Yutaka Giken Co., Ltd. (7229) AI Stock Analysis

• Market Cap: ¥45.05B
• Dividend Yield: 2.37%
• Average Volume (3M): 33.62K
• Price to Earnings (P/E): 8.6
• Beta (1Y): 0.75
• Revenue Growth: -13.35%
• EPS Growth: -19.38%
• Country: JP
• Employees: 5,190
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 79.08
• Shares Outstanding: 14,820,000
• 10 Day Avg. Volume: 22,180
• 30 Day Avg. Volume: 33,620
• PEG Ratio: -0.18
• Price to Book (P/B): 0.31
• Price to Sales (P/S): 0.17
• P/FCF Ratio: -231.27
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ¥3,374.00 ▲(10.99% Upside)

Yutaka Giken Co., Ltd. has a solid financial foundation with strong revenue growth and low leverage, contributing significantly to its overall score. The stock's valuation is attractive, with a low P/E ratio and a reasonable dividend yield. Technical indicators suggest a neutral to slightly bearish short-term trend, but potential oversold conditions could present buying opportunities.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage provides financial stability and flexibility, allowing the company to invest in growth opportunities without significant financial risk.

Cash Generation Ability

Strong cash generation ability enhances the company's capacity to fund operations, invest in new projects, and return capital to shareholders, supporting long-term growth.

Revenue Growth

Consistent revenue growth indicates successful market penetration and product demand, which are crucial for sustaining competitive advantage and expanding market share.

Negative Factors

Declining Profit Margins

Declining profit margins suggest challenges in cost management and pricing power, which could impact long-term profitability and competitive positioning.

Revenue Growth Challenges

Negative revenue growth indicates potential market or operational challenges, which could hinder future expansion and affect the company's market position.

Moderate Profitability

Moderate profitability margins highlight the need for efficiency improvements to enhance competitive edge and ensure sustainable financial performance.

Yutaka Giken Co., Ltd. Business Overview & Revenue Model

Company Description

Yutaka Giken Co., Ltd. (7229) is a Japanese company specializing in the design and manufacture of precision equipment and components, primarily for the automotive and industrial sectors. The company is recognized for its innovative solutions in automation and robotics, providing high-quality products that enhance manufacturing processes. Yutaka Giken also engages in research and development to advance technology in its core areas of expertise, ensuring it remains competitive in a rapidly evolving market.

How the Company Makes Money

Yutaka Giken generates revenue primarily through the sale of its precision equipment and components to manufacturers in the automotive and industrial sectors. The company's revenue model is built on direct sales of its products, which include automation systems, robotics, and specialized machinery. Key revenue streams include long-term contracts with major automotive manufacturers, which provide a stable income source, as well as sales to industrial clients looking to improve efficiency in their production lines. Additionally, the company may benefit from partnerships with technology firms and participation in collaborative research projects, which can open new markets and enhance product offerings, thereby contributing to its overall earnings.

Yutaka Giken Co., Ltd. Financial Statement Overview

Summary

Yutaka Giken Co., Ltd. exhibits a mixed financial performance. The balance sheet is strong with low leverage and a solid equity position, scoring 78. However, the income statement shows declining revenue and modest profitability margins, scoring 65. The cash flow statement highlights liquidity challenges with negative free cash flow growth, scoring 55. Overall, the company needs to address revenue and cash flow issues to improve its financial health.

Income Statement

Yutaka Giken Co., Ltd. has shown a decline in revenue over the past year, with a revenue growth rate of -3.29%. The gross profit margin is moderate at 13.24%, and the net profit margin is relatively low at 2.54%. The EBIT and EBITDA margins are also modest at 3.90% and 8.91%, respectively. Despite these challenges, the company has maintained a stable gross profit margin over the years.

Balance Sheet

The company's balance sheet is strong, with a low debt-to-equity ratio of 0.011, indicating low leverage. The return on equity is moderate at 4.45%, reflecting a reasonable return on shareholders' investments. The equity ratio is healthy, suggesting a solid financial foundation with a significant portion of assets financed by equity.

Cash Flow

The cash flow statement reveals challenges, with a significant decline in free cash flow growth at -103.05%. The operating cash flow to net income ratio is low at 0.07, and the free cash flow to net income ratio is negative, indicating potential liquidity issues. These factors suggest the company may face difficulties in generating sufficient cash flow to cover its net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	174.04B	179.21B	216.26B	218.00B	213.40B	191.33B
Gross Profit	24.08B	23.74B	26.84B	19.22B	22.67B	19.28B
EBITDA	15.22B	15.97B	21.09B	14.27B	19.86B	12.31B
Net Income	5.22B	4.55B	7.45B	1.44B	4.47B	-1.33B
Balance Sheet
Total Assets	169.99B	168.41B	185.61B	199.63B	208.33B	189.18B
Cash, Cash Equivalents and Short-Term Investments	42.62B	42.76B	49.16B	33.70B	42.07B	34.05B
Total Debt	1.95B	1.17B	3.56B	6.58B	10.44B	10.33B
Total Liabilities	56.89B	56.86B	75.79B	102.21B	113.36B	103.42B
Stockholders Equity	103.68B	102.16B	100.22B	88.18B	83.81B	76.03B
Cash Flow
Free Cash Flow	7.25B	-135.00M	18.79B	-354.00M	6.21B	8.17B
Operating Cash Flow	12.89B	3.82B	22.35B	4.06B	12.14B	16.15B
Investing Cash Flow	-5.19B	-3.48B	-3.10B	-2.81B	-3.95B	-8.69B
Financing Cash Flow	-2.38B	-6.49B	-6.63B	-7.68B	-2.79B	-625.00M

Yutaka Giken Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3040.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7229, the sentiment is Positive. The current price of 3040 is below the 20-day moving average (MA) of 3044.00, below the 50-day MA of 3045.90, and above the 200-day MA of 2674.76, indicating a neutral trend. The MACD of -0.17 indicates Positive momentum. The RSI at 48.60 is Neutral, neither overbought nor oversold. The STOCH value of 20.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7229.

Yutaka Giken Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7296	80 Outperform	¥181.10B	10.62	―	4.44%	2.01%	25.09%
7250	78 Outperform	¥183.56B	11.55	―	1.06%	3.62%	3.64%
7242	78 Outperform	¥231.46B	8.03	12.15%	2.83%	3.95%	136.86%
7283	77 Outperform	¥145.65B	10.68	―	3.22%	0.29%	9.87%
7229	72 Outperform	¥45.05B	8.64	―	2.37%	-13.35%	-19.38%
7241	68 Neutral	¥95.56B	8.67	―	3.84%	-7.35%	43.31%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%