JTEKT (6473) AI Stock Analysis

• Market Cap: ¥550.08B
• Dividend Yield: 3.18%
• Average Volume (3M): 1.13M
• Price to Earnings (P/E): 28.6
• Beta (1Y): 1.12
• Revenue Growth: 0.44%
• EPS Growth: -11.36%
• Country: JP
• Employees: 45,717
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 17.76
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: ¥1,916.00 ▲(10.88% Upside)

JTEKT's stock is supported by strong technical indicators, suggesting bullish momentum. However, financial performance is hindered by low profitability margins and cash flow challenges. The valuation is relatively high, which could limit upside potential. Investors should weigh the strong technical outlook against the financial and valuation concerns.

Positive Factors

Revenue Growth

Stable revenue growth indicates JTEKT's ability to maintain its market position and expand its business, ensuring long-term sustainability.

Balanced Debt-to-Equity Ratio

A balanced debt-to-equity ratio suggests prudent financial management, providing JTEKT with flexibility to invest in growth opportunities.

Operational Efficiency

Consistent gross profit margins reflect JTEKT's efficient production, which can sustain profitability and competitive advantage over time.

Negative Factors

Profitability Margins

Low profitability margins indicate challenges in cost management, which could impact JTEKT's ability to generate strong returns in the long term.

Cash Flow Challenges

Declining free cash flow growth suggests difficulties in converting earnings into cash, potentially limiting JTEKT's investment and operational flexibility.

Return on Equity

A modest return on equity indicates that JTEKT may not be efficiently using shareholder funds to generate profits, which could affect investor confidence.

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

JTEKT faces challenges with declining revenue and profitability, as reflected in the income statement. The balance sheet shows moderate leverage, but reduced return on equity is a concern. Cash flow issues are evident with negative free cash flow growth, indicating potential liquidity constraints.

Income Statement

The income statement shows a declining revenue trend with a negative revenue growth rate of -49.2% in the TTM period. Gross profit margin is stable around 15%, but net profit margin has decreased to 0.5% in the TTM period, indicating reduced profitability. EBIT and EBITDA margins have also declined, reflecting operational challenges.

Balance Sheet

The balance sheet indicates a moderate debt-to-equity ratio of 0.35, suggesting manageable leverage. However, return on equity has decreased to 1.23% in the TTM period, reflecting lower profitability. The equity ratio remains stable, indicating a balanced asset structure.

Cash Flow

Cash flow analysis reveals a significant decline in free cash flow growth, down by 59.9% in the TTM period. The operating cash flow to net income ratio is 0.19, indicating some operational cash generation, but the negative free cash flow to net income ratio highlights cash flow challenges.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.90T	1.88T	1.89T	1.68T	1.43T	1.25T
Gross Profit	291.23B	281.29B	283.93B	255.15B	209.88B	171.71B
EBITDA	115.66B	118.79B	149.87B	129.07B	114.34B	82.24B
Net Income	19.64B	13.71B	40.26B	34.28B	20.68B	800.00M
Balance Sheet
Total Assets	1.55T	1.57T	1.63T	1.44T	1.39T	1.29T
Cash, Cash Equivalents and Short-Term Investments	127.85B	119.06B	167.02B	127.40B	124.25B	118.64B
Total Debt	254.05B	240.47B	241.95B	255.17B	261.76B	286.22B
Total Liabilities	768.49B	787.92B	805.74B	740.62B	726.05B	706.21B
Stockholders Equity	749.07B	745.04B	788.98B	667.23B	624.01B	550.91B
Cash Flow
Free Cash Flow	21.03B	-8.06B	73.01B	22.50B	24.36B	36.51B
Operating Cash Flow	113.88B	80.24B	154.46B	78.28B	67.04B	91.76B
Investing Cash Flow	-88.77B	-75.94B	-71.35B	-52.11B	-25.27B	-52.52B
Financing Cash Flow	-31.29B	-52.08B	-47.22B	-28.71B	-43.53B	-57.96B

JTEKT Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1728.00
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 1728 is above the 20-day moving average (MA) of 1718.05, above the 50-day MA of 1613.95, and above the 200-day MA of 1308.81, indicating a bullish trend. The MACD of 38.04 indicates Positive momentum. The RSI at 56.97 is Neutral, neither overbought nor oversold. The STOCH value of 63.98 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
7988	79 Outperform	¥470.20B	10.01	―	1.60%	-5.16%	200.96%
5191	79 Outperform	¥268.81B	9.23	―	2.94%	2.19%	27.44%
7282	74 Outperform	¥509.52B	11.13	8.26%	2.62%	1.44%	-0.92%
5991	74 Outperform	¥513.32B	12.85	―	2.60%	1.06%	-5.99%
6473	70 Outperform	¥550.08B	28.61	2.51%	3.18%	0.44%	-11.36%
6471	66 Neutral	¥476.37B	26.47	―	3.52%	1.43%	83.34%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

JTEKT Corporate Events

JTEKT Revises Financial Forecasts for FY 2026

JTEKT Corporation has revised its full-year financial forecasts for the fiscal year ending March 31, 2026, increasing its revenue projection by 4% to 1,840,000 million yen, while maintaining other profit forecasts. This revision is attributed to recent business trends, changes in foreign exchange rates, and current market conditions, reflecting the company’s strategic adjustments to enhance its financial performance.

JTEKT Reports Strong Profit Growth Amid Revenue Challenges

JTEKT Corporation reported a modest increase in revenue for the six months ended September 30, 2025, with significant growth in profit attributable to owners of the parent company, which rose by 95.2% year-on-year. The company has revised its full-year financial forecasts, expecting a decline in revenue but an increase in operating profit and profit before income taxes, reflecting strategic adjustments and potential market opportunities.