Toyota Boshoku (3116) AI Stock Analysis

• Market Cap: ¥571.83B
• Dividend Yield: 3.42%
• Average Volume (3M): 503.29K
• Price to Earnings (P/E): 33.5
• Beta (1Y): 0.95
• Revenue Growth: 2.10%
• EPS Growth: -50.33%
• Country: JP
• Employees: 46,972
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 37.08
• Shares Outstanding: 187,665,740
• 10 Day Avg. Volume: 475,820
• 30 Day Avg. Volume: 503,286
• PEG Ratio: -0.30
• Price to Book (P/B): 0.79
• Price to Sales (P/S): 0.18
• P/FCF Ratio: 7.22
• 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
• EPS Forecast (FY): 267.04
• Revenue Forecast (FY): ¥2.00T

• Rating: 66 Neutral
• Price Target: ¥3,457.00 ▲(46.30% Upside)
• Action: Downgraded Date: 02/05/26
• Date: Action: Downgraded 02/05/26

The score is driven mainly by solid cash generation and a stable balance sheet, which help offset currently weak profitability and reduced margins versus 2024. Technically, the stock is in a strong uptrend but looks somewhat overbought, while valuation is a headwind due to a relatively high P/E despite a supportive dividend yield.

Positive Factors

Strong cash generation

Sustained free cash flow gives Toyota Boshoku durable financial flexibility to fund program tooling, capex for localization, dividends or debt reduction. In a cyclical auto-supply industry, reliable cash generation supports survival through downturns and enables strategic reinvestment.

Manageable leverage and growing equity

A modest debt load and expanding equity base provide balance-sheet resilience that supports long-term supplier commitments and capital-intensive program launches. This financial headroom helps absorb volume swings and funds localized production near automaker plants.

Resilient revenue scale and multi-year rebound

Consistent top-line recovery reflects durable demand for seats, interior systems and filtration across automakers, and benefits from Toyota group linkage. Scale and diversified product lines sustain bargaining power on program bids and support long-term customer relationships.

Negative Factors

Thin profitability and compressed margins

Very slim margins constrain the company's ability to convert revenue into returns and buffer against input-cost inflation. For a parts supplier, persistent margin compression limits reinvestment, reduces pricing power, and increases exposure to commodity or labor cost swings.

Weakened return on equity

Declining ROE signals the balance sheet is not translating into shareholder returns as effectively as before. If ROE remains depressed, it can pressure capital allocation, limit dividend growth and undermine investor confidence in long-term capital efficiency.

Volatile earnings quality and cash conversion

Inconsistent conversion of earnings to cash reduces predictability of funds for capex, program investments and shareholder returns. For an OEM supplier facing program timing and tooling costs, volatile cash conversion complicates planning and raises refinancing risk in weaker cycles.

Toyota Boshoku Business Overview & Revenue Model

Company Description

Toyota Boshoku Corporation (3116) is a global automotive parts manufacturer headquartered in Japan, specializing in the development and production of interior and filtration components for vehicles. The company operates primarily in the automotive sector, offering a wide range of products, including seat systems, door trims, and air filters. Toyota Boshoku is a key supplier for Toyota Motor Corporation as well as other automotive manufacturers, contributing to its strong presence in the automotive supply chain.

How the Company Makes Money

Toyota Boshoku generates revenue primarily through the sale of automotive interior systems and components, which are supplied to various automobile manufacturers worldwide. The company's key revenue streams include the production of seat assemblies, door panels, and other interior parts, as well as filtration products for engine and cabin air. Significant partnerships with major automotive brands, particularly Toyota, ensure a steady demand for its products. Additionally, the company invests in innovation and sustainability, which can lead to increased efficiencies and cost savings, further enhancing its profitability. The global expansion of the automotive market and the growing demand for electric vehicles also present new opportunities for revenue growth.

Toyota Boshoku Financial Statement Overview

Summary

Financials are mixed: revenue is resilient and free cash flow is strong (Cash Flow Score 72), supported by manageable leverage and a growing equity base (Balance Sheet Score 66). However, profitability has weakened materially versus 2024, with thin TTM net margin (<1%), modest EBIT margin (~3%), and lower ROE, which caps the Income Statement Score (58).

Income Statement

TTM (Trailing-Twelve-Months) revenue is solid and up versus the latest annual period, with a strong multi-year rebound from 2022 to 2024. However, profitability is currently thin: TTM net margin is under 1% and EBIT margin is ~3%, well below 2024 levels (when net margin was ~3%). Overall, the business shows resilient top-line scale, but earnings quality and margin durability look pressured in the most recent period.

Balance Sheet

Leverage appears manageable for an auto-parts supplier: debt-to-equity is ~0.40 in TTM (Trailing-Twelve-Months), broadly stable versus recent years. Equity has grown over time, supporting a stronger capital base. The main weak spot is profitability on equity: TTM return on equity is mid-single digits, down sharply from 2024, suggesting the balance sheet is sound but not currently being converted into strong shareholder returns.

Cash Flow

Cash generation is a clear strength. TTM (Trailing-Twelve-Months) operating cash flow and free cash flow are strong, and free cash flow shows a sharp improvement versus the prior annual period. That said, cash flow conversion metrics indicate not all reported earnings are translating into cash at the same rate in the latest period, and results have been somewhat volatile year to year. Even with that volatility, current free cash flow levels provide flexibility.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2021	Mar 2020
Income Statement
Total Revenue	2.01T	1.95T	1.95T	1.60T	1.27T	1.37T
Gross Profit	215.78B	209.21B	211.47B	154.42B	133.42B	134.06B
EBITDA	112.96B	106.08B	142.83B	102.11B	97.86B	87.23B
Net Income	17.07B	16.72B	57.88B	14.68B	31.19B	24.79B
Balance Sheet
Total Assets	1.14T	1.09T	1.13T	1.01T	845.78B	780.71B
Cash, Cash Equivalents and Short-Term Investments	308.62B	249.72B	244.19B	262.79B	209.60B	178.50B
Total Debt	195.70B	167.32B	165.00B	154.23B	141.77B	124.53B
Total Liabilities	613.15B	604.76B	634.75B	570.50B	476.13B	459.01B
Stockholders Equity	486.02B	447.42B	448.96B	400.74B	334.94B	291.05B
Cash Flow
Free Cash Flow	97.25B	49.16B	103.92B	38.96B	20.07B	26.59B
Operating Cash Flow	158.50B	121.83B	174.90B	89.43B	74.48B	79.67B
Investing Cash Flow	-60.46B	-60.95B	-86.70B	-36.46B	-51.39B	-54.17B
Financing Cash Flow	-33.33B	-54.38B	-91.59B	-40.81B	2.76B	-13.96B

Toyota Boshoku Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2363.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3116, the sentiment is Positive. The current price of 2363 is below the 20-day moving average (MA) of 3083.45, below the 50-day MA of 2770.44, and below the 200-day MA of 2373.60, indicating a bullish trend. The MACD of 137.86 indicates Positive momentum. The RSI at 67.72 is Neutral, neither overbought nor oversold. The STOCH value of 48.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3116.

Toyota Boshoku Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6995	81 Outperform	¥290.39B	9.05	―	3.36%	1.36%	139.77%
7259	77 Outperform	¥2.09T	12.58	8.34%	2.03%	4.33%	524.86%
7239	76 Outperform	¥80.53B	7.14	13.32%	5.00%	-10.87%	153.16%
7282	75 Outperform	¥595.80B	13.50	8.26%	2.62%	1.44%	-0.92%
3116	66 Neutral	¥571.83B	33.50	4.51%	3.42%	2.10%	-50.33%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7313	58 Neutral	¥239.86B	45.93	―	4.77%	-3.71%	-51.81%

Toyota Boshoku Corporate Events

Toyota Boshoku Lifts Nine-Month Profit, Confirms Outlook for Strong Full-Year Recovery

Toyota Boshoku reported consolidated revenue of ¥1.51 trillion for the nine months ended December 31, 2025, up 4.1% year on year, with operating profit rising 15.8% to ¥60.2 billion and profit attributable to owners of the parent inching up 1.2% to ¥28.6 billion. The company’s financial position strengthened, with total assets increasing to ¥1.14 trillion and the equity ratio improving to 42.5%, while it maintained its dividend policy with an interim payment of ¥43 per share and kept its full-year earnings forecast unchanged, projecting modest revenue growth but a sharp recovery in profitability for the fiscal year ending March 31, 2026, signaling ongoing operational improvement and a firmer earnings base for shareholders.

The most recent analyst rating on (JP:3116) stock is a Buy with a Yen2730.00 price target. To see the full list of analyst forecasts on Toyota Boshoku stock, see the JP:3116 Stock Forecast page.