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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)

Rating:76Outperform
Price Target:
¥5,367.00
▼(-19.78% Downside)
The overall stock score reflects strong financial performance with improving profitability and undervaluation. The bullish technical indicators support a positive outlook, though caution is advised due to overbought signals. The absence of significant earnings call highlights or corporate events leaves the analysis focused on core financial and technical aspects.

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

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

Company DescriptionT.RAD Co., Ltd. (7236) is a Japanese company primarily engaged in the manufacture and sale of heat exchangers and related components. The company operates in the automotive and industrial machinery sectors, providing products such as radiators, oil coolers, and EGR coolers, which are essential for temperature regulation in engines and machinery. T.RAD also produces heat exchangers for motorcycles, construction equipment, and agricultural machinery, catering to various industries globally.
How the Company Makes MoneyT.RAD Co., Ltd. generates revenue through the sale of its heat exchanger products to automotive and industrial machinery manufacturers. The company earns money by supplying radiators, oil coolers, and other thermal management components to leading automobile manufacturers and industrial equipment producers. Key revenue streams include long-term contracts with major automotive companies and the aftermarket sales of replacement parts. Additionally, T.RAD benefits from its global production and distribution network, which enables it to efficiently meet the demand of international clients. Strategic partnerships with key players in the automotive industry further enhance T.RAD's market presence and contribute to its earnings.

T.RAD Co., Ltd. Financial Statement Overview

Summary
T.RAD Co., Ltd. exhibits solid financial health with steady revenue growth, improved profit margins, and a stable balance sheet. However, high capital expenditures could impact future liquidity despite strong cash management.
Income Statement
80
Positive
T.RAD Co., Ltd. has shown a steady revenue growth with a notable increase from ¥133.58 billion in 2022 to ¥159.24 billion in 2025. The gross profit margin improved to 12.34% in 2025, indicating better cost management and efficiency. The net profit margin improved to 2.67% in 2025 from negative margins in previous years, showing a recovery in profitability. EBIT and EBITDA margins also improved, reflecting operational efficiencies and better earnings quality.
Balance Sheet
75
Positive
The company maintains a healthy balance sheet with a declining debt-to-equity ratio from 2022 to 2025, indicating reduced leverage risk. The equity ratio is stable, suggesting a balanced capital structure. Return on equity improved to 8.73% in 2025, reflecting improved profitability and efficient equity utilization. However, total assets slightly decreased, indicating potential limitations in asset growth.
Cash Flow
70
Positive
Free cash flow growth is positive, with an improvement from negative free cash flow in 2023 to ¥2.52 billion in 2025, indicating better cash management. The operating cash flow to net income ratio is strong, suggesting efficient cash earnings. However, the investing cash flow remains consistently negative, indicating significant capital expenditures, which could impact future liquidity.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue159.24B158.66B149.41B133.58B113.05B
Gross Profit19.64B14.90B11.86B15.10B10.84B
EBITDA12.64B10.98B7.40B11.98B6.83B
Net Income4.25B1.25B-3.60B3.60B-1.24B
Balance Sheet
Total Assets97.49B103.09B94.10B93.76B86.80B
Cash, Cash Equivalents and Short-Term Investments16.93B20.63B10.71B13.75B14.89B
Total Debt21.51B24.91B22.45B19.18B18.89B
Total Liabilities48.74B57.80B50.25B47.02B43.58B
Stockholders Equity48.69B44.89B42.26B44.50B41.05B
Cash Flow
Free Cash Flow2.52B9.76B-2.47B1.45B1.65B
Operating Cash Flow7.56B16.97B4.38B7.26B7.47B
Investing Cash Flow-6.47B-7.08B-6.70B-5.84B-5.84B
Financing Cash Flow-6.95B-616.00M-1.06B-3.39B-588.00M

T.RAD Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price6690.00
Price Trends
50DMA
4799.80
Positive
100DMA
4330.21
Positive
200DMA
3874.99
Positive
Market Momentum
MACD
435.63
Negative
RSI
87.60
Negative
STOCH
94.13
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 6690 is above the 20-day moving average (MA) of 5116.75, above the 50-day MA of 4799.80, and above the 200-day MA of 3874.99, indicating a bullish trend. The MACD of 435.63 indicates Negative momentum. The RSI at 87.60 is Negative, neither overbought nor oversold. The STOCH value of 94.13 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 (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
¥40.80B3.42
1.11%-1.12%-24.58%
76
Outperform
¥35.49B7.16
3.60%1.00%413.42%
66
Neutral
¥27.57B65.05
3.67%0.72%-92.17%
66
Neutral
¥4.23B7.36
4.10%4.93%
61
Neutral
$17.24B11.48-5.97%3.08%1.37%-15.54%
58
Neutral
¥14.26B
2.61%-2.19%-601.89%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7236
T.RAD Co., Ltd.
6,760.00
3,447.34
104.07%
JP:6584
Sanoh Industrial Co., Ltd.
763.00
-48.81
-6.01%
JP:7212
F-Tech Inc.
767.00
231.57
43.25%
JP:7280
Mitsuba Corporation
900.00
-107.45
-10.67%
JP:7284
Meiwa Industry Co., Ltd.
1,210.00
215.37
21.65%

T.RAD Co., Ltd. Corporate Events

T.RAD Co., Ltd. Revises Earnings Forecasts Upward Amid Improved Market Conditions
Aug 4, 2025

T.RAD Co., Ltd. has revised its full-year earnings forecasts upward for the fiscal year ending March 31, 2026, due to improved performance trends and clarified U.S. tariff policies. The company now anticipates higher net sales and profits, reflecting a more favorable business environment and successful negotiations to pass on customs duties to customers. Despite ongoing uncertainties in global trade and exchange rates, T.RAD remains committed to timely and accurate financial disclosures.

T.RAD Co., Ltd. Reports Strong Q1 Performance but Lowers Full-Year Forecast
Aug 4, 2025

T.RAD Co., Ltd. reported a significant increase in its financial performance for the first quarter of the fiscal year ending March 31, 2026, with a notable rise in profit attributable to owners of the parent, which surged by 410.8% year-on-year. Despite this strong quarterly performance, the company has revised its full-year forecast downwards, anticipating a decrease in net sales and operating income compared to the previous year, indicating potential challenges ahead in maintaining its growth momentum.

T.RAD Co., Ltd. Reports Progress on Treasury Stock Acquisition
Aug 1, 2025

T.RAD Co., Ltd. announced the acquisition of 94,700 shares of its treasury stock, amounting to a total cost of 448,755,000 yen, during the period from July 1 to July 31, 2025. This move is part of a broader strategy approved by the Board of Directors to repurchase up to 500,000 shares, aiming to enhance shareholder value and optimize capital structure.

T.RAD Co., Ltd. Announces Treasury Stock Disposal for Compensation Plan
Jul 14, 2025

T.RAD Co., Ltd. has announced the disposal of 10,848 shares of treasury stock as part of a restricted stock compensation plan aimed at incentivizing directors and officers to drive sustainable growth and align their interests with shareholders. This move reflects the company’s commitment to enhancing corporate governance and maintaining credibility, potentially strengthening its market position and stakeholder confidence.

T.RAD Co., Ltd. Announces Treasury Stock Acquisition
Jul 1, 2025

T.RAD Co., Ltd. announced the acquisition of 52,400 shares of its treasury stock, amounting to 242,068,000 yen, as part of a larger plan approved by the Board of Directors to repurchase up to 500,000 shares by May 2026. This move is likely aimed at enhancing shareholder value and optimizing the company’s capital structure.

T.RAD Co., Ltd. Completes Treasury Share Acquisition to Enhance Capital Efficiency
Jun 25, 2025

T.RAD Co., Ltd. has completed the acquisition of 65,000 treasury shares, valued at 288,275,000 yen, through the Tokyo Stock Exchange’s off-auction repurchase trading system. This move is part of the company’s strategy to enhance capital efficiency and support the Employee Stock Benefit Trust, aiming to boost employee motivation and improve stock performance.

T.RAD Co., Ltd. Announces Treasury Share Acquisition
Jun 24, 2025

T.RAD Co., Ltd. announced its decision to acquire up to 78,000 of its own shares through the Tokyo Stock Exchange’s off-auction trading system, ToSTNeT-3. This move, resolved at a Board of Directors meeting, is part of the company’s strategy to manage its capital structure and potentially enhance shareholder value. The acquisition is set at a maximum price of 345,930,000 yen, and the results will be disclosed on June 25, 2025. This repurchase is separate from a previous resolution and reflects the company’s ongoing efforts to optimize its financial operations.

T.RAD Co., Ltd. Affirms Independence Amidst Shareholder Relations
Jun 20, 2025

T.RAD Co., Ltd. has announced its relationship with its controlling shareholder, Jinya Connect Co., Ltd., which holds a 34.8% direct ownership stake. Despite this significant stake, T.RAD maintains its operational independence, as there are no restrictions imposed by Jinya Connect or its affiliates. The transactions between T.RAD and Jinya Connect, primarily involving software license fees, are conducted on an economically reasonable basis, ensuring that T.RAD’s business activities remain unaffected.

T.RAD Co., Ltd. Announces Treasury Stock Acquisition
Jun 2, 2025

T.RAD Co., Ltd. has announced the acquisition of 110,100 shares of its own common stock, amounting to a total acquisition cost of 521,302,500 yen. This move is part of a broader strategy authorized by the Board of Directors to repurchase up to 500,000 shares, with a maximum purchase price of 2,000,000,000 yen, aimed at enhancing shareholder value and optimizing capital structure.

T.RAD Co., Ltd. Revises Financial Results Briefing Materials
May 28, 2025

T.RAD Co., Ltd. has announced amendments to its previously disclosed financial results briefing materials due to errors in fiscal year labeling. These revisions impact the fiscal year labeling on several pages of the briefing, including performance targets and sales forecasts, highlighting the company’s attention to detail and commitment to accurate financial reporting.

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: May 27, 2025