AKEBONO BRAKE INDUSTRY CO (7238) AI Stock Analysis

• Market Cap: ¥39.63B
• Dividend Yield: N/A
• Average Volume (3M): 1.21M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.59
• Revenue Growth: -4.39%
• EPS Growth: -101.56%
• Country: JP
• Employees: 5,548
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 7.45
• Shares Outstanding: 273,755,220
• 10 Day Avg. Volume: 1,351,060
• 30 Day Avg. Volume: 1,211,140
• PEG Ratio: -1.10
• Price to Book (P/B): 0.36
• Price to Sales (P/S): 0.11
• P/FCF Ratio: -4.02
• 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: 52 Neutral
• Price Target: ¥154.00 ▲(27.27% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is held back primarily by weakened financial performance—recent net loss and negative/free-cash-flow volatility—despite a more manageable balance sheet. Strong technical momentum (price above key moving averages with positive MACD) provides meaningful support, but valuation is unfavorable due to loss-making earnings and no stated dividend yield.

Positive Factors

Revenue stability

Stable trailing revenue (~0.9% TTM) suggests resilient underlying demand from OEM contracts and aftermarket channels. For 2-6 months this supports predictable production volumes, steady utilization, and reduces immediate downside risk tied to abrupt demand collapses in vehicle cycles.

Manageable leverage

Moderate, improving debt-to-equity (~0.79) indicates solvency headroom and better balance-sheet flexibility versus prior years. This structural improvement lowers refinancing risk, preserves capacity for necessary capex to support platform programs, and supports long-term supplier and OEM relationships.

Positive operating cash flow

Consistent positive operating cash flow shows the core brake business converts sales into cash, supporting working-capital needs and recurrent operating costs. Over several months this underpins the firm's ability to fund operations and invest selectively despite headline free-cash-flow swings.

Negative Factors

Weak profitability

A return to a small net loss and very thin operating margins signals weakened earnings power. Persistently low profitability undermines internal funding for R&D, tooling and platform support, limits buffer against cost inflation, and constrains strategic investment over the medium term.

Negative free cash flow

Negative and sharply deteriorating free cash flow reduces financial flexibility, increasing dependence on external financing for capex and working capital. Over months this raises refinancing risk, limits dividend or buyback optionality, and can force trade-offs between maintenance capex and growth investments.

Earnings volatility and margin compression

Compressed margins and volatile earnings suggest limited pricing power and exposure to cost or volume swings. Structurally this weakens competitive resilience with OEMs, makes long-term margin recovery uncertain, and increases sensitivity to raw-material or labor cost fluctuations over the coming quarters.

AKEBONO BRAKE INDUSTRY CO Business Overview & Revenue Model

Company Description

Akebono Brake Industry Co., Ltd. researches, develops, manufactures, and sells brakes, and related components and parts Japan, North America, Europe, and other Asian countries. The company offers disc brake calipers, disc brake pads, disc rotors, drum brake linings, drum brake shoes, wheel cylinders, drum-in-hat brakes, brake drums, sensors, etc. for automobiles; and disc brake calipers, disc brake pads, master cylinders, and others for motorcycles. It also provides brakes for rolling stock, including disc brakes and brake linings for bullet trains, brake linings for regular trains, disc brakes for monorail, brake linings for rolling stock, brake shoes for railroad trains, etc. In addition, the company offers brakes for industrial machinery, such as drum brakes for forklifts, clutch facings for car air conditioner units, brake shoes for elevators, etc., as well as disc brakes for wind turbine generators and rough terrain cranes. Further, it provides sensor products comprising accelerometers, angular rate sensors, and sensor clusters; vehicle behavior detection and wireless portable vibration measurement devices; and inclinometers, concrete filing detectors, light emitting inclination sensors/pockets, and earthquake detectors for long-wave seismic motors. The company was formerly known as Akebono Sekimen Kogyo Co., Ltd. and changed its name to Akebono Brake Industry Co., Ltd. in 1960. Akebono Brake Industry Co., Ltd. was founded in 1929 and is headquartered in Tokyo, Japan.

How the Company Makes Money

AKEBONO BRAKE INDUSTRY CO generates revenue primarily through the sale of its brake systems and components to automotive manufacturers and aftermarket suppliers. The company has established long-term contracts with major automotive OEMs (Original Equipment Manufacturers), which provide a stable revenue stream. Additionally, AKEBONO benefits from the aftermarket segment by supplying brake parts to repair shops and retailers. The company also invests in research and development to innovate new braking technologies, enhancing its product offerings and maintaining competitiveness in the market. Strategic partnerships with automotive companies and participation in joint ventures further contribute to its earnings, allowing for expanded market reach and shared resources.

AKEBONO BRAKE INDUSTRY CO Financial Statement Overview

Summary

Financials are mixed: revenue is roughly flat (~0.9% TTM) but profitability weakened to a small net loss with very thin operating profitability. Leverage is moderate and improved (debt-to-equity ~0.79), yet returns are weak (negative ROE). Cash generation is a key risk with negative free cash flow and sharp FCF deterioration despite positive operating cash flow.

Income Statement

TTM (Trailing-Twelve-Months) results show revenue essentially flat versus the prior year (growth ~0.9%), but profitability weakened materially with a small net loss and very thin operating profitability. Margins have compressed from stronger levels in 2022–2024 (when the company delivered positive net profit and better operating leverage), indicating earnings volatility and limited pricing/efficiency cushion. The key strength is that revenue has held up, but the primary weakness is inconsistent earnings power and a recent slip back into losses.

Balance Sheet

Leverage looks moderate with debt below equity in TTM (debt-to-equity ~0.79), improving from higher leverage in 2021–2023. Equity remains sizable relative to the asset base, which supports balance-sheet stability. However, returns to shareholders are weak in TTM (negative return on equity), underscoring that the balance sheet is not currently translating into attractive profitability. Overall, solvency appears manageable, but earnings-driven balance-sheet strengthening is not yet consistent.

Cash Flow

Cash generation is a clear pressure point: TTM operating cash flow is positive, but free cash flow is negative, and free cash flow growth is sharply negative versus the prior period. While the company did produce positive free cash flow in 2022 and 2024, the pattern is inconsistent with notable swings year to year, suggesting elevated reinvestment needs and/or working-capital volatility. The main strength is continued positive operating cash flow, but the key weakness is the return to negative free cash flow and unstable cash conversion.

Breakdown	TTM	Mar 2025	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	160.73B	161.67B	166.30B	153.98B	135.50B	134.00B
Gross Profit	18.15B	16.21B	15.78B	13.60B	17.34B	12.67B
EBITDA	8.27B	14.17B	12.00B	9.98B	12.33B	-3.27B
Net Income	-550.00M	168.00M	3.45B	960.00M	4.15B	-11.91B
Balance Sheet
Total Assets	127.69B	128.33B	150.47B	141.30B	139.67B	132.63B
Cash, Cash Equivalents and Short-Term Investments	17.86B	18.30B	26.95B	25.50B	30.30B	29.59B
Total Debt	34.84B	35.13B	49.49B	49.93B	50.27B	49.09B
Total Liabilities	72.65B	72.38B	90.01B	91.01B	90.77B	89.98B
Stockholders Equity	48.33B	49.52B	52.40B	43.38B	42.59B	37.26B
Cash Flow
Free Cash Flow	-1.52B	-4.43B	3.42B	-2.89B	458.00M	2.02B
Operating Cash Flow	2.69B	1.45B	7.62B	4.65B	5.47B	5.59B
Investing Cash Flow	-2.10B	5.97B	-3.52B	-6.43B	-2.24B	-2.74B
Financing Cash Flow	-856.00M	-18.54B	-1.92B	-1.74B	-1.15B	-4.98B

AKEBONO BRAKE INDUSTRY CO Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 121.00
• 50DMA: Positive
• 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:7238, the sentiment is Positive. The current price of 121 is below the 20-day moving average (MA) of 140.10, below the 50-day MA of 126.98, and above the 200-day MA of 113.88, indicating a bullish trend. The MACD of 6.35 indicates Positive momentum. The RSI at 58.19 is Neutral, neither overbought nor oversold. The STOCH value of 18.85 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7238.

AKEBONO BRAKE INDUSTRY CO Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7259	77 Outperform	¥2.06T	12.58	8.34%	2.03%	4.33%	524.86%
7220	71 Outperform	¥202.90B	106.69	―	1.93%	-3.23%	24.93%
7278	69 Neutral	¥224.60B	16.66	6.56%	5.39%	-2.26%	―
6473	63 Neutral	¥675.98B	27.40	2.51%	3.18%	0.44%	-11.36%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7238	52 Neutral	¥39.63B	-72.13	-12.12%	―	-4.39%	-101.56%

AKEBONO BRAKE INDUSTRY CO Corporate Events

Akebono Brake Corrects Part of FY2025 Q3 Disclosure Without Changing Forecast

Akebono Brake Industry announced that it has corrected part of its previously released Consolidated Financial Results for the third quarter of FY2025, issued on February 12, 2026. The revisions relate solely to a net profit analysis table, adjusting figures for ordinary profit and loss and the “Other” line, while leaving the main consolidated results and earnings forecast unchanged, suggesting only limited impact on overall performance indicators for investors.

The company explained that the corrections were made after discovering errors in the original disclosure and clarified that there are no changes to the headline financial figures for the nine months ended December 31, 2025. By promptly addressing and specifying the corrections, Akebono aims to uphold disclosure accuracy and maintain transparency with shareholders and other market participants, indicating that the underlying business outlook remains as previously communicated.

The most recent analyst rating on (JP:7238) stock is a Hold with a Yen130.00 price target. To see the full list of analyst forecasts on AKEBONO BRAKE INDUSTRY CO stock, see the JP:7238 Stock Forecast page.

Akebono Brake Releases FY2025 Third-Quarter Consolidated Results and Forecast

Akebono Brake Industry has released its consolidated financial results for the third quarter of fiscal year 2025, covering the first nine months of activity in its major regional markets. The disclosure also includes a full-year FY2025 forecast, outlining expected performance across its global operations.

The company clarified that the fiscal periods differ by region, with North America, China, Thailand, and Indonesia measured from January to September 2025, and Japan and Europe from April to December 2025. This schedule alignment underscores the complexity of Akebono’s multinational reporting framework and provides stakeholders with a synchronized view of performance across its key markets.

The most recent analyst rating on (JP:7238) stock is a Hold with a Yen130.00 price target. To see the full list of analyst forecasts on AKEBONO BRAKE INDUSTRY CO stock, see the JP:7238 Stock Forecast page.

Akebono Brake Lifts Full-Year Forecast on FX Gains and Strong Japan, China Sales

Akebono Brake Industry reported non-operating income of 917 million yen in foreign exchange gains for the third quarter ended December 31, 2025, largely stemming from currency movements affecting short-term yen-denominated borrowings at its U.S. subsidiary. This turnaround from earlier foreign exchange losses improves overall ordinary profit and underscores the impact of exchange rate volatility on the group’s financing structure.

The company also raised its consolidated earnings forecast for the fiscal year ending March 31, 2026, now expecting higher net sales of 159.4 billion yen and a return to profit attributable to owners of the parent of 0.3 billion yen. Upward revisions are driven by stronger sales in Japan and China, better pass-through of higher input costs into prices, and rationalization measures, signaling improving operations and a more favorable earnings outlook for stakeholders despite continued regional disparities, particularly in North America and Europe.

The most recent analyst rating on (JP:7238) stock is a Hold with a Yen130.00 price target. To see the full list of analyst forecasts on AKEBONO BRAKE INDUSTRY CO stock, see the JP:7238 Stock Forecast page.

Akebono Brake Lifts Profits on Flat Sales, Keeps Dividend at Zero

Akebono Brake Industry reported nine-month net sales of ¥119.9 billion, down 0.8% year on year, but operating profit surged 160.9% to ¥4.4 billion and ordinary profit returned to positive territory, even as profit attributable to owners of parent fell 36.7% to ¥1.2 billion. The company’s equity ratio edged down to 37.8%, dividends on common shares remain at zero, and full-year guidance was revised to forecast lower sales but sharply higher operating profit, with modest positive net income, underscoring ongoing restructuring and efforts to strengthen profitability despite a flat revenue environment.

The most recent analyst rating on (JP:7238) stock is a Hold with a Yen130.00 price target. To see the full list of analyst forecasts on AKEBONO BRAKE INDUSTRY CO stock, see the JP:7238 Stock Forecast page.