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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 77 (OpenAI - 5.2)
Rating:77Outperform
Price Target:
¥17,082.00
▲(104.57% Upside)
Action:Reiterated
Date:06/29/26
The score is driven primarily by improved fundamentals (stronger profitability and a significantly de-levered balance sheet), supported by strong technical uptrend signals. These positives are tempered by uneven cash conversion/declining TTM free cash flow and a very weak TTM revenue growth signal, which raise near-term volatility risk despite attractive valuation and dividend yield.
Positive Factors
Improved profitability
Sustained improvement in TTM net and EBIT margins indicates stronger operational efficiency, better pricing or mix, and control over costs. Higher margins improve resilience across auto cycles, supporting reinvestment, dividends and a larger earnings buffer against material volume declines.
Negative Factors
Sharp recent revenue decline
A very weak TTM revenue growth signal points to lost volume, program timing or contract rolloffs and raises durable execution risk. Sustained revenue weakness can erode scale economics, pressure margins and limit the ability to convert profitability into durable free cash flow.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved profitability
Sustained improvement in TTM net and EBIT margins indicates stronger operational efficiency, better pricing or mix, and control over costs. Higher margins improve resilience across auto cycles, supporting reinvestment, dividends and a larger earnings buffer against material volume declines.
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 heat-exchange and thermal-management products to customers (mainly automotive OEMs and, where applicable, suppliers and other industrial users). Revenue is generated from (1) sales of radiat...

T.RAD Co., Ltd. Financial Statement Overview

Summary
Profitability has rebounded materially (TTM net margin ~6.1%, EBIT margin ~8.1%) and leverage has improved sharply (debt down to ~¥5.7B; debt-to-equity ~0.39). Offsetting this, cash flow quality is uneven (FCF conversion ~0.50x net income; TTM FCF growth -17.6%) and the TTM revenue growth signal is extremely weak (-73.1%), implying elevated volatility/execution risk.
Income Statement
74
Positive
Balance Sheet
78
Positive
Cash Flow
62
Positive
BreakdownMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue162.28B159.24B158.66B149.41B133.58B
Gross Profit24.37B19.64B14.90B11.86B15.10B
EBITDA16.90B12.64B10.98B4.74B11.98B
Net Income8.77B4.25B1.25B-3.60B3.60B
Balance Sheet
Total Assets99.72B97.49B103.09B94.10B93.76B
Cash, Cash Equivalents and Short-Term Investments16.44B16.93B20.63B10.71B13.75B
Total Debt21.86B21.51B24.91B22.45B19.18B
Total Liabilities46.65B48.74B57.80B50.24B47.02B
Stockholders Equity53.01B48.69B44.89B42.26B44.50B
Cash Flow
Free Cash Flow5.11B2.52B9.76B-2.47B1.45B
Operating Cash Flow12.56B7.56B16.97B4.38B7.26B
Investing Cash Flow-7.20B-6.47B-7.08B-6.70B-5.84B
Financing Cash Flow-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
1464.24
Positive
100DMA
1188.30
Positive
200DMA
995.45
Positive
Market Momentum
MACD
25.57
Positive
RSI
58.11
Neutral
STOCH
50.22
Neutral
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 1489.70, above the 50-day MA of 1464.24, and above the 200-day MA of 995.45, indicating a bullish trend. The MACD of 25.57 indicates Positive momentum. The RSI at 58.11 is Neutral, neither overbought nor oversold. The STOCH value of 50.22 is Neutral, 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
84
Outperform
¥416.56B10.878.36%2.71%2.88%213.02%
79
Outperform
¥14.36B7.004.02%3.88%42.23%
77
Outperform
¥89.98B10.033.60%1.91%122.04%
68
Neutral
¥5.44T12.076.98%2.98%5.28%12.90%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
51
Neutral
¥31.04B19.393.33%-0.09%106.66%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7236
T.RAD Co., Ltd.
1,527.00
1,108.75
265.10%
JP:6902
DENSO
1,975.50
81.53
4.30%
JP:6592
Mabuchi Motor Co
1,616.50
591.29
57.68%
JP:6584
Sanoh Industrial Co., Ltd.
859.00
245.89
40.10%
JP:7235
Tokyo Radiator Manufacturing Co., Ltd.
1,522.00
634.58
71.51%

T.RAD Co., Ltd. Corporate Events

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...
T.RAD Flags Conservative Targets as It Maps Thermal-Tech Growth Beyond Autos
Apr 28, 2026
T.RAD used its fiscal 2026 results briefing QA to reassure investors that geopolitical tensions in the Middle East are not yet affecting its profit and loss or balance sheet, citing pass-through arrangements for raw material price swings and no cu...
T.RAD Unveils T.RAD-2026 Mid-Term Plan to Drive Global Growth and Profitability
Apr 27, 2026
T.RAD Co., Ltd. has introduced its mid-term management plan, T.RAD-2026, outlining performance targets and strategic priorities through 2026. The plan covers global expansion, green transformation initiatives, development of new businesses, and me...
T.RAD Weighs Investment Unit Cut but Keeps Status Quo for Now
Apr 27, 2026
T.RAD Co., Ltd., a Prime Market-listed Japanese components maker, underlined its recognition that reducing the minimum investment unit for its shares can support stock market revitalization by broadening the investor base and improving liquidity. ...
T.RAD Plans Sharp Dividend Hike and Sets More Aggressive Shareholder Return Policy
Apr 27, 2026
T.RAD Co., Ltd. has revised its forecast for the year-end dividend for the fiscal year ending March 2026, announcing a substantial increase in planned shareholder returns. The company now expects a year-end dividend of ¥400 per share, up from...
T.RAD Delivers Strong Profit Rebound on Modest Sales Growth in FY2025
Apr 27, 2026
T.RAD Co., Ltd. reported consolidated net sales of ¥162.3 billion for the fiscal year ended March 2026, a 1.9% increase from the prior year, driven by growth in its domestic business and mixed performance overseas. While revenues in the U.S. ...
T.RAD Doubles Profit and Hikes Dividend as Margins and Balance Sheet Strengthen
Apr 27, 2026
T.RAD Co., Ltd. reported consolidated net sales of ¥162.3 billion for the fiscal year ended March 31, 2026, a 1.9% increase year on year, with operating income surging 53.8% to ¥11.2 billion and profit attributable to owners of parent mo...
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: Jun 29, 2026