GMB Corporation (7214) AI Stock Analysis

• Market Cap: ¥4.30B
• Dividend Yield: 4.94%
• Average Volume (3M): 18.56K
• Price to Earnings (P/E): 7.3
• Beta (1Y): 0.80
• Revenue Growth: 7.71%
• EPS Growth: 44.35%
• Country: JP
• Employees: 2,543
• Sector: Consumer Cyclical
• Sector Strength: 70
• Industry: Auto - Parts
• EPS (TTM): 30.00
• Shares Outstanding: 5,309,991
• 10 Day Avg. Volume: 23,620
• 30 Day Avg. Volume: 18,556
• PEG Ratio: 0.59
• Price to Book (P/B): 0.19
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.93
• 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: 64 Neutral
• Price Target: ¥855.00 ▲(5.95%Upside)

The overall score reflects a stable financial performance with opportunities for improving profitability, a bearish technical outlook with potential oversold conditions, and an attractive valuation with a low P/E ratio and high dividend yield. The absence of impactful earnings call highlights or corporate events limits further insights.

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 is demonstrating solid revenue growth and operational cash flow improvements. However, profitability remains a challenge as reflected in the low net profit margin and ROE. The balance sheet shows a moderate level of debt, which requires careful management moving forward. Overall, while the company is on a positive trajectory, there are areas that require strategic focus to enhance profitability and financial stability.

Income Statement

GMB Corporation has shown impressive revenue growth with a TTM increase of 6.12% from the previous year. Gross profit margin for TTM stands at 17.46%, which is solid for the industry. However, the net profit margin is low at 0.04%, indicating challenges in profitability despite revenue growth. The EBIT margin is at 1.57%, and EBITDA margin at 5.46%, suggesting room for improvement in operational efficiency.

Balance Sheet

The debt-to-equity ratio is 1.44, indicating a moderate level of leverage. The company's return on equity (ROE) for TTM is very low at 0.17%, pointing to potential inefficiencies in generating returns on shareholders' equity. The equity ratio of 26.51% suggests a stable capital structure, though there is a dependency on debt financing.

Cash Flow

Operating cash flow has improved significantly in the TTM, reaching ¥6.80 billion, compared to previous periods. However, free cash flow remains volatile, with a recent increase to ¥761 million, indicating challenges in consistent cash generation. The operating cash flow to net income ratio is high at 170.43, suggesting strong cash conversion efficiency despite low net income.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
102.17B	96.29B	87.17B	71.41B	57.41B	61.22B
	Gross Profit
17.84B	16.67B	14.26B	11.80B	9.41B	9.22B
	EBIT
1.61B	1.63B	2.14B	1.15B	-83.38M	-70.22M
	EBITDA
5.58B	6.21B	7.34B	5.76B	3.08B	3.46B
	Net Income Common Stockholders
39.92M	408.99M	1.21B	660.23M	-315.16M	-910.38M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.79B	4.79B	7.01B	5.92B	7.38B	6.04B
	Total Assets
85.11B	85.11B	79.24B	70.42B	63.61B	63.57B
	Total Debt
31.75B	30.19B	27.88B	25.05B	22.12B	21.45B
	Net Debt
27.76B	25.41B	20.88B	19.13B	14.75B	15.42B
	Total Liabilities
51.83B	51.83B	47.24B	40.64B	36.02B	35.40B
	Stockholders Equity
22.85B	22.85B	22.07B	21.15B	19.99B	20.28B
Cash Flow		Free Cash Flow
761.57M	-2.77B	-122.73M	-4.59B	161.88M	109.05M
	Operating Cash Flow
6.80B	2.15B	3.42B	-958.82M	2.78B	4.38B
	Investing Cash Flow
-6.10B	-4.91B	-3.15B	-2.47B	-1.86B	-4.17B
	Financing Cash Flow
-188.83M	379.69M	635.56M	1.81B	194.86M	12.33M

GMB Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 807.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 807 is below the 20-day moving average (MA) of 826.95, below the 50-day MA of 840.73, and below the 200-day MA of 991.31, indicating a bearish trend. The MACD of -11.99 indicates Positive momentum. The RSI at 39.79 is Neutral, neither overbought nor oversold. The STOCH value of 39.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7214.

GMB Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7208	82 Outperform	¥4.38B	8.10		3.52%	0.23%	-14.50%
7217	70 Outperform	¥3.73B	15.79		4.36%	9.25%	-45.40%
7284	66 Neutral	¥3.58B	7.89		4.89%	3.82%	―
7214	64 Neutral	¥4.30B	7.25		4.94%	7.71%	44.35%
Sector *	62 Neutral	$6.94B	11.29	2.95%	3.87%	2.70%	-24.49%
6699	61 Neutral	¥4.74B	26.43		4.33%	-1.72%	―
7256	39 Underperform	¥3.64B	―		―	33.86%	69.12%