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

• Market Cap: ¥32.17B
• Dividend Yield: 2.45%
• Average Volume (3M): 103.97K
• Price to Earnings (P/E): 130.9
• Beta (1Y): 1.31
• Revenue Growth: 4.93%
• EPS Growth: N/A
• Country: JP
• Employees: 4,107
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 16.32
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: ¥1,075.00 ▲(31.74% Upside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is held back primarily by weakening financial performance (net loss, margin compression, and declining free cash flow) and a very expensive P/E, despite strong technical momentum. Elevated overbought indicators suggest the recent rally may be vulnerable to a pullback.

Positive Factors

Stable OEM supply role

Taiho's core position as a supplier of plain bearings and drivetrain parts reflects durable, contract-based revenue from automaker platforms. Long-term supply arrangements and product specificity create high switching costs and predictable production-volume exposure over multi-year vehicle cycles.

Positive operating cash generation

Despite recent net losses, the company still converts operations into positive operating cash flow, showing underlying cash-generation ability. That operational cash buffer supports working capital, routine capex and supplier payments during auto-cycle downturns, preserving operating resilience.

Relatively stable balance sheet

A healthy equity ratio and a moderate debt-to-equity profile give Taiho capacity to absorb cyclical shocks and fund required localization or tooling investments. The relative balance-sheet stability preserves strategic optionality for long-term customer contracts and capital projects.

Negative Factors

Profitability deterioration

The recent net loss and negative return on equity signal impaired core profitability and weaken internal capital generation. Persistent losses erode equity returns and limit reinvestment capacity, making it harder to fund R&D, pricing initiatives or absorb supply-chain cost inflation over months.

Declining free cash flow

Falling free cash flow, driven by higher capex and weaker operating cash conversion, reduces financial flexibility. Over a medium horizon this can force reprioritization of investments, increase reliance on external financing, or constrain ability to support long-term customer tooling commitments.

Margin compression and stagnant revenue

Stagnant top-line growth together with falling gross and EBITDA margins indicates pricing pressure or rising input costs. Structural margin compression undermines sustainable earnings power and makes the business more sensitive to cyclical auto volumes and raw-material cost swings.

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 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

Weak profitability and deteriorating margins, with the latest period showing a net loss and negative ROE. Operating cash flow remains positive, but free cash flow declined due to lower operating cash flow and higher capex. Balance sheet is relatively stable with a healthy equity base, though rising debt adds risk.

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 2022	Mar 2021	Mar 2021
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: 816.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 816 is below the 20-day moving average (MA) of 945.90, below the 50-day MA of 881.18, and above the 200-day MA of 716.98, indicating a bullish trend. The MACD of 61.86 indicates Negative momentum. The RSI at 80.83 is Negative, neither overbought nor oversold. The STOCH value of 80.75 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	¥14.60B	4.37	―	3.90%	-1.72%	168.62%
7236	71 Outperform	¥62.90B	6.61	―	3.60%	0.14%	882.91%
7266	71 Outperform	¥22.52B	11.42	―	2.70%	-8.63%	-55.68%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7294	57 Neutral	¥22.82B	-3.57	―	3.19%	-8.99%	-62.26%
7277	56 Neutral	¥13.02B	16.51	―	2.23%	-4.06%	―
6470	51 Neutral	¥32.17B	130.91	―	2.45%	4.93%	―