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

• Market Cap: ¥17.90B
• Dividend Yield: 3.24%
• Average Volume (3M): 44.63K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.34
• Revenue Growth: 0.66%
• EPS Growth: -340.28%
• Country: JP
• Employees: 4,107
• Sector: Consumer Cyclical
• Sector Strength: 59
• Industry: Auto - Parts
• EPS (TTM): -145.40
• Shares Outstanding: 29,172,457
• 10 Day Avg. Volume: 41,330
• 30 Day Avg. Volume: 44,630
• PEG Ratio: -1.30
• Price to Book (P/B): 0.28
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 91.56
• 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: N/A
• Number of Analyst Covering: 0

• Rating: 52 Neutral
• 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. Business Overview & Revenue Model

Company Description

Taiho 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 Money

Taiho 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

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
110.73B	112.79B	112.04B	105.16B	98.82B	92.94B
	Gross Profit
15.36B	15.07B	17.14B	15.23B	15.08B	14.02B
	EBIT
388.00M	552.00M	2.39B	694.00M	1.11B	710.00M
	EBITDA
5.73B	6.92B	10.50B	8.41B	9.00B	8.37B
	Net Income Common Stockholders
-3.15B	-4.19B	1.75B	399.00M	621.00M	300.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
19.01B	19.95B	21.11B	16.95B	20.25B	21.31B
	Total Assets
117.94B	122.34B	119.46B	113.77B	114.38B	113.73B
	Total Debt
26.18B	26.11B	22.68B	22.81B	25.46B	28.34B
	Net Debt
7.17B	6.16B	1.57B	5.86B	5.21B	7.03B
	Total Liabilities
49.05B	53.05B	46.87B	46.69B	48.08B	49.39B
	Stockholders Equity
68.20B	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: Negative
• Last Price: 617.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7247	76 Outperform	¥9.60B	4.45		5.59%	1.49%	93.90%
7236	76 Outperform	¥24.20B	7.05		6.51%	0.36%	242.74%
7266	74 Outperform	¥15.77B	7.21		2.90%	-5.40%	―
Sector *	63 Neutral	$6.98B	11.41	2.80%	4.24%	2.68%	-24.94%
7277	53 Neutral	¥8.14B	―		2.79%	-3.96%	-462.49%
6470	52 Neutral	¥17.90B	―		3.24%	0.66%	-340.28%
7294	48 Neutral	¥21.23B	―		3.53%	-1.68%	-240.66%