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6370:TSEKurita Water Industries Ltd. Analysis

Data as of 2026-03-14 - not real-time

¥7,792.00

Latest Price

5/10Risk

Risk Level: Medium

Executive Summary

Kurita Water Industries is trading below its short‑term moving average while still above longer‑term averages, indicating mixed short‑term momentum within an overall bullish trend. The stock’s price sits near a key support level, the RSI hovers in neutral territory and the MACD histogram is negative, suggesting caution for immediate entries. Fundamentally, the company carries a high price‑to‑earnings multiple relative to its industry peers and a DCF‑derived fair value that is substantially lower than the current market price, flagging potential overvaluation. Nonetheless, the dividend yield is modest but supported by a comfortable payout ratio, cash flow generation is solid, and the beta is low, pointing to limited market‑wide volatility.

Market Outlook

Short Term

< 1 year
Positive
Model confidence: 7/10

Key Factors

  • price near technical support with upside potential
  • stable trading volume supporting entry
  • neutral RSI indicating room for price appreciation

Medium Term

1–3 years
Neutral
Model confidence: 6/10

Key Factors

  • high valuation relative to peers
  • steady dividend yield and cash flow
  • ongoing regulatory environment for water treatment

Long Term

> 3 years
Cautious
Model confidence: 8/10

Key Factors

  • persistent overvaluation versus intrinsic fair value
  • low return on equity and high debt‑to‑equity ratio
  • potential headwinds from sector regulation and slower growth

Key Metrics & Analysis

Financial Health

Profit Margin5.70%
P/E Ratio38.3
ROE6.79%
ROA6.18%
Debt/Equity31.80
P/B Ratio2.4
Op. Cash Flow¥58.8B
Free Cash Flow¥31.0B
Industry P/E29.1

Technical Analysis

TrendBullish
RSI45.7
Support¥7,415.00
Resistance¥8,882.00
MA 20¥8,210.15
MA 50¥7,626.34
MA 200¥6,117.55
MACDBearish
VolumeStable
Fear & Greed Index72.88

Valuation

Fair Value¥3,418.52
Target Price¥8,805.00
Upside/Downside13.00%
GradeOvervalued
TypeValue
Dividend Yield1.44%

Risk Assessment

Beta0.57
Volatility41.83%
Sector RiskMedium
Reg. RiskMedium
Geo RiskMedium
Currency RiskMedium
Liquidity RiskLow

This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.