FALTEC Co., Ltd. (7215) AI Stock Analysis

• Market Cap: ¥3.60B
• Dividend Yield: N/A
• Average Volume (3M): 19.98K
• Price to Earnings (P/E): 11.4
• Beta (1Y): 0.69
• Revenue Growth: -9.58%
• EPS Growth: N/A
• Country: JP
• Employees: 2,030
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 22.36
• Shares Outstanding: 9,378,600
• 10 Day Avg. Volume: 20,810
• 30 Day Avg. Volume: 19,980
• PEG Ratio: -0.09
• Price to Book (P/B): 0.22
• Price to Sales (P/S): 0.05
• P/FCF Ratio: 2.34
• 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: 59 Neutral
• Price Target: ¥401.00 ▲(11.70% Upside)

The overall stock score is primarily influenced by the company's stable financial performance and attractive valuation. However, the bearish technical indicators significantly weigh down the score, indicating potential short-term challenges. The absence of earnings call data and corporate events means these factors did not influence the score.

Positive Factors

Profitability recovery

The company recovered from prior losses and improved profitability margins, indicating operational fixes and better cost control. Sustained profit recovery strengthens ability to invest in tooling, win OEM contracts, and fund growth through product cycles over multiple quarters.

Free cash flow trends

Positive free cash flow trends and strong operating cash flow to net income conversion demonstrate improving cash generation. Durable cash conversion supports working capital, capex for serial production, and debt servicing, increasing financial flexibility across vehicle cycles.

Balanced capital structure

A balanced capital structure with moderate leverage provides financing capacity without extreme risk, enabling the company to support serial production requirements and tooling investments. Reasonable leverage helps maintain supplier credibility and long-term operational continuity.

Negative Factors

Volatile revenue growth

Recent negative and volatile revenue growth reduces scale benefits and raises dependence on winning new model awards. Persistent top-line declines can erode margins, limit reinvestment for new products, and weaken long-term relationships with OEMs if not reversed.

Moderate leverage risk

Moderate leverage constrains financial flexibility if industry downturns or OEM volume slowdowns occur. Higher debt servicing needs reduce room for discretionary capex or R&D spending, making the business more sensitive to cyclical automotive demand and interest rate shifts.

Margins below peers

Operating margins that lag industry averages limit capacity to absorb raw material cost shocks or invest in product development. Persistently lower margins reduce competitiveness on pricing and spare less cash for strategic initiatives, affecting long-term market position.

FALTEC Co., Ltd. Business Overview & Revenue Model

Company Description

Faltec Co., Ltd. designs, develops, produces, and sells automotive parts, accessories, and supplies worldwide. The company offers resin molding products, such as injection molding machines, radiator grilles, and other exterior parts; surface treatment products, including plating and plating line, deposition/sputtering, millimeter wave radar cover, and painting and painting line; and press processing products, such as SUS moldings, roll forming, bend processing/cut processing, and roof rail. It also provides electrical and electronic components comprising fog lamps, remote control engine starter, and grip heater products, as well as telematics communication units and remote control engine starters. The company was founded in 1917 and is headquartered in Kawasaki, Japan. Faltec Co., Ltd. is a subsidiary of TPR Co., Ltd.

How the Company Makes Money

FALTEC Co., Ltd. generates revenue through several key streams within the automotive parts industry. The company's primary source of income is the sale of its automotive components to major automobile manufacturers. By engaging in long-term contracts and partnerships with these manufacturers, FALTEC ensures a steady demand for its products. Additionally, the company invests in research and development to innovate and improve its product offerings, making them more appealing to both existing and potential clients. FALTEC also benefits from its strategic positioning in the global market, which allows it to cater to a diverse client base and mitigate risks associated with regional economic fluctuations.

FALTEC Co., Ltd. Financial Statement Overview

Summary

FALTEC Co., Ltd. has shown resilience in recovering from previous losses and has improved its profitability margins. The balance sheet reflects a balanced capital structure with moderate leverage, and cash flow management is improving, with positive free cash flow trends.

Income Statement

The gross profit margin has been relatively stable with a slight decline in recent years, indicating consistent cost management. Net income improved significantly in the latest year after a previous loss, showing recovery potential. Revenue growth has been volatile, with a notable decline in the last reported year. EBIT and EBITDA margins have been positive, indicating operational profitability, though they are lower compared to industry averages.

Balance Sheet

The debt-to-equity ratio indicates a moderate level of leverage, which could pose a risk if not managed well. Return on equity has improved, suggesting better utilization of equity to generate profits. The equity ratio is moderate, showing a balanced capital structure, though there's room for strengthening equity further to improve financial stability.

Cash Flow

The company has shown a positive trend in free cash flow growth, indicating improving cash generation capabilities. Operating cash flow to net income ratio is strong, suggesting efficient conversion of profits into cash. However, fluctuations in free cash flow in prior years highlight the need for consistent cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	77.56B	79.11B	81.89B	74.10B	69.12B	69.80B
Gross Profit	12.38B	12.50B	12.31B	9.59B	10.71B	11.05B
EBITDA	7.11B	7.12B	4.37B	3.37B	4.90B	6.88B
Net Income	323.00M	329.00M	-790.00M	-2.31B	-623.00M	1.36B
Balance Sheet
Total Assets	66.59B	67.56B	69.04B	69.38B	66.79B	69.46B
Cash, Cash Equivalents and Short-Term Investments	16.85B	14.78B	14.50B	12.22B	10.55B	12.71B
Total Debt	29.05B	25.69B	26.59B	26.28B	23.98B	24.03B
Total Liabilities	46.23B	46.12B	49.97B	50.13B	45.18B	48.31B
Stockholders Equity	17.79B	18.76B	16.45B	16.79B	19.38B	19.02B
Cash Flow
Free Cash Flow	0.00	1.74B	2.28B	-401.00M	-1.79B	603.00M
Operating Cash Flow	0.00	4.66B	6.57B	3.04B	2.19B	4.26B
Investing Cash Flow	0.00	-3.14B	-3.76B	-3.63B	-4.38B	-3.10B
Financing Cash Flow	0.00	-1.91B	-59.00M	1.88B	-684.00M	-148.00M

FALTEC Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 359.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7215, the sentiment is Positive. The current price of 359 is below the 20-day moving average (MA) of 381.20, below the 50-day MA of 365.80, and below the 200-day MA of 367.54, indicating a bullish trend. The MACD of 5.41 indicates Positive momentum. The RSI at 62.43 is Neutral, neither overbought nor oversold. The STOCH value of 72.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7215.

FALTEC Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7208	81 Outperform	¥5.59B	8.88	―	3.04%	-1.94%	-5.96%
7284	71 Outperform	¥4.18B	6.88	―	4.08%	3.46%	―
7219	70 Neutral	¥3.10B	10.07	―	2.92%	-0.31%	3.93%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7215	59 Neutral	¥3.60B	11.40	―	―	-9.58%	―
7256	51 Neutral	¥6.11B	-1.04	―	―	-9.54%	21.21%
7214	49 Neutral	¥4.90B	-106.39	―	4.51%	0.61%	-453.99%