G-Tekt Corporation (5970) AI Stock Analysis

• Market Cap: ¥80.66B
• Dividend Yield: 5.06%
• Average Volume (3M): 71.52K
• Price to Earnings (P/E): 6.6
• Beta (1Y): 0.78
• Revenue Growth: -5.89%
• EPS Growth: 8.95%
• Country: JP
• Employees: 8,330
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 40.30
• Shares Outstanding: 43,931,260
• 10 Day Avg. Volume: 68,810
• 30 Day Avg. Volume: 71,516
• PEG Ratio: -1.02
• Price to Book (P/B): 0.38
• Price to Sales (P/S): 0.22
• P/FCF Ratio: -8.19
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 85 Outperform
• Price Target: ¥2,380.00 ▲(26.80% Upside)

G-Tekt Corporation scores highly due to its strong financial performance and attractive valuation. The company's low P/E ratio and high dividend yield make it an appealing investment. Positive technical indicators further support the stock's potential, although attention to cash flow management is necessary. The absence of earnings call data and corporate events does not impact the overall score.

Positive Factors

Strong Balance Sheet

A low Debt-to-Equity Ratio indicates low financial leverage, providing G-Tekt with financial stability and flexibility to invest in growth opportunities.

Robust Profitability

Consistent profitability margins reflect efficient cost management and operational performance, supporting long-term business sustainability.

Strategic Partnerships

Long-term contracts with major automotive manufacturers ensure a steady revenue stream and enhance G-Tekt's competitive edge in the industry.

Negative Factors

Negative Revenue Growth

A decline in revenue growth can indicate challenges in market demand or competitive pressures, potentially impacting future financial performance.

Negative Free Cash Flow

Negative Free Cash Flow suggests potential liquidity issues, which may limit the company's ability to invest in growth or weather economic downturns.

Declining EPS Growth

A decline in EPS growth indicates potential profitability challenges, which could affect investor confidence and the company's ability to reinvest in its operations.

G-Tekt Corporation Business Overview & Revenue Model

Company Description

G-Tekt Corporation manufactures and sells auto body components and transmission parts in Japan and internationally. It offers auto body components, such as dashboards, side structures, rear seat reinforcement components, back panels, frames, and floor components; vehicle transmission parts; and dies and production systems. The company was founded in 1952 and is headquartered in Saitama, Japan.

How the Company Makes Money

G-Tekt Corporation generates revenue primarily through the sale of automotive parts and components to original equipment manufacturers (OEMs) and Tier 1 suppliers. The company's revenue model is largely based on long-term contracts and partnerships with major automotive manufacturers, which ensures a steady stream of income. Key revenue streams include the production of stamped parts, welded assemblies, and engineered components tailored to specific client requirements. Additionally, G-Tekt benefits from economies of scale in production and a focus on efficiency, which enhances profitability. Significant partnerships with leading automotive brands further bolster its market position and revenue potential.

G-Tekt Corporation Financial Statement Overview

Summary

G-Tekt Corporation demonstrates strong financial health with consistent revenue growth and profitability. The company maintains robust profitability with a Gross Profit Margin of 10.09% and a Net Profit Margin of 3.67%. The balance sheet is solid with a low Debt-to-Equity Ratio of 0.25, indicating low financial leverage. However, cash flow management requires attention due to negative Free Cash Flow, which could pose a risk if not managed properly.

Income Statement

G-Tekt Corporation demonstrates strong financial health with consistent revenue growth and profitability. The Gross Profit Margin for the latest year is 10.09%, while the Net Profit Margin stands at 3.67%. EBIT Margin is 4.83% and EBITDA Margin is 11.03%, indicating efficient cost management and operational performance. Although revenue decreased slightly from the previous year, the company maintains robust profitability.

Balance Sheet

The company shows a solid balance sheet with a Debt-to-Equity Ratio of 0.25, indicating low financial leverage. Return on Equity (ROE) is 6.28%, reflecting moderate efficiency in generating returns on equity. The Equity Ratio is 61.6%, showcasing a strong capital structure with a significant portion of assets financed by equity.

Cash Flow

G-Tekt Corporation's cash flow analysis reveals some challenges. Free Cash Flow is negative, but the Operating Cash Flow to Net Income Ratio of 1.81 suggests strong cash earnings. The Free Cash Flow to Net Income Ratio is negative due to high capital expenditures, which could pose a risk if not managed properly.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	329.73B	339.23B	344.60B	314.31B	236.50B	209.42B
Gross Profit	33.84B	34.24B	33.14B	27.78B	24.11B	20.07B
EBITDA	35.12B	37.43B	38.68B	30.25B	28.30B	27.77B
Net Income	11.26B	12.44B	13.24B	10.27B	8.88B	6.53B
Balance Sheet
Total Assets	325.15B	321.39B	304.13B	288.70B	282.54B	237.96B
Cash, Cash Equivalents and Short-Term Investments	42.65B	43.00B	44.58B	44.23B	40.69B	29.16B
Total Debt	50.72B	49.42B	39.88B	51.16B	63.68B	46.38B
Total Liabilities	113.45B	109.03B	98.74B	112.00B	118.62B	92.91B
Stockholders Equity	197.36B	198.00B	191.67B	164.69B	152.29B	133.84B
Cash Flow
Free Cash Flow	0.00	-9.15B	13.89B	20.00B	-3.53B	5.55B
Operating Cash Flow	0.00	22.54B	37.46B	37.27B	14.06B	25.12B
Investing Cash Flow	0.00	-30.05B	-30.89B	-16.02B	-18.86B	-15.53B
Financing Cash Flow	0.00	5.77B	-16.38B	-17.58B	12.55B	-17.34B

G-Tekt Corporation Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1877.00
• 50DMA: Negative
• 100DMA: Negative
• 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:5970, the sentiment is Neutral. The current price of 1877 is below the 20-day moving average (MA) of 1885.85, below the 50-day MA of 1945.22, and above the 200-day MA of 1777.40, indicating a neutral trend. The MACD of -22.99 indicates Positive momentum. The RSI at 45.12 is Neutral, neither overbought nor oversold. The STOCH value of 34.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:5970.

G-Tekt Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5970	85 Outperform	¥80.66B	6.63	―	5.06%	-5.89%	8.95%
6209	81 Outperform	¥91.83B	7.80	―	3.95%	―	―
7287	79 Outperform	¥125.79B	13.74	―	2.99%	1.77%	117.03%
7250	78 Outperform	¥198.70B	12.51	―	0.98%	3.62%	3.64%
7241	68 Neutral	¥91.80B	8.33	―	4.00%	-7.35%	43.31%
5988	66 Neutral	¥42.08B	49.78	―	5.46%	-6.20%	-64.65%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

G-Tekt Corporation Corporate Events

G-Tekt Announces Secondary Offering of Shares

G-Tekt Corporation has announced a secondary offering of 3,500,000 shares of its common stock, with Honda Motor Co., Ltd. as the seller. The offering, which includes an additional over-allotment option of 525,000 shares, is set to be priced between December 15 and December 18, 2025, based on market demand. This move is expected to impact the company’s market positioning by potentially increasing its stock liquidity and attracting new investors.

G-Tekt Corporation Reports Decline in Financial Performance for H1 2025

G-Tekt Corporation reported a decline in its financial performance for the six months ended September 30, 2025, with net sales and profits decreasing compared to the previous year. The company also announced a forecasted reduction in its annual financial results for the fiscal year ending March 31, 2026, indicating potential challenges in the market and operational environment.