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G-Tekt Corporation (JP:5970)
:5970
Japanese Market

G-Tekt Corporation (5970) AI Stock Analysis

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JP

G-Tekt Corporation

(5970)

Rating:82Outperform
Price Target:
¥1,957.00
▲(11.51%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 (5970) vs. iShares MSCI Japan ETF (EWJ)

G-Tekt Corporation Business Overview & Revenue Model

Company DescriptionG-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 MoneyG-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
85
Very Positive
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
80
Positive
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
75
Positive
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.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue339.27B339.23B344.60B314.31B236.50B209.42B
Gross Profit32.56B34.24B33.14B27.78B24.11B20.07B
EBITDA30.80B37.43B38.68B30.25B26.11B27.77B
Net Income12.45B12.44B13.24B10.27B8.88B6.53B
Balance Sheet
Total Assets321.13B321.39B304.13B288.70B282.54B237.96B
Cash, Cash Equivalents and Short-Term Investments46.59B43.00B44.58B44.23B40.69B29.16B
Total Debt46.42B49.42B39.88B51.16B63.68B46.38B
Total Liabilities104.72B109.03B98.74B112.00B118.62B92.91B
Stockholders Equity201.91B198.00B191.67B164.69B152.29B133.84B
Cash Flow
Free Cash Flow0.00-9.15B13.89B20.00B-3.53B5.55B
Operating Cash Flow0.0022.54B37.46B37.27B14.06B25.12B
Investing Cash Flow0.00-30.05B-30.89B-16.02B-18.86B-15.53B
Financing Cash Flow0.005.77B-16.38B-17.58B12.55B-17.34B

G-Tekt Corporation Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1755.00
Price Trends
50DMA
1672.16
Positive
100DMA
1657.26
Positive
200DMA
1613.94
Positive
Market Momentum
MACD
19.84
Negative
RSI
66.68
Neutral
STOCH
93.76
Negative
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 1755 is above the 20-day moving average (MA) of 1725.40, above the 50-day MA of 1672.16, and above the 200-day MA of 1613.94, indicating a bullish trend. The MACD of 19.84 indicates Negative momentum. The RSI at 66.68 is Neutral, neither overbought nor oversold. The STOCH value of 93.76 is Negative, 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

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
¥63.46B7.30
7.20%
82
Outperform
¥75.24B6.05
5.70%-1.56%-5.87%
80
Outperform
¥82.03B13.51
3.53%1.29%20.18%
75
Outperform
¥81.42B5.85
3.88%-0.59%-20.66%
70
Outperform
¥71.20B11.46
0.76%-11.15%-51.63%
63
Neutral
¥57.71B33.50
6.00%-1.86%-55.23%
62
Neutral
$16.76B11.38-7.38%2.96%1.59%-23.30%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5970
G-Tekt Corporation
1,787.00
-99.00
-5.25%
JP:5988
PIOLAX, Inc.
1,772.00
-560.79
-24.04%
JP:6209
NPR-RIKEN CORPORATION
2,374.00
-333.96
-12.33%
JP:7241
Futaba Industrial Co., Ltd.
798.00
-48.74
-5.76%
JP:7250
Pacific Industrial Co., Ltd.
1,366.00
-154.49
-10.16%
JP:7287
Nippon Seiki Co., Ltd.
1,426.00
-13.01
-0.90%

G-Tekt Corporation Corporate Events

G-Tekt Corporation Reports Financial Results with Increased Dividends
May 14, 2025

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
May 14, 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.
May 14, 2025

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
May 14, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 27, 2025