Autowave Co., Ltd. (2666) AI Stock Analysis

• Market Cap: ¥2.12B
• Dividend Yield: 2.04%
• Average Volume (3M): 133.41K
• Price to Earnings (P/E): 7.9
• Beta (1Y): 0.42
• Revenue Growth: 5.32%
• EPS Growth: 2.13%
• Country: JP
• Employees: 201
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Specialty Retail
• EPS (TTM): 5.74
• Shares Outstanding: 14,451,000
• 10 Day Avg. Volume: 40,000
• 30 Day Avg. Volume: 133,413
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• P/FCF Ratio: N/A
• 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

• Rating: 71 Outperform
• Price Target: ¥159.00 ▲(8.16%Upside)

Autowave Co., Ltd. receives a solid score due to its strong valuation metrics, indicating potential undervaluation and attractive dividend yield, which are significant strengths. The company's financial performance is commendable with growth and reduced financial risk, though there's room for improvement in profitability and cash efficiency. Technical analysis presents a mixed picture, with short-term weakness but longer-term bullishness, slightly impacting the overall score.

Autowave Co., Ltd. Business Overview & Revenue Model

Company Description

AUTOWAVE Co., Ltd. engages in the sales of automobile supplies and related services in Japan. The company offers tires and wheels, vehicle inspection/sheet metal, oil batteries, and other car supplies. It also offers car navigation, rear monitor, back camera, and terrestrial digital tuner. In addition, the company sells and installs speakers, woofers, and power amplifiers. Further, it provides body coat, car film, window glass water repellent coat, wheel coat, headlight coat, and safety products, as well as purchases and sells new and used cars. AUTOWAVE Co., Ltd. was incorporated in 1960 and is headquartered in Chiba, Japan.

How the Company Makes Money

Autowave Co., Ltd. generates revenue through the sale of automotive parts and accessories. Its primary revenue streams include retail sales to individual customers and wholesale distribution to businesses. The company may also earn income from service offerings such as installation and maintenance of automotive equipment. Strategic partnerships with manufacturers and suppliers ensure a steady supply of products, contributing to its earnings. Additionally, Autowave Co., Ltd. may engage in promotional activities and leverage its retail network to drive sales and expand its market presence.

Autowave Co., Ltd. Financial Statement Overview

Summary

Autowave Co., Ltd. demonstrates a healthy financial position with solid revenue growth and improved leverage ratios. The company maintains operational efficiency with stable gross margins, though net profitability could be enhanced. The balance sheet shows a stronger equity position, reducing financial risk. Cash flow remains stable, though recent declines in Free Cash Flow suggest the need for improved cash efficiency. Overall, the company is on a positive trajectory with opportunities to optimize profitability and cash generation.

Income Statement

Autowave Co., Ltd. has demonstrated steady revenue growth with an increase from 7,063 million to 8,871 million over the past five years. The Gross Profit Margin has been stable around 31-32%, indicating efficient cost management. However, the Net Profit Margin remains modest at approximately 3%, suggesting room for improvement in net profitability. EBIT and EBITDA margins are consistent, showing operational efficiency. The company shows a positive revenue growth trajectory, but profitability margins indicate potential areas for enhancement.

Balance Sheet

The company's Debt-to-Equity Ratio has improved over the years, moving from 0.88 to 0.38, indicating reduced leverage and financial risk. Return on Equity (ROE) is stable around 6-7%, reflecting moderate profitability for shareholders. The Equity Ratio has increased to about 55%, enhancing asset financing through equity rather than debt. While the balance sheet shows strengthened equity positions, there is still potential risk in terms of the overall low ROE.

Cash Flow

Operating Cash Flow has shown fluctuations but remains positive, indicating good cash generation from operations. Free Cash Flow has declined in the latest year, with a reduction in Free Cash Flow to Net Income Ratio from 1.74 to 0.51, suggesting decreased cash efficiency. The Operating Cash Flow to Net Income Ratio remains above 1, indicating solid cash flow relative to net income. The cash flow statement indicates stability with some room for improvement in Free Cash Flow generation.

Breakdown
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
8.87B	8.42B	7.99B	7.42B	7.06B
	Gross Profit
2.78B	2.73B	2.68B	2.41B	2.35B
	EBIT
274.46M	333.72M	296.12M	149.03M	118.25M
	EBITDA
623.33M	668.83M	645.61M	492.14M	454.16M
	Net Income Common Stockholders
268.75M	263.13M	259.57M	141.06M	142.04M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
529.69M	650.70M	606.74M	764.18M	1.13B
	Total Assets
7.52B	7.40B	7.46B	7.57B	8.03B
	Total Debt
1.58B	1.78B	1.98B	2.23B	2.83B
	Net Debt
1.05B	1.13B	1.38B	1.47B	1.71B
	Total Liabilities
3.38B	3.49B	3.78B	4.12B	4.68B
	Stockholders Equity
4.14B	3.91B	3.68B	3.45B	3.35B
Cash Flow		Free Cash Flow
136.41M	396.95M	207.97M	367.55M	458.84M
	Operating Cash Flow
325.10M	537.51M	367.75M	560.33M	571.10M
	Investing Cash Flow
-203.26M	-260.97M	-245.65M	-292.09M	-186.81M
	Financing Cash Flow
-242.84M	-232.58M	-279.55M	-628.46M	-265.00M

Autowave Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 147.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2666, the sentiment is Positive. The current price of 147 is above the 20-day moving average (MA) of 145.00, above the 50-day MA of 145.88, and above the 200-day MA of 131.16, indicating a bullish trend. The MACD of 0.56 indicates Negative momentum. The RSI at 54.90 is Neutral, neither overbought nor oversold. The STOCH value of 78.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2666.

Autowave Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2666	71 Outperform	¥2.12B	7.90		2.04%	5.32%	2.13%
Sector *	62 Neutral	$6.76B	11.07	2.80%	6.34%	2.68%	-24.87%
AB6		€676.14M	13.47	6.22%	4.33%	―	―
2751	74 Outperform	¥39.89B	19.53		0.27%	24.11%	22.03%
2674	70 Outperform	¥23.83B	10.31		4.43%	11.38%	10.56%
2681	58 Neutral	¥62.56B	13.79		2.16%	-1.42%	-58.51%
3059	47 Neutral	¥4.14B	262.06		2.35%	-2.66%	-4452.83%