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Taiho Kogyo Co., Ltd. (JP:6470)
:6470
Japanese Market

Taiho Kogyo Co., Ltd. (6470) AI Stock Analysis

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JP

Taiho Kogyo Co., Ltd.

(6470)

Rating:52Neutral
Price Target:
¥623.00
▲(0.97%Upside)
The overall stock score reflects significant financial challenges, particularly in profitability and cash flow, despite stable equity in the balance sheet. Technical analysis shows mixed signals with a potential oversold condition. Valuation is negatively impacted by earnings challenges, though the dividend yield provides a slight positive. The absence of recent earnings call data and corporate events leaves these areas uninfluential.

Taiho Kogyo Co., Ltd. (6470) vs. iShares MSCI Japan ETF (EWJ)

Taiho Kogyo Co., Ltd. Business Overview & Revenue Model

Company DescriptionTaiho Kogyo Co., Ltd. is a Japanese company primarily engaged in the manufacture and sale of automotive parts. The company operates in sectors including automotive and industrial machinery, focusing on products such as engine bearings, bushings, and other engine-related components. Taiho Kogyo is recognized for its technological innovation and commitment to quality in producing parts crucial for engine performance and reliability.
How the Company Makes MoneyTaiho Kogyo Co., Ltd. generates revenue through the production and sale of automotive and industrial machinery components. The company's primary revenue streams include the sale of engine bearings, bushings, and various engine parts to automobile manufacturers and industrial machinery producers. Taiho Kogyo leverages its advanced engineering and manufacturing capabilities to maintain strong relationships with major automotive companies, which are a significant source of its revenue. Additionally, the company's dedication to research and development supports its ability to provide high-performance products that meet the evolving needs of its customers, further driving its earnings.

Taiho Kogyo Co., Ltd. Financial Statement Overview

Summary
Taiho Kogyo Co., Ltd. faces significant profitability and cash flow challenges, with a concerning shift to negative net income. While the balance sheet highlights a stable equity position, the increase in debt and the negative return on equity warrant caution. The company's ability to generate cash from operations provides some stability, but the declining free cash flow suggests potential liquidity risks.
Income Statement
45
Neutral
The company's income statement shows a declining trend in profitability. The net profit margin turned negative in the most recent year due to a significant net loss. Gross profit margin also decreased, indicating either pricing pressure or increased cost of goods sold. Revenue growth stagnated, with only a slight increase compared to previous years, suggesting challenges in driving top-line growth. EBIT and EBITDA margins have declined, reflecting operational challenges.
Balance Sheet
60
Neutral
The balance sheet indicates a relatively stable financial position despite some challenges. The debt-to-equity ratio is moderate, suggesting a balanced use of debt and equity, although the increase in total debt is notable. Return on equity has turned negative due to the net loss, highlighting a key area of concern. The equity ratio remains healthy, showing that a significant portion of the company's assets is financed by equity.
Cash Flow
50
Neutral
Cash flow analysis reveals a decline in free cash flow, driven by increased capital expenditures and reduced operating cash flow. The free cash flow to net income ratio is negative, reflecting the net loss. However, the company maintains a positive operating cash flow to net income ratio, indicating some ability to generate cash from operations despite profitability challenges. Free cash flow growth has been negative, suggesting potential liquidity concerns.
Breakdown
TTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income StatementTotal Revenue
110.73B112.79B112.04B105.16B98.82B92.94B
Gross Profit
15.36B15.07B17.14B15.23B15.08B14.02B
EBIT
388.00M552.00M2.39B694.00M1.11B710.00M
EBITDA
5.73B6.92B10.50B8.41B9.00B8.37B
Net Income Common Stockholders
-3.15B-4.19B1.75B399.00M621.00M300.00M
Balance SheetCash, Cash Equivalents and Short-Term Investments
19.01B19.95B21.11B16.95B20.25B21.31B
Total Assets
117.94B122.34B119.46B113.77B114.38B113.73B
Total Debt
26.18B26.11B22.68B22.81B25.46B28.34B
Net Debt
7.17B6.16B1.57B5.86B5.21B7.03B
Total Liabilities
49.05B53.05B46.87B46.69B48.08B49.39B
Stockholders Equity
68.20B68.67B72.01B66.58B65.79B63.73B
Cash FlowFree Cash Flow
0.00-3.82B4.62B200.00M2.49B559.00M
Operating Cash Flow
0.006.25B10.74B5.87B7.10B5.64B
Investing Cash Flow
0.00-10.20B-6.22B-5.84B-4.72B-5.13B
Financing Cash Flow
0.002.07B-1.01B-4.03B-3.73B8.54B

Taiho Kogyo Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price617.00
Price Trends
50DMA
609.24
Negative
100DMA
616.06
Negative
200DMA
610.46
Negative
Market Momentum
MACD
-0.64
Positive
RSI
34.92
Neutral
STOCH
0.54
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6470, the sentiment is Negative. The current price of 617 is below the 20-day moving average (MA) of 649.65, above the 50-day MA of 609.24, and above the 200-day MA of 610.46, indicating a bearish trend. The MACD of -0.64 indicates Positive momentum. The RSI at 34.92 is Neutral, neither overbought nor oversold. The STOCH value of 0.54 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6470.

Taiho Kogyo Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
¥9.60B4.45
5.59%1.49%93.90%
76
Outperform
¥24.20B7.05
6.51%0.36%242.74%
74
Outperform
¥15.77B7.21
2.90%-5.40%
63
Neutral
$6.98B11.412.80%4.24%2.68%-24.94%
53
Neutral
¥8.14B
2.79%-3.96%-462.49%
52
Neutral
¥17.90B
3.24%0.66%-340.28%
48
Neutral
¥21.23B
3.53%-1.68%-240.66%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6470
Taiho Kogyo Co., Ltd.
609.00
-135.18
-18.16%
JP:7236
T.RAD Co., Ltd.
4,645.00
1,298.41
38.80%
JP:7247
Mikuni Corporation
287.00
-96.23
-25.11%
JP:7266
Imasen Electric Industrial Co., Ltd.
685.00
91.52
15.42%
JP:7277
TBK Co., Ltd.
286.00
-10.10
-3.41%
JP:7294
Yorozu Corporation
892.00
-146.65
-14.12%
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.