GMB Corporation (7214) AI Stock Analysis

• Market Cap: ¥4.37B
• Dividend Yield: 4.86%
• Average Volume (3M): 15.76K
• Price to Earnings (P/E): 7.4
• Beta (1Y): 0.80
• Revenue Growth: 7.71%
• EPS Growth: 44.35%
• Country: JP
• Employees: 2,543
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Auto - Parts
• EPS (TTM): 30.00
• Shares Outstanding: 5,309,991
• 10 Day Avg. Volume: 13,130
• 30 Day Avg. Volume: 15,763
• PEG Ratio: 0.05
• Price to Book (P/B): 0.21
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -37.41
• 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

• Rating: 71 Outperform
• Price Target: ¥891.00 ▲(8.26%Upside)

The overall stock score is primarily driven by the company's strong valuation metrics, with a low P/E ratio and high dividend yield indicating potential undervaluation. Financial performance is stable but with room for profitability improvement. Technical indicators are neutral, reflecting a balanced but unremarkable market position.

GMB Corporation Business Overview & Revenue Model

Company Description

GMB Corporation (7214) is a Japanese company specializing in the manufacturing and distribution of automotive parts. The company operates primarily in the automotive industry, focusing on producing high-quality components including water pumps, universal joints, tensioner bearings, and other critical vehicle parts. GMB Corporation is recognized for its commitment to innovation and quality, serving both domestic and international markets with a robust portfolio of automotive solutions.

How the Company Makes Money

GMB Corporation generates revenue primarily through the sale of automotive parts to original equipment manufacturers (OEMs) and aftermarket customers. The company's key revenue streams include direct sales of its products to vehicle manufacturers, as well as distribution through a network of retailers and distributors for the aftermarket segment. Significant partnerships with automotive companies and a strong presence in both domestic and international markets enhance its revenue. GMB Corporation's commitment to quality and innovation ensures a steady demand for its products, contributing significantly to its earnings.

GMB Corporation Financial Statement Overview

Summary

GMB Corporation exhibits robust revenue growth and improved operational efficiency, reflected in its increasing margins. While the company's leverage remains moderate, profitability metrics such as net profit margin and ROE are relatively low, indicating areas for improvement. The company's cash flow position is strengthening, with positive trends in free cash flow generation. Overall, the financial health of the company is stable with opportunities for further enhancement in profitability.

Income Statement

The company has demonstrated solid revenue growth with a notable increase of 7.7% from 2024 to 2025. The gross profit margin improved to 17.5% in 2025, reflecting efficient cost management. The net profit margin is modest at 0.57%, suggesting limited profitability. The EBIT margin improved slightly to 1.87%, and the EBITDA margin is healthy at 6.69%, indicating good operational efficiency.

Balance Sheet

The company maintains a reasonable debt-to-equity ratio of 1.39, reflecting moderate leverage. However, the return on equity is low at 2.56%, indicating limited profitability relative to shareholder investments. The equity ratio stands at 26.1%, showing a balanced capital structure with stable equity levels.

Cash Flow

The company shows a substantial free cash flow growth rate from negative to positive, indicating improved cash generation. The operating cash flow to net income ratio of 11.54 suggests strong cash conversion efficiency. However, the free cash flow to net income ratio is 1.07, indicating limited free cash flow relative to net income.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	103.71B	96.29B	87.17B	71.41B	57.41B
Gross Profit	18.11B	16.67B	14.26B	11.80B	9.41B
EBITDA	6.94B	6.21B	7.34B	5.76B	3.08B
Net Income	592.37M	408.99M	1.21B	660.23M	-315.16M
Balance Sheet
Total Assets	88.55B	85.11B	79.24B	70.42B	63.61B
Cash, Cash Equivalents and Short-Term Investments	6.15B	4.79B	7.01B	5.92B	7.38B
Total Debt	32.06B	30.19B	27.88B	25.05B	22.12B
Total Liabilities	54.57B	51.83B	47.24B	40.64B	36.02B
Stockholders Equity	23.11B	22.85B	22.07B	21.15B	19.99B
Cash Flow
Free Cash Flow	631.94M	-2.77B	-122.73M	-4.59B	161.88M
Operating Cash Flow	6.83B	2.15B	3.42B	-958.82M	2.78B
Investing Cash Flow	-6.01B	-4.91B	-3.15B	-2.47B	-1.86B
Financing Cash Flow	518.41M	379.69M	635.56M	1.81B	194.86M

GMB Corporation Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 823.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7214, the sentiment is Neutral. The current price of 823 is above the 20-day moving average (MA) of 808.50, below the 50-day MA of 825.50, and below the 200-day MA of 963.14, indicating a neutral trend. The MACD of -1.49 indicates Negative momentum. The RSI at 55.11 is Neutral, neither overbought nor oversold. The STOCH value of 77.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	¥4.32B	7.99		3.55%	0.23%	-14.50%
7214	71 Outperform	¥4.37B	7.37		4.86%	7.71%	44.35%
7217	70 Outperform	¥3.75B	15.87		4.47%	9.25%	-45.39%
7284	66 Neutral	¥3.88B	8.56		4.51%	3.82%	―
Sector *	62 Neutral	$16.72B	10.94	-7.49%	3.11%	1.66%	-24.52%
6699	57 Neutral	¥4.83B	26.89		4.30%	-1.72%	―
7256	39 Underperform	¥3.64B	―		―	33.86%	69.12%