Kuraray Co (KURRY) AI Stock Analysis

• Market Cap: $3.71B
• Dividend Yield: 2.52%
• Average Volume (3M): 0.00
• Price to Earnings (P/E): 36.2
• Beta (1Y): 0.52
• Revenue Growth: 0.36%
• EPS Growth: -69.11%
• Country: US
• Employees: 11,941
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 0.13
• Shares Outstanding: 108,287,865
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: -1.04
• Price to Book (P/B): 1.04
• Price to Sales (P/S): 0.96
• P/FCF Ratio: 12.71
• Enterprise Value/Market Cap: 1.40
• Enterprise Value/Revenue: <0.01
• Enterprise Value/Gross Profit: 0.02
• Enterprise Value/Ebitda: 0.05
• 1Y Price Target: $39.00
• Price Target Upside: 18.65% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 64 Neutral
• Price Target: $39.00 ▲(18.65% Upside)

Kuraray Co's overall stock score is driven by its strong financial performance, particularly in cash flow generation and revenue growth. However, technical analysis indicates mixed market sentiment, and valuation metrics suggest the stock may be overvalued. The absence of recent earnings call insights and corporate events limits additional context for the stock's outlook.

Kuraray Co Business Overview & Revenue Model

Company Description

Kuraray Co., Ltd. engages in the production and sale of resins, chemicals, fibers, activated carbon, and high-performance membranes and systems worldwide. The Vinyl Acetate segment manufactures and markets functional resins and films, including PVA, PVB and EVAL. The Isoprene segment engages in the manufacture and marketing of SEPTON thermoplastic elastomer, isoprene-related products, and GENESTAR. The Functional Materials segment manufactures and markets methacrylic resin, medical products, and carbon materials. The Fibers and Textiles segment manufactures and sells synthetic fibers and textiles, CLARINO manmade leather, non-woven fabrics, and other products. The Trading segment mainly processes and sells synthetic fibers and manmade leathers. The company was founded in 1926 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Kuraray generates revenue through several key streams. The largest portion comes from the sale of specialty chemicals and advanced materials, particularly PVA and its derivatives, which are used in diverse applications such as packaging, textiles, and construction. Additionally, the company earns money from its healthcare segment, which includes dental products and medical devices. Strategic partnerships with other companies in various sectors enhance Kuraray's market reach and product offerings, further driving sales. The company's focus on research and development enables it to introduce innovative products, allowing it to capture new markets and maintain competitive pricing, ultimately contributing to its earnings.

Kuraray Co Financial Statement Overview

Summary

Kuraray Co demonstrates a strong financial position with consistent revenue growth and effective cost management. 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	815.64B	826.89B	780.94B	756.38B	629.37B	541.80B
Gross Profit	251.87B	267.52B	239.98B	241.66B	204.14B	165.41B
EBITDA	108.56B	141.17B	141.25B	152.59B	131.26B	106.80B
Net Income	15.32B	31.72B	42.45B	54.31B	37.26B	2.57B
Balance Sheet
Total Assets	1.26T	1.29T	1.25T	1.22T	1.09T	1.05T
Cash, Cash Equivalents and Short-Term Investments	115.00B	121.69B	134.62B	128.58B	155.80B	192.24B
Total Debt	265.64B	244.28B	282.02B	324.40B	307.44B	341.39B
Total Liabilities	510.33B	509.45B	518.33B	553.00B	511.41B	536.11B
Stockholders Equity	730.12B	764.28B	714.63B	647.09B	560.40B	499.13B
Cash Flow
Free Cash Flow	0.00	62.52B	68.75B	-20.93B	8.04B	-4.97B
Operating Cash Flow	0.00	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: Negative
• Last Price: 32.87
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KURRY, the sentiment is Negative. The current price of 32.87 is below the 20-day moving average (MA) of 34.84, below the 50-day MA of 35.68, and below the 200-day MA of 37.74, indicating a bearish trend. The MACD of -0.37 indicates Negative momentum. The RSI at 36.11 is Neutral, neither overbought nor oversold. The STOCH value of 27.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KURRY.

Kuraray Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KURRY	64 Neutral	$3.71B	36.20	2.06%	2.52%	0.36%	-69.11%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
HUN	54 Neutral	$1.51B	―	-10.43%	12.32%	-1.56%	-259.58%
TROX	50 Neutral	$554.84M	―	-14.11%	12.84%	0.20%	-292.54%
DOW	46 Neutral	$15.65B	75.91	-5.59%	11.86%	-2.82%	-186.41%
CE	45 Neutral	$4.67B	6.84	-25.69%	2.01%	-5.83%	-183.85%
BAK	38 Underperform	$1.07B	―	-8638.28%	―	-3.33%	44.37%