T.RAD Co., Ltd. (7236) AI Stock Analysis

• Market Cap: ¥47.27B
• Dividend Yield: 3.6%
• Average Volume (3M): 22.44K
• Price to Earnings (P/E): 6.6
• Beta (1Y): 1.23
• Revenue Growth: 0.14%
• EPS Growth: 882.91%
• Country: JP
• Employees: 4,365
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 327.82
• Shares Outstanding: 5,900,000
• 10 Day Avg. Volume: 13,990
• 30 Day Avg. Volume: 22,436
• PEG Ratio: 0.02
• Price to Book (P/B): 0.49
• Price to Sales (P/S): 0.15
• P/FCF Ratio: 9.44
• 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: 72 Outperform
• Price Target: ¥9,273.00 ▲(11.05% Upside)

T.RAD Co., Ltd. has a strong valuation with an attractive P/E ratio and dividend yield, which significantly boosts its overall score. The company's solid financial performance, particularly in profitability and cash flow, further supports a positive outlook. However, mixed technical indicators and a slight decline in revenue growth temper the overall score.

Positive Factors

Cash Flow Growth

Strong cash flow growth indicates robust cash generation, supporting future investments and debt servicing, enhancing financial stability.

Profitability Improvement

Improved profitability metrics reflect enhanced operational efficiency and cost management, contributing to long-term financial health.

Leverage Reduction

Reduced leverage strengthens the equity position and financial stability, providing more flexibility for strategic investments.

Negative Factors

Revenue Decline

A decline in revenue growth could indicate challenges in market demand or competition, potentially impacting long-term growth prospects.

Industry Leverage Risk

Higher leverage compared to industry norms may pose risks, as it could limit financial flexibility and increase vulnerability to economic shifts.

Market Position Challenges

Declining revenue growth may suggest competitive pressures or market saturation, potentially affecting the company's market position.

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

Company Description

T.RAD Co., Ltd. (7236) is a Japanese manufacturer specializing in automotive heat exchange systems and components. The company operates primarily in the automotive sector, producing radiators, condensers, and other cooling systems for vehicles. T.RAD is recognized for its innovation in thermal management solutions, catering to both domestic and international markets with a diverse range of products that enhance vehicle performance and efficiency.

How the Company Makes Money

T.RAD Co., Ltd. generates revenue primarily through the sale of its automotive heat exchange products to automobile manufacturers and aftermarket suppliers. The company has established strong relationships with major automotive OEMs, which contributes significantly to its sales volume. Key revenue streams include the production and distribution of radiators, condensers, and other related components, with a focus on both traditional internal combustion engine vehicles and electric vehicles, as the market shifts towards more sustainable automotive technologies. Additionally, T.RAD benefits from research and development partnerships that enable it to innovate and expand its product offerings, further enhancing its market position and revenue potential.

T.RAD Co., Ltd. Financial Statement Overview

Summary

T.RAD Co., Ltd. exhibits strong financial health with significant revenue and cash flow growth, improved profitability, and a stable balance sheet. The company is well-positioned in the auto parts industry, though it should continue focusing on cost management and debt monitoring to sustain its growth trajectory.

Income Statement

T.RAD Co., Ltd. has shown strong revenue growth with a TTM increase of 49.4%, indicating robust demand and market expansion. The gross profit margin is stable at 12.3%, and the net profit margin has improved to 2.67% from previous losses, reflecting enhanced operational efficiency. However, the EBIT and EBITDA margins, while positive, suggest room for improvement in cost management.

Balance Sheet

The company's debt-to-equity ratio stands at 0.44, indicating a balanced approach to leveraging. Return on equity has improved to 9.13%, showcasing effective use of equity to generate profits. The equity ratio is healthy, suggesting a solid financial foundation, though the company should continue monitoring debt levels to maintain financial stability.

Cash Flow

T.RAD Co., Ltd. has demonstrated impressive free cash flow growth of 105.5% in the TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 0.24, reflecting adequate cash flow relative to earnings. The free cash flow to net income ratio of 0.33 suggests efficient conversion of earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	157.70B	159.24B	158.66B	149.41B	133.58B	113.05B
Gross Profit	22.08B	19.64B	14.90B	11.86B	15.10B	10.84B
EBITDA	15.29B	12.64B	10.98B	4.74B	11.98B	6.83B
Net Income	7.62B	4.25B	1.25B	-3.60B	3.60B	-1.24B
Balance Sheet
Total Assets	92.70B	97.49B	103.09B	94.10B	93.76B	86.80B
Cash, Cash Equivalents and Short-Term Investments	13.10B	16.93B	20.63B	10.71B	13.75B	14.89B
Total Debt	19.08B	21.51B	24.91B	22.45B	19.66B	19.35B
Total Liabilities	45.41B	48.74B	57.80B	50.25B	47.02B	43.58B
Stockholders Equity	47.24B	48.69B	44.89B	42.26B	44.50B	41.05B
Cash Flow
Free Cash Flow	6.67B	2.52B	9.76B	-2.47B	1.45B	1.65B
Operating Cash Flow	11.65B	7.56B	16.97B	4.38B	7.26B	7.47B
Investing Cash Flow	-6.07B	-6.47B	-7.08B	-6.70B	-5.84B	-5.84B
Financing Cash Flow	-8.94B	-6.95B	-616.00M	-1.06B	-3.39B	-588.00M

T.RAD Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 8350.00
• 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:7236, the sentiment is Neutral. The current price of 8350 is below the 20-day moving average (MA) of 8372.00, below the 50-day MA of 8457.40, and above the 200-day MA of 6011.84, indicating a neutral trend. The MACD of -94.10 indicates Positive momentum. The RSI at 41.72 is Neutral, neither overbought nor oversold. The STOCH value of 13.56 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7236.

T.RAD Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7280	77 Outperform	¥50.72B	4.38	―	0.99%	-0.83%	-27.20%
7236	72 Outperform	¥47.27B	6.62	―	3.60%	0.14%	882.91%
7284	71 Outperform	¥4.30B	7.07	―	4.08%	3.46%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
6584	59 Neutral	¥31.18B	12.06	―	3.33%	-3.91%	-36.53%
7212	54 Neutral	¥15.56B	-8.80	―	2.45%	-2.67%	33.63%

T.RAD Co., Ltd. Corporate Events

T.RAD Reports Progress on Share Buyback and Cancellation of Treasury Stock

T.RAD Co., Ltd. has disclosed the latest progress of its ongoing share buyback program authorized by its board in September 2025 under the Companies Act, reporting that it repurchased 29,500 common shares for a total of ¥253.2 million during December 2025. Cumulatively, by December 31, 2025 the company has acquired 168,300 shares for approximately ¥1.35 billion out of a maximum authorization of 350,000 shares or ¥2.0 billion via market purchases on the Tokyo Stock Exchange, and also canceled 692,411 treasury shares in November 2025, indicating an active capital policy aimed at enhancing shareholder value and optimizing its share structure.

The most recent analyst rating on (JP:7236) stock is a Buy with a Yen9273.00 price target. To see the full list of analyst forecasts on T.RAD Co., Ltd. stock, see the JP:7236 Stock Forecast page.

T.RAD Co., Ltd. Announces Treasury Stock Acquisition

T.RAD Co., Ltd. announced the acquisition of 65,700 shares of its common stock, amounting to a total cost of 574,542,000 yen, as part of a broader plan to repurchase up to 350,000 shares. This move is part of a strategic initiative to manage its capital structure and potentially enhance shareholder value, with the acquisition period extending until April 2026.

The most recent analyst rating on (JP:7236) stock is a Buy with a Yen10293.00 price target. To see the full list of analyst forecasts on T.RAD Co., Ltd. stock, see the JP:7236 Stock Forecast page.

T.RAD Co., Ltd. Corrects Notice on Board Member Passing

T.RAD Co., Ltd. announced a correction to a previously disclosed notice regarding the passing and retirement of an Outside Audit & Supervisory Board Member. The correction involves the date of passing, which was initially reported incorrectly. This update reflects the company’s commitment to transparency and accuracy in its communications with stakeholders.

The most recent analyst rating on (JP:7236) stock is a Buy with a Yen9758.00 price target. To see the full list of analyst forecasts on T.RAD Co., Ltd. stock, see the JP:7236 Stock Forecast page.

T.RAD Co., Ltd. Releases Q2 Financial Results Briefing Video

T.RAD Co., Ltd. has released a video of its financial results briefing for the second quarter of the fiscal year ending March 2026. This initiative is part of the company’s commitment to fair disclosure and aims to protect individual investors while enhancing corporate value through improved investor relations.

The most recent analyst rating on (JP:7236) stock is a Buy with a Yen8843.00 price target. To see the full list of analyst forecasts on T.RAD Co., Ltd. stock, see the JP:7236 Stock Forecast page.

T.RAD Co., Ltd. Corrects Treasury Share Cancellation Date

T.RAD Co., Ltd. announced a correction to its previously disclosed ‘Notice Regarding Cancellation of Treasury Shares’ due to an error in the cancellation date. The corrected cancellation date is now November 21, 2025, instead of the initially stated November 24, 2025. This correction ensures accurate communication with stakeholders and maintains the company’s transparency in its financial operations.

The most recent analyst rating on (JP:7236) stock is a Buy with a Yen8843.00 price target. To see the full list of analyst forecasts on T.RAD Co., Ltd. stock, see the JP:7236 Stock Forecast page.

T.RAD Co., Ltd. Reports Progress in Treasury Stock Acquisition

T.RAD Co., Ltd. announced the acquisition of 45,900 treasury shares at a cost of 319,440,000 yen during October 2025, as part of a broader initiative approved by the Board of Directors to repurchase up to 350,000 shares by April 2026. This move is part of the company’s strategy to enhance shareholder value and optimize capital structure, reflecting its commitment to maintaining a robust financial position.

The most recent analyst rating on (JP:7236) stock is a Buy with a Yen8843.00 price target. To see the full list of analyst forecasts on T.RAD Co., Ltd. stock, see the JP:7236 Stock Forecast page.

T.RAD Co., Ltd. Announces Cancellation of Treasury Shares

T.RAD Co., Ltd. announced its decision to cancel 692,411 treasury shares, which represents 10.50% of its total issued shares, as part of a strategic move to optimize its capital structure. This cancellation, set for November 24, 2025, will reduce the number of outstanding shares to 5,900,000, potentially enhancing shareholder value and signaling confidence in the company’s financial health.

The most recent analyst rating on (JP:7236) stock is a Buy with a Yen8843.00 price target. To see the full list of analyst forecasts on T.RAD Co., Ltd. stock, see the JP:7236 Stock Forecast page.

T.RAD Co., Ltd. Increases Dividend Forecast Amid Strong Earnings

T.RAD Co., Ltd. announced a revision of its interim and year-end dividend forecasts for the fiscal year ending March 31, 2026, increasing the dividend per share by 40 yen to 160 yen. This decision reflects the company’s improved earnings forecast and commitment to shareholder returns, resulting in a total annual dividend increase of 80 yen per share compared to the previous year.

The most recent analyst rating on (JP:7236) stock is a Buy with a Yen8843.00 price target. To see the full list of analyst forecasts on T.RAD Co., Ltd. stock, see the JP:7236 Stock Forecast page.

T.RAD Co., Ltd. Revises Earnings Forecasts Upward Amid Improved Performance

T.RAD Co., Ltd. has revised its full-year earnings forecasts for the fiscal year ending March 31, 2026, reflecting improved performance trends. The company anticipates higher consolidated net sales and profits due to better sales plans and operational efficiencies, particularly in the U.S. segment. However, it remains cautious of potential risks such as changes in U.S. customs policies and geopolitical uncertainties.

The most recent analyst rating on (JP:7236) stock is a Buy with a Yen8843.00 price target. To see the full list of analyst forecasts on T.RAD Co., Ltd. stock, see the JP:7236 Stock Forecast page.

T.RAD Co., Ltd. Reports Robust Financial Recovery and Increases Dividend Forecast

T.RAD Co., Ltd. reported a significant improvement in its financial performance for the first half of the fiscal year ending September 30, 2025, despite a slight decline in net sales. The company achieved a substantial increase in operating income and profit attributable to owners, reflecting a strong recovery from the previous year. The announcement also included an upward revision of dividend forecasts, indicating confidence in future earnings and a commitment to returning value to shareholders.

The most recent analyst rating on (JP:7236) stock is a Buy with a Yen8843.00 price target. To see the full list of analyst forecasts on T.RAD Co., Ltd. stock, see the JP:7236 Stock Forecast page.