JTEKT (6473) AI Stock Analysis

• Market Cap: ¥516.97B
• Dividend Yield: 3.18%
• Average Volume (3M): 1.13M
• Price to Earnings (P/E): 15.0
• Beta (1Y): 1.26
• Revenue Growth: 0.44%
• EPS Growth: -11.36%
• Country: JP
• Employees: 45,717
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 28.86
• Shares Outstanding: 318,608,100
• 10 Day Avg. Volume: 1,122,470
• 30 Day Avg. Volume: 1,129,163
• PEG Ratio: -0.43
• Price to Book (P/B): 0.51
• Price to Sales (P/S): 0.20
• P/FCF Ratio: -47.53
• 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): 103.51
• Revenue Forecast (FY): ¥1.89T

• Rating: 63 Neutral
• Price Target: ¥1,779.00 ▼(-1.33% Downside)
• Action: Downgraded Date: 02/05/26
• Date: Action: Downgraded 02/05/26

The score is primarily constrained by thin/volatile profitability and uneven free cash flow despite strong recent revenue growth and a solid balance-sheet profile. Technicals are supportive with an uptrend across major moving averages, while valuation is mixed—an attractive dividend yield but a P/E that looks high relative to earnings and cash-flow quality.

Positive Factors

Revenue Recovery

TTM revenue growth of +34.6% indicates a meaningful recovery in automotive and industrial end markets. Sustained top-line expansion can improve plant utilization and fixed-cost absorption, giving management runway to convert scale into more durable margin and investment capacity over coming quarters.

Balance Sheet Strength

A modest debt-to-equity (~0.31) provides financial flexibility to fund program ramps, necessary capex for machine tools and electrified steering, and to withstand cyclical downturns. Manageable leverage reduces near-term refinancing risk and supports strategic investments over a multi-quarter horizon.

Diversified Business Model

Exposure across steering systems, bearings and machine tools creates multiple, partially offsetting revenue streams—OEM production programs, aftermarket, and industrial capex. This diversification reduces reliance on a single cycle and supports steadier structural demand and cross-selling opportunities.

Negative Factors

Thin Profitability

Very thin operating and net margins limit the company’s ability to absorb commodity, labor or pricing shocks and constrain reinvestment. Persistent low margins mean earnings are highly sensitive to volume and cost swings, making sustained profitability improvements uncertain without structural changes.

Weak Free Cash Flow

Free cash flow has declined materially (~-41%) and remains modest (~¥12.4B), with prior periods showing negative FCF. Inconsistent cash generation restricts capacity to self-fund growth, dividends or accelerated deleveraging, raising medium-term funding and capital-allocation constraints.

Low Return on Equity

A TTM ROE of roughly 2.6% indicates limited returns on shareholders' capital despite scale. Low ROE reflects margin pressure or capital inefficiency and suggests capital allocation has yet to translate into strong shareholder profitability, risking prolonged underperformance absent operational gains.

JTEKT Business Overview & Revenue Model

Company Description

JTEKT Corporation manufactures and sells steering systems, driveline components, bearings, machine tools, electronic control devices, home accessory equipment, etc. It offers steering systems, such as electric power steering, hydraulic power steering, and unit components; driveline components, including driveshaft, propeller shaft, couplings, and Torsen limited slip differential products; wheels, such as hub units; engine and peripheral parts that include damper pulley; and transmission products, such as electric pump for idle-stop system and solenoid valves. The company also provides sensor systems comprising peripherals for social infrastructures; products for the research and development field, including semiconductor transducers, load cells, DC amplifiers, and pressure transducer for welding guns and indicators; medical equipment, such as pressure sensors for dialyzers; and heat-resistant lithium-ion capacitors. In addition, it offers ball and roller bearings; and oil seals. Further, the company provides machine tools, such as grinders, machining and gear skiving centers, cutting machines, and others. It offers its products under the JTEKT, KOYO, and TOYODA brands. The company operates in Japan, Europe, North America, the rest of Asia, Oceania, South America, and internationally. JTEKT Corporation was founded in 1921 and is headquartered in Aichi, Japan.

How the Company Makes Money

JTEKT primarily makes money by manufacturing and selling (1) steering systems, (2) bearings, and (3) machine tools and related equipment/services to automotive OEMs, automotive parts suppliers, and industrial customers. In steering, revenue is generated through the sale of electric power steering and related steering components/modules that are delivered as production parts to vehicle manufacturers, with earnings driven by vehicle production volumes, platform adoption, product mix, and pricing contracts. In bearings, the company earns revenue from supplying bearings for automotive applications (e.g., powertrain and chassis) and for industrial machinery; this stream is tied to demand in automotive production and industrial capital expenditure, with additional contribution from aftermarket/maintenance replacement demand where applicable. In machine tools, JTEKT generates revenue through the sale of machining centers, grinding machines, and other precision equipment used in manufacturing; this is typically supplemented by recurring income from installation, maintenance, spare parts, and tooling/consumables where offered. Across these segments, profitability and cash generation are influenced by long-term supply relationships with major customers (including automotive OEMs and industrial manufacturers), scale in manufacturing, raw material and component costs, currency movements affecting export competitiveness, and the ability to win new programs in electrification and advanced driver-assistance-related vehicle platforms.

JTEKT Financial Statement Overview

Summary

Revenue rebounded strongly in TTM and leverage looks manageable, but profitability remains thin and volatile, and free cash flow generation/conversion has been inconsistent and recently weaker.

Income Statement

In TTM (Trailing-Twelve-Months), revenue rebounded sharply (+34.6%) versus the latest annual period, and profitability improved year over year (EBIT margin ~3.0% vs ~2.5%; net margin ~1.3% vs ~0.7%). However, overall margins remain thin for the business, and net income has been volatile (strong in 2024, weaker in 2025), indicating earnings sensitivity to cost/price and operating conditions.

Balance Sheet

Leverage appears manageable with debt-to-equity around ~0.31 in TTM (Trailing-Twelve-Months), improving from higher levels earlier in the period, alongside a larger equity base. That said, returns are currently modest (TTM return on equity ~2.6%, down from ~5% in 2023–2024), suggesting the balance sheet is solid but not being translated into strong shareholder profitability recently.

Cash Flow

Cash generation is mixed: operating cash flow is positive in TTM (Trailing-Twelve-Months), but free cash flow is relatively low (~¥12.4B) and down materially (free cash flow growth ~-41%). Free cash flow also covers only a small portion of net income in TTM, and the prior annual period showed negative free cash flow, pointing to volatility likely tied to working capital and/or investment needs.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	1.90T	1.88T	1.89T	1.68T	1.43T	1.25T
Gross Profit	294.81B	315.62B	317.75B	285.11B	235.83B	198.67B
EBITDA	147.82B	135.27B	143.88B	121.14B	107.62B	78.97B
Net Income	25.11B	13.71B	40.26B	34.28B	20.68B	800.00M
Balance Sheet
Total Assets	1.59T	1.57T	1.63T	1.44T	1.39T	1.29T
Cash, Cash Equivalents and Short-Term Investments	130.46B	119.06B	167.02B	123.85B	124.25B	118.64B
Total Debt	243.90B	248.36B	250.84B	263.34B	268.50B	291.49B
Total Liabilities	775.23B	787.92B	805.74B	740.62B	726.04B	706.21B
Stockholders Equity	777.45B	745.04B	788.98B	667.23B	624.01B	550.91B
Cash Flow
Free Cash Flow	12.39B	-8.06B	95.72B	22.50B	24.36B	36.51B
Operating Cash Flow	101.35B	80.24B	154.46B	78.28B	67.04B	91.76B
Investing Cash Flow	-84.32B	-75.94B	-71.35B	-52.11B	-25.27B	-52.52B
Financing Cash Flow	-43.46B	-52.08B	-47.22B	-28.71B	-43.53B	-57.96B

JTEKT Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1803.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6473, the sentiment is Negative. The current price of 1803 is below the 20-day moving average (MA) of 1905.25, below the 50-day MA of 1909.97, and above the 200-day MA of 1556.32, indicating a neutral trend. The MACD of -61.88 indicates Positive momentum. The RSI at 33.84 is Neutral, neither overbought nor oversold. The STOCH value of 24.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6473.

JTEKT Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7282	75 Outperform	¥473.04B	7.76	8.58%	2.62%	1.44%	-0.92%
5991	74 Outperform	¥521.22B	11.33	―	2.60%	1.06%	-5.99%
6471	68 Neutral	¥539.43B	28.26	―	3.52%	1.43%	83.34%
6902	67 Neutral	$5.13T	10.20	6.98%	2.98%	2.41%	11.03%
6473	63 Neutral	¥516.97B	15.03	3.35%	3.18%	0.44%	-11.36%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7259	54 Neutral	¥1.65T	14.23	8.34%	2.03%	4.33%	524.86%

JTEKT Corporate Events

JTEKT Takes ¥50bn Hit on European Auto Exit, Slashes Profit Outlook

JTEKT Corporation will book substantial one-off charges in fiscal 2025–26 linked to the transfer of its European automotive business, including a ¥24.4 billion loss on the divestment at the consolidated level and a ¥32.2 billion extraordinary loss on a non-consolidated basis. Additionally, it will recognize a ¥28.6 billion non-operating allowance for doubtful accounts related to financially weakened European subsidiaries, though this provision will not affect consolidated earnings as these units are already fully consolidated.

Despite steady revenue guidance of ¥1.88 trillion and an upward revision to business profit, the company has sharply cut its forecasts for operating profit and bottom-line earnings for the year ending March 31, 2026. Operating profit and profit attributable to owners of the parent are now expected to fall 60% from previous guidance, underscoring the short-term earnings hit from European restructuring even as underlying operations show resilience, a trade-off closely watched by investors and creditors.

The most recent analyst rating on (JP:6473) stock is a Hold with a Yen2262.00 price target. To see the full list of analyst forecasts on JTEKT stock, see the JP:6473 Stock Forecast page.

JTEKT Raises Expected Gain as Toyota Industries Tender Offer Price Is Increased

JTEKT announced an update to its previously disclosed plan to participate in a tender offer for all Toyota Industries Corporation shares it holds, following changes to the expected purchase price and offer period. The revised tender offer terms raise the per-share price from 18,800 yen to 20,600 yen, lifting JTEKT’s expected sale proceeds from 37.6 billion yen to 41.2 billion yen, and extend the tender period to March 23, 2026 with settlement starting March 30, 2026.

As a result of the higher price and assuming the tender offer is successfully completed within the fiscal year ending March 31, 2026, JTEKT now projects extraordinary gains of 37.7 billion yen on the sale of these investment securities in its non-consolidated financial results, up from its earlier estimate of 34.1 billion yen. The increased expected gain underscores a stronger prospective boost to JTEKT’s non-consolidated earnings, potentially enhancing its financial flexibility and capital allocation options for shareholders and future strategic investments.

The most recent analyst rating on (JP:6473) stock is a Hold with a Yen2262.00 price target. To see the full list of analyst forecasts on JTEKT stock, see the JP:6473 Stock Forecast page.

JTEKT to Transfer Loss-Making European Automotive Business in Strategic Restructuring

JTEKT has signed a basic agreement to transfer its European automotive business for OEM customers, including all shares of seven consolidated subsidiaries such as JTEKT EUROPE S.A.S., to Germany-based investment vehicle LEO III.-VV25-A GmbH, advised by DUBAG Investment Advisory. The move forms part of JTEKT’s Second Medium-term Management Plan to overhaul its global structure and address persistent losses in Europe by restructuring, consolidating operations, and tailoring strategies to regional market conditions.

The transaction targets loss-making units in France and the Czech Republic that manufacture and sell steering systems and other automotive components, with recent financials showing negative net assets and recurring operating losses. By exiting and reorganizing these European businesses, JTEKT aims to restore profitability in the region, sharpen its operational focus, and better align resources with customer demand, potentially improving its overall financial health and competitive positioning in the global automotive components industry.

The most recent analyst rating on (JP:6473) stock is a Hold with a Yen1977.00 price target. To see the full list of analyst forecasts on JTEKT stock, see the JP:6473 Stock Forecast page.

JTEKT to Tender Entire Toyota Industries Stake, Booking ¥34.1 Billion Extraordinary Gain

JTEKT Corporation has resolved to tender all 2,002,625 shares it holds in Toyota Industries Corporation into a tender offer launched by Toyota Fudosan, in line with its Second Medium-Term Business Plan to reduce policy-held listed shares. The divestment, at an expected price of ¥18,800 per share for total proceeds of around ¥37.6 billion, is projected to generate approximately ¥34.1 billion in extraordinary gains in JTEKT’s non-consolidated results for the fiscal year ending March 31, 2026, while having no impact on consolidated earnings under IFRS; JTEKT emphasized it intends to maintain and strengthen its business relationship with Toyota Industries despite selling its equity stake.

The most recent analyst rating on (JP:6473) stock is a Buy with a Yen2147.00 price target. To see the full list of analyst forecasts on JTEKT stock, see the JP:6473 Stock Forecast page.

JTEKT Raises Full-Year Profit Forecast on Weaker Yen and Stronger Margins

JTEKT Corporation revised upward its full-year consolidated earnings forecast for the fiscal year ending March 31, 2026, citing third-quarter results, updated foreign exchange assumptions, and recent market conditions. The company now projects revenue of ¥1.88 trillion, business profit of ¥65 billion, operating profit of ¥55 billion, profit before income taxes of ¥55 billion, and profit attributable to owners of the parent of ¥25 billion, all above the previous forecast and implying double-digit percentage growth in key profit metrics and a higher earnings per share outlook of ¥78.54. While revenue is expected to be roughly in line with the prior year, the stronger profit guidance suggests improved margins and operational efficiency, supported in part by a weaker yen with new assumptions of ¥150 to the U.S. dollar and ¥173 to the euro for the full year (and even weaker rates in the fourth quarter), which should benefit JTEKT’s export-oriented business and may be viewed positively by investors and other stakeholders.

The most recent analyst rating on (JP:6473) stock is a Buy with a Yen2147.00 price target. To see the full list of analyst forecasts on JTEKT stock, see the JP:6473 Stock Forecast page.

JTEKT Delivers Strong Profit Rebound and Raises Dividend on Stable Revenue

JTEKT Corporation reported a modest 1.3% year-on-year increase in revenue to ¥1.40 trillion for the nine months ended December 31, 2025, but achieved a sharp rebound in profitability, with business profit up 34.1%, profit before income taxes up 45.1%, and profit attributable to owners of the parent more than doubling to ¥21.35 billion, lifting basic earnings per share to ¥67.07. The company strengthened its financial position with higher total equity and an improved equity ratio of 49.0%, raised interim dividends to ¥30 per share and plans a full-year total of ¥60, while revising its full-year forecast to target stable revenue and significant profit growth—particularly a forecast 82.3% rise in profit attributable to owners—signaling improved cost efficiency and a more robust earnings structure that should support shareholders despite largely flat top-line expectations.

The most recent analyst rating on (JP:6473) stock is a Buy with a Yen2147.00 price target. To see the full list of analyst forecasts on JTEKT stock, see the JP:6473 Stock Forecast page.