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JTEKT
(6473)
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Rating:60Neutral
Price Target:
¥2,327.00
▲(14.89% Upside)
Action:Reiterated
Date:08/01/26
The score is driven primarily by mixed financial performance: strong revenue growth and a healthier leverage profile are offset by very thin recent profitability and low returns, with cash flow improving but inconsistent. Technicals are supportive with the stock trading above key moving averages, while valuation is a notable headwind due to the high P/E despite a moderate dividend yield.
Positive Factors
Diversified product mix & aftermarket services
JTEKT's mix of bearings, steering systems (including EPS) and machine tools plus recurring aftermarket/service activities creates multiple revenue pillars. This diversification reduces dependence on any single end market, sustains aftermarket margins, and strengthens long-term OEM relationships across regions.
Negative Factors
Compressed profitability and low returns
Extremely thin operating and net margins constrain JTEKT's ability to self-fund growth and absorb input cost shocks. Low ROE signals limited shareholder value creation; persistent margin compression reduces capacity for reinvestment, dividends or M&A without structural margin improvement.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified product mix & aftermarket services
JTEKT's mix of bearings, steering systems (including EPS) and machine tools plus recurring aftermarket/service activities creates multiple revenue pillars. This diversification reduces dependence on any single end market, sustains aftermarket margins, and strengthens long-term OEM relationships across regions.
Read all positive factors
JTEKT (6473) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥705.43B
Dividend Yield2.71%
Average Volume (3M)1.13M
Price to Earnings (P/E)36.6
Beta (1Y)1.35
Revenue Growth4.64%
EPS Growth106.98%
CountryJP
Employees43,233
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)60.62
Shares Outstanding318,608,100
10 Day Avg. Volume1,122,470
30 Day Avg. Volume1,129,163
Financial Highlights & Ratios
PEG Ratio-6.40
Price to Book (P/B)0.66
Price to Sales (P/S)0.27
P/FCF Ratio27.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)164.22
Revenue Forecast (FY)¥1.91T
JTEKT Business Overview & Revenue Model
Company Description
JTEKT Corporation manufactures and sells steering systems, driveline components, bearings, machine tools, electronic control devices, and home accessory equipment. The company offers automotive components, such as steering, drive line components, ...
How the Company Makes Money
JTEKT makes money primarily by manufacturing and selling engineered components and equipment to automotive and industrial customers. Key revenue streams include: (1) Steering systems: Sales of steering products—especially electric power steering (...
JTEKT Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
68
Positive
Cash Flow
60
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.96T | 1.92T | 1.88T | 1.89T | 1.68T | 1.43T |
| Gross Profit | 310.45B | 297.04B | 315.62B | 317.75B | 285.11B | 235.83B |
| EBITDA | 119.15B | 113.12B | 108.86B | 150.70B | 129.95B | 114.34B |
| Net Income | 19.30B | 11.97B | 13.71B | 40.26B | 34.28B | 20.68B |
Balance Sheet | ||||||
| Total Assets | 1.60T | 1.58T | 1.57T | 1.63T | 1.44T | 1.39T |
| Cash, Cash Equivalents and Short-Term Investments | 168.47B | 137.55B | 119.06B | 167.02B | 123.85B | 124.25B |
| Total Debt | 221.54B | 217.12B | 248.36B | 250.84B | 263.34B | 268.50B |
| Total Liabilities | 758.77B | 752.46B | 787.92B | 805.74B | 740.62B | 726.04B |
| Stockholders Equity | 809.38B | 790.21B | 745.04B | 788.98B | 667.23B | 624.01B |
Cash Flow | ||||||
| Free Cash Flow | 34.73B | 19.00B | -8.06B | 95.72B | 22.50B | 24.36B |
| Operating Cash Flow | 115.81B | 108.50B | 80.24B | 154.46B | 78.28B | 67.04B |
| Investing Cash Flow | -37.11B | -52.70B | -75.94B | -71.35B | -52.11B | -25.27B |
| Financing Cash Flow | -59.60B | -46.98B | -52.08B | -47.22B | -28.71B | -43.53B |
JTEKT Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | ¥650.92B | 10.26 | 10.96% | 2.75% | 12.73% | 81.53% | |
78 Outperform | ¥731.29B | 26.26 | ― | 2.60% | 1.89% | -39.75% | |
71 Outperform | ¥5.42T | 12.26 | 8.64% | 3.26% | 7.51% | 13.94% | |
63 Neutral | ¥1.60T | 9.89 | 8.25% | 2.92% | 5.69% | 27.94% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | ¥563.14B | 17.90 | ― | 3.52% | 22.68% | 220.06% | |
60 Neutral | ¥705.43B | 36.56 | 1.57% | 2.96% | 4.64% | 106.98% |
* Consumer Cyclical Sector Average
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JTEKT Corporate Events
JTEKT Completes Early Transfer of European Automotive Business, Sees Profit Upside
Aug 2, 2026
JTEKT Corporation has completed the previously announced transfer of its European automotive business for OEM customers, including all shares of seven consolidated subsidiaries engaged in manufacturing and selling automotive components. The transa...
JTEKT to Book ¥15.3 Billion Non-Operating Income from China Unit Dividend
Jul 31, 2026
JTEKT Corporation has announced that it will record significant non-operating income in its non-consolidated results for the fiscal year ending March 31, 2027. The income arises from a dividend of 15.3 billion yen received from its consolidated su...
JTEKT Delivers Profit Surge in Q1 FY2026 and Confirms Higher Dividend Outlook
Jul 31, 2026
JTEKT Corporation, a diversified Japanese manufacturer of automotive and industrial components, reported stronger earnings for the three months ended June 30, 2026, despite only moderate revenue growth. The company’s shares are listed in Tok...
JTEKT Completes Restricted Stock Treasury Disposal for Executive Compensation
Jun 26, 2026
JTEKT Corporation has completed payment procedures for the disposal of treasury stock used as restricted stock compensation to its directors, following a Board of Directors resolution passed in mid‑May 2026. The transaction involved issuing ...
JTEKT to Divest European Automotive Business in Strategic Profitability Push
May 27, 2026
JTEKT Corporation has signed a definitive agreement to transfer its European automotive business for OEM customers, including all shares of seven consolidated subsidiaries engaged in manufacturing and selling automotive components, to LEO III.-VV2...
JTEKT to Grant Restricted Treasury Shares to Directors Under Long-Term Incentive Plan
May 15, 2026
JTEKT Corporation has approved the disposal of 12,028 shares of its treasury stock as restricted stock compensation for three executive directors, valued at approximately ¥24.8 million and priced at ¥2,059 per share. The transaction, sch...
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.