JTEKT (6473) AI Stock Analysis

• Market Cap: ¥684.10B
• Dividend Yield: 3.18%
• Average Volume (3M): 1.13M
• Price to Earnings (P/E): 27.4
• Beta (1Y): 1.19
• 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): 88.75
• Revenue Forecast (FY): ¥1.88T

• Rating: 63 Neutral
• Price Target: ¥2,198.00 ▲(21.91% Upside)
• 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

Diversified product portfolio and customer exposure

JTEKT's exposure across steering systems, bearings and machine tools spreads cyclical risk and creates multiple revenue engines tied to automotive OEMs and industrial buyers. This structural diversification supports steadier long-term demand and cross-selling versus single-product peers.

Material revenue rebound and scale

A strong TTM revenue rebound (≈34.6%) demonstrates demand resilience and the company's ability to win or ramp programs. Scale from higher volumes reinforces supplier relationships and bargaining power with OEMs, supporting durable order flow and manufacturing leverage over months.

Manageable leverage and solid balance-sheet base

A relatively low D/E (~0.31) and a larger equity base give JTEKT financial flexibility to fund capex or absorb cyclical slumps. This balance-sheet strength supports sustained investment in programs and cushions operational cash variability over the medium term.

Negative Factors

Thin and volatile profitability

Margins near low single digits and volatile net income constrain the company's ability to self-fund growth and absorb input-cost shocks. Persistent thin profitability limits reinvestment, reduces buffer against downcycles, and makes returns sensitive to pricing and cost swings.

Weak and inconsistent free cash flow

Low FCF and a sharp decline (-41%) reduce capacity to fund capex, pay down debt, or increase shareholder returns. Volatile FCF—linked to working capital and investment timing—creates uncertainty about the company's ability to finance strategic projects without external funding.

Low returns on equity

ROE around 2.6% indicates the company is not efficiently converting equity into earnings. Persistently low ROE can deter capital allocation and signals limited effectiveness in translating balance-sheet strength into shareholder value over the medium term.

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 generates revenue primarily through the sale of automotive components, which constitute a significant portion of its business. This includes steering systems, driveline components, and other automotive parts that are supplied to major automobile manufacturers globally. The company also earns revenue from its industrial machinery segment, which includes precision bearings and machine tools. Key partnerships with leading automotive manufacturers enhance its revenue streams, as JTEKT provides innovative solutions and technologies tailored to meet specific customer needs. Additionally, JTEKT benefits from economies of scale and operational efficiencies in production, contributing to its profitability.

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	281.29B	283.93B	255.15B	209.88B	171.71B
EBITDA	127.67B	118.79B	149.87B	129.07B	114.34B	82.24B
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	127.40B	124.25B	118.64B
Total Debt	243.90B	240.47B	241.95B	255.17B	261.76B	286.22B
Total Liabilities	775.23B	787.92B	805.74B	740.62B	726.05B	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	73.01B	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: Positive
• Last Price: 1803.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

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 1803 is below the 20-day moving average (MA) of 2000.88, below the 50-day MA of 1886.42, and above the 200-day MA of 1506.00, indicating a bullish trend. The MACD of 63.89 indicates Negative momentum. The RSI at 73.20 is Negative, neither overbought nor oversold. The STOCH value of 78.90 is Neutral, 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
7259	77 Outperform	¥2.09T	12.58	8.34%	2.03%	4.33%	524.86%
7282	75 Outperform	¥595.80B	13.50	8.26%	2.62%	1.44%	-0.92%
5991	74 Outperform	¥609.75B	14.07	―	2.60%	1.06%	-5.99%
6471	68 Neutral	¥688.52B	34.00	―	3.52%	1.43%	83.34%
6902	67 Neutral	$6.19T	16.31	6.98%	2.98%	2.41%	11.03%
6473	63 Neutral	¥684.10B	27.40	2.51%	3.18%	0.44%	-11.36%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

JTEKT Corporate Events

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.