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

• Market Cap: ¥21.70B
• Dividend Yield: 2.72%
• Average Volume (3M): 120.18K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.37
• Revenue Growth: 2.93%
• EPS Growth: -349.98%
• Country: JP
• Employees: 4,107
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 11.96
• Shares Outstanding: 29,172,457
• 10 Day Avg. Volume: 133,530
• 30 Day Avg. Volume: 120,180
• 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: ¥673.00
• Price Target Upside: -10.03% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 58 Neutral
• Price Target: ¥673.00 ▼(-10.03% Downside)

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. Business Overview & Revenue Model

Company Description

Taiho Kogyo Co., Ltd. manufactures and sells bearings in Japan. It provides engine bearings; and bushings and thrust washers for engine and engine accessory components, and steering systems, as well as for differential, transmission, suspension, and other applications. The company also offers special bearings for use in automobile and home air conditioning compressors, turbochargers, and steering systems; and EGR valves and actuators for use in turbochargers. In addition, it provides aluminum die-cast products; plastic products; and precision dies, including sintering, precision casting, and precision plastic molding dies. The company was founded in 1944 and is headquartered in Toyota, Japan.

How the Company Makes Money

Taiho 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 negative net income and declining free cash flow. Although the balance sheet remains stable, the increase in debt and negative return on equity are concerns.

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	112.79B	112.79B	112.04B	105.16B	98.82B	92.94B
Gross Profit	15.07B	15.07B	17.14B	15.23B	15.08B	14.02B
EBITDA	6.37B	6.92B	10.50B	8.41B	9.00B	8.37B
Net Income	-4.19B	-4.19B	1.75B	399.00M	621.00M	300.00M
Balance Sheet
Total Assets	122.34B	122.34B	119.46B	113.77B	114.38B	113.73B
Cash, Cash Equivalents and Short-Term Investments	19.95B	19.95B	21.11B	16.95B	20.25B	21.31B
Total Debt	26.11B	26.11B	22.68B	22.81B	25.46B	28.34B
Total Liabilities	53.05B	53.05B	46.87B	46.69B	48.08B	49.39B
Stockholders Equity	68.67B	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: 748.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 748 is above the 20-day moving average (MA) of 702.48, above the 50-day MA of 661.67, and above the 200-day MA of 614.20, indicating a bullish trend. The MACD of 18.25 indicates Negative momentum. The RSI at 73.64 is Negative, neither overbought nor oversold. The STOCH value of 77.01 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7236	82 Outperform	¥39.06B	7.88	12.67%	3.63%	1.00%	413.42%
7247	74 Outperform	¥12.62B	5.03	5.71%	3.83%	0.85%	94.79%
6470	58 Neutral	¥21.70B	―	―	2.72%	2.93%	-349.98%
7277	56 Neutral	¥9.70B	-11.11	-4.26%	2.34%	-3.20%	-454.63%
7266	55 Neutral	¥16.83B	-65.10	-0.52%	2.88%	-7.01%	-108.77%
7294	54 Neutral	¥23.71B	-1.92	-25.60%	3.23%	-4.86%	-162.41%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%