GMB Corporation (7214) AI Stock Analysis

• Market Cap: ¥4.85B
• Dividend Yield: 4.45%
• Average Volume (3M): 13.12K
• Price to Earnings (P/E): 7.9
• Beta (1Y): 0.94
• Revenue Growth: 4.74%
• EPS Growth: -193.39%
• Country: JP
• Employees: 2,543
• Sector: Consumer Cyclical
• Sector Strength: 81
• Industry: Auto - Parts
• EPS (TTM): -74.45
• Shares Outstanding: 5,328,444
• 10 Day Avg. Volume: 9,700
• 30 Day Avg. Volume: 13,116
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥890.00
• Price Target Upside: -0.89% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 54 Neutral
• Price Target: ¥890.00 ▼(-0.89% Downside)

The overall stock score of 54 reflects significant financial challenges, including declining revenues and negative cash flow. While technical indicators show some short-term bullish momentum, the negative P/E ratio and financial sustainability concerns weigh heavily on the score. The attractive dividend yield provides some offsetting value.

GMB Corporation Business Overview & Revenue Model

Company Description

GMB Corporation (7214) is a Japan-based company primarily engaged in the manufacturing and sale of automotive parts and components. The company operates in various sectors, including the production of water pumps, timing components, bearings, and universal joints. With a focus on quality and innovation, GMB Corporation serves a global market, catering to both original equipment manufacturers (OEMs) and the aftermarket segments.

How the Company Makes Money

GMB Corporation generates revenue through the production and sale of automotive parts and components. The company's key revenue streams include the OEM sector, where it supplies parts directly to automobile manufacturers, and the aftermarket sector, where it provides replacement parts to distributors and retailers. GMB maintains significant partnerships with major automotive companies, which helps ensure a steady demand for its products. Additionally, the company invests in research and development to enhance product quality and expand its product lines, which contributes to its earnings by attracting new clients and maintaining existing relationships.

GMB Corporation Financial Statement Overview

Summary

GMB Corporation is facing a challenging financial environment with declining revenues and profitability. The income statement shows a significant revenue decline and negative net profit margin. The balance sheet is moderately leveraged, and cash flow analysis reveals negative free cash flow, indicating financial sustainability concerns.

Income Statement

GMB Corporation's income statement shows a challenging period with declining revenue and profitability. The TTM data indicates a significant revenue decline of 28.6%, and the net profit margin is negative, reflecting a net loss. Despite a stable gross profit margin, the EBIT and EBITDA margins have decreased, indicating pressure on operational efficiency. The company needs to address these challenges to improve its financial health.

Balance Sheet

The balance sheet reveals a moderately leveraged position with a debt-to-equity ratio of 1.39, which is relatively high. However, the company maintains a positive return on equity, albeit low, indicating some level of profitability. The equity ratio is stable, suggesting that the company has a reasonable proportion of equity financing its assets. Overall, the balance sheet shows stability but highlights the need for careful debt management.

Cash Flow

Cash flow analysis indicates significant challenges, with negative free cash flow growth and a low operating cash flow to net income ratio. The TTM data shows negative free cash flow, which raises concerns about the company's ability to generate cash from operations. Improving cash flow generation is crucial for the company's financial sustainability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	103.42B	103.71B	96.29B	87.17B	71.41B	57.41B
Gross Profit	18.06B	18.11B	16.67B	14.26B	11.80B	9.41B
EBITDA	5.40B	6.94B	6.21B	7.34B	5.76B	3.08B
Net Income	-490.95M	592.37M	408.99M	1.21B	660.23M	-315.16M
Balance Sheet
Total Assets	88.15B	88.55B	85.11B	79.24B	70.42B	63.61B
Cash, Cash Equivalents and Short-Term Investments	5.42B	6.15B	4.79B	7.01B	5.92B	7.38B
Total Debt	33.90B	32.06B	30.19B	27.88B	25.05B	22.12B
Total Liabilities	56.01B	54.57B	51.83B	47.24B	40.64B	36.02B
Stockholders Equity	21.94B	23.11B	22.85B	22.07B	21.15B	19.99B
Cash Flow
Free Cash Flow	-2.76B	631.94M	-2.77B	-122.73M	-4.59B	161.88M
Operating Cash Flow	3.76B	6.83B	2.15B	3.42B	-958.82M	2.78B
Investing Cash Flow	-6.46B	-6.01B	-4.91B	-3.15B	-2.47B	-1.86B
Financing Cash Flow	1.84B	518.41M	379.69M	635.56M	1.81B	194.86M

GMB Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 898.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7214, the sentiment is Positive. The current price of 898 is above the 20-day moving average (MA) of 874.95, above the 50-day MA of 855.78, and above the 200-day MA of 896.92, indicating a bullish trend. The MACD of 11.40 indicates Negative momentum. The RSI at 67.47 is Neutral, neither overbought nor oversold. The STOCH value of 87.73 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7214.

GMB Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7208	81 Outperform	¥5.07B	7.67		3.01%	0.05%	9.31%
7217	75 Outperform	¥3.82B	18.04		4.38%	9.12%	-35.97%
7284	66 Neutral	¥4.21B	7.32		4.15%	4.93%	―
Sector *	61 Neutral	$18.02B	12.77	-0.74%	3.01%	1.30%	-13.03%
6699	60 Neutral	¥4.85B	9.20		4.37%	0.86%	―
7214	54 Neutral	¥4.85B	7.89		4.45%	4.74%	-193.39%
7256	39 Underperform	¥4.37B	―		―	33.86%	69.12%