JTEKT (6473) AI Stock Analysis

• Market Cap: $348.37B
• Dividend Yield: 4.57%
• Average Volume (3M): 946.04K
• Price to Earnings (P/E): 27.1
• Beta (1Y): 1.24
• Revenue Growth: -0.38%
• EPS Growth: -65.61%
• Country: JP
• Employees: 45,717
• Sector: Consumer Cyclical
• Sector Strength: 59
• Industry: Auto - Parts
• EPS (TTM): 11.36
• Shares Outstanding: 318,608,100
• 10 Day Avg. Volume: 882,990
• 30 Day Avg. Volume: 946,043
• PEG Ratio: 0.16
• Price to Book (P/B): 0.52
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.57
• 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: $1,399.77
• Price Target Upside: 26.73% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 68 Neutral
• Price Target: ―

JTEKT's overall stock score reflects solid financial performance with consistent revenue growth and a stable equity position. However, declining profitability and mixed cash flow results highlight areas for improvement. The technical analysis indicates potential bullish momentum but also warns of overbought conditions. The valuation suggests overvaluation, mitigated by a strong dividend yield. These factors combined offer a balanced view of the stock's potential risks and rewards.

JTEKT Business Overview & Revenue Model

Company Description

JTEKT Corporation, headquartered in Japan, is a leading manufacturer in the automotive and industrial sectors. The company specializes in producing steering systems, drive-line components, machine tools, and bearings. With a strong emphasis on innovation and quality, JTEKT serves a diverse range of industries, including automotive, industrial machinery, and energy solutions, providing essential components that enhance the performance and safety of mechanical systems globally.

How the Company Makes Money

JTEKT makes money primarily through the sale of its automotive components, such as steering systems and drive-line components, to major automotive manufacturers worldwide. The company also generates revenue from its industrial segment by supplying machine tools and bearings to various industries, including aerospace, construction, and energy. Additionally, JTEKT benefits from strategic partnerships and collaborations that enable it to expand its market reach and technological capabilities. These partnerships often involve joint ventures and technology sharing, which help JTEKT maintain its competitive edge in innovation and production efficiency.

JTEKT Financial Statement Overview

Summary

JTEKT's financial performance shows consistent revenue growth and a stable equity position, suggesting a solid foundation. However, challenges in profitability with declining EBIT and net profit margins, alongside mixed cash flow results, indicate areas needing improvement.

Income Statement

JTEKT has demonstrated a strong recovery in its income statement over the years. The revenue growth has been consistent, with a notable increase from 2021 to 2023. Gross profit margins have remained steady, reflecting efficient cost management. However, the decline in EBIT and net profit margins in 2025 indicates some potential challenges in maintaining profitability levels.

Balance Sheet

The balance sheet shows a healthy equity position and a manageable debt-to-equity ratio. The growth in stockholders' equity over the years suggests a stable financial foundation. However, the increase in total debt in recent years could be a potential risk if not managed carefully.

Cash Flow

Cash flow generation has been mixed, with fluctuations in free cash flow and operating cash flow. The negative free cash flow in 2025 raises concerns about cash management and capital expenditure. Nonetheless, the operating cash flow to net income ratio remains strong, indicating operational efficiency.

Breakdown
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
1.88T	1.89T	1.68T	1.43T	1.25T
	Gross Profit
281.29B	283.93B	255.15B	209.88B	171.71B
	EBIT
64.94B	72.90B	49.33B	36.40B	12.92B
	EBITDA
118.79B	147.88B	121.72B	107.86B	73.08B
	Net Income Common Stockholders
13.71B	40.26B	34.28B	20.68B	800.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
119.06B	167.02B	127.40B	129.35B	122.04B
	Total Assets
1.57T	1.63T	1.44T	1.39T	1.29T
	Total Debt
240.47B	241.95B	255.17B	261.76B	286.22B
	Net Debt
121.41B	74.93B	131.32B	137.51B	167.57B
	Total Liabilities
787.92B	805.74B	740.62B	726.05B	706.21B
	Stockholders Equity
745.04B	788.98B	667.23B	624.01B	550.91B
Cash Flow		Free Cash Flow
-8.06B	73.01B	22.50B	24.36B	36.51B
	Operating Cash Flow
80.24B	154.46B	78.28B	67.04B	91.76B
	Investing Cash Flow
-75.94B	-71.35B	-52.11B	-25.27B	-52.52B
	Financing Cash Flow
-52.08B	-47.22B	-28.71B	-43.53B	-57.96B

JTEKT Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1104.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6473, the sentiment is Positive. The current price of 1104.5 is below the 20-day moving average (MA) of 1123.92, above the 50-day MA of 1075.06, and above the 200-day MA of 1073.82, indicating a neutral trend. The MACD of 0.16 indicates Positive momentum. The RSI at 48.02 is Neutral, neither overbought nor oversold. The STOCH value of 12.85 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6473.

JTEKT Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5991	78 Outperform	¥341.23B	7.06		0.76%	4.53%	29.41%
5191	74 Outperform	¥173.81B	6.34		4.30%	2.91%	47.09%
7282	73 Outperform	$334.60B	9.21	6.71%	3.82%	-1.06%	-28.58%
7988	69 Neutral	¥312.12B	7.20		2.41%	-5.01%	152.67%
6473	68 Neutral	$348.37B	27.12	1.72%	4.57%	-0.38%	-65.61%
6471	66 Neutral	¥295.41B	29.38		5.31%	0.99%	24.86%
Sector *	63 Neutral	$6.98B	11.41	2.80%	4.24%	2.68%	-24.94%

JTEKT Corporate Events

JTEKT Announces Treasury Stock Disposal for Director Compensation

JTEKT Corporation’s Board of Directors has approved the disposal of 13,881 shares of treasury stock as part of a restricted stock compensation plan for its directors, excluding outside directors. This initiative aims to align the interests of the directors with those of the shareholders by promoting long-term value sharing and continuous improvement of the company’s value. The plan includes a 30-year transfer restriction on the shares, with specific conditions for lifting these restrictions, thereby incentivizing directors to maintain their positions and contribute to the company’s growth.

The most recent analyst rating on (JP:6473) stock is a Buy with a Yen1500.00 price target. To see the full list of analyst forecasts on JTEKT stock, see the JP:6473 Stock Forecast page.

JTEKT Corporation Highlights Strategic Independence Amid Toyota Partnership

JTEKT Corporation has announced its relationship with Toyota Motor Corporation, which holds a 24.3% stake in JTEKT. This relationship is crucial as Toyota accounts for a substantial portion of JTEKT’s revenue. The announcement highlights the company’s strategic independence in conducting business with various automobile manufacturers, ensuring diverse revenue streams and maintaining its operational autonomy.

JTEKT Reports Decline in Fiscal Year 2025 Financial Results

JTEKT Corporation reported a decline in its financial performance for the fiscal year ended March 31, 2025, with a decrease in revenue by 0.4% and a significant drop in profit before income taxes by 57.4% compared to the previous year. Despite the downturn, the company plans to increase its annual dividends per share, reflecting a commitment to shareholder returns. The forecast for the upcoming fiscal year indicates further challenges with expected declines in revenue and business profit, although an increase in operating profit is anticipated.

JTEKT Corporation Revises Financial Forecasts Upward for FY 2025

JTEKT Corporation has revised its full-year financial forecasts for the fiscal year ending March 31, 2025, reflecting an expected increase in revenue and profits. The revisions are attributed to successful cost improvements, recovery from customers for cost increases, and tax benefits from improved profitability in India and tax refunds in the United States, indicating a positive outlook for the company’s financial performance.

JTEKT Announces Leadership Change to Rejuvenate Board

JTEKT Corporation announced a change in its representative directors to rejuvenate its board, effective after the Annual General Meeting in June 2025. Toshiaki Shinya will assume the role of Representative Director, bringing extensive experience within the company, which may influence JTEKT’s strategic direction and operational efficiency.