Aichi Corporation (6345) AI Stock Analysis

• Market Cap: ¥87.61B
• Dividend Yield: 4.05%
• Average Volume (3M): 137.21K
• Price to Earnings (P/E): 17.3
• Beta (1Y): 0.48
• Revenue Growth: 0.91%
• EPS Growth: 7.69%
• Country: JP
• Employees: 1,046
• Sector: Industrials
• Sector Strength: 73
• Industry: Agricultural - Machinery
• EPS (TTM): 4.44
• Shares Outstanding: 74,570,000
• 10 Day Avg. Volume: 111,790
• 30 Day Avg. Volume: 137,210
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥1,472.00
• Price Target Upside: 8.47% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: ¥1,472.00 ▲(8.47% Upside)

Aichi Corporation's strong financial performance is the most significant factor driving its stock score, supported by solid revenue growth and financial stability. The valuation is also favorable with a reasonable P/E ratio and attractive dividend yield. However, technical analysis suggests potential bearish momentum, which slightly offsets the overall positive outlook.

Aichi Corporation Business Overview & Revenue Model

Company Description

Aichi Corporation (6345) is a Japanese company that specializes in the manufacturing and sale of aerial work platforms, including truck-mounted lift equipment and self-propelled lifts. Operating primarily in the construction and utility sectors, Aichi Corporation provides essential equipment that aids in reaching elevated work sites safely and efficiently. With a focus on innovation and quality, the company serves a diverse range of industries by supplying machinery that enhances productivity and safety.

How the Company Makes Money

Aichi Corporation generates revenue through the manufacturing and sale of its aerial work platforms and lift equipment. The company capitalizes on its expertise in producing reliable and high-performance machinery that meets the needs of construction, utility, and maintenance companies. Key revenue streams include the direct sale of equipment, leasing services, and after-sales support such as maintenance and parts replacement. Aichi Corporation also benefits from strategic partnerships with construction firms and utility providers, which help drive demand for its products. Additionally, the company invests in research and development to innovate and improve its product offerings, thereby maintaining its competitive edge and supporting revenue growth.

Aichi Corporation Financial Statement Overview

Summary

Aichi Corporation exhibits strong financial health with solid revenue growth, excellent profitability, and robust cash flow generation. The balance sheet is particularly strong with low leverage and high equity levels. The cash flow statement indicates efficient cash management, although there is potential to enhance the free cash flow to net income conversion. Overall, the company is well-positioned for sustainable growth and financial stability.

Income Statement

Aichi Corporation has demonstrated strong profitability with a consistent gross profit margin and increasing net profit margin over the years. The revenue growth rate from 2024 to 2025 is 11.63%, showcasing solid top-line growth. The EBIT and EBITDA margins have also improved, indicating efficient cost management and operational excellence.

Balance Sheet

The company maintains a very low debt-to-equity ratio, reflecting minimal leverage and strong financial stability. The return on equity is impressive, showcasing effective use of shareholder funds. The equity ratio remains robust, highlighting the company's solid financial foundation and low reliance on debt.

Cash Flow

Aichi Corporation has shown a strong free cash flow growth rate of 13.76% from 2024 to 2025, indicating effective cash generation. The operating cash flow to net income ratio is healthy, suggesting good cash conversion efficiency. However, there is room for improvement in the free cash flow to net income ratio.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	55.77B	59.31B	53.13B	60.68B	56.59B	59.33B
Gross Profit	12.05B	12.75B	11.78B	13.05B	12.61B	12.75B
EBITDA	8.65B	10.42B	7.78B	8.84B	8.43B	8.75B
Net Income	5.81B	6.33B	5.27B	5.96B	5.64B	5.91B
Balance Sheet
Total Assets	86.17B	100.36B	94.92B	95.70B	90.56B	90.87B
Cash, Cash Equivalents and Short-Term Investments	31.33B	46.87B	42.13B	39.03B	38.08B	37.76B
Total Debt	177.28M	214.58M	255.99M	308.30M	397.57M	443.32M
Total Liabilities	16.78B	16.34B	13.13B	17.12B	14.52B	17.55B
Stockholders Equity	69.39B	84.02B	81.79B	78.57B	76.04B	73.32B
Cash Flow
Free Cash Flow	2.30B	6.87B	6.04B	3.72B	3.33B	10.20B
Operating Cash Flow	5.45B	9.87B	7.11B	4.51B	3.99B	10.87B
Investing Cash Flow	-2.11B	-1.96B	32.76B	-2.25B	997.70M	-10.66B
Financing Cash Flow	-17.00B	-3.13B	-3.55B	-3.23B	-3.22B	-3.19B

Aichi Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1357.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6345, the sentiment is Positive. The current price of 1357 is above the 20-day moving average (MA) of 1329.85, above the 50-day MA of 1338.08, and above the 200-day MA of 1343.05, indicating a bullish trend. The MACD of 2.84 indicates Negative momentum. The RSI at 58.42 is Neutral, neither overbought nor oversold. The STOCH value of 87.90 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6345.

Aichi Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7226	76 Outperform	¥103.09B	4,531.76		5.73%	11.27%	-99.43%
6345	72 Outperform	¥87.61B	17.34		4.05%	0.91%	7.69%
Sector *	64 Neutral	$10.73B	15.74	7.60%	2.01%	2.75%	-15.09%
TN0	―	€788.66M	22.00	3.22%	―	―	―
6432	74 Outperform	¥251.31B	9.88		3.93%	-2.83%	-10.80%
6289	62 Neutral	¥41.09B	59.93		3.05%	-17.98%	-76.38%
6390	49 Neutral	¥17.06B	―		4.81%	-1.28%	-287.74%

Aichi Corporation Corporate Events

Aichi Corporation Reports Decline in Q1 2025 Financial Results

Aichi Corporation reported a significant decline in its financial performance for the three months ended June 30, 2025, with net sales dropping by 27.7% and operating profit falling by 70% compared to the same period in 2024. Despite these challenges, the company maintains a strong capital adequacy ratio of 80.5% and has not revised its financial forecast for the fiscal year ending March 31, 2026, indicating a cautious optimism about future performance.

Aichi Corporation Restructures Shareholding, Ensures Independent Operations

Aichi Corporation announced changes in its controlling shareholder structure, as Toyota Industries Corporation transferred shares, reducing its stake and ceasing to be the parent company. This shift resulted in ITOCHU Corporation becoming a significant associated company, holding a substantial portion of shares. Aichi Corporation continues to ensure independent operations and decision-making, with measures in place to protect minority shareholders and assess transactions with controlling shareholders for fairness.