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

• Market Cap: ¥45.05B
• Dividend Yield: 2.36%
• Average Volume (3M): 33.62K
• Price to Earnings (P/E): 11.5
• Beta (1Y): 0.80
• 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: 67 Neutral
• Price Target: ¥3,298.00 ▲(8.31% Upside)

The overall stock score for Yutaka Giken Co., Ltd. is 67. The most significant factor is the mixed financial performance, with a strong balance sheet but challenges in revenue and cash flow. The valuation is favorable with a low P/E ratio, suggesting potential undervaluation. Technical analysis indicates a neutral trend with some bullish momentum. Earnings call and corporate events were not considered due to lack of data.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage provides financial stability and flexibility, enabling the company to invest in growth opportunities and weather economic downturns.

Stable Gross Profit Margin

A stable gross profit margin indicates efficient production processes and cost management, which are crucial for maintaining profitability in a competitive market.

Partnerships with Major Manufacturers

Partnerships with major manufacturers can lead to consistent demand and collaborative innovation, enhancing market position and driving long-term growth.

Negative Factors

Negative Revenue Growth

Negative revenue growth suggests potential market or operational challenges, which could impact the company's ability to expand and compete effectively over time.

Low Net Profit Margin

A low net profit margin indicates challenges in cost control or pricing power, which may affect the company's profitability and ability to reinvest in its business.

Cash Flow Challenges

Negative cash flow growth highlights difficulties in converting earnings into cash, potentially limiting the company's ability to fund operations and growth initiatives.

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. shows a mixed financial performance. The company has a stable gross profit margin, but a low net profit margin and negative revenue growth indicate operational challenges. The balance sheet is strong with low leverage, but cash flow issues highlight the need for better cash management.

Income Statement

Yutaka Giken Co., Ltd. shows a mixed performance in its income statement. The company has a stable gross profit margin of around 13% in the TTM, indicating efficient production processes. However, the net profit margin is relatively low at 2.54%, reflecting challenges in controlling costs or pricing power. Revenue growth is negative, with a decline of 2.99% in the TTM, suggesting potential market or operational challenges. The EBIT and EBITDA margins are modest, indicating room for improvement in operational efficiency.

Balance Sheet

The balance sheet of Yutaka Giken Co., Ltd. is relatively strong, with a low debt-to-equity ratio, indicating conservative financial leverage. The return on equity (ROE) is modest at 4.45% in the TTM, suggesting moderate profitability relative to shareholder equity. The equity ratio is healthy, reflecting a solid capital structure. However, the company should focus on improving its ROE to enhance shareholder value.

Cash Flow

Cash flow analysis reveals some concerns for Yutaka Giken Co., Ltd. The free cash flow growth rate is significantly negative, indicating potential cash generation issues. The operating cash flow to net income ratio is low, suggesting that earnings are not fully translating into cash flow. Additionally, the free cash flow to net income ratio is negative, highlighting challenges in converting profits into free cash flow. The company needs to focus on improving cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	173.85B	179.21B	216.26B	218.00B	213.40B	191.33B
Gross Profit	23.62B	23.74B	26.84B	19.22B	22.67B	19.28B
EBITDA	15.08B	15.97B	21.09B	14.27B	19.86B	12.31B
Net Income	3.93B	4.55B	7.45B	1.44B	4.47B	-1.33B
Balance Sheet
Total Assets	161.32B	168.41B	185.61B	199.63B	208.33B	189.18B
Cash, Cash Equivalents and Short-Term Investments	42.16B	42.76B	49.16B	33.70B	42.07B	34.05B
Total Debt	1.97B	1.17B	3.56B	6.58B	10.44B	10.33B
Total Liabilities	51.16B	56.86B	75.79B	102.21B	113.36B	103.42B
Stockholders Equity	101.02B	102.16B	100.22B	88.18B	83.81B	76.03B
Cash Flow
Free Cash Flow	2.18B	-135.00M	18.79B	-354.00M	6.21B	8.17B
Operating Cash Flow	6.76B	3.82B	22.35B	4.06B	12.14B	16.15B
Investing Cash Flow	-3.91B	-3.48B	-3.10B	-2.81B	-3.95B	-8.69B
Financing Cash Flow	-5.97B	-6.49B	-6.63B	-7.68B	-2.79B	-625.00M

Yutaka Giken Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3045.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 3045 is above the 20-day moving average (MA) of 3042.50, below the 50-day MA of 3046.40, and above the 200-day MA of 2589.45, indicating a bullish trend. The MACD of 3.54 indicates Negative momentum. The RSI at 60.43 is Neutral, neither overbought nor oversold. The STOCH value of 56.41 is Neutral, 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	¥155.68B	9.83	―	5.03%	2.01%	25.09%
7250	78 Outperform	¥191.74B	12.07	―	1.03%	3.62%	3.64%
7242	77 Outperform	€224.92B	7.80	12.15%	2.79%	3.95%	136.86%
7283	77 Outperform	¥135.25B	9.93	―	3.53%	0.29%	9.87%
7241	68 Neutral	¥84.19B	7.64	―	3.95%	-7.35%	43.31%
7229	67 Neutral	¥45.05B	11.47	―	2.36%	-13.35%	-19.38%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%