Tokyo Radiator Manufacturing Co., Ltd. (7235) AI Stock Analysis

• Market Cap: ¥14.11B
• Dividend Yield: 4.02%
• Average Volume (3M): 34.34K
• Price to Earnings (P/E): 7.4
• Beta (1Y): 0.91
• Revenue Growth: 2.31%
• EPS Growth: 10.68%
• Country: JP
• Employees: 879
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 41.33
• Shares Outstanding: 10,400,000
• 10 Day Avg. Volume: 24,860
• 30 Day Avg. Volume: 34,343
• PEG Ratio: -0.38
• Price to Book (P/B): 0.39
• Price to Sales (P/S): 0.25
• P/FCF Ratio: 5.93
• 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: 78 Outperform
• Price Target: ¥1,767.00 ▲(18.11% Upside)

Tokyo Radiator Manufacturing Co., Ltd. receives a strong overall score driven by its attractive valuation and robust technical indicators. The company's solid financial performance further supports its stability, though improvements in operational efficiency could enhance its position. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for products and effective market strategies, supporting long-term business sustainability.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial stability and provides flexibility for future investments and growth.

Profit Margin Improvement

Improved profit margins reflect better cost management and pricing strategies, contributing to long-term profitability and competitiveness.

Negative Factors

Operational Efficiency

Inefficiencies in operations and asset management can hinder profitability and growth, requiring strategic focus to enhance performance.

Free Cash Flow Volatility

Fluctuations in free cash flow can impact liquidity and investment capacity, necessitating better cash management practices.

Equity Ratio Decline

A declining equity ratio may indicate potential challenges in asset management, affecting financial health and investor confidence.

Tokyo Radiator Manufacturing Co., Ltd. Business Overview & Revenue Model

Company Description

Tokyo Radiator Mfg.Co.,Ltd. manufactures and sells heat exchangers and body components in Japan, China, Thailand, and Indonesia. It provides cooling modules for trucks and construction machinery; radiators and inter coolers for heavy and light duty trucks; EGR coolers for diesel and gasoline engines; oil coolers; oil pans; and SCR, fuel, and sub tanks. The company was founded in 1938 and is headquartered in Fujisawa, Japan.

How the Company Makes Money

Tokyo Radiator Manufacturing Co., Ltd. generates revenue primarily through the sale of its automotive radiators and cooling systems. The company has established a diverse customer base, including major automobile manufacturers and aftermarket suppliers, which contributes significantly to its revenue streams. Key revenue streams include direct sales to OEMs (Original Equipment Manufacturers) and the aftermarket segment where they supply replacement parts. Additionally, Tokyo Radiator benefits from strategic partnerships with automotive companies that enhance its market reach and allow for collaborative product development. The company's ability to innovate and maintain high-quality standards positions it favorably within the competitive landscape, further driving its profitability.

Tokyo Radiator Manufacturing Co., Ltd. Financial Statement Overview

Summary

Tokyo Radiator Manufacturing Co., Ltd. demonstrates solid financial performance with consistent revenue growth and improved profitability. The company maintains a strong balance sheet with low leverage, enhancing its financial stability. However, there is room for improvement in operational efficiencies and asset management.

Income Statement

Tokyo Radiator Manufacturing Co., Ltd. has shown consistent revenue growth over the years, with a notable increase in gross profit margins from 11.8% in 2023 to 13.8% in 2025. The net profit margin improved significantly from negative in 2023 to 4.2% in 2025, indicating a turnaround in profitability. However, EBIT and EBITDA margins have remained relatively stable, suggesting room for operational efficiency improvements.

Balance Sheet

The company's balance sheet reflects a strong equity position with a low debt-to-equity ratio, indicating financial stability. The return on equity has improved from negative in 2023 to 6.5% in 2025, showcasing enhanced profitability. However, the equity ratio has slightly decreased, which could indicate a need for better asset management.

Cash Flow

The cash flow statement shows a positive trend in operating cash flow, with a significant increase in free cash flow in 2025. The free cash flow to net income ratio is healthy, indicating efficient cash generation relative to net income. However, the volatility in free cash flow growth rates suggests potential fluctuations in cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	34.19B	34.06B	33.40B	31.79B	26.99B	26.00B
Gross Profit	5.01B	4.69B	4.51B	3.75B	2.55B	2.57B
EBITDA	3.39B	3.17B	3.20B	1.21B	1.20B	1.33B
Net Income	1.72B	1.42B	1.68B	-718.77M	-801.05M	106.40M
Balance Sheet
Total Assets	32.39B	32.92B	31.63B	29.17B	31.64B	31.40B
Cash, Cash Equivalents and Short-Term Investments	8.65B	8.41B	7.09B	6.91B	8.27B	10.23B
Total Debt	158.00M	286.29M	324.36M	182.33M	207.61M	199.14M
Total Liabilities	8.66B	8.97B	9.73B	10.02B	8.29B	8.11B
Stockholders Equity	21.78B	21.96B	19.94B	17.32B	21.64B	21.55B
Cash Flow
Free Cash Flow	0.00	1.44B	252.81M	2.45B	-1.85B	-18.30M
Operating Cash Flow	0.00	2.25B	1.34B	3.50B	-180.84M	1.18B
Investing Cash Flow	0.00	-599.38M	-1.26B	-908.80M	-991.40M	-1.29B
Financing Cash Flow	0.00	-410.82M	-311.45M	-3.99B	-622.34M	-368.68M

Tokyo Radiator Manufacturing Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1496.00
• 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:7235, the sentiment is Positive. The current price of 1496 is below the 20-day moving average (MA) of 1505.85, above the 50-day MA of 1416.16, and above the 200-day MA of 1083.66, indicating a bullish trend. The MACD of 24.82 indicates Positive momentum. The RSI at 56.00 is Neutral, neither overbought nor oversold. The STOCH value of 58.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7235.

Tokyo Radiator Manufacturing Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7235	78 Outperform	¥14.11B	7.44	―	4.02%	2.31%	10.68%
7254	76 Outperform	¥16.87B	7.96	―	1.67%	-4.44%	-17.38%
7236	72 Outperform	¥48.67B	6.82	―	3.60%	0.14%	882.91%
7241	68 Neutral	¥93.86B	8.52	―	3.88%	-7.35%	43.31%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7277	56 Neutral	¥11.40B	33.21	―	2.23%	-4.06%	―
7256	51 Neutral	¥5.11B	-0.88	―	―	-9.54%	21.21%

Tokyo Radiator Manufacturing Co., Ltd. Corporate Events

Tokyo Radiator Reports Strong Financial Growth in First Half of 2025

Tokyo Radiator Manufacturing Co., Ltd. reported a significant increase in its financial performance for the first half of 2025, with net sales rising by 3.8% and operating profit surging by 68.8% compared to the previous year. This strong performance underscores the company’s robust market positioning and operational efficiency, which is further reflected in the revised forecasts for the fiscal year ending March 31, 2026, projecting continued growth in sales and profits.