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Futaba Industrial Co., Ltd. (JP:7241)
:7241
Japanese Market
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Futaba Industrial Co., Ltd. (7241) AI Stock Analysis

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JP:7241

Futaba Industrial Co., Ltd.

(7241)

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Outperform 71 (OpenAI - 5.2)
Rating:71Outperform
Price Target:
¥1,094.00
▲(4.49% Upside)
Action:UpgradedDate:04/29/26
The score is driven primarily by improving financial quality (stronger FY2026 profitability and sharply lower leverage) and very favorable valuation (low P/E and high dividend yield). These positives are tempered by weak technical momentum and fundamental risk from two years of revenue contraction and historically uneven free cash flow.
Positive Factors
De-levered Balance Sheet
A materially lower debt-to-equity (~0.16x in FY2026) meaningfully reduces financial risk and interest burden, increasing flexibility to fund capex, absorb OEM demand swings, and support dividends or buybacks. This durable improvement strengthens solvency across cycles.
Negative Factors
Two-Year Revenue Contraction
Two consecutive years of top-line decline signal weakening demand or lost content per vehicle, which erodes scale economics in a parts business tied to OEM programs. Persistent revenue shrinkage can pressure utilization, margins and supplier competitiveness over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
De-levered Balance Sheet
A materially lower debt-to-equity (~0.16x in FY2026) meaningfully reduces financial risk and interest burden, increasing flexibility to fund capex, absorb OEM demand swings, and support dividends or buybacks. This durable improvement strengthens solvency across cycles.
Read all positive factors

Futaba Industrial Co., Ltd. (7241) vs. iShares MSCI Japan ETF (EWJ)

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

Company Description
Futaba Industrial Co., Ltd. manufactures and sells automobile parts, office equipment parts, equipment for external sales, and agricultural equipment in Japan and internationally. The company offers automobile parts, such as exhaust systems and ma...
How the Company Makes Money
Futaba Industrial generates revenue primarily by manufacturing and selling automotive-related components to customers (typically vehicle manufacturers and/or their supply chains) under supply agreements tied to vehicle production programs. Its ear...

Futaba Industrial Co., Ltd. Financial Statement Overview

Summary
Financials are improving overall: profitability and margins rebounded strongly in FY2026 and leverage is now low (~0.16x debt-to-equity). Offsetting this, revenue has declined for two consecutive years (FY2025 and FY2026) and free cash flow has been historically volatile, which raises durability risk.
Income Statement
64
Positive
Balance Sheet
74
Positive
Cash Flow
60
Neutral
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue684.57B677.92B707.10B795.80B708.07B572.12B
Gross Profit46.47B49.28B44.29B46.28B31.90B28.14B
EBITDA40.21B42.37B41.46B48.93B37.35B30.59B
Net Income6.45B16.03B6.21B12.83B10.58B3.31B
Balance Sheet
Total Assets301.75B334.33B313.91B334.78B319.77B309.49B
Cash, Cash Equivalents and Short-Term Investments22.75B21.38B13.72B25.03B10.34B6.73B
Total Debt56.98B53.65B56.79B62.02B81.67B98.14B
Total Liabilities178.60B188.48B190.75B203.88B220.02B219.47B
Stockholders Equity117.54B138.88B117.62B124.38B94.07B84.22B
Cash Flow
Free Cash Flow0.0011.46B52.00M42.45B23.56B846.00M
Operating Cash Flow0.0038.64B24.79B57.37B47.74B35.47B
Investing Cash Flow0.00-26.53B-23.19B-16.21B-22.31B-35.55B
Financing Cash Flow0.00-6.35B-10.36B-27.75B-22.01B-3.45B

Futaba Industrial Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1047.00
Price Trends
50DMA
1032.31
Negative
100DMA
1026.09
Negative
200DMA
952.36
Positive
Market Momentum
MACD
-8.04
Negative
RSI
45.27
Neutral
STOCH
21.71
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7241, the sentiment is Negative. The current price of 1047 is above the 20-day moving average (MA) of 983.79, above the 50-day MA of 1032.31, and above the 200-day MA of 952.36, indicating a neutral trend. The MACD of -8.04 indicates Negative momentum. The RSI at 45.27 is Neutral, neither overbought nor oversold. The STOCH value of 21.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7241.

Futaba Industrial 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
¥245.08B8.293.36%4.89%52.78%
78
Outperform
¥222.91B6.4313.11%2.87%7.46%144.90%
74
Outperform
¥531.09B6.748.58%2.62%8.21%72.79%
71
Outperform
¥87.14B4.183.88%-4.13%158.47%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
61
Neutral
¥394.26B-20.093.70%3.42%4.24%39.02%
58
Neutral
¥202.53B16.014.77%-4.64%-39.59%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7241
Futaba Industrial Co., Ltd.
973.00
216.47
28.61%
JP:3116
Toyota Boshoku
2,207.00
234.23
11.87%
JP:7282
Toyoda Gosei Co
4,538.00
1,863.70
69.69%
JP:7242
KYB Corporation
4,435.00
1,589.92
55.88%
JP:6995
TOKAI RIKA CO., LTD.
2,840.00
831.24
41.38%
JP:7313
TS Tech Co., Ltd.
1,701.00
161.29
10.48%

Futaba Industrial Co., Ltd. Corporate Events

Futaba Industrial Posts Strong Profit Rebound and Lifts Dividend Despite Lower Sales
Apr 27, 2026
Futaba Industrial reported fiscal 2026 consolidated net sales of ¥677.9 billion, down 4.1% year on year, but delivered a strong profit recovery, with operating profit up 23.3% to ¥18.7 billion and profit attributable to owners of parent ...
Futaba Industrial Lifts Year-End Dividend, Deepens Focus on Shareholder Returns
Apr 27, 2026
Futaba Industrial Co., Ltd., a Japanese automotive-related components manufacturer listed on the Tokyo and Nagoya exchanges, positions shareholder returns as a central management priority. The company applies a progressive dividend policy, targeti...
Futaba Industrial Beats Full-Year Forecast on Strong Japan Operations and FX Gains
Apr 27, 2026
Futaba Industrial reported that its full-year results for the fiscal year ended March 31, 2026, exceeded its earlier consolidated forecast, driven by higher net sales and stronger operating performance, especially in its Japan segment. Operating p...
Futaba Industrial Halves Treasury Share Disposal for Employee Stock Incentive
Mar 2, 2026
Futaba Industrial has completed payment procedures for a disposal of treasury shares under its restricted stock incentive plan for the Futaba Employee Shareholding Association. The plan, originally approved in October 2025, is intended to grant re...
Futaba Industrial Divests Loss-Making Chinese Subsidiary to Refocus on Growth Areas
Feb 27, 2026
Futaba Industrial Co., Ltd. has decided to transfer all equity in its wholly owned Chinese subsidiary, Tianjin Shuang Shye Mechanical Industrial Co., Ltd., to Hong Kong-based Souzousha Company Limited. Tianjin Shuang Shye, established in 2002 to m...
Futaba Industrial to Appoint New President in Management Reshuffle
Feb 27, 2026
Futaba Industrial Co., Ltd. has announced planned changes to its top management, appointing operating officer Toshiyuki Hisatsune as representative director and president and promoting Toshio Yokota to representative director and vice president, w...
Futaba Industrial Slashes Capital at Chinese Auto-Parts Subsidiary to Boost Efficiency
Feb 2, 2026
Futaba Industrial will reduce the capital of its wholly owned Chinese subsidiary, Dongguan Futaba Metal Products Co., Ltd., which manufactures and sells automotive and other vehicle parts in Dongguan, Guangdong, from USD 23.29 million to a planned...
Futaba Industrial Raises Full-Year Sales Forecast on Better Business and FX Assumptions
Feb 2, 2026
Futaba Industrial Co., Ltd. has revised its consolidated full-year forecast for the fiscal year ending March 31, 2026, raising projected net sales from ¥650.0 billion to ¥666.0 billion, while leaving operating profit, ordinary profit, an...
Futaba Industrial Injects Capital into Chinese Unit Ahead of Liquidation
Feb 2, 2026
Futaba Industrial will inject USD 20.5 million (about ¥3.1 billion) into its Chinese subsidiary Tianjin Shuang Shye Mechanical Industrial, raising the unit’s capital to USD 27 million and making it a specified subsidiary as its capital ...
Futaba Industrial Lifts Profit Outlook Despite Lower Sales, Boosts Dividend Payout
Feb 2, 2026
Futaba Industrial reported consolidated net sales of ¥502.5 billion for the nine months ended 31 December 2025, down 4.6% year on year, but sharply improved profitability with operating profit up 36.9% to ¥13.6 billion and profit attribu...
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: Apr 29, 2026