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

• Market Cap: ¥3.51B
• Dividend Yield: N/A
• Average Volume (3M): 19.98K
• Price to Earnings (P/E): 10.7
• Beta (1Y): 0.70
• Revenue Growth: -9.58%
• EPS Growth: N/A
• Country: JP
• Employees: 2,030
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 8.41
• 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: ¥395.00 ▲(10.03% Upside)
• Action: Reiterated Date: 11/19/25
• Date: Action: Reiterated 11/19/25

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

Improving cash generation

Consistent improvement in free cash flow provides durable internal funding for tooling, capex and working capital, reducing reliance on external financing. Strong cash conversion helps the firm withstand OEM volume swings and supports reinvestment across production cycles.

Recovering profitability margins

Recovery from prior losses with improved net income and positive EBIT/EBITDA margins demonstrates operational competitiveness. Sustained operating profitability enables the company to fund engineering and production investments across vehicle model cycles, supporting long-term contract viability.

Balanced capital structure and improving ROE

A balanced capital structure and rising ROE indicate more efficient capital deployment and financial stability. This positions the company to support serial-production awards and reinvest in product development while retaining capacity to deleverage if cash generation remains steady.

Negative Factors

Volatile and declining revenue

Revenue volatility and a recent decline reduce predictability of production-linked sales and make capacity utilization and cost absorption more difficult. For a supplier whose revenues track OEM schedules, this instability can pressure margins, planning and long-term contract competitiveness.

Large EPS volatility

A dramatic EPS contraction signals material earnings instability and weakens longer-term profit visibility. Such swings limit the company’s ability to self-fund strategic investments, complicate multi-year planning with OEMs, and may strain relationships with lenders during cyclical downturns.

Moderate leverage risk

Moderate leverage increases refinancing and liquidity risk if automotive volumes fall. Combined with revenue volatility, debt can constrain bidding for new programs, elevate interest costs and reduce flexibility for capital expenditure, making downturns harder to manage sustainably.

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 makes money primarily by selling automotive components and modules to vehicle manufacturers (OEMs) and, where applicable, their tiered supply chains. Revenue is generated through (1) serial production sales tied to automakers’ vehicle production volumes, where the company supplies contracted parts for specific vehicle models over a model lifecycle; and (2) engineering and development-related income embedded in supply contracts, where product design, tooling, and manufacturing preparation are reflected in pricing and/or reimbursed according to customer agreements (specific reimbursement structures: null). The company’s earnings are therefore driven by factors such as OEM production schedules, the number of vehicle platforms it is awarded, unit pricing negotiated per part/module, and its ability to manufacture at scale with competitive cost and quality. Significant partnerships or customer concentration details are not available: null.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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	27.18B	25.69B	26.59B	26.28B	23.98B	24.03B
Total Liabilities	46.23B	46.12B	49.96B	50.12B	45.18B	48.30B
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: Negative
• Last Price: 359.00
• 50DMA: Negative
• 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 Negative. The current price of 359 is below the 20-day moving average (MA) of 383.50, below the 50-day MA of 383.94, and below the 200-day MA of 370.46, indicating a neutral trend. The MACD of -3.48 indicates Positive momentum. The RSI at 43.98 is Neutral, neither overbought nor oversold. The STOCH value of 64.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7215.

FALTEC Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7291	60 Neutral	¥8.11B	4.65	―	4.24%	-7.88%	-73.98%
7215	59 Neutral	¥3.51B	10.65	―	―	-9.58%	―
7214	58 Neutral	¥5.09B	2.75	―	4.51%	0.61%	-453.99%
7294	57 Neutral	¥18.89B	18.77	―	3.19%	-8.99%	-62.26%
7297	57 Neutral	¥6.44B	3.20	―	3.44%	-7.72%	-311.30%
7212	54 Neutral	¥13.79B	3.20	―	2.45%	-2.67%	33.63%