Strong Balance SheetA very strong capital structure with D/E of 0.10 and a 73% equity ratio provides durable financial flexibility. This reduces refinancing risk, allows funding of working capital and selective capex internally, and creates a multi-month buffer against cyclical auto-parts downturns.

Improving Cash GenerationMaterial improvement in free cash flow and an operating cash flow to net income ratio of 4.4 indicate real cash conversion even amid reported losses. Durable cash generation lowers reliance on external financing, supports ongoing operations and reinvestment, and helps sustain dividends or debt reduction over months.

Solid Gross Margins And Niche FocusA 37.3% gross margin suggests healthy product-level economics for its aftermarket accessory portfolio. Combined with a focused business model selling branded interior/exterior auto accessories through retail channels, this margin base supports medium-term recovery if SG&A and volumes stabilize.

Bears Say

Declining Revenue And Negative Net MarginTop-line weakness and a -2.1% net margin point to structural demand or mix issues. Ongoing revenue declines compress scale benefits and make it harder to restore profitability; sustained top-line erosion would increase unit costs and constrain long-term investment and shareholder returns.

Compressed Operating MarginsOperating margins at roughly 1.9% offer little cushion for input cost inflation or distribution disruptions. Thin operating profitability leaves the firm vulnerable in a cyclical auto-parts industry and limits capacity to fund R&D, marketing, or structural initiatives needed to regain growth.

Negative Return On EquityROE turning negative despite a strong equity base signals capital is not being deployed profitably. Over the medium term, persistently negative ROE can erode investor confidence, pressure dividend sustainability, and force difficult capital allocation choices if profitability does not recover.

Car Mate Mfg. Co Ltd News

Car Mate Mfg. Boosts Profitability Despite Lower Sales, Maintains Strong Balance Sheet and Dividend

Car Mate Mfg. Co Ltd ( ($JP:7297) ) has shared an update. Car Mate Mfg. Co., Ltd. reported...

17d ago

7297

Car Mate Mfg. Co., Ltd. Reports Decline in Quarterly Financial Performance

The latest update is out from Car Mate Mfg. Co Ltd ( ($JP:7297) ). Car Mate Mfg. Co.,...

7M ago

7297

Car Mate Mfg. Co., Ltd. Reports Mixed Financial Results with Optimistic Outlook

An update from Car Mate Mfg. Co Ltd ( ($JP:7297) ) is now available. Car Mate Mfg. Co.,...

9M ago

7297

Car Mate Mfg. Co. Reports Decline in Quarterly Profits but Shows Comprehensive Income Growth

Car Mate Mfg. Co Ltd ( ($JP:7297) ) has shared an update. Car Mate Mfg. Co., Ltd. reported...

1y ago

7297

7297 FAQ

What was Car Mate Mfg. Co Ltd’s price range in the past 12 months?

Car Mate Mfg. Co Ltd lowest stock price was ¥800.00 and its highest was ¥980.00 in the past 12 months.

What is Car Mate Mfg. Co Ltd’s market cap?

Car Mate Mfg. Co Ltd’s market cap is ¥6.64B.

When is Car Mate Mfg. Co Ltd’s upcoming earnings report date?

Car Mate Mfg. Co Ltd’s upcoming earnings report date is May 14, 2026 which is in 80 days.

How were Car Mate Mfg. Co Ltd’s earnings last quarter?

Car Mate Mfg. Co Ltd released its earnings results on Feb 06, 2026. The company reported ¥68.95 earnings per share for the quarter, beating the consensus estimate of N/A by ¥68.95.

Is Car Mate Mfg. Co Ltd overvalued?

According to Wall Street analysts Car Mate Mfg. Co Ltd’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Car Mate Mfg. Co Ltd pay dividends?

Car Mate Mfg. Co Ltd pays a Semiannually dividend of ¥15 which represents an annual dividend yield of 3.44%. See more information on Car Mate Mfg. Co Ltd dividends here

What is Car Mate Mfg. Co Ltd’s EPS estimate?

Car Mate Mfg. Co Ltd’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Car Mate Mfg. Co Ltd have?

Car Mate Mfg. Co Ltd has 7,928,885 shares outstanding.

What happened to Car Mate Mfg. Co Ltd’s price movement after its last earnings report?

Car Mate Mfg. Co Ltd reported an EPS of ¥68.95 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went up 0.555%.

Which hedge fund is a major shareholder of Car Mate Mfg. Co Ltd?

Currently, no hedge funds are holding shares in JP:7297

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

Car Mate Mfg. Co Ltd

Car Mate Mfg. Co., Ltd. primarily manufactures car accessories. It offers car supplies; car wash and care poducts; deodorants; fragrances; in-vehicle carrier; light lamps; baby child; engine starters; cameras; tire chain; rod holders; service and repair parts; remote control engine starter; car security; household goods; and GPS watching services, as well as snowboards;. The company also provides outdoor, leisure, and sporting goods. Car Mate Mfg. Co., Ltd. was founded in 1966 and is headquartered in Tokyo, Japan.