GMB Corporation (7214) AI Stock Analysis

• Market Cap: ¥5.29B
• Dividend Yield: 4.51%
• Average Volume (3M): 12.76K
• Price to Earnings (P/E): 13.7
• Beta (1Y): 0.96
• Revenue Growth: 0.61%
• EPS Growth: -453.99%
• Country: JP
• Employees: 2,543
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 83.25
• Shares Outstanding: 5,328,444
• 10 Day Avg. Volume: 13,500
• 30 Day Avg. Volume: 12,760
• PEG Ratio: 0.18
• Price to Book (P/B): 0.21
• Price to Sales (P/S): 0.05
• P/FCF Ratio: 7.71
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: ¥988.00 ▲(14.75% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is held back primarily by weakening fundamentals—negative TTM profitability, rising leverage, and negative free cash flow. Offsetting this, technicals show a constructive uptrend and momentum, and valuation is supported by a moderate P/E and strong dividend yield.

Positive Factors

Revenue growth & scale

Multi-year top-line expansion to ~¥104.8B TTM indicates durable market demand and scale. Sustained revenue growth supports bargaining power with suppliers, capacity utilization and long-term investment in operations or product development, underpinning structural competitiveness if margins improve.

Positive operating cash flow (TTM)

Positive TTM operating cash flow shows the core business generates cash from operations despite volatile conversion. That underlying cash generation provides a foundation to service working capital and interest, and offers a pathway to restore free cash flow if margin or capex trends stabilize.

Scale in assets and workforce

A growing asset base and a ~2,543-strong workforce reflect manufacturing scale and operational capacity. Scale supports long-term supplier/OEM relationships, production reliability and the ability to bid for larger contracts, giving structural advantages in the auto-parts industry.

Negative Factors

Compressed profitability

Material margin compression and a TTM net loss weaken the firm's earnings power. Sustained low margins reduce the buffer against input cost swings, limit reinvestment capacity and impair returns to shareholders, making long-term recovery dependent on structural cost or pricing improvements.

Rising leverage

Elevated and rising leverage meaningfully reduces financial flexibility. Higher interest and principal servicing demands constrain capital allocation, increase refinancing risk during downturns, and limit the company's ability to fund growth or absorb continued margin pressure without external financing.

Negative free cash flow & cash volatility

Persistent negative free cash flow and a step-down in operating cash flow indicate weak cash conversion. This heightens dependency on financing, raises solvency risks if profitability lags, and undermines capacity to sustain dividends, capex or strategic investments over the medium term.

GMB Corporation Business Overview & Revenue Model

Company Description

GMB Corporation (7214) is a diversified company operating primarily in the manufacturing and distribution sectors. The company specializes in producing high-quality consumer goods, including household products and personal care items, while also providing logistics and supply chain solutions. With a strong focus on innovation and sustainability, GMB Corporation aims to meet the evolving needs of consumers and businesses alike across various markets.

How the Company Makes Money

GMB Corporation generates revenue through multiple streams, primarily from the sale of its consumer goods, which include a range of household and personal care products. The company employs a direct-to-consumer model as well as wholesale distribution, allowing it to reach a wide customer base. Additionally, GMB Corporation has established strategic partnerships with retail chains and online marketplaces, enhancing its market presence and driving sales. The company's logistics and supply chain services also contribute to its revenue, offering efficiency and cost savings for clients in various industries. Key factors contributing to earnings include product innovation, effective marketing strategies, and the ability to adapt to changing consumer trends.

GMB Corporation Financial Statement Overview

Summary

Strong multi-year revenue growth is outweighed by deteriorating profitability (TTM net income slightly negative, margin compression), higher leverage (debt-to-equity rising to ~1.64x), and pressured cash generation with negative TTM free cash flow.

Income Statement

Revenue has expanded strongly over the last several years (from ¥57.4B in FY2021 to ¥103.7B in FY2025 annual), and TTM (Trailing-Twelve-Months) revenue is slightly higher at ¥104.8B. However, profitability has compressed materially: EBITDA margin fell from ~8.4% (FY2023) to ~6.7% (FY2025 annual) and ~5.4% in TTM, while net profit deteriorated from ¥1.21B (FY2023) to ¥0.59B (FY2025 annual) and turned slightly negative in TTM. Overall, the top-line trajectory is constructive, but weak/volatile bottom-line performance and narrowing margins are key concerns.

Balance Sheet

Leverage is elevated and rising recently. Total debt increased to ¥42.1B in TTM from ¥32.1B in FY2025 annual, pushing debt versus equity from ~1.39x to ~1.64x. Equity has grown only modestly over time (roughly ¥20.0B in FY2021 to ~¥23.3B in TTM), and returns to shareholders have weakened, with return on equity slightly negative in TTM versus positive levels in prior annual periods. The balance sheet shows scale and asset growth, but the higher leverage and reduced profitability lower financial flexibility.

Cash Flow

Cash generation is inconsistent and currently pressured. TTM (Trailing-Twelve-Months) operating cash flow is positive (¥2.36B) but far below FY2025 annual (¥6.83B), and TTM free cash flow is negative at -¥2.59B (also negative in FY2024). Free cash flow volatility and the recent step-down in operating cash flow indicate weaker cash conversion, increasing reliance on financing and raising risk if margins remain tight.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	104.79B	103.71B	96.29B	87.17B	71.41B	57.41B
Gross Profit	18.67B	18.11B	16.67B	14.26B	11.80B	9.41B
EBITDA	5.97B	6.94B	6.21B	7.34B	5.76B	3.08B
Net Income	388.25M	592.37M	408.99M	1.21B	660.23M	-315.16M
Balance Sheet
Total Assets	96.06B	88.55B	85.11B	79.24B	70.42B	63.61B
Cash, Cash Equivalents and Short-Term Investments	7.48B	6.15B	4.79B	7.01B	5.92B	7.38B
Total Debt	42.06B	32.06B	30.19B	27.88B	25.05B	22.12B
Total Liabilities	62.00B	54.57B	51.83B	47.24B	40.64B	36.02B
Stockholders Equity	23.26B	23.11B	22.85B	22.07B	21.15B	19.99B
Cash Flow
Free Cash Flow	-2.59B	631.94M	-2.77B	-122.73M	-4.59B	161.88M
Operating Cash Flow	2.36B	6.83B	2.15B	3.42B	-958.82M	2.78B
Investing Cash Flow	-4.52B	-6.01B	-4.91B	-3.15B	-2.47B	-1.86B
Financing Cash Flow	2.58B	518.41M	379.69M	635.56M	1.81B	194.86M

GMB Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 861.00
• 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 861 is below the 20-day moving average (MA) of 956.70, below the 50-day MA of 932.86, and below the 200-day MA of 864.20, indicating a bullish trend. The MACD of 15.08 indicates Negative momentum. The RSI at 66.76 is Neutral, neither overbought nor oversold. The STOCH value of 95.39 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	¥6.21B	9.03	―	3.04%	-1.94%	-5.96%
7284	71 Outperform	¥4.27B	8.29	―	4.08%	3.46%	―
6699	68 Neutral	¥6.17B	4.73	―	6.68%	1.95%	―
7217	68 Neutral	¥4.11B	19.34	―	4.39%	9.38%	0.07%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7214	58 Neutral	¥5.29B	13.65	―	4.51%	0.61%	-453.99%
7256	49 Neutral	¥12.15B	-2.82	―	―	-9.54%	21.21%

GMB Corporation Corporate Events

GMB Posts Higher Sales but Sharp Drop in Quarterly Profit

GMB Corporation reported consolidated net sales of ¥78.16 billion for the quarter ended December 2025, a 1.4% increase from a year earlier, while operating profit rose 4.8% to ¥1.82 billion and ordinary profit grew 3.0% to ¥1.31 billion. However, profit attributable to owners of parent fell 47.1% to ¥229 million and comprehensive income declined 55.1%, reflecting margin and non-operating pressures despite stable top-line growth.

Total assets expanded to ¥96.06 billion from ¥88.55 billion at the prior fiscal year-end, and net assets edged up to ¥34.05 billion, though the capital adequacy ratio slipped to 24.2% from 26.1%, indicating a modest increase in leverage. The company kept shareholder returns steady with an interim dividend of ¥20 per share, even as basic earnings per share dropped to ¥43.05, signaling a commitment to stable payouts despite weaker bottom-line performance.

The most recent analyst rating on (JP:7214) stock is a Hold with a Yen931.00 price target. To see the full list of analyst forecasts on GMB Corporation stock, see the JP:7214 Stock Forecast page.

GMB Corporation Posts Higher Sales but Profit Slump and Lower Capital Ratio

GMB Corporation reported a modest year-on-year rise in consolidated net sales to ¥78,156 million for the December 2025 quarter, with operating profit edging up to ¥1,817 million and ordinary profit also increasing slightly. However, profit attributable to owners of parent fell sharply to ¥229 million, dragging basic earnings per share down to ¥43.05 and signaling margin pressure despite higher revenues.

The company’s balance sheet showed total assets expanding to ¥96,056 million and net assets inching up to ¥34,052 million, though the capital adequacy ratio slipped to 24.2%, suggesting a higher leverage profile. GMB maintained its dividend stance with a ¥20 per share second-quarter payout, indicating a commitment to shareholder returns even as profitability and comprehensive income weakened compared with the previous year.

The most recent analyst rating on (JP:7214) stock is a Hold with a Yen931.00 price target. To see the full list of analyst forecasts on GMB Corporation stock, see the JP:7214 Stock Forecast page.