., Ltd. serves the food processing and foodservice sectors across the nation. The company provides a wide array of equipment, including machinery for food processing, cooking appliances, and special...

How the Company Makes Money

Kitazawa Sangyo primarily makes money by acting as a distributor/intermediary for commercial foodservice-related equipment and supplies, earning revenue from the sale of products to business customers. Its key revenue stream is product sales (i.e., p...

Kitazawa Sangyo Co., Ltd. Financial Statement Overview

Summary

Kitazawa Sangyo presents a mixed financial picture. The balance sheet is highly resilient, featuring minimal leverage with a debt-to-equity ratio of 0.18 and steadily growing equity. However, this is significantly offset by operational headwinds, including declining revenues, compressed net margins, and consecutive years of negative free cash flow.

Income Statement

42Neutral

Balance Sheet

82Very Positive

Cash Flow

30Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	14.10B	14.03B	15.56B	16.47B	16.22B	15.60B
Gross Profit	4.34B	4.39B	4.53B	4.61B	4.36B	4.00B
EBITDA	794.55M	879.06M	1.30B	1.32B	1.02B	658.39M
Net Income	409.06M	220.35M	648.48M	665.20M	455.48M	154.66M
Balance Sheet
Total Assets	16.82B	16.99B	18.09B	18.83B	17.25B	17.06B
Cash, Cash Equivalents and Short-Term Investments	3.46B	3.06B	3.88B	5.17B	4.08B	4.44B
Total Debt	2.10B	2.10B	2.10B	2.12B	2.12B	2.12B
Total Liabilities	5.68B	5.63B	7.30B	8.50B	7.89B	8.16B
Stockholders Equity	11.13B	11.36B	10.78B	10.34B	9.36B	8.90B
Cash Flow
Free Cash Flow	0	-746.50M	-656.12M	1.25B	147.95M	442.49M
Operating Cash Flow	0	-599.51M	-260.12M	1.44B	341.76M	552.04M
Investing Cash Flow	0	63.14M	-864.56M	-259.28M	-605.38M	-111.56M
Financing Cash Flow	0	-185.92M	-167.72M	-92.97M	-92.97M	-92.97M

Kitazawa Sangyo Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price372.00

Price Trends

50DMA393.42Negative

100DMA380.50Negative

200DMA364.59Positive

Market Momentum

MACD-2.97Positive

RSI33.82Neutral

STOCH36.85Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9930, the sentiment is Negative. The current price of 372.00 is below the 20-day moving average (MA) of 383.35, below the 50-day MA of 393.42, and above the 200-day MA of 364.59, indicating a neutral trend. The MACD of -2.97 indicates Positive momentum. The RSI at 33.82 is Neutral, neither overbought nor oversold. The STOCH value of 36.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9930.

Kitazawa Sangyo Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:9930 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:6488	81Outperform	JPY 12.16B	7.46	―	3.51%	8.79%	58.86%
JP:6402	76Outperform	JPY 8.71B	7.51	―	4.72%	4.59%	34.39%
JP:6405	71Outperform	JPY 14.45B	18.94	―	2.68%	7.41%	-18.23%
JP:6393	67Neutral	JPY 12.03B	10.25	―	5.13%	-1.68%	-9.54%
JP:6408	66Neutral	JPY 6.60B	3.64	―	2.26%	-2.81%	186.98%
JP:9930	64Neutral	JPY 7.01B	16.91	―	2.69%	-6.21%	-14.36%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

JP:9930 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:9930	Kitazawa Sangyo Co., Ltd.	372.00	18.25	5.16%
JP:6393	Yuken Kogyo Co., Ltd.	2922.00	111.97	3.98%
JP:6402	Kanematsu Engineering Co., Ltd.	1567.00	100.96	6.89%
JP:6405	Suzumo Machinery Co., Ltd.	1306.00	72.10	5.84%
JP:6408	Ogura Clutch Co., Ltd.	4425.00	875.05	24.65%
JP:6488	Yoshitake Inc.	996.00	94.90	10.53%

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 18, 2026

Kitazawa Sangyo Co., Ltd. AI Stock Analysis