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JTEKT Corporation (JP:6473)
:6473

JTEKT (6473) AI Stock Analysis

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JP

JTEKT

(OTC:6473)

Rating:64Neutral
Price Target:
¥1,202.00
▼(-2.28%Downside)
JTEKT's overall stock score reflects a mix of strengths and weaknesses. Strong financial performance is somewhat offset by profitability challenges and cash flow management issues. Technical indicators show a positive trend, though caution is advised due to mixed momentum signals. Valuation suggests the stock could be overvalued, but the high dividend yield offers some compensation for investors.

JTEKT (6473) vs. iShares MSCI Japan ETF (EWJ)

JTEKT Business Overview & Revenue Model

Company DescriptionJTEKT 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 MoneyJTEKT 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
75
Positive
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
70
Positive
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
60
Neutral
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.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue1.88T1.89T1.68T1.43T1.25T
Gross Profit281.29B283.93B255.15B209.88B171.71B
EBITDA118.79B147.88B121.72B107.86B73.08B
Net Income13.71B40.26B34.28B20.68B800.00M
Balance Sheet
Total Assets1.57T1.63T1.44T1.39T1.29T
Cash, Cash Equivalents and Short-Term Investments119.06B167.02B127.40B129.35B122.04B
Total Debt240.47B241.95B255.17B261.76B286.22B
Total Liabilities787.92B805.74B740.62B726.05B706.21B
Stockholders Equity745.04B788.98B667.23B624.01B550.91B
Cash Flow
Free Cash Flow-8.06B73.01B22.50B24.36B36.51B
Operating Cash Flow80.24B154.46B78.28B67.04B91.76B
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 Price1230.00
Price Trends
50DMA
1120.34
Positive
100DMA
1105.61
Positive
200DMA
1083.12
Positive
Market Momentum
MACD
24.02
Negative
RSI
76.58
Negative
STOCH
92.42
Negative
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 1230 is above the 20-day moving average (MA) of 1123.65, above the 50-day MA of 1120.34, and above the 200-day MA of 1083.12, indicating a bullish trend. The MACD of 24.02 indicates Negative momentum. The RSI at 76.58 is Negative, neither overbought nor oversold. The STOCH value of 92.42 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6473.

JTEKT Peers Comparison

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
¥320.76B7.40
2.34%-5.01%153.39%
78
Outperform
¥337.90B6.99
0.76%4.53%31.50%
73
Outperform
$361.08B9.946.71%3.87%-1.06%-28.59%
69
Neutral
¥174.84B6.38
4.28%2.91%47.09%
68
Neutral
¥316.41B31.47
4.96%0.99%24.85%
67
Neutral
¥252.06B13.216.57%2.79%5.06%-11.45%
64
Neutral
¥381.63B29.711.72%4.17%-0.38%-65.61%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6473
JTEKT
1,230.00
152.01
14.10%
JP:5191
Sumitomo Riko Company Limited
1,736.00
270.51
18.46%
JP:5991
NHK Spring Co., Ltd.
1,609.00
36.81
2.34%
JP:6471
NSK Ltd.
694.80
-75.75
-9.83%
JP:7988
Nifco Inc.
3,425.00
-388.23
-10.18%
JP:7282
Toyoda Gosei Co
2,974.00
267.80
9.90%

JTEKT Corporate Events

JTEKT Completes Treasury Stock Disposal for Compensation
Jun 26, 2025

JTEKT Corporation has completed the payment procedures for the disposal of treasury stock as restricted stock compensation, which was initially resolved at a Board of Directors meeting on May 16, 2025. This move involves the disposal of 13,881 shares of common stock at a price of 1,149 yen per share, totaling 15,949,269 yen, and is aimed at compensating directors, excluding outside directors, which may impact the company’s financial strategy and shareholder value.

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 Announces Treasury Stock Disposal for Director Compensation
May 16, 2025

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
Apr 25, 2025

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
Apr 25, 2025

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
Apr 23, 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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 25, 2025