AKEBONO BRAKE INDUSTRY CO (7238) AI Stock Analysis

• Market Cap: $31.48B
• Dividend Yield: N/A
• Average Volume (3M): 1.21M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.35
• Revenue Growth: -4.39%
• EPS Growth: -101.56%
• Country: JP
• Employees: 5,548
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): -2.44
• 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: 1.64
• Enterprise Value/Revenue: 0.32
• Enterprise Value/Gross Profit: 3.03
• Enterprise Value/Ebitda: 6.93
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: ¥110.00 ▼(-3.51% Downside)

The overall stock score of 46 reflects significant financial challenges, including negative profitability and cash flow issues. Technical analysis provides mixed signals, with the stock trading below key moving averages. Valuation concerns are heightened by a negative P/E ratio and lack of dividend yield, making the stock less attractive.

Positive Factors

Stable Revenue Stream

Long-term contracts with OEMs provide a stable revenue stream, ensuring consistent cash flow and reducing revenue volatility.

Product Innovation

Continuous investment in R&D enhances product offerings, maintaining competitiveness and supporting long-term growth in the automotive sector.

Market Position

Strong market position due to reputation for quality and innovation supports customer loyalty and competitive advantage.

Negative Factors

Negative Profitability

Negative profitability indicates challenges in cost management and pricing power, impacting long-term financial health.

Cash Flow Issues

Significant cash flow issues limit the company's ability to invest in growth opportunities and meet financial obligations.

Declining Revenue

Declining revenue suggests weakening demand or competitive pressures, which could hinder long-term business expansion.

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

AKEBONO BRAKE INDUSTRY CO shows mixed financial performance. While there is revenue growth and improved leverage, profitability and cash flow remain significant challenges. The company needs to focus on enhancing margins and cash flow generation to improve its financial health.

Income Statement

The company shows a modest revenue growth rate of 8.8% TTM, indicating some positive momentum. However, profitability is a concern, with a negative net profit margin and declining EBIT and EBITDA margins. The gross profit margin remains stable, but overall profitability needs improvement.

Balance Sheet

The debt-to-equity ratio has improved to 0.71 TTM, suggesting better leverage management. However, the return on equity is negative, reflecting poor profitability. The equity ratio is stable, indicating a balanced asset structure, but profitability remains a challenge.

Cash Flow

The company faces challenges with negative free cash flow and a low operating cash flow to net income ratio. Although there is some improvement in free cash flow growth, the overall cash flow position is weak, indicating liquidity concerns.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	159.22B	161.67B	166.30B	153.98B	135.50B	134.00B
Gross Profit	17.08B	16.21B	15.78B	13.60B	17.34B	12.67B
EBITDA	7.46B	14.17B	12.00B	9.98B	12.33B	-3.27B
Net Income	-1.36B	168.00M	3.45B	960.00M	4.15B	-11.91B
Balance Sheet
Total Assets	125.10B	128.33B	150.47B	141.30B	139.67B	132.63B
Cash, Cash Equivalents and Short-Term Investments	17.23B	18.30B	26.95B	25.50B	30.30B	29.59B
Total Debt	36.36B	35.13B	49.49B	49.93B	50.27B	49.09B
Total Liabilities	72.83B	72.38B	90.01B	91.01B	90.77B	89.98B
Stockholders Equity	45.96B	49.52B	52.40B	43.38B	42.59B	37.26B
Cash Flow
Free Cash Flow	1.32B	-4.43B	3.42B	-2.89B	458.00M	2.02B
Operating Cash Flow	5.97B	1.45B	7.62B	4.65B	5.47B	5.59B
Investing Cash Flow	-4.25B	5.97B	-3.52B	-6.43B	-2.24B	-2.74B
Financing Cash Flow	1.10B	-18.54B	-1.92B	-1.74B	-1.15B	-4.98B

AKEBONO BRAKE INDUSTRY CO Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 114.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 114 is above the 20-day moving average (MA) of 112.55, below the 50-day MA of 114.24, and above the 200-day MA of 108.74, indicating a bullish trend. The MACD of 0.13 indicates Negative momentum. The RSI at 56.69 is Neutral, neither overbought nor oversold. The STOCH value of 73.02 is Neutral, 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
7296	80 Outperform	¥181.83B	10.66	―	4.47%	2.01%	25.09%
7242	78 Outperform	€227.69B	7.90	12.15%	2.87%	3.95%	136.86%
7283	77 Outperform	¥142.03B	10.42	―	3.30%	0.29%	9.87%
7278	74 Outperform	¥203.41B	16.68	6.56%	5.39%	-2.26%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7220	61 Neutral	¥174.12B	19.04	―	1.93%	-3.23%	24.93%
7238	46 Neutral	$31.48B	-283.94	-12.12%	―	-4.39%	-101.56%

AKEBONO BRAKE INDUSTRY CO Corporate Events

AKEBONO BRAKE Reports Mixed Financial Results for H1 2025

AKEBONO BRAKE INDUSTRY CO., LTD. reported a decrease in net sales by 3% for the six months ending September 30, 2025, compared to the same period in the previous year. Despite this, the company saw a significant increase in operating profit by 166.1%, indicating improved operational efficiency. However, the company reported a loss attributable to owners of the parent, highlighting ongoing financial challenges. The equity-to-asset ratio slightly decreased, reflecting a marginally weaker financial position. The company has not announced any cash dividends, maintaining a cautious approach in its financial strategy.