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GMB Corporation (JP:7214)
:7214
Japanese Market

GMB Corporation (7214) AI Stock Analysis

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JP

GMB Corporation

(7214)

Rating:71Outperform
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 (7214) vs. iShares MSCI Japan ETF (EWJ)

GMB Corporation Business Overview & Revenue Model

Company DescriptionGMB 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 MoneyGMB 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
75
Positive
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
70
Positive
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
65
Positive
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.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue103.71B96.29B87.17B71.41B57.41B
Gross Profit18.11B16.67B14.26B11.80B9.41B
EBITDA6.94B6.21B7.34B5.76B3.08B
Net Income592.37M408.99M1.21B660.23M-315.16M
Balance Sheet
Total Assets88.55B85.11B79.24B70.42B63.61B
Cash, Cash Equivalents and Short-Term Investments6.15B4.79B7.01B5.92B7.38B
Total Debt32.06B30.19B27.88B25.05B22.12B
Total Liabilities54.57B51.83B47.24B40.64B36.02B
Stockholders Equity23.11B22.85B22.07B21.15B19.99B
Cash Flow
Free Cash Flow631.94M-2.77B-122.73M-4.59B161.88M
Operating Cash Flow6.83B2.15B3.42B-958.82M2.78B
Investing Cash Flow-6.01B-4.91B-3.15B-2.47B-1.86B
Financing Cash Flow518.41M379.69M635.56M1.81B194.86M

GMB Corporation Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price823.00
Price Trends
50DMA
825.50
Negative
100DMA
867.73
Negative
200DMA
963.14
Negative
Market Momentum
MACD
-1.49
Negative
RSI
55.11
Neutral
STOCH
77.48
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

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
¥4.32B7.99
3.55%0.23%-14.50%
71
Outperform
¥4.37B7.37
4.86%7.71%44.35%
70
Outperform
¥3.75B15.87
4.47%9.25%-45.39%
66
Neutral
¥3.88B8.56
4.51%3.82%
62
Neutral
$16.72B10.94-7.49%3.11%1.66%-24.52%
57
Neutral
¥4.83B26.89
4.30%-1.72%
39
Underperform
¥3.64B
33.86%69.12%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7214
GMB Corporation
823.00
-645.86
-43.97%
JP:6699
Diamond Electric Holdings Co., Ltd.
576.00
-104.77
-15.39%
JP:7208
Kanemitsu Corporation
845.00
-29.47
-3.37%
JP:7217
Tein, Inc.
772.00
-147.68
-16.06%
JP:7256
Kasai Kogyo Co., Ltd.
95.00
-107.00
-52.97%
JP:7284
Meiwa Industry Co., Ltd.
1,101.00
113.08
11.45%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jun 19, 2025