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

• Market Cap: ¥74.69B
• Dividend Yield: 2.4%
• Average Volume (3M): 319.66K
• Price to Earnings (P/E): 12.0
• Beta (1Y): 1.31
• Revenue Growth: -11.15%
• EPS Growth: -51.63%
• Country: JP
• Employees: 10,690
• Sector: Consumer Cyclical
• Sector Strength: 71
• Industry: Auto - Parts
• EPS (TTM): 38.17
• Shares Outstanding: 89,580,826
• 10 Day Avg. Volume: 177,340
• 30 Day Avg. Volume: 319,659
• PEG Ratio: 0.41
• Price to Book (P/B): 0.61
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥790.00
• Price Target Upside: -5.28% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 70 Outperform
• Price Target: ¥892.00 ▲(6.95%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. is a Japanese company that operates primarily in the automotive industry. It specializes in the manufacturing and sale of automotive components, including exhaust systems, press parts, plastic parts, and molds. The company's products are essential for vehicle manufacturing and are supplied to major automotive manufacturers around the world.

How the Company Makes Money

Futaba Industrial Co., Ltd. generates revenue through the production and sale of automotive components. Its main revenue streams include the sale of exhaust systems, press parts, and plastic components to automotive manufacturers. The company collaborates with global automotive brands, which ensures a steady demand for its products. Additionally, it invests in research and development to innovate and improve its product offerings, thereby maintaining its competitiveness in the industry.

Futaba Industrial Co., Ltd. Financial Statement Overview

Summary

Futaba Industrial Co., Ltd. has a stable leverage and asset base but faces challenges with declining revenue and profitability margins. The low free cash flow generation raises concerns about future liquidity, despite consistent EBITDA growth. Improvement in operational efficiencies and cash flow generation is needed.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	707.10B	795.80B	708.07B	572.12B	466.81B
Gross Profit	45.79B	47.54B	33.01B	29.11B	29.37B
EBITDA	37.16B	50.13B	38.99B	31.56B	32.53B
Net Income	6.21B	12.83B	10.58B	3.31B	4.09B
Balance Sheet
Total Assets	313.91B	334.78B	319.77B	309.49B	290.19B
Cash, Cash Equivalents and Short-Term Investments	13.72B	25.03B	10.34B	6.73B	9.53B
Total Debt	53.91B	60.02B	80.86B	97.28B	86.14B
Total Liabilities	190.75B	203.88B	220.02B	219.47B	202.98B
Stockholders Equity	117.62B	124.38B	94.07B	84.22B	77.64B
Cash Flow
Free Cash Flow	52.00M	41.65B	22.94B	846.00M	-1.86B
Operating Cash Flow	24.79B	57.37B	47.74B	35.47B	22.79B
Investing Cash Flow	-23.19B	-16.21B	-22.31B	-35.55B	-24.67B
Financing Cash Flow	-10.36B	-27.75B	-22.01B	-3.45B	1.75B

Futaba Industrial Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 834.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 834 is above the 20-day moving average (MA) of 785.70, above the 50-day MA of 754.94, and above the 200-day MA of 722.86, indicating a neutral trend. The MACD of 10.24 indicates Positive momentum. The RSI at 53.59 is Neutral, neither overbought nor oversold. The STOCH value of 58.42 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	¥79.33B	6.38		4.60%	-1.56%	-5.87%
7292	77 Outperform	¥72.78B	12.44		3.29%	4.40%	3.95%
7250	75 Outperform	¥87.36B	6.28		3.61%	-0.59%	-20.66%
6463	73 Outperform	¥69.11B	8.02		4.73%	-0.69%	8.45%
7241	70 Outperform	¥74.69B	12.02		2.40%	-11.15%	-51.63%
Sector *	67 Neutral	¥267.20B	13.40	6.45%	2.59%	5.22%	-11.90%
5988	63 Neutral	¥58.33B	33.86		5.16%	-1.86%	-55.23%

Futaba Industrial Co., Ltd. Corporate Events

Futaba Industrial Completes Treasury Shares Disposal for Stock Compensation

Futaba Industrial Co., Ltd. has completed the payment procedures for the disposal of 32,452 treasury shares as restricted stock compensation, following a resolution by its Board of Directors. This move involves a total disposal amount of ¥23,170,728, with shares allocated to company directors and officers, potentially impacting the company’s stock management and executive compensation strategy.

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.