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

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JP:6470

Taiho Kogyo Co., Ltd.

(6470)

Rating:58Neutral
Price Target:
¥673.00
▲(8.55%Upside)
The overall stock score of 58 reflects Taiho Kogyo Co., Ltd.'s challenges in profitability and cash flow, balanced by some technical momentum. While the stable balance sheet and dividend yield provide some positive aspects, the company's financial performance is a key risk factor.

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 Japan-based company primarily engaged in the manufacture and sale of automotive components. The company operates in sectors including automotive, industrial machinery, and environmental technology. Its core products include engine bearings, bushings, and other precision parts that are vital for automotive engines, transmission systems, and industrial machinery. Taiho Kogyo is known for its advanced technology in producing durable and efficient components that enhance the performance and reliability of vehicles and machinery.
How the Company Makes MoneyTaiho Kogyo Co., Ltd. generates revenue primarily through the manufacturing and sale of its automotive and industrial components. The company's key revenue streams include the supply of engine bearings and bushings to major automobile manufacturers, both domestically and internationally. In addition to direct sales, Taiho Kogyo has partnerships and long-term contracts with automotive giants, ensuring a stable demand for its high-quality components. Furthermore, the company invests in research and development to innovate and improve its product offerings, which can lead to premium pricing and a competitive edge in the market. Other contributing factors to its earnings include its strategic expansion into environmental technologies, which opens additional revenue avenues by addressing the growing demand for sustainable and eco-friendly automotive solutions.

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.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue112.79B112.04B105.16B98.82B92.94B
Gross Profit15.07B17.14B15.23B15.08B14.02B
EBITDA6.92B10.50B8.41B9.00B8.37B
Net Income-4.19B1.75B399.00M621.00M300.00M
Balance Sheet
Total Assets122.34B119.46B113.77B114.38B113.73B
Cash, Cash Equivalents and Short-Term Investments19.95B21.11B16.95B20.25B21.31B
Total Debt26.11B22.68B22.81B25.46B28.34B
Total Liabilities53.05B46.87B46.69B48.08B49.39B
Stockholders Equity68.67B72.01B66.58B65.79B63.73B
Cash Flow
Free Cash Flow-3.82B4.62B200.00M2.49B559.00M
Operating Cash Flow6.25B10.74B5.87B7.10B5.64B
Investing Cash Flow-10.20B-6.22B-5.84B-4.72B-5.13B
Financing Cash Flow2.07B-1.01B-4.03B-3.73B8.54B

Taiho Kogyo Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price620.00
Price Trends
50DMA
602.88
Positive
100DMA
602.52
Positive
200DMA
605.98
Positive
Market Momentum
MACD
3.35
Negative
RSI
60.32
Neutral
STOCH
75.33
Neutral
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 620 is above the 20-day moving average (MA) of 574.70, above the 50-day MA of 602.88, and above the 200-day MA of 605.98, indicating a bullish trend. The MACD of 3.35 indicates Negative momentum. The RSI at 60.32 is Neutral, neither overbought nor oversold. The STOCH value of 75.33 is Neutral, 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

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
¥9.93B4.99
4.73%1.49%78.77%
76
Outperform
¥25.96B7.56
4.85%0.36%248.87%
74
Outperform
¥16.10B7.35
2.86%-5.40%
65
Neutral
€20.25B9.947.83%3.19%0.82%-38.50%
58
Neutral
¥17.99B
3.23%0.66%-340.28%
56
Neutral
¥8.99B
2.52%-3.96%-462.50%
55
Neutral
¥22.22B
3.35%-1.68%-240.66%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6470
Taiho Kogyo Co., Ltd.
625.00
-111.43
-15.13%
JP:7236
T.RAD Co., Ltd.
4,950.00
1,449.65
41.41%
JP:7247
Mikuni Corporation
296.00
-81.48
-21.59%
JP:7266
Imasen Electric Industrial Co., Ltd.
700.00
107.49
18.14%
JP:7277
TBK Co., Ltd.
317.00
13.11
4.31%
JP:7294
Yorozu Corporation
944.00
-145.17
-13.33%
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: Jul 25, 2025