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

• Market Cap: ¥48.38B
• Dividend Yield: 3.6%
• Average Volume (3M): 22.44K
• Price to Earnings (P/E): 4.3
• Beta (1Y): 1.39
• Revenue Growth: 0.14%
• EPS Growth: 882.91%
• Country: JP
• Employees: 4,365
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 472.96
• 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: 71 Outperform
• Price Target: ¥9,757.00 ▲(16.85% Upside)
• Action: Reiterated Date: 02/05/26
• Date: Action: Reiterated 02/05/26

The score is driven primarily by improved financial performance (strong margin and ROE recovery with reasonable leverage) and attractive valuation (low P/E with ~3% dividend yield). Technicals are supportive but tempered by overbought signals that raise near-term pullback risk.

Positive Factors

Margin & ROE recovery

Improved operating and net margins alongside a recovered ROE imply the company has restored core profitability and capital efficiency. That strengthens durable earnings power, supports reinvestment and shareholder distributions, and reduces reliance solely on volume growth for returns over the medium term.

Manageable leverage

Moderate debt-to-equity provides financial flexibility to fund capex and working capital through cycles without acute refinancing pressure. With sizable equity relative to assets, this capital structure supports investment in capacity and cushions downturns, improving resilience over the next several quarters.

Specialized thermal-management franchise

A focused product niche (radiators/heat exchangers) builds engineering know-how and long OEM qualification cycles, creating a competitive moat. Platform-level content and recurring production plus aftermarket potential lead to stable customer relationships and durable revenue streams across model cycles.

Negative Factors

Earnings cyclicality

The company’s history of multi-year volatility, including recent losses, shows profits can reverse rapidly. Given the OEM-driven demand profile, margin and earnings durability are exposed to industry cycles, making medium-term predictability and planning for investors and management more challenging.

Free cash flow volatility

Inconsistent FCF—only ~50% conversion of net income and prior negative FCF—limits the firm’s ability to self-fund capex, repay debt, or sustain payouts during stress. Execution risk from capex or working-capital swings means balance-sheet resilience is conditional on stable cash generation.

Thin gross margins and cost sensitivity

Relatively thin margins make operating profit highly sensitive to raw-material and commodity cost movements or OEM price pressure. This structural margin vulnerability can quickly compress earnings if input costs rise or pricing power weakens, limiting sustainable margin expansion.

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

Company Description

T.RAD Co., Ltd. manufactures and markets heat exchangers for automobiles, construction and industrial machines, air conditioners, distributed generators, and others in Japan and internationally. The company offers radiators, oil coolers, EGR coolers, charge air coolers, fin coils, and other heat exchangers for automobiles, motorcycles, off-highway machines, fuel cell systems, and heating and cooling equipment. It also engages in the research, development, manufacture, and marketing of environment-related equipment; and manufacture and marketing of parts for automobiles and other machines. The company was formerly known as Toyo Radiator Co., Ltd. and changed its name to T.RAD Co., Ltd. in April 2005. T.RAD Co., Ltd. was incorporated in 1936 and is headquartered in Tokyo, Japan.

How the Company Makes Money

T.RAD makes money mainly by manufacturing and selling automotive thermal-management products (e.g., radiators and other heat-exchanger related components) to customers in the automotive industry. Revenue is generated from (1) sales of these components to vehicle OEMs and/or automotive tiered suppliers, typically tied to vehicle production volumes and model adoption, and (2) ongoing supply of parts across a vehicle model’s production life (and potentially service/aftermarket channels where applicable). Earnings are influenced by production scale, customer and platform mix, pricing/contract terms, raw-material and manufacturing cost control, and the timing of new model launches that drive demand for newly designed or re-specified cooling/thermal systems. Specific breakdowns by segment, customer concentration, aftermarket contribution, or named strategic partnerships: null.

T.RAD Co., Ltd. Financial Statement Overview

Summary

Profitability has rebounded strongly (TTM net margin ~6.1%, operating margin ~8.1%) and ROE has recovered to ~16% with manageable leverage (debt-to-equity ~0.43). Offsetting this, results have been cyclical with losses and negative free cash flow in recent years, and current free cash flow conversion is only moderate (about half of net income).

Income Statement

Profitability has improved meaningfully into 2025 with TTM (Trailing-Twelve-Months) net margin at ~6.1% and operating margin at ~8.1%, up sharply from the very weak/negative profitability seen in 2023. Revenue growth is modest in TTM (low single digits), but the bigger positive is margin expansion and a return to solid earnings power. Key weakness is the multi-year volatility (losses in 2021 and 2023) and a still relatively thin gross margin for the sector, which can leave results sensitive to cost and pricing swings.

Balance Sheet

Leverage looks manageable with debt-to-equity around ~0.43 in TTM (Trailing-Twelve-Months), improving versus the higher levels seen in 2023–2024. Equity remains sizable versus total assets, and returns on equity have rebounded strongly to ~16% in TTM after being negative in 2023. The main watch-out is that the business has shown earnings cyclicality; if profitability softens again, returns and balance-sheet flexibility could deteriorate despite today’s reasonable leverage.

Cash Flow

Cash generation is positive, with TTM (Trailing-Twelve-Months) operating cash flow and free cash flow both solidly in the black; however, free cash flow has declined year over year in TTM, and cash conversion is only moderate (free cash flow is about half of net income in TTM). Historical volatility is also evident, including negative free cash flow in 2023, which raises execution risk if capex or working capital swings reappear.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	163.47B	159.24B	158.66B	149.41B	133.58B	113.05B
Gross Profit	23.22B	19.64B	14.90B	11.86B	15.10B	10.84B
EBITDA	18.96B	12.64B	10.98B	4.74B	11.98B	6.83B
Net Income	9.96B	4.25B	1.25B	-3.60B	3.60B	-1.24B
Balance Sheet
Total Assets	97.07B	97.49B	103.09B	94.10B	93.76B	86.80B
Cash, Cash Equivalents and Short-Term Investments	14.34B	16.93B	20.63B	10.71B	13.75B	14.89B
Total Debt	18.94B	21.51B	24.91B	22.45B	19.18B	18.89B
Total Liabilities	48.23B	48.74B	57.80B	50.24B	47.02B	43.58B
Stockholders Equity	48.78B	48.69B	44.89B	42.26B	44.50B	41.05B
Cash Flow
Free Cash Flow	6.21B	2.52B	9.76B	-2.47B	1.45B	1.65B
Operating Cash Flow	12.36B	7.56B	16.97B	4.38B	7.26B	7.47B
Investing Cash Flow	-6.12B	-6.47B	-7.08B	-6.70B	-5.84B	-5.84B
Financing Cash Flow	-8.31B	-6.95B	-616.00M	-1.06B	-3.39B	-588.00M

T.RAD Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8350.00
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 8350 is below the 20-day moving average (MA) of 9936.50, below the 50-day MA of 9815.20, and above the 200-day MA of 7489.86, indicating a neutral trend. The MACD of -339.82 indicates Positive momentum. The RSI at 36.11 is Neutral, neither overbought nor oversold. The STOCH value of 19.52 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
6592	84 Outperform	¥400.84B	6.79	8.36%	2.71%	0.75%	35.26%
7250	78 Outperform	¥182.95B	8.40	―	1.03%	3.62%	3.64%
7235	78 Outperform	¥13.35B	7.18	―	4.02%	2.31%	10.68%
7236	71 Outperform	¥48.38B	4.34	―	3.60%	0.14%	882.91%
6902	67 Neutral	$5.13T	10.20	6.98%	2.98%	2.41%	11.03%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
6584	47 Neutral	¥23.78B	-5.63	―	3.33%	-3.91%	-36.53%

T.RAD Co., Ltd. Corporate Events

T.RAD Discloses Financial Results and Governance Structure of Unlisted Parent JINYA CONNECT

T.RAD Co., Ltd. has disclosed the finalized financial results of its unlisted parent company, JINYA CONNECT Co., Ltd., for the fiscal year ended December 31, 2025, underscoring the close capital and business ties within the group. JINYA CONNECT develops, sells, and supports the DX solution “Jinya Connect” for the hospitality sector, holds capital stock of ¥100 million, and is fully owned by JINYA Co., Ltd., which is in turn wholly owned by T.RAD’s president, Tomio Miyazaki.

The notice highlights that T.RAD holds 38.48% of JINYA CONNECT’s voting rights and that T.RAD CONNECT pays software license fees to JINYA CONNECT, indicating a material intra-group business relationship. The disclosure also details JINYA CONNECT’s shareholder structure, entirely concentrated in JINYA Co., Ltd., and its governance lineup, including President & CEO Tomoko Miyazaki and Director & Owner Tomio Miyazaki, signaling tight managerial integration that could influence T.RAD’s strategic direction and digital transformation offerings to the hospitality industry.

The most recent analyst rating on (JP:7236) stock is a Buy with a Yen11947.00 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 wraps up authorized share repurchase ahead of schedule

The company reported the completion of its board-authorized treasury share buyback, acquiring 31,800 shares for ¥302.98 million between February 1 and 3, 2026, bringing cumulative repurchases under the program to 240,800 shares valued at roughly ¥1.999 billion before the April 27 deadline. Finishing the buyback signals T.RAD’s continued capital allocation focus after cancelling 692,411 treasury shares in November 2025, potentially tightening float and supporting shareholder value as the firm navigates Prime Market expectations.

The most recent analyst rating on (JP:7236) stock is a Hold with a Yen9018.00 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 Updates Progress on Share Buyback and Treasury Stock Cancellation

T.RAD Co., Ltd. reported the latest status of its ongoing share repurchase program authorized by the board on September 16, 2025, under which it is permitted to buy back up to 350,000 shares for a maximum of 2 billion yen via market purchases on the Tokyo Stock Exchange through April 27, 2026. During the period from January 1 to January 31, 2026, the company acquired 40,700 shares of its common stock at a total cost of 343.8 million yen, bringing cumulative repurchases under the authorization to 209,000 shares for approximately 1.70 billion yen as of January 31, 2026, following the cancellation of 692,411 treasury shares in November 2025; the transactions underscore T.RAD’s continued emphasis on capital efficiency and shareholder-focused financial management through active use of treasury stock.

The most recent analyst rating on (JP:7236) stock is a Hold with a Yen9018.00 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 Lifts Full-Year Earnings Outlook on Strong Asia Sales and U.S. Turnaround

T.RAD Co., Ltd. has revised upward its full-year consolidated earnings forecast for the fiscal year ending March 31, 2026, citing stronger-than-expected performance at its Asian subsidiaries and improvements in its U.S. operations. Consolidated net sales are now projected to reach ¥160 billion, up 3.9% from the previous forecast, with operating income and profit attributable to owners of the parent raised by 23.9% and 35.9%, respectively, compared with the earlier outlook and more than double the prior year’s earnings per share. The company attributes the profit upgrade primarily to efficiency gains from transferring U.S. production to other sites and the successful pass-through of tariff-related costs to customers, alongside higher sales in Asia. On a non-consolidated basis, T.RAD expects slightly lower sales due to weaker orders, but it has raised its profit forecasts on the back of reduced depreciation and research expenses and higher dividend income and capital gains from selling investment securities, underscoring improved profitability and financial flexibility despite modest top-line pressure in the standalone business.

The most recent analyst rating on (JP:7236) stock is a Hold with a Yen9018.00 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 Details Q3 FY2026 Performance, Customs Duty Impact and Expansion Plans

T.RAD Co., Ltd. has released supplementary materials for its third-quarter fiscal 2026 results briefing, outlining performance to date and the company’s outlook for the full year. The release highlights the impact of customs duties on its operations and the progress of countermeasures, an updated forecast and analysis of consolidated profitability, and its environmental awareness and growth strategies. It also details investment plans to expand manufacturing bases and reiterates performance targets under the T.RAD-2025 medium-term plan, signaling continued focus on capacity expansion, cost management, and long-term growth, with implications for operational efficiency and the company’s competitive position in its markets.

The most recent analyst rating on (JP:7236) stock is a Hold with a Yen9018.00 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 Earnings Surge as Profit Outlook and Dividends Raised for FY2026

T.RAD reported a strong rebound in results for the nine months to December 31, 2025, with net sales up 3.7% year on year to ¥118.1 billion and operating income surging 168.2% to ¥8.3 billion. Ordinary income rose 124.0% to ¥9.2 billion, while profit attributable to owners of parent jumped nearly fivefold to ¥6.9 billion, driving earnings per share to ¥1,142.91 and lifting the equity ratio slightly to 50.3%. Reflecting this improved profitability, the company has maintained its planned sharp dividend increase for the current fiscal year to a forecast annual total of ¥320 per share, up from ¥240 in the prior year. T.RAD also revised its full‑year consolidated outlook, now projecting modestly higher full‑year sales of ¥160.0 billion but a much steeper rise in profits, with operating income expected to climb 49.0% and net income to more than double, underscoring a significant earnings recovery that could bolster shareholder returns and reinforce its competitive position in the sector.

The most recent analyst rating on (JP:7236) stock is a Hold with a Yen9018.00 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 Positions Electrification and Global Expansion as Growth Drivers Toward 2030

T.RAD has outlined its strategic stance and investor-focused messages, emphasizing that automotive electrification is a business opportunity rather than a threat, as batteries, motors, and inverters in electrified vehicles increase the number of heat-exchanger applications per vehicle and support volume growth. While acknowledging a medium- to long-term decline in internal combustion engine vehicles, the company expects continued demand for hybrids and plug-in hybrids and sees overall heat-exchanger demand as stable, with growth driven by electrification-related products, expanded orders from Japanese passenger-vehicle customers, and the rollout of multifunction radiators and a second production base in North America to help achieve its fiscal 2030 net sales target of ¥200 billion, all while maintaining a company-wide marginal profit ratio above 20% and stable profit margins.

The most recent analyst rating on (JP:7236) stock is a Hold with a Yen9018.00 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 Names Provisional Audit & Supervisory Board Member After Governance Vacancy

T.RAD Co., Ltd. has appointed attorney and certified public accountant Hisashi Fujii as a provisional Audit & Supervisory Board Member, effective January 5, 2026, by decision of the Tokyo District Court. The move was triggered by a vacancy in the number of outside Audit & Supervisory Board Members required under Japanese law following the death of outside member Yasutaka Oba, and ensures that T.RAD maintains compliance with statutory corporate governance requirements. Fujii, who has experience at Ernst & Young ShinNihon and currently works at Link Partners Law Firm, will serve in this provisional role until the company’s annual general meeting in June 2026, where T.RAD plans to formally propose him as an Outside Audit & Supervisory Board Member, signaling continuity and stability in its oversight framework for shareholders and other stakeholders.

The most recent analyst rating on (JP:7236) stock is a Hold with a Yen9018.00 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 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.