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T.RAD Co., Ltd. (JP:7236)
:7236
Japanese Market
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T.RAD Co., Ltd. (7236) AI Stock Analysis

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JP:7236

T.RAD Co., Ltd.

(7236)

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Outperform 73 (OpenAI - 5.2)
Rating:73Outperform
Price Target:
¥1,700.00
▼(-79.64% Downside)
Action:Reiterated
Date:08/04/26
The score is driven primarily by improved financial performance (strong revenue/margin rebound and healthier balance sheet) tempered by inconsistent and recently weakening free cash flow conversion. Technicals are constructive with price above major moving averages, and valuation is a notable positive with a low P/E and solid dividend yield.
Positive Factors
Revenue Growth Rebound
A near-term 37.7% TTM revenue rebound reflects renewed OEM demand or share gains. Durable top-line momentum supports scale economies, steadier production runs and stronger negotiating leverage with automakers, improving long-term margin and capacity utilization.
Negative Factors
Weak Free Cash Flow Conversion
Free cash flow converts only ~41% of net income and recently fell sharply, indicating earnings are not consistently turning into cash. This undermines capacity to self-fund capex, pay steady dividends or deleverage, increasing reliance on external funding in stressed periods.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth Rebound
A near-term 37.7% TTM revenue rebound reflects renewed OEM demand or share gains. Durable top-line momentum supports scale economies, steadier production runs and stronger negotiating leverage with automakers, improving long-term margin and capacity utilization.
Read all positive factors

T.RAD Co., Ltd. (7236) vs. iShares MSCI Japan ETF (EWJ)

T.RAD Co., Ltd. Business Overview & Revenue Model

Company Description
Based in Tokyo, Japan, T.RAD Co., Ltd. operates globally, specializing in the design, production, and sale of heat exchange systems. These critical components serve a broad array of sectors, including automotive, heavy construction and industrial ...
How the Company Makes Money
T.RAD makes money primarily by manufacturing and selling automotive thermal management components to customers in the automotive supply chain. Its revenue is largely generated from (1) sales of heat exchangers (e.g., radiators and other cooling-re...

T.RAD Co., Ltd. Financial Statement Overview

Summary
Income statement strength is solid (rebound to ~5.4% TTM net margin and ~37.7% TTM revenue growth), and leverage is manageable (debt ~0.41x equity) with improved ROE (~17.9%). The main limiter is cash flow quality and consistency: free cash flow is only ~41% of net income in TTM, FCF growth weakened sharply, and multi-year volatility (including negative FCF in FY2023) reduces confidence in durability.
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
55
Neutral
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue162.89B162.28B159.24B158.66B149.41B133.58B
Gross Profit24.38B24.37B19.64B14.90B11.86B15.10B
EBITDA18.29B16.90B12.64B10.98B4.74B11.98B
Net Income8.77B8.77B4.25B1.25B-3.60B3.60B
Balance Sheet
Total Assets101.28B99.72B97.49B103.09B94.10B93.76B
Cash, Cash Equivalents and Short-Term Investments16.29B16.44B16.93B20.63B10.71B13.75B
Total Debt22.25B21.86B21.51B24.91B22.45B19.18B
Total Liabilities47.95B46.65B48.74B57.80B50.24B47.02B
Stockholders Equity53.26B53.01B48.69B44.89B42.26B44.50B
Cash Flow
Free Cash Flow5.02B5.11B2.52B9.76B-2.47B1.45B
Operating Cash Flow12.35B12.56B7.56B16.97B4.38B7.26B
Investing Cash Flow-7.57B-7.20B-6.47B-7.08B-6.70B-5.84B
Financing Cash Flow-6.15B-5.87B-6.95B-616.00M-1.06B-3.39B

T.RAD Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price8350.00
Price Trends
50DMA
1484.08
Positive
100DMA
1294.56
Positive
200DMA
1075.50
Positive
Market Momentum
MACD
18.73
Negative
RSI
59.98
Neutral
STOCH
88.06
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7236, the sentiment is Positive. The current price of 8350 is above the 20-day moving average (MA) of 1514.95, above the 50-day MA of 1484.08, and above the 200-day MA of 1075.50, indicating a bullish trend. The MACD of 18.73 indicates Negative momentum. The RSI at 59.98 is Neutral, neither overbought nor oversold. The STOCH value of 88.06 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7236.

T.RAD Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
¥448.90B11.218.92%3.61%8.19%229.76%
81
Outperform
¥15.09B7.844.02%5.02%11.74%
73
Outperform
¥93.40B10.483.60%1.79%60.36%
71
Outperform
¥5.38T12.198.64%3.26%7.51%13.94%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
51
Neutral
¥29.70B35.263.33%0.78%98.79%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7236
T.RAD Co., Ltd.
1,585.00
918.97
137.98%
JP:6902
DENSO
1,955.00
-105.96
-5.14%
JP:6592
Mabuchi Motor Co
1,742.00
553.80
46.61%
JP:6584
Sanoh Industrial Co., Ltd.
822.00
75.64
10.13%
JP:7235
Tokyo Radiator Manufacturing Co., Ltd.
1,600.00
545.06
51.67%

T.RAD Co., Ltd. Corporate Events

T.RAD Ups Full-Year Guidance and Raises Dividend on Stronger Outlook
Aug 3, 2026
T.RAD Co., Ltd. raised its full-year consolidated forecast for the year ending March 31, 2027, projecting net sales of ¥165 billion, operating income of ¥12.3 billion and profit attributable to owners of parent of ¥9.5 billion. The ...
T.RAD Posts Higher Sales but Lower Operating Profit on Rising Material Costs
Aug 3, 2026
T.RAD Co., Ltd., a manufacturer of thermal management components for automotive and industrial applications, reported mixed performance across its global footprint, with domestic operations and key overseas markets including the U.S., Europe, and ...
T.RAD Lifts Full-Year Outlook and Dividend Despite Softer Q1 Margins
Aug 3, 2026
T.RAD reported first-quarter fiscal 2027 consolidated net sales of ¥39.7 billion, up 1.6% year on year, with operating income of ¥2.7 billion, down 8.4%, and profit attributable to owners of parent essentially flat at ¥2.1 billion, ...
T.RAD to Grant Restricted Treasury Shares to Directors and Officers
Jul 21, 2026
T.RAD Co., Ltd. has approved the disposal of 34,415 shares of treasury stock as restricted stock compensation to five directors, four Audit Supervisory Board Members and three Managing Executive Officers. The shares, priced at 1,470 yen each for ...
T.RAD Targets ¥200 Billion Sales on EV-Era Heat Exchanger Growth
Jul 21, 2026
T.RAD has outlined its strategy to reach ¥200 billion in net sales by fiscal 2030, centered on expanding its share in automotive heat exchangers and growing sales to Japanese OEMs’ hybrid and plug-in hybrid models. The company expects r...
T.RAD Outlines Global OEM Strategy and Clarifies Shareholder Return Targets
Jun 29, 2026
T.RAD Co., Ltd. disclosed a summarized QA from its 124th Ordinary General Meeting of Shareholders, highlighting its expanding global footprint and customer base in the automotive supply chain. Management noted that its Qingdao subsidiary is alread...
T.RAD details dealings with controlling shareholders and affirms operational independence
Jun 26, 2026
T.RAD Co., Ltd. has detailed its relationships with controlling shareholders, notably Jinya Connect Co., Ltd., which holds 39% of its voting rights and conducts software licensing transactions with T.RAD’s consolidated subsidiary. The compan...
T.RAD Announces 10-for-1 Stock Split, Articles Amendment and Dividend Forecast Revision
May 25, 2026
T.RAD will implement a 10-for-1 stock split on July 1, 2026, for shareholders of record on June 30, 2026, increasing shares outstanding from 5.9 million to 59 million to lower the investment unit and broaden its investor base. In conjunction, it w...
T.RAD Sharply Hikes Year-End Dividend and Sets More Aggressive Payout Policy
May 25, 2026
T.RAD’s board has approved a proposal for a year-end dividend of ¥400 per share for the fiscal year ended March 31, 2026, to be submitted to shareholders in late June, lifting the total annual dividend to ¥560 per share. The payout...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 04, 2026