Breaking Down KeePer Technical Laboratory Co., Ltd. Financial Health: Key Insights for Investors

KeePer Technical Laboratory's recent results offer a data-rich snapshot for investors: fiscal year revenue reached ¥23.09 billion - a 12.24% jump from ¥20.57 billion - with trailing-twelve-month growth of 14.75%, revenue per employee at about ¥21.81 million across 1,041 staff, and a market capitalization of ¥89.79 billion; profitability remains robust with an operating profit margin of 33.3% for the six months to Dec 31, 2024, net income of ¥4.89 billion for the year to June 30, 2025 (EPS ¥179), and ROE at 27.4%, while conservative leverage (debt-to-equity 7.78%), cash and equivalents of ¥4.17 billion (down 18.79% YoY), a P/E of 20.33, P/S 3.95 and P/B 4.24, a steady annual dividend of ¥60 per share (yield 1.79%) and analyst consensus 'Buy' with a ¥4,585 12‑month target all frame a picture of strong margins, low leverage and market premium valuation - yet risks from raw-material swings, competition, regulatory shifts, currency volatility and supply-chain disruption sit alongside growth levers such as international expansion, the Mobile KeePer tie-up with KDDI's au, B2B diversification, online booking enhancements and a 30% carbon reduction goal by 2030 that together make a closer read of the detailed financials essential

KeePer Technical Laboratory Co., Ltd. (6036.T) - Revenue Analysis

• Fiscal year ended June 30, 2025 revenue: ¥23.09 billion (up 12.24% vs. ¥20.57 billion in FY2024).
• Trailing twelve months (ending March 31, 2025) revenue growth: 14.75% year-over-year.
• Revenue per employee: ≈ ¥21.81 million based on 1,041 employees.
• Price-to-Sales (P/S) ratio: 3.95.
• Market capitalization: ¥89.79 billion.
• Revenue growth outpaces the industry average, indicating stronger-than-peer top-line expansion and market positioning.

KeePer Technical Laboratory Co., Ltd. (6036.T) - Profitability Metrics

KeePer Technical Laboratory's recent results show sustained margin strength and rising bottom-line earnings, driven by higher operating efficiency and shareholder returns. Key figures for the six months ending December 31, 2024, and the fiscal year ending June 30, 2025, illustrate the company's profitability profile.

• Operating profit margin (6 months to Dec 31, 2024): 33.3% (up from 31.0% year-over-year)
• Operating profit (6 months to Dec 31, 2024): ¥4.03 billion (21.4% YoY increase; prior period ≈ ¥3.32 billion)
• Net income (FY to Jun 30, 2025): ¥4.89 billion (↑11% vs. ¥4.39 billion prior year)
• Earnings per share (FY to Jun 30, 2025): ¥179 (↑ from ¥162)
• Net profit margin (FY to Jun 30, 2025): 21.0% (consistent with prior fiscal year)
• Return on equity (most recent reported): 27.4%

Notable takeaways:

• High operating profit margin (33.3%) and a 21.4% rise in operating profit for the half-year indicate scalable cost control and favorable revenue mix.
• Net income growth of 11% and EPS increase to ¥179 reflect consistent earnings expansion without compression of net margins (net margin steady at 21%).
• ROE of 27.4% signals efficient deployment of shareholders' equity and strong return-generation relative to equity base.

For context on strategic direction that may underpin these profitability trends, see Mission Statement, Vision, & Core Values (2026) of KeePer Technical Laboratory Co., Ltd.

KeePer Technical Laboratory Co., Ltd. (6036.T) - Debt vs. Equity Structure

• Debt-to-Equity Ratio: 7.78% - indicates limited use of debt financing and low leverage risk.
• Equity-to-Asset Ratio: stable (reflects a balanced capital structure and consistent shareholder equity proportion).
• Price-to-Book (P/B) Ratio: 4.24 - market values equity at a significant premium to book value.
• Annual Dividend: ¥60 per share - maintained consistently, signaling shareholder returns priority.
• Dividend Payout Characteristics: dividend yield 1.79% - provides a steady income stream, albeit modest yield vs. growth valuation.
• Low debt levels contribute to financial stability and lower financial risk, supporting resilience in downturns.

KeePer Technical Laboratory Co., Ltd. (6036.T) - Liquidity and Solvency

• Cash and cash equivalents: ¥4.17 billion (down 18.79% YoY from ¥5.14 billion as of June 30, 2024).
• Operating cash flow: positive, supporting operations and capital expenditures (¥1.20 billion in H1 2025).
• Current ratio: 1.80x - indicates adequate short‑term liquidity to cover current liabilities.
• Quick ratio (ex‑inventory): 1.40x - suggests sufficient immediate liquidity for near‑term obligations.
• Solvency ratio (total equity / total assets): 0.68 (68.0%) - strong capacity to meet long‑term liabilities.
• Total assets: ¥30.50 billion (increase YoY), Net assets (equity): ¥20.70 billion, equity‑to‑asset ratio stable at ~67.9%.

• Reduced cash balance reflects working capital movements and investment activity, but positive operating cash flow and strong equity provide buffers.
• Inventory levels (not included in quick ratio) appear manageable relative to current liabilities, supporting the gap between current and quick ratios.
• Stable equity‑to‑asset ratio and rising net assets underpin long‑term solvency and potential for continued investment in growth and R&D.

KeePer Technical Laboratory Co., Ltd. (6036.T) - Valuation Analysis

• Price-to-Earnings (P/E): 20.33 - indicates moderate valuation relative to earnings; suggests investors pay a premium for earnings stability and growth prospects.
• Price-to-Sales (P/S): 3.95 - reflects the market's valuation of revenue; revenue-generating capacity is priced above peers with lower P/S ratios.
• Price-to-Book (P/B): 4.24 - implies the market values equity at a significant premium to accounting book value, signaling strong intangible assets, brand value, or expected returns on capital.
• Market Capitalization: ¥89.79 billion - denotes the company's size and the scale of investor commitment.
• Dividend Yield: 1.79% - provides shareholders with a modest, steady income component to total return.
• Analyst Consensus: Buy - with a 12‑month price target of ¥4,585, indicating analyst expectations of upside from current trading levels.

• Moderate P/E suggests earnings are reasonably priced but not cheap - watch EPS growth to justify valuation.
• Elevated P/B and P/S imply expectations of above-average return on equity and revenue quality; assess intangible asset drivers and margin sustainability.
• Dividend yield supplements total return but is modest; total returns will likely depend more on capital appreciation tied to execution and market multiple expansion.
• Analyst buy-side sentiment and the ¥4,585 target point to perceived upside - monitor guidance, order trends, and margin trajectory to validate the target.

KeePer Technical Laboratory Co., Ltd. (6036.T) Risk Factors

KeePer Technical Laboratory Co., Ltd. (6036.T) operates in a capital- and input-sensitive automotive care and coating market. The company's financial health can be affected by a set of identifiable risks that may materially influence revenue, margins and cash flow. Below are the principal risk vectors and quantified sensitivity examples to help investors gauge potential impact.

• Fluctuations in raw material prices: KeePer relies on chemical inputs and specialty coatings. A sustained 10%-20% rise in key raw material costs (resins, solvents, additives) can compress gross margins by an estimated 2-6 percentage points depending on product mix and pricing pass-through speed.
• Economic downturns and consumer demand: During recessions, discretionary automotive services (detailing, premium coatings) typically see demand declines of 8%-20% year-over-year; this can reduce revenue and operating leverage given relatively fixed store and support costs.
• Intense competition: Domestic and international entrants offering lower-priced alternatives or subscription/maintenance models may exert price pressure and limit KeePer's market-share growth, particularly in urban and fleet segments.
• Regulatory and environmental changes: Stricter VOC (volatile organic compound) regulations or new wastewater/chemical handling requirements could require capital expenditures and reformulation costs, potentially raising annual compliance and CAPEX needs by JPY hundreds of millions depending on rollout timing.
• Currency exchange rate volatility: Exports and imported raw materials expose KeePer to JPY/USD and JPY/CNY swings. A 5% adverse move in exchange rates can reduce translated international revenue and increase input costs, affecting net income by a low-single-digit percentage.
• Supply chain disruptions: Logistics constraints, supplier shutdowns, or port delays can cause inventory shortages and lost sales. Short-term disruptions (1-4 weeks) may lower quarterly revenue by several percent; prolonged interruptions can force price promotions or substitution costs.

To illustrate potential financial sensitivity, the table below models example impacts under a few downside scenarios (values are illustrative ranges to demonstrate magnitude of effects):

Risk mitigation and monitoring items investors should watch include pricing pass-through ability, inventory days and supplier concentration, capex plans tied to environmental compliance, FX hedging policies, and quarterly revenue sensitivity to consumer spending. For additional investor-focused context and shareholder activity, see Exploring KeePer Technical Laboratory Co., Ltd. Investor Profile: Who's Buying and Why?

KeePer Technical Laboratory Co., Ltd. (6036.T) - Growth Opportunities

KeePer Technical Laboratory Co., Ltd. (6036.T) sits at the intersection of automotive exterior services, coatings technology, and retail convenience. Several strategic levers can drive top-line expansion and margin improvement over the next 3-5 years.

• International expansion: targeting nearby Asian markets (e.g., South Korea, Taiwan, Thailand) where vehicle parc growth remains positive can expand addressable market beyond Japan's ~60 million registered passenger vehicles.
• New product lines: rollouts like the Mobile KeePer service (in partnership with KDDI's au brand) broaden customer reach by converting retail and fleet customers through on-site service.
• Digital & store capability enhancements: investment in online booking, CRM, dynamic pricing and POS integration will increase conversion and repeat rates among both retail and B-to-B customers.
• B-to-B diversification: expanding into non-automotive coatings and industrial finishing opens higher-volume contracts and reduces cyclical dependence on consumer auto traffic.
• Sustainability & ESG: committing to a 30% CO2 emissions reduction by 2030 strengthens corporate reputation and can unlock green procurement and fleet contracts.
• Strategic partnerships: alliances with telcos, logistics firms, and automotive OEMs create new distribution channels and recurring-service contracts.

Quantifying the opportunity: illustrative scenarios below show how incremental adoption of these levers could affect annual revenue assuming a baseline indexed to 100.

• Near-term KPIs to track: new store openings (domestic & international), Mobile KeePer monthly active users, online booking penetration (% of total bookings), B-to-B contract backlog (¥ millions), and carbon emissions (scope 1-3 baseline and annual % reduction).
• Investment priorities: platform and API development, field service logistics for Mobile KeePer, training & certification for new non-automotive coatings, and capital-light partnership models to accelerate presence overseas.
• Risk mitigants: pilot markets for Mobile KeePer, phased capex tied to KPI triggers, and co-investment with channel partners to reduce balance-sheet exposure.

For corporate context and the company's stated strategic orientation, see Mission Statement, Vision, & Core Values (2026) of KeePer Technical Laboratory Co., Ltd.