Kuraray Co (KURRY) AI Stock Analysis

• Market Cap: $3.99B
• Dividend Yield: 2%
• Average Volume (3M): 35.00
• Price to Earnings (P/E): 28.0
• Beta (1Y): 0.60
• Revenue Growth: -0.26%
• EPS Growth: -61.51%
• Country: US
• Employees: 11,941
• Sector: Basic Materials
• Sector Strength: 60
• Industry: Chemicals
• EPS (TTM): 0.73
• Shares Outstanding: 108,287,865
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 35
• PEG Ratio: -1.94
• Price to Book (P/B): 0.76
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.02
• 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

Kuraray Co's financial strength is evident in its strong revenue growth and cash generation capabilities. The mixed technical indicators suggest cautious optimism, with short-term upward momentum but potential overbought signals. The valuation is reasonable, with a moderate P/E ratio and a solid dividend yield. Overall, the company's robust fundamentals support a positive stock outlook, albeit with some caution due to profitability margin pressures.

Kuraray Co Business Overview & Revenue Model

Company Description

Kuraray Co., Ltd. is a leading global specialty chemical company headquartered in Japan. The company operates across several sectors, including chemicals, resins, textiles, and high-performance materials. Kuraray is renowned for its innovative products such as synthetic fibers, high-performance resins, functional materials, and medical products, catering to a wide range of industries including automotive, electronics, construction, and healthcare.

How the Company Makes Money

Kuraray Co. generates revenue through the production and sale of a diverse array of chemical products and materials. Its key revenue streams include high-performance resins and films, which are used in automotive and electronic applications, and functional materials like water-soluble polymers for various industrial applications. The company also profits from its segment of synthetic fibers, which are utilized in textiles and industrial materials. Additionally, Kuraray's medical products division contributes to its earnings by providing dental and other healthcare-related materials. The company benefits from strategic partnerships and collaborations that enhance its research and development capabilities, driving innovation and expanding its product portfolio to meet global demand.

Kuraray Co Financial Statement Overview

Summary

Overall, Kuraray Co demonstrates a strong financial position with consistent revenue growth and effective cost management, as seen in its income statement. The balance sheet reflects a healthy equity position, though leverage management is crucial. The cash flow statements indicate excellent cash generation capabilities, supporting future growth and investment. While profitability margins have room for improvement, the company's financial fundamentals are solid and poised for sustainable growth.

Income Statement

Kuraray Co has shown a commendable revenue growth in recent years, with a 5.88% increase from 2023 to 2024. The gross profit margin for 2024 is solid at 32.35%, reflecting strong cost management. However, the net profit margin has declined from previous years, standing at 3.84% for 2024, indicating challenges in converting revenue into net profit. The EBIT and EBITDA margins are stable, showing operational efficiency. Overall, the income statement reflects steady growth with some pressure on profitability.

Balance Sheet

The balance sheet of Kuraray Co is relatively stable, with an equity ratio of 59.21% in 2024, demonstrating financial health and a strong equity position. However, the debt-to-equity ratio of 0.32 indicates a moderate level of leverage, which could pose risks if not managed well. The return on equity (ROE) has decreased over time, reaching 4.15% in 2024, suggesting room for improvement in generating shareholder returns.

Cash Flow

Kuraray Co's cash flow position is robust, with an operating cash flow to net income ratio of 4.36 in 2024, indicating strong cash generation relative to profits. The free cash flow has improved significantly from a negative position in prior years to positive free cash flow in 2024, though it did decrease from the previous year. This reflects effective cash management and investment strategies.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
811.16B	826.89B	780.94B	756.38B	629.37B	541.80B
	Gross Profit
253.57B	267.52B	239.98B	241.66B	204.14B	165.41B
	EBIT
79.97B	85.08B	75.47B	87.14B	72.26B	44.34B
	EBITDA
157.16B	141.17B	141.25B	152.59B	131.26B	106.80B
	Net Income Common Stockholders
51.05B	31.72B	42.45B	54.31B	37.26B	2.57B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
125.76B	121.69B	134.62B	128.58B	155.80B	192.24B
	Total Assets
1.29T	1.29T	1.25T	1.22T	1.09T	1.05T
	Total Debt
266.84B	244.28B	282.02B	324.40B	307.44B	341.39B
	Net Debt
141.08B	126.21B	150.88B	200.68B	155.50B	157.07B
	Total Liabilities
512.45B	509.45B	518.33B	553.00B	511.41B	536.11B
	Stockholders Equity
762.75B	764.28B	714.63B	647.09B	560.40B	499.13B
Cash Flow		Free Cash Flow
73.86B	62.52B	68.75B	-20.93B	8.04B	-4.97B
	Operating Cash Flow
73.86B	138.29B	129.30B	51.73B	78.22B	79.95B
	Investing Cash Flow
0.00	-76.01B	-63.15B	-68.62B	-65.59B	-64.03B
	Financing Cash Flow
0.00	-82.50B	-64.96B	-12.05B	-47.45B	91.51B

Kuraray Co Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 37.32
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KURRY, the sentiment is Neutral. The current price of 37.32 is above the 20-day moving average (MA) of 35.09, above the 50-day MA of 36.02, and below the 200-day MA of 39.63, indicating a neutral trend. The MACD of 0.20 indicates Negative momentum. The RSI at 59.65 is Neutral, neither overbought nor oversold. The STOCH value of 93.89 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for KURRY.

Kuraray Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KURRY	72 Outperform	$3.99B	27.98	2.92%	2.00%	-0.26%	-61.51%
WLKP	72 Outperform	$801.32M	15.24	10.22%	8.30%	-6.76%	-3.19%
CE	56 Neutral	$5.86B	6.84	-26.94%	2.80%	-5.98%	-183.27%
HUN	54 Neutral	$2.21B	―	-4.46%	8.07%	0.02%	-43.65%
Sector *	50 Neutral	$1.98B	-1.12	-21.33%	3.61%	1.68%	-30.56%
TROX	48 Neutral	$858.87M	―	-8.44%	9.29%	4.15%	57.25%
BAK	41 Neutral	$1.47B	―	-8638.28%	―	0.81%	-34.74%