Futaba Industrial Co., Ltd. (7241) AI Stock Analysis

• Market Cap: ¥71.20B
• Dividend Yield: 0.75%
• Average Volume (3M): 330.32K
• Price to Earnings (P/E): 11.5
• Beta (1Y): 1.30
• Revenue Growth: -11.15%
• EPS Growth: -51.63%
• Country: JP
• Employees: 10,690
• Sector: Consumer Cyclical
• Sector Strength: 56
• Industry: Auto - Parts
• EPS (TTM): 38.17
• Shares Outstanding: 89,580,826
• 10 Day Avg. Volume: 525,090
• 30 Day Avg. Volume: 330,323
• PEG Ratio: 0.02
• Price to Book (P/B): 0.40
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 1.66
• 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

• Rating: 70 Outperform
• Price Target: ¥892.00 ▲(12.20%Upside)

The overall stock score of 70 reflects strong technical indicators suggesting positive momentum, which is tempered by moderate financial performance and fair valuation metrics. The absence of earnings call data and corporate events limits insight into forward-looking statements, emphasizing the need for operational and cash flow improvements.

Futaba Industrial Co., Ltd. Business Overview & Revenue Model

Company Description

Futaba Industrial Co., Ltd. (7241) is a Japanese company primarily engaged in the manufacturing and sale of automotive parts. The company specializes in producing exhaust system components, press and plastic products, and molds. With a strong focus on the automotive sector, Futaba Industrial is recognized for its innovation and high-quality products that serve various automotive manufacturers worldwide.

How the Company Makes Money

Futaba Industrial Co., Ltd. generates revenue primarily through the sale of automotive parts and components. The company's key revenue streams include exhaust system components, such as mufflers and catalytic converters, as well as pressed and plastic products used in vehicle assembly. Futaba collaborates closely with major automotive manufacturers, establishing long-term supply contracts that ensure a steady flow of income. Additionally, the company's investment in research and development allows it to offer innovative solutions that meet the evolving needs of the automotive industry, further bolstering its market position and financial performance.

Futaba Industrial Co., Ltd. Financial Statement Overview

Summary

Futaba Industrial Co., Ltd. displays moderate financial health with stable leverage and a solid equity base. However, declining revenue and profitability margins, along with weakened cash flow efficiency, pose challenges. The company must improve operational efficiencies and cash flow generation to bolster its financial position.

Income Statement

Futaba Industrial Co., Ltd. has shown inconsistency in revenue with a recent decline from the previous year. The gross profit margin for the latest year is modest at 6.47%, and net profit margin is relatively low at 0.88%. EBIT and EBITDA margins have also decreased, indicating pressure on operational efficiency. However, the company has managed consistent EBITDA growth over the years.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 0.46, suggesting a stable leverage position. The equity ratio is 37.47%, showing a solid equity base relative to total assets. Return on equity has decreased to 5.28%, indicating challenges in generating returns on shareholder investments. The balance sheet displays reasonable stability, though there is room for improvement in profitability.

Cash Flow

There is a substantial decline in free cash flow from the previous year, highlighting potential issues with cash generation. The operating cash flow to net income ratio is 3.99, suggesting strong cash generation from operations relative to net income. However, the free cash flow to net income ratio is low at 0.01, indicating minimal free cash flow generation relative to net income.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	712.13B	707.10B	795.80B	708.07B	572.12B	466.81B
Gross Profit	43.52B	45.79B	47.54B	33.01B	29.11B	29.37B
EBITDA	34.14B	37.16B	50.13B	37.35B	30.59B	31.55B
Net Income	4.86B	6.21B	12.83B	10.58B	3.31B	4.09B
Balance Sheet
Total Assets	306.50B	313.91B	334.78B	319.77B	309.49B	290.19B
Cash, Cash Equivalents and Short-Term Investments	18.09B	13.72B	25.03B	10.34B	6.73B	9.53B
Total Debt	54.55B	53.91B	60.02B	80.86B	97.28B	86.14B
Total Liabilities	179.65B	190.75B	203.88B	220.02B	219.47B	202.98B
Stockholders Equity	120.88B	117.62B	124.38B	94.07B	84.22B	77.64B
Cash Flow
Free Cash Flow	0.00	52.00M	41.65B	22.94B	846.00M	-1.86B
Operating Cash Flow	0.00	24.79B	57.37B	47.74B	35.47B	22.79B
Investing Cash Flow	0.00	-23.19B	-16.21B	-22.31B	-35.55B	-24.67B
Financing Cash Flow	0.00	-10.36B	-27.75B	-22.01B	-3.45B	1.75B

Futaba Industrial Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 795.00
• 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:7241, the sentiment is Positive. The current price of 795 is above the 20-day moving average (MA) of 742.40, above the 50-day MA of 753.84, and above the 200-day MA of 716.04, indicating a bullish trend. The MACD of 15.13 indicates Negative momentum. The RSI at 65.28 is Neutral, neither overbought nor oversold. The STOCH value of 75.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7241.

Futaba Industrial Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5970	82 Outperform	¥75.24B	6.05		5.70%	-1.56%	-5.87%
7292	79 Outperform	¥70.84B	12.11		3.86%	4.40%	3.95%
7250	75 Outperform	¥81.42B	5.85		3.88%	-0.59%	-20.66%
7241	70 Outperform	¥71.20B	11.46		0.75%	-11.15%	-51.63%
6463	69 Neutral	¥64.14B	7.44		5.04%	-0.69%	8.45%
Sector *	66 Neutral	£1.85B	11.29	6.20%	3.10%	0.61%	-17.57%
5988	63 Neutral	¥57.71B	33.50		6.00%	-1.86%	-55.23%

Futaba Industrial Co., Ltd. Corporate Events

Futaba Industrial Announces Treasury Share Disposal for Stock Compensation

Futaba Industrial Co., Ltd. has announced the disposal of 32,452 treasury shares as part of a restricted stock compensation system. This initiative aims to align the interests of directors and officers with shareholders by offering medium- to long-term incentives. The disposal is valued at ¥23,170,728 and involves directors and operating officers, excluding outside directors, to enhance motivation and shared value with stakeholders.

Futaba Industrial’s Strategic Affiliation with Toyota

Futaba Industrial Co., Ltd. announced its close affiliation with Toyota Motor Corporation, which holds a 31.4% stake in the company. Despite this significant ownership, Futaba maintains operational independence, negotiating its own sales with Toyota and its group companies. The company’s financial performance is closely tied to Toyota’s sales trends, highlighting both the benefits and risks of this relationship.

Futaba Industrial Unveils 2025-2027 Medium-term Growth Plan

Futaba Industrial Co., Ltd. has announced a new Medium-term Management Plan for 2025-2027, aiming to enhance corporate value and foster growth through investment. The plan focuses on expanding existing businesses, commercializing new ventures, and strengthening the company’s business foundation, with financial targets including a return on equity of 10% or higher and an operating profit margin of 5.0% by 2027.

Futaba Industrial Reports Decline in Financial Results, Increases Dividends

Futaba Industrial Co., Ltd. reported a decline in its consolidated financial results for the fiscal year ended March 31, 2025, with net sales and profits showing a year-on-year decrease. Despite the downturn, the company announced an increase in annual dividends, reflecting a commitment to shareholder returns. The financial forecast for the next fiscal year anticipates a slight recovery in operating and ordinary profits, indicating a cautious optimism for improved performance.

Futaba Industrial Adopts Progressive Dividend Policy and Announces 80th Anniversary Dividend

Futaba Industrial Co., Ltd. has announced a change in its dividend policy to adopt a progressive dividend system with a minimum shareholder equity dividend ratio of 3.5%, effective from the fiscal year ending March 2025. This change aims to enhance shareholder returns and is accompanied by a commemorative dividend for the company’s 80th anniversary, reflecting its commitment to rewarding long-standing shareholder support.