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

• Market Cap: ¥44.45B
• Dividend Yield: 2.37%
• Average Volume (3M): 33.62K
• Price to Earnings (P/E): 12.1
• Beta (1Y): 0.62
• Revenue Growth: -13.35%
• EPS Growth: -19.38%
• Country: JP
• Employees: 5,190
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 65.33
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: ¥3,409.00 ▲(7.54% Upside)
• Action: Reiterated Date: 02/08/26
• Date: Action: Reiterated 02/08/26

The score is driven primarily by strong financial stability from a very low-debt balance sheet, tempered by modest profitability, slightly declining revenue, and uneven free-cash-flow conversion. Valuation is a positive offset (moderate P/E and ~2.33% yield), while technical signals are soft with the stock trading below key short-term moving averages and subdued RSI.

Positive Factors

Conservative balance sheet

Extremely low leverage and a sizable equity base provide durable financial resilience. This structural strength supports capital allocation for R&D, equipment replacement, and cyclicality, reducing solvency risk and preserving strategic optionality over the next several quarters.

Positive operating cash generation

Consistent positive operating cash flow and positive trailing free cash flow indicate the business can generate internal funds to support capex, maintenance and shareholder returns. Over 2-6 months this underpins execution of projects without heavy external financing.

Specialized automation & R&D focus

A focus on precision automation, robotics and ongoing R&D creates durable competitive differentiation for manufacturing customers. This specialization supports long-term contract opportunities, higher switching costs and relevance amid industry automation trends.

Negative Factors

Modest profitability

Low operating and net margins constrain retained earnings and limit the firm’s internal capacity to fund growth or absorb cost shocks. Persistently modest profitability makes it harder to improve returns meaningfully without structural margin expansion or higher revenue scale.

Revenue weakness

A mild but persistent downtrend in revenue reduces scale advantages and pressures operating leverage. If demand or share trends do not stabilize, revenue erosion over several quarters could exacerbate margin pressure and limit reinvestment capacity.

Weak FCF conversion and volatility

Sharply weaker free cash flow and a low FCF-to-net-income ratio indicate earnings do not reliably convert into discretionary cash. Historical FCF volatility undermines confidence in funding regular dividends, capex or expansions without using balance-sheet flexibility.

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

Company Description

Yutaka Giken Co.,Ltd. manufactures and sells automobile parts in Japan, North America, China, Asia, and internationally. It offers torque converters; drive system parts; exhaust system products, such as catalytic converters and silencers; brake discs for motorcycles; and motor parts. The company was founded in 1954 and is headquartered in Hamamatsu, Japan.

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

Strong balance sheet with very low leverage (debt-to-equity ~0.04) supports financial resilience, but operating performance is restrained by modest margins (TTM operating ~4.3%, net ~2.5%) and slightly declining TTM revenue (-2.1%). Cash flow is positive, yet free cash flow is down (~-20.9% TTM) with weaker conversion to earnings (FCF/NI ~0.48) and historical volatility.

Income Statement

TTM (Trailing-Twelve-Months) revenue declined (-2.1%), extending a mild downtrend after flat-to-slightly negative growth in recent annual periods. Profitability is positive and fairly steady at modest levels (TTM gross margin ~13.5%, operating margin ~4.3%, net margin ~2.5%), but earnings power is meaningfully below the stronger 2024 annual year, when margins and net income were higher. Overall: stable but low-margin profitability with limited recent growth momentum.

Balance Sheet

The balance sheet looks conservatively positioned with very low leverage (TTM debt-to-equity ~0.04) and a large equity base (TTM equity ~¥107.9B). Returns on equity are positive but moderate (TTM ~4.1%) and down from 2024 levels, indicating solid financial stability but only average efficiency in generating shareholder returns. Key risk is less about solvency and more about sustaining higher profitability.

Cash Flow

Cash generation is positive in TTM (operating cash flow ~¥11.9B; free cash flow ~¥5.7B), but free cash flow fell sharply versus the prior period (TTM free cash flow growth ~-20.9%). Cash conversion is mixed: TTM free cash flow is below net income (free cash flow to net income ~0.48), suggesting less efficient conversion of earnings into discretionary cash. Recent annual results have been volatile (notably negative free cash flow in 2023 and 2025 annual), which lowers confidence in consistency.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	170.35B	179.21B	216.26B	218.00B	213.40B	191.33B
Gross Profit	23.04B	23.74B	26.84B	19.22B	22.67B	19.28B
EBITDA	15.16B	15.97B	21.09B	14.27B	19.86B	12.31B
Net Income	4.26B	4.55B	7.45B	1.44B	4.47B	-1.33B
Balance Sheet
Total Assets	174.31B	168.41B	185.61B	199.63B	208.33B	189.18B
Cash, Cash Equivalents and Short-Term Investments	45.54B	42.76B	49.16B	33.70B	42.07B	34.05B
Total Debt	2.02B	504.00M	4.24B	7.43B	11.21B	11.17B
Total Liabilities	56.31B	56.45B	75.35B	101.74B	112.98B	103.02B
Stockholders Equity	107.91B	102.16B	100.22B	88.18B	83.81B	76.03B
Cash Flow
Free Cash Flow	5.74B	-135.00M	18.79B	-354.00M	6.21B	8.17B
Operating Cash Flow	11.92B	3.82B	22.35B	4.06B	12.14B	16.15B
Investing Cash Flow	-5.88B	-3.48B	-3.10B	-2.81B	-3.95B	-8.69B
Financing Cash Flow	-1.69B	-6.49B	-6.63B	-7.68B	-2.79B	-625.00M

Yutaka Giken Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3170.00
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 3170 is above the 20-day moving average (MA) of 3028.20, above the 50-day MA of 3095.28, and above the 200-day MA of 2950.09, indicating a neutral trend. The MACD of -23.65 indicates Positive momentum. The RSI at 40.25 is Neutral, neither overbought nor oversold. The STOCH value of 14.74 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
7244	81 Outperform	¥46.39B	7.97	8.46%	2.64%	-6.35%	18.49%
7229	71 Outperform	¥44.45B	12.06	―	2.37%	-13.35%	-19.38%
7236	71 Outperform	¥51.47B	4.34	―	3.60%	0.14%	882.91%
7280	70 Outperform	¥56.34B	14.59	―	0.99%	-0.83%	-27.20%
5988	66 Neutral	¥40.73B	50.47	―	5.35%	-6.20%	-64.65%
7245	65 Neutral	¥43.14B	14.81	5.33%	2.09%	1.26%	56.37%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%