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

• Market Cap: ¥93.05B
• Dividend Yield: 3.88%
• Average Volume (3M): 187.74K
• Price to Earnings (P/E): 8.4
• Beta (1Y): 1.24
• Revenue Growth: -7.35%
• EPS Growth: 43.31%
• Country: JP
• Employees: 10,690
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): N/A
• Shares Outstanding: 89,580,826
• 10 Day Avg. Volume: 171,230
• 30 Day Avg. Volume: 187,743
• PEG Ratio: -0.22
• Price to Book (P/B): 0.59
• Price to Sales (P/S): 0.10
• P/FCF Ratio: 1.34K
• 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: ¥1,105.00
• Price Target Upside: 5.54% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: ¥1,200.00 ▲(14.61% Upside)

The overall stock score of 68 reflects a balance of moderate financial performance and positive technical indicators, supported by a fair valuation. The company's stable leverage and asset base are offset by declining revenue and profitability margins. The stock's reasonable P/E ratio and attractive dividend yield enhance its investment appeal.

Positive Factors

Stable Leverage

A debt-to-equity of 0.46 denotes conservative leverage, preserving borrowing capacity and reducing refinancing pressure. This financial stability supports multi-quarter resilience in a cyclical auto-parts sector, enabling steady capex, supplier payments, and strategic investments.

Consistent EBITDA Growth

Sustained EBITDA growth implies underlying operational strength and improving core earnings before financing and taxes. That durability enhances ability to fund maintenance capex and dividends, and provides a cushion to absorb cyclicality in OEM demand over several quarters.

Attractive Dividend Yield

A near-4% dividend yield delivers recurring cash returns and signals disciplined capital allocation. For long-term holders, this steady income offsets revenue cyclicality, helps total returns, and indicates management willingness to return cash when free cash flow permits.

Negative Factors

Declining Revenue Trend

A roughly 7% revenue decline erodes scale economies and market positioning in the automotive supply chain. Persistent top-line contraction limits pricing power with OEMs, reduces margin recovery prospects, and constrains funds available for strategic investment or product development.

Very Low Net Margins

Net margin below 1% provides negligible buffers against cost inflation or demand shocks. Low profitability reduces retained earnings for reinvestment, weakens competitiveness on pricing, and makes long-term margin recovery dependent on substantial operational or product mix improvements.

Weak Free Cash Flow Conversion

A free cash flow to net income ratio near zero means reported earnings are not translating into usable cash. This impairs ability to reduce debt, sustain dividends, or fund capex internally, increasing reliance on operational restructuring or external financing for strategic needs.

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 manifolds; exhaust heat recovery and diesel exhaust gas post-treatment devices; body frame parts and instrument panel reinforcements; front suspension sub-frames, trailing arms, rear axle beams, and engine undercovers; and fuel inlet pipes and canisters. It also provides paper feeding units; precision parts for copiers, multifunction copiers, printers, and digital printers, etc.; and assembly and welding equipment for automobile manufacturers. The company was incorporated in 1935 and is headquartered in Okazaki, Japan.

How the Company Makes Money

Futaba Industrial Co., Ltd. generates revenue primarily through the sale of automotive electronic components, which are essential for modern vehicle functionality and safety. The company's revenue model is driven by contracts with major automotive OEMs (Original Equipment Manufacturers), where it supplies specialized parts that meet stringent industry standards. Key revenue streams include the mass production of sensors and displays for vehicles, which are increasingly demanded due to the rise of electric and autonomous vehicles. Additionally, Futaba benefits from partnerships with technology firms to develop advanced automotive technologies. The company also diversifies its income by providing aftermarket services and components for both the automotive and industrial sectors, contributing further to its overall earnings.

Futaba Industrial Co., Ltd. Financial Statement Overview

Summary

Futaba Industrial Co., Ltd. shows moderate financial health with stable leverage and asset base. However, declining revenue and profitability margins, along with weakened cash flow efficiency, present challenges. The company needs to improve operational efficiencies and cash flow generation.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	684.57B	707.10B	795.80B	708.07B	572.12B	466.81B
Gross Profit	46.47B	45.79B	47.54B	33.01B	29.11B	29.37B
EBITDA	35.40B	37.16B	50.13B	38.99B	31.56B	32.53B
Net Income	6.45B	6.21B	12.83B	10.58B	3.31B	4.09B
Balance Sheet
Total Assets	301.75B	313.91B	334.78B	319.77B	309.49B	290.19B
Cash, Cash Equivalents and Short-Term Investments	22.75B	13.72B	25.03B	10.34B	6.73B	9.53B
Total Debt	56.98B	53.91B	60.02B	80.86B	97.28B	86.14B
Total Liabilities	178.60B	190.75B	203.88B	220.02B	219.47B	202.98B
Stockholders Equity	117.54B	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: Neutral
• Last Price: 1047.00
• 50DMA: Negative
• 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:7241, the sentiment is Neutral. The current price of 1047 is below the 20-day moving average (MA) of 1075.00, above the 50-day MA of 1043.56, and above the 200-day MA of 893.08, indicating a neutral trend. The MACD of 1.32 indicates Positive momentum. The RSI at 42.81 is Neutral, neither overbought nor oversold. The STOCH value of 14.20 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	85 Outperform	¥84.18B	6.92	―	4.95%	-5.89%	8.95%
6463	80 Outperform	¥89.83B	8.54	―	3.85%	-4.47%	29.68%
7250	78 Outperform	¥182.35B	11.48	―	1.03%	3.62%	3.64%
7292	72 Outperform	¥74.03B	11.25	―	3.21%	4.44%	14.91%
7241	68 Neutral	¥93.05B	8.45	―	3.88%	-7.35%	43.31%
5988	66 Neutral	¥43.40B	51.35	―	5.35%	-6.20%	-64.65%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Futaba Industrial Co., Ltd. Corporate Events

Futaba Industrial Completes Treasury Share Repurchase

Futaba Industrial Co., Ltd. has completed the repurchase of 430,000 of its common shares, amounting to ¥417 million, as authorized by its board of directors. This strategic move, executed between November 4 and December 2, 2025, reflects the company’s efforts to optimize its capital structure and potentially enhance shareholder value.

The most recent analyst rating on (JP:7241) stock is a Hold with a Yen1042.00 price target. To see the full list of analyst forecasts on Futaba Industrial Co., Ltd. stock, see the JP:7241 Stock Forecast page.

Futaba Industrial Announces Treasury Share Repurchase

Futaba Industrial Co., Ltd. announced the repurchase of 390,000 of its common shares at a total cost of ¥376 million, as part of a board-authorized plan. This move is part of a broader strategy to manage its capital structure and potentially enhance shareholder value, reflecting the company’s proactive approach to financial management.

The most recent analyst rating on (JP:7241) stock is a Hold with a Yen1042.00 price target. To see the full list of analyst forecasts on Futaba Industrial Co., Ltd. stock, see the JP:7241 Stock Forecast page.

Futaba Industrial Unveils Treasury Share Disposal for Employee Incentive Plan

Futaba Industrial Co., Ltd. has announced a plan to dispose of treasury shares as part of a restricted stock incentive for its Employee Shareholding Association, commemorating its 80th anniversary. This initiative aims to support employee asset formation and align their interests with shareholders by providing them with restricted shares, enhancing employee benefits and fostering sustainable corporate value growth.

The most recent analyst rating on (JP:7241) stock is a Hold with a Yen1042.00 price target. To see the full list of analyst forecasts on Futaba Industrial Co., Ltd. stock, see the JP:7241 Stock Forecast page.

Futaba Industrial Announces Treasury Share Repurchase Plan

Futaba Industrial Co., Ltd. has announced a decision by its Board of Directors to repurchase up to 430,000 of its common shares, representing 0.48% of the total shares issued, excluding treasury shares. This strategic move is aimed at acquiring shares for restricted stock compensation and maintaining an agile capital policy to adapt to changing business environments without diluting share value.

The most recent analyst rating on (JP:7241) stock is a Hold with a Yen1042.00 price target. To see the full list of analyst forecasts on Futaba Industrial Co., Ltd. stock, see the JP:7241 Stock Forecast page.

Futaba Industrial Revises Financial Forecasts Amid Market Adjustments

Futaba Industrial Co., Ltd. has revised its consolidated financial forecasts for the fiscal year ending March 31, 2026. The company has adjusted its net sales forecast downward due to changes in the unit price of direct supply parts in North America, while profit forecasts have been revised upward based on favorable first-half results. This adjustment reflects the company’s response to market conditions and its strategic focus on maintaining profitability despite fluctuations in sales revenue.

The most recent analyst rating on (JP:7241) stock is a Hold with a Yen1042.00 price target. To see the full list of analyst forecasts on Futaba Industrial Co., Ltd. stock, see the JP:7241 Stock Forecast page.

Futaba Industrial Reports Strong Profit Growth Amid Sales Decline

Futaba Industrial Co., Ltd. reported a significant improvement in its financial performance for the six months ended September 30, 2025, with a notable increase in operating and ordinary profits compared to the previous year. Despite a decline in net sales, the company’s profit attributable to owners of the parent rose by over 300%, indicating a strong recovery and potential positive outlook for stakeholders.

The most recent analyst rating on (JP:7241) stock is a Hold with a Yen1042.00 price target. To see the full list of analyst forecasts on Futaba Industrial Co., Ltd. stock, see the JP:7241 Stock Forecast page.