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Isuzu Motors Limited (JP:7202)
:7202

Isuzu Motors (7202) AI Stock Analysis

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JP

Isuzu Motors

(OTC:7202)

72Outperform
Isuzu Motors demonstrates strong financial performance with high profitability and a stable balance sheet, though cash flow management is a concern. The technical analysis shows mixed signals with a neutral RSI and overbought stochastic. The attractive P/E ratio and high dividend yield enhance the stock's appeal. Overall, it presents a moderately strong investment case with potential liquidity issues to monitor.

Isuzu Motors (7202) vs. S&P 500 (SPY)

Isuzu Motors Business Overview & Revenue Model

Company DescriptionIsuzu Motors Limited manufactures and sells commercial vehicles, light commercial vehicles, and diesel engines and components worldwide. Its products include heavy and medium duty trucks and buses, and light-duty trucks; passenger pickup vehicles, pickup trucks, tractors, and sport utility vehicles; and marine and industrial engines. The company also offers diesel engines to manufacturers in various fields, including construction machinery, agricultural equipment, power generators, and commercial vessels. In addition, it provides after-sales services; repair services of commercial vehicles and buses; and commercial vehicle leasing, and commercial vehicle maintenance contract services. Further, the company manufactures automobile parts and engines. Additionally, it engages in the import, wholesale, supply, and export of vehicles, and components and parts; and warehousing and transportation activities, as well as import, assembly, and wholesale of pickup trucks and derivatives. The company was formerly known as Diesel Automobile Industry Co., Ltd. and changed its name to Isuzu Motors Limited in July 1949. Isuzu Motors Limited was founded in 1916 and is headquartered in Tokyo, Japan.
How the Company Makes MoneyIsuzu Motors generates revenue primarily through the manufacturing and sale of commercial vehicles, including light, medium, and heavy-duty trucks, as well as buses. A significant portion of its earnings comes from the sale of diesel engines, which are utilized across various industries and applications. Isuzu also engages in after-sales services, providing maintenance and spare parts, which contributes to its revenue streams. The company has established strategic partnerships and joint ventures to expand its market reach and enhance its product offerings, further boosting its financial performance. Additionally, Isuzu benefits from its global distribution network, allowing it to tap into emerging markets and increase sales volume.

Isuzu Motors Financial Statement Overview

Summary
Income Statement
Balance Sheet
Cash Flow
Breakdown
Mar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income StatementTotal Revenue
3.39T3.20T2.51T1.91T2.08T
Gross Profit
680.23B595.19B458.19B303.04B349.58B
EBIT
293.08B253.55B187.20B95.73B140.58B
EBITDA
429.49B365.02B289.87B180.29B219.26B
Net Income Common Stockholders
176.44B151.74B126.19B42.71B81.23B
Balance SheetCash, Cash Equivalents and Short-Term Investments
400.79B383.59B356.02B404.75B321.43B
Total Assets
3.26T3.05T2.86T2.24T2.15T
Total Debt
556.82B513.14B530.48B316.56B336.71B
Net Debt
156.03B129.56B174.46B-88.19B15.28B
Total Liabilities
1.60T1.54T1.46T1.04T1.02T
Stockholders Equity
1.46T1.31T1.19T1.02T952.94B
Cash FlowFree Cash Flow
137.19B119.77B71.73B125.03B20.23B
Operating Cash Flow
298.57B227.09B172.06B222.92B123.70B
Investing Cash Flow
-155.08B-80.53B-420.87B-93.41B-92.66B
Financing Cash Flow
-144.98B-140.37B186.15B-55.27B-25.15B

Isuzu Motors Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1961.50
Price Trends
50DMA
1906.68
Positive
100DMA
1969.19
Negative
200DMA
1965.29
Negative
Market Momentum
MACD
13.61
Negative
RSI
59.11
Neutral
STOCH
69.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7202, the sentiment is Positive. The current price of 1961.5 is above the 20-day moving average (MA) of 1864.20, above the 50-day MA of 1906.68, and below the 200-day MA of 1965.29, indicating a neutral trend. The MACD of 13.61 indicates Negative momentum. The RSI at 59.11 is Neutral, neither overbought nor oversold. The STOCH value of 69.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7202.

Isuzu Motors Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
$1.33T11.388.59%5.51%-5.66%-28.73%
61
Neutral
$6.69B11.693.01%3.94%2.60%-21.51%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7202
Isuzu Motors
1,961.50
109.05
5.89%
GB:TYT
Toyota Motor
2,706.00
-551.56
-16.93%
HINOF
Hino Motors
2.85
-0.10
-3.39%
HNDAF
Honda Motor Co
9.43
-1.37
-12.69%
NSANF
Nissan Motor Co
2.34
-1.16
-33.14%
YAMHF
Yamaha Motor Co
8.04
-1.21
-13.08%

Isuzu Motors Earnings Call Summary

Earnings Call Date:Feb 07, 2025
(Q3-2024)
|
% Change Since: -1.17%|
Next Earnings Date:May 14, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong financial performance, particularly with record net sales and increased market share in Japan, alongside improvements in component shortages. However, significant challenges were noted in global sales, particularly in emerging markets and Thailand, leading to a downward revision in sales volume forecasts. Despite these challenges, operating income and revenue from after-sales showed positive growth. The sentiment is balanced due to a mix of achievements and challenges.
Q3-2024 Updates
Positive Updates
Record All-Time High in Net Sales
Net sales in all profit levels for the first 9-month period marked an all-time high despite challenging market conditions.
Improvement in Component Shortages
Sales volume to advanced economies increased due to improvements in component shortages, particularly in Japan and North America.
Increased Market Share in Japan
Isuzu's market share in both heavy, medium, and light duty truck segments increased in Japan due to eased part shortages.
Increased Revenue from After Sales
Revenue from the after-sales business increased, capturing demand mainly in Japan, leading to an upward revision in the full year forecast.
Operating Income Growth
Operating income increased by JPY 55.7 billion from the previous fiscal year, attributed to improved model mix, after-sales revenue, price realization, and cost reduction activities.
Negative Updates
Decreased Global CV and LCV Sales
Global CV unit sales decreased due to rising interest rates and inflation in regions such as Asia. LCV unit sales in Thailand significantly decreased due to severe market conditions.
Downward Revision of Sales Volume Forecast
Sales volume forecast for CVs and LCVs was adjusted downward due to severe market conditions and delays in production establishment of new models.
Challenges in Emerging Markets
Sales volume to emerging economies significantly declined due to deteriorating market conditions and material price fluctuations.
Extraordinary Loss in Russia
Recorded an extraordinary loss of JPY 2.2 billion related to the transfer of business operations in Russia.
Impairment Loss in China
An impairment loss of JPY 4.0 billion was recorded on production facilities of a subsidiary in China.
Company Guidance
During the Isuzu Motor Limited earnings call for the third quarter of the fiscal year ending March 31, 2024, the executives provided a comprehensive overview of the company's financial performance and outlook. Despite challenging market conditions, including rising interest rates and inflation in regions such as Asia, Isuzu achieved record net sales and profit levels for the first nine months, driven by price realization, a weaker yen, and increased after-sales revenue. The company reported an operating income of JPY 253.6 billion and net income of JPY 159.4 billion for the period. While unit sales of commercial vehicles (CVs) and light commercial vehicles (LCVs) decreased, operating income improved by JPY 55.7 billion year-on-year due to cost reduction activities and a favorable model mix. The full-year operating income forecast remains at JPY 280.0 billion, with expectations of ordinary income reaching JPY 300.0 billion and net income at JPY 165.0 billion, despite revising down the sales volume forecast due to production delays and market conditions.

Isuzu Motors Corporate Events

Isuzu Motors Announces Third Quarter FY2025 Financial Results
Feb 7, 2025

Isuzu Motors reported its consolidated financial results for the third quarter of fiscal year 2025, revealing a significant decrease in net sales and net income compared to the previous year. The company has also undergone changes in its subsidiaries, acquiring IC Engineering Corp and excluding several others from consolidation, reflecting strategic shifts in its business operations.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.