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

• Market Cap: ¥20.22B
• Dividend Yield: 2.91%
• Average Volume (3M): 103.97K
• Price to Earnings (P/E): 575.2
• Beta (1Y): 1.34
• Revenue Growth: 4.93%
• EPS Growth: N/A
• Country: JP
• Employees: 4,107
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 18.34
• Shares Outstanding: 29,172,457
• 10 Day Avg. Volume: 72,690
• 30 Day Avg. Volume: 103,970
• PEG Ratio: 0.01
• Price to Book (P/B): 0.25
• Price to Sales (P/S): 0.15
• P/FCF Ratio: -4.46
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: ¥740.00 ▲(0.54% Upside)

The overall stock score of 51 reflects significant financial performance challenges, particularly in profitability and cash flow, which are the most impactful factors. Technical analysis shows mixed signals, with positive price trends but potential overbought conditions. Valuation concerns are high due to an extremely elevated P/E ratio, despite a moderate dividend yield. The absence of earnings call and corporate events data means these factors did not influence the score.

Positive Factors

Business Model Strength

The company's focus on essential automotive components ensures steady demand, supported by long-term contracts with OEMs, providing revenue stability.

Innovation and Quality

Strong reputation for innovation and quality enhances competitive advantage, fostering customer loyalty and enabling premium pricing.

Cash Generation Ability

Positive operating cash flow indicates effective cash generation, supporting ongoing operations and potential investments despite profitability issues.

Negative Factors

Profitability Challenges

Negative profit margins highlight operational inefficiencies, potentially impacting long-term sustainability and investment capacity.

Rising Debt Levels

Increased debt levels can strain financial flexibility, raising concerns about the company's ability to manage liabilities and fund growth.

Declining Free Cash Flow

Negative free cash flow growth suggests liquidity challenges, limiting the company's ability to invest in growth opportunities or weather downturns.

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

Company Description

Taiho Kogyo Co., Ltd. (6470) is a Japanese company primarily engaged in the manufacturing and sale of various automotive components, with a focus on engine parts and related technologies. The company operates in the automotive sector, providing products such as camshafts, crankshafts, and precision machine parts that are essential for vehicle performance. Taiho Kogyo is known for its commitment to innovation and quality, catering to both domestic and international markets.

How the Company Makes Money

Taiho Kogyo generates revenue primarily through the sale of automotive components, which are supplied to major automobile manufacturers and parts suppliers. The company’s revenue model is based on direct sales of its products, often through long-term contracts and partnerships with automotive OEMs (original equipment manufacturers). Additionally, the company may engage in R&D collaborations with partners to develop advanced technologies, which can lead to additional revenue streams from licensing or joint ventures. Factors contributing to its earnings include strong demand for fuel-efficient and high-performance engines, as well as the company's reputation for high-quality manufacturing and reliability in the automotive industry.

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. The balance sheet highlights a stable equity position, but the increase in debt and negative return on equity are concerning. The ability to generate cash from operations provides some stability, but declining free cash flow suggests potential liquidity risks.

Income Statement

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

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

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	115.22B	112.79B	112.04B	105.16B	98.82B	92.94B
Gross Profit	16.15B	15.07B	17.14B	15.23B	15.08B	14.02B
EBITDA	6.72B	6.92B	10.50B	8.41B	9.00B	8.37B
Net Income	-4.07B	-4.19B	1.75B	399.00M	621.00M	300.00M
Balance Sheet
Total Assets	120.36B	122.34B	119.46B	113.77B	114.38B	113.73B
Cash, Cash Equivalents and Short-Term Investments	18.78B	19.95B	21.11B	16.95B	20.25B	21.31B
Total Debt	25.73B	26.11B	22.68B	22.81B	25.46B	28.34B
Total Liabilities	52.27B	53.05B	46.87B	46.69B	48.08B	49.39B
Stockholders Equity	67.47B	68.67B	72.01B	66.58B	65.79B	63.73B
Cash Flow
Free Cash Flow	0.00	-3.82B	4.62B	200.00M	2.49B	559.00M
Operating Cash Flow	0.00	6.25B	10.74B	5.87B	7.10B	5.64B
Investing Cash Flow	0.00	-10.20B	-6.22B	-5.84B	-4.72B	-5.13B
Financing Cash Flow	0.00	2.07B	-1.01B	-4.03B	-3.73B	8.54B

Taiho Kogyo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 736.00
• 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:6470, the sentiment is Positive. The current price of 736 is above the 20-day moving average (MA) of 682.25, above the 50-day MA of 700.30, and above the 200-day MA of 635.20, indicating a bullish trend. The MACD of 1.97 indicates Negative momentum. The RSI at 64.28 is Neutral, neither overbought nor oversold. The STOCH value of 92.76 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6470.

Taiho Kogyo Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7247	75 Outperform	¥13.05B	5.20	―	3.60%	-1.72%	168.62%
7236	74 Outperform	¥37.64B	5.85	―	3.77%	0.14%	882.91%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7294	57 Neutral	¥22.19B	-1.79	―	3.14%	-8.99%	-62.26%
7277	56 Neutral	¥9.31B	-10.66	―	2.32%	-4.06%	―
6470	51 Neutral	¥20.22B	575.18	―	2.91%	4.93%	―
7266	51 Neutral	¥16.66B	-64.43	―	3.11%	-8.63%	-55.68%