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

• Market Cap: ¥84.19B
• Dividend Yield: 3.95%
• Average Volume (3M): 187.74K
• Price to Earnings (P/E): 7.6
• 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): 42.18
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: ¥1,042.00 ▲(10.50% 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.

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

Company Description

Futaba Industrial Co., Ltd. (7241) is a leading Japanese manufacturer specializing in the production of automotive components, particularly focusing on electronic parts such as sensors, displays, and control units. Established in the automotive sector, the company has expanded its operations to include various segments including industrial machinery and consumer electronics. Futaba's commitment to innovation and quality has positioned it as a key player in the supply chain for major automotive manufacturers both domestically and internationally.

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: 943.00
• 50DMA: Negative
• 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 Neutral. The current price of 943 is below the 20-day moving average (MA) of 961.80, below the 50-day MA of 955.26, and above the 200-day MA of 806.78, indicating a neutral trend. The MACD of -1.69 indicates Positive momentum. The RSI at 46.02 is Neutral, neither overbought nor oversold. The STOCH value of 27.24 is Neutral, 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	¥85.13B	7.55	―	4.78%	-6.49%	-16.68%
6463	80 Outperform	¥81.59B	9.50	―	6.21%	-1.71%	0.39%
7250	78 Outperform	¥185.07B	11.65	―	1.05%	3.62%	3.64%
7292	72 Outperform	¥77.45B	12.29	―	3.25%	4.49%	5.84%
7241	68 Neutral	¥84.19B	7.64	―	3.95%	-7.35%	43.31%
5988	66 Neutral	¥43.47B	48.01	―	5.42%	-3.80%	-66.97%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Futaba Industrial Co., Ltd. Corporate Events

Futaba Industrial Reports Q1 2025 Financial Results and Updates Forecast

Futaba Industrial Co., Ltd. reported its consolidated financial results for the three months ended June 30, 2025, showing a decrease in net sales by 12.1% year-on-year to ¥163,920 million. Despite the decline in sales, the company achieved a 16% increase in operating profit, reaching ¥4,191 million, and a 10.2% rise in profit attributable to owners of the parent, amounting to ¥2,614 million. The company has revised its financial results forecast for the fiscal year ending March 31, 2026, expecting a slight decrease in net sales but projecting a significant increase in profit attributable to owners of the parent by 85.2%.

Futaba Industrial Revises Financial Forecasts Amid U.S. Tariff Impact

Futaba Industrial Co., Ltd. has revised its consolidated financial results forecast for the fiscal year ending March 31, 2026, due to the impact of U.S. tariff measures. The company has adjusted its profit estimates downward, reflecting recent business performance trends and the results of the first quarter. This revision highlights the challenges posed by international trade policies on the company’s financial outlook.