G-Tekt Corporation (5970) AI Stock Analysis

• Market Cap: ¥79.33B
• Dividend Yield: 4.6%
• Average Volume (3M): 71.84K
• Price to Earnings (P/E): 6.4
• Beta (1Y): 0.81
• Revenue Growth: -1.56%
• EPS Growth: -5.87%
• Country: JP
• Employees: 8,330
• Sector: Consumer Cyclical
• Sector Strength: 71
• Industry: Auto - Parts
• EPS (TTM): 82.22
• Shares Outstanding: 43,931,260
• 10 Day Avg. Volume: 57,450
• 30 Day Avg. Volume: 71,843
• PEG Ratio: 66.58
• Price to Book (P/B): 0.39
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥1,957.00
• Price Target Upside: 6.01% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 82 Outperform
• Price Target: ¥1,957.00 ▲(6.01%Upside)

G-Tekt Corporation benefits from strong financial performance and attractive valuation metrics, such as a low P/E ratio and high dividend yield, which are significant positives. Technical analysis shows positive momentum, although caution is advised due to an nearing overbought RSI. Cash flow management requires attention but is mitigated by strong profitability and low debt levels.

G-Tekt Corporation Business Overview & Revenue Model

Company Description

G-Tekt Corporation is a Japan-based company specializing in the manufacturing of automotive body components, including frames and precision press products. Operating within the automotive sector, the company is known for its advanced metal stamping and welding technologies, which are crucial in producing high-strength, lightweight vehicle parts that contribute to enhanced fuel efficiency and safety standards.

How the Company Makes Money

G-Tekt Corporation generates revenue primarily through the design, manufacture, and sale of automotive components to major automobile manufacturers. The company's key revenue streams include the production of body frame parts and transmission components. G-Tekt's strategic partnerships with leading automotive companies, along with its global manufacturing facilities, enable it to maintain a stable income by fulfilling large-scale, long-term supply contracts. Additionally, G-Tekt invests in research and development to innovate new manufacturing techniques, thereby enhancing its competitive edge and ability to meet the evolving demands of the automotive industry.

G-Tekt Corporation Financial Statement Overview

Summary

G-Tekt Corporation demonstrates strong financial health with consistent revenue growth and profitability. The income statement shows efficient cost management, while the balance sheet reflects low financial leverage and a strong capital structure. However, cash flow management requires attention due to negative free cash flow.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	339.23B	344.60B	314.31B	236.50B	209.42B
Gross Profit	34.24B	33.14B	27.78B	24.11B	20.07B
EBITDA	37.43B	38.68B	30.25B	26.11B	27.77B
Net Income	12.44B	13.24B	10.27B	8.88B	6.53B
Balance Sheet
Total Assets	321.39B	304.13B	288.70B	282.54B	237.96B
Cash, Cash Equivalents and Short-Term Investments	43.00B	44.58B	44.23B	40.69B	29.16B
Total Debt	49.42B	39.88B	51.16B	63.68B	46.38B
Total Liabilities	109.03B	98.74B	112.00B	118.62B	92.91B
Stockholders Equity	198.00B	191.67B	164.69B	152.29B	133.84B
Cash Flow
Free Cash Flow	-9.15B	13.89B	20.00B	-3.53B	5.55B
Operating Cash Flow	22.54B	37.46B	37.27B	14.06B	25.12B
Investing Cash Flow	-30.05B	-30.89B	-16.02B	-18.86B	-15.53B
Financing Cash Flow	5.77B	-16.38B	-17.58B	12.55B	-17.34B

G-Tekt Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1846.00
• 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:5970, the sentiment is Positive. The current price of 1846 is above the 20-day moving average (MA) of 1782.40, above the 50-day MA of 1736.02, and above the 200-day MA of 1628.72, indicating a bullish trend. The MACD of 27.48 indicates Negative momentum. The RSI at 69.22 is Neutral, neither overbought nor oversold. The STOCH value of 68.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	82 Outperform	¥79.33B	6.38		4.60%	-1.56%	-5.87%
6209	79 Outperform	¥67.84B	7.80		5.13%	―	―
7250	75 Outperform	¥87.36B	6.28		3.61%	-0.59%	-20.66%
7241	70 Outperform	¥74.69B	12.02		2.40%	-11.15%	-51.63%
7287	66 Neutral	¥89.49B	14.74		3.22%	1.29%	20.18%
Sector *	63 Neutral	$17.32B	10.90	-7.25%	3.10%	1.66%	-25.40%
5988	63 Neutral	¥58.33B	33.86		5.16%	-1.86%	-55.23%

G-Tekt Corporation Corporate Events

G-Tekt Corporation Reports Financial Results with Increased Dividends

G-Tekt Corporation reported a slight decline in its consolidated financial results for the year ended March 31, 2025, with net sales decreasing by 1.6% and a 6.0% drop in profit attributable to owners of the parent compared to the previous year. Despite the challenges, the company increased its annual dividends per share from 67.00 yen to 87.00 yen, indicating a commitment to returning value to shareholders. The company’s forecast for the next fiscal year suggests a continued slight decline in financial performance, reflecting ongoing challenges in the market.

G-Tekt Exceeds Profit Forecasts for Fiscal Year 2025

G-Tekt Corporation reported a difference between its full-year consolidated earnings forecast and actual results for the fiscal year ending March 2025. The company exceeded its profit forecasts due to increased sales from new vehicle model developments and effective cost reduction strategies, along with gains from share sales and subsidies. This performance highlights G-Tekt’s strong market positioning and operational efficiency.

G-Tekt Corporation Details Relationship with Honda Motor Co., Ltd.

G-Tekt Corporation has announced its relationship with Honda Motor Co., Ltd., highlighting its role within Honda’s four-wheeled vehicle business as a manufacturer of automotive body frame parts. The company maintains a close capital and business relationship with Honda but retains operational independence. The announcement details transactions with Honda, including sales of products and purchases of raw materials, emphasizing economic rationality and market-based pricing in these dealings.

G-Tekt Corporation Increases Year-End Dividend to 50 Yen Per Share

G-Tekt Corporation announced an increase in its year-end dividend to 50 yen per share, up from the previously forecasted 37 yen, resulting in a total annual dividend of 87 yen per share. This decision aligns with the company’s policy to maintain a dividend payout ratio of 30% or higher and a dividend on equity of 3.0% or higher by the fiscal year ending March 2031, reflecting its commitment to sustainable growth and shareholder value.