G-Tekt Corporation (5970) AI Stock Analysis

• Market Cap: ¥73.61B
• Dividend Yield: 5.84%
• Average Volume (3M): 115.59K
• Price to Earnings (P/E): 5.9
• Beta (1Y): 0.79
• Revenue Growth: -1.56%
• EPS Growth: -5.89%
• Country: JP
• Employees: 8,330
• Sector: Consumer Cyclical
• Sector Strength: 59
• Industry: Auto - Parts
• EPS (TTM): 82.22
• Shares Outstanding: 43,931,260
• 10 Day Avg. Volume: 86,590
• 30 Day Avg. Volume: 115,593
• PEG Ratio: 0.39
• Price to Book (P/B): 0.37
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.08
• 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: 82 Outperform
• Price Target: ¥1,957.00 ▲(14.24%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 (5970) is a Japanese company primarily engaged in the manufacture and sale of automotive body frame components, transmission components, and stamping dies. The company operates through various segments which include the Automotive Parts Business, the Stamping Dies Business, and the Machinery & Tools Business. G-Tekt is known for its technological innovation in lightweight and high-strength components, serving major automotive manufacturers across the globe.

How the Company Makes Money

G-Tekt Corporation generates revenue primarily through its Automotive Parts Business by manufacturing and selling body frame components and transmission components to automotive manufacturers. The company leverages its expertise in lightweight and high-strength materials to develop products that meet the stringent demands of automotive companies aiming to improve fuel efficiency and safety. Additionally, G-Tekt earns income from its Stamping Dies Business by designing and producing dies used in manufacturing processes, and from its Machinery & Tools Business by providing machinery and tools used in various industrial applications. The company's strategic partnerships with leading automotive manufacturers and its continuous investment in research and development contribute significantly to its earnings.

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
TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
339.27B	339.23B	344.60B	314.31B	236.50B	209.42B
	Gross Profit
32.56B	34.24B	33.14B	27.78B	24.11B	20.07B
	EBIT
15.34B	16.38B	16.24B	12.84B	10.93B	8.05B
	EBITDA
30.80B	37.43B	38.68B	30.25B	26.11B	27.77B
	Net Income Common Stockholders
12.45B	12.44B	13.24B	10.27B	8.88B	6.53B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
46.59B	43.00B	44.58B	44.23B	40.69B	29.16B
	Total Assets
321.13B	321.39B	304.13B	288.70B	282.54B	237.96B
	Total Debt
46.42B	49.42B	39.88B	51.16B	63.68B	46.38B
	Net Debt
-167.00M	6.42B	-4.70B	6.93B	23.00B	17.22B
	Total Liabilities
104.72B	109.03B	98.74B	112.00B	118.62B	92.91B
	Stockholders Equity
201.91B	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: Positive
• Last Price: 1713.00
• 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:5970, the sentiment is Positive. The current price of 1713 is above the 20-day moving average (MA) of 1700.55, above the 50-day MA of 1629.92, and above the 200-day MA of 1605.72, indicating a bullish trend. The MACD of 26.85 indicates Positive momentum. The RSI at 62.23 is Neutral, neither overbought nor oversold. The STOCH value of 47.47 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
6209	82 Outperform	¥64.27B	7.39		5.45%	―	―
5970	82 Outperform	¥73.61B	5.92		5.84%	-1.56%	-5.89%
7287	80 Outperform	¥79.02B	13.02		3.66%	1.29%	19.15%
7250	72 Outperform	¥79.24B	5.70		3.98%	-0.59%	-20.67%
Sector *	63 Neutral	$6.98B	11.41	2.80%	4.24%	2.68%	-24.94%
5988	61 Neutral	¥59.97B	34.81		5.78%	-1.86%	-55.33%
7241	61 Neutral	¥64.13B	10.32		0.84%	-11.15%	-51.63%

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.