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

• Market Cap: ¥15.35B
• Dividend Yield: 4.02%
• Average Volume (3M): 34.34K
• Price to Earnings (P/E): 7.2
• Beta (1Y): 0.96
• Revenue Growth: 2.31%
• EPS Growth: 10.68%
• Country: JP
• Employees: 879
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 55.08
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: ¥1,994.00 ▲(24.78% Upside)
• Action: Reiterated Date: 11/30/25
• Date: Action: Reiterated 11/30/25

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

Strong balance sheet / low leverage

Low leverage and a strong equity position provide durable financial flexibility, allowing the company to fund R&D, capex and absorb industry downturns without forced asset sales or dilutive financing. This stability supports long-term supplier and OEM relationships.

Consistent revenue growth and improving margins

Sustained revenue growth combined with material gross and net margin improvement signals structural recovery and better pricing or cost control. Improved profitability enhances reinvestment capacity and resilience against cyclical auto demand, supporting multi-quarter financial stability.

Diverse OEM & aftermarket customer base

A mix of OEM contracts and aftermarket sales reduces revenue concentration risk and smooths demand cycles. Strategic partnerships with automakers enable co-development and higher switching costs, strengthening long-term revenue visibility and product specification influence.

Negative Factors

Operational efficiency and asset management headroom

Persisting operational and asset-management gaps can constrain margin expansion and return on capital. Without efficiency drives, gains in gross margin may be offset by lower asset turns, limiting sustainable profit growth and reducing funding available for strategic investments.

Volatility in free cash flow growth

Irregular free cash flow undermines predictability for dividends, debt reduction and capex funding. Even with a recent FCF increase, volatility raises the risk the company may need external financing or cut discretionary spend during weaker automotive cycles, affecting strategic plans.

Concentration in automotive sector (cyclical exposure)

Heavy reliance on the auto sector exposes the business to cyclical OEM demand, model cycle shifts and electrification trends. Structural changes in vehicle thermal architectures or reduced parts per vehicle could pressure volumes and require sustained R&D to retain OEM specs.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: Neutral
• Last Price: 1598.00
• 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:7235, the sentiment is Neutral. The current price of 1598 is below the 20-day moving average (MA) of 1730.65, below the 50-day MA of 1661.54, and above the 200-day MA of 1284.62, indicating a neutral trend. The MACD of 3.09 indicates Positive momentum. The RSI at 41.68 is Neutral, neither overbought nor oversold. The STOCH value of 19.08 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	¥15.35B	7.18	―	4.02%	2.31%	10.68%
7254	76 Outperform	¥19.04B	4.18	―	1.67%	-4.44%	-17.38%
7236	71 Outperform	¥56.83B	4.34	―	3.60%	0.14%	882.91%
7241	68 Neutral	¥95.83B	5.17	―	3.88%	-7.35%	43.31%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7277	56 Neutral	¥12.52B	8.29	―	2.23%	-4.06%	―
7256	49 Neutral	¥10.68B	0.59	―	―	-9.54%	21.21%

Tokyo Radiator Manufacturing Co., Ltd. Corporate Events

Tokyo Radiator Manufacturing Lifts Nine-Month Profit on Higher Sales and Cost Cuts

Tokyo Radiator Manufacturing reported consolidated net sales of ¥26.3 billion for the first nine months of fiscal 2025, a 5% year-on-year increase driven by higher volumes and an improved product lineup. Operating profit surged 58% to ¥1.89 billion, lifting the operating margin to 7.2% as cost reductions and a better sales mix boosted profitability.

Ordinary profit rose 50% to ¥2.08 billion and profit attributable to owners of the parent climbed 53% to ¥1.58 billion, underscoring a broad-based improvement in earnings. The stronger margins indicate successful execution of efficiency and product initiatives, enhancing the company’s financial position and competitiveness despite relatively stable foreign exchange rates over the period.

The most recent analyst rating on (JP:7235) stock is a Buy with a Yen1960.00 price target. To see the full list of analyst forecasts on Tokyo Radiator Manufacturing Co., Ltd. stock, see the JP:7235 Stock Forecast page.

Tokyo Radiator Profit Surges on Strong Margins, Dividend Outlook Raised

Tokyo Radiator Manufacturing reported solid earnings for the nine months ended December 31, 2025, with net sales rising 4.8% year on year to ¥26.3 billion and operating profit jumping 57.7% to ¥1.9 billion, lifting profit attributable to owners of parent by 53.3% to ¥1.58 billion. The stronger profitability translated into basic earnings per share of ¥166.50, while total assets and equity also improved, pushing the equity-to-asset ratio up to 67.6%.

The company maintained its full-year forecast for the fiscal year ending March 31, 2026, projecting modest 2.2% sales growth to ¥34.8 billion but significantly higher operating profit and net profit, up 25.4% and 30.0% respectively, with EPS expected at ¥195.57. Reflecting confidence in its earnings strength, Tokyo Radiator plans to raise annual dividends to ¥59.00 per share for FY2025, marking a sharp increase from the previous fiscal year and signaling a shareholder‑friendly capital policy backed by improving financial health.

The most recent analyst rating on (JP:7235) stock is a Buy with a Yen1960.00 price target. To see the full list of analyst forecasts on Tokyo Radiator Manufacturing Co., Ltd. stock, see the JP:7235 Stock Forecast page.