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

• Market Cap: ¥64.13B
• Dividend Yield: 5.31%
• Average Volume (3M): 216.21K
• Price to Earnings (P/E): 10.3
• Beta (1Y): 1.27
• Revenue Growth: -11.15%
• EPS Growth: -51.63%
• Country: JP
• Employees: 10,690
• Sector: Consumer Cyclical
• Sector Strength: 66
• Industry: Auto - Parts
• EPS (TTM): 38.17
• Shares Outstanding: 89,580,826
• 10 Day Avg. Volume: 249,690
• 30 Day Avg. Volume: 216,213
• PEG Ratio: -0.41
• Price to Book (P/B): 0.60
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 61 Neutral
• Price Target: ¥780.00 ▲(8.94%Upside)

Futaba Industrial Co., Ltd. receives a moderate overall score of 61, mainly driven by its stable financial structure but hampered by declining revenue and profitability margins. The technical indicators suggest bearish sentiment, offset by a favorable valuation with a low P/E ratio and attractive dividend yield. Improvement in operational efficiency and cash generation could enhance future prospects.

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

Income Statement

Balance Sheet

Cash Flow

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
712.13B	795.80B	708.07B	572.12B	466.81B	476.17B
	Gross Profit
43.52B	47.54B	33.01B	29.11B	29.37B	33.75B
	EBIT
11.47B	19.21B	7.68B	6.12B	7.78B	10.62B
	EBITDA
34.14B	50.13B	37.35B	30.59B	31.55B	35.12B
	Net Income Common Stockholders
4.86B	12.83B	10.58B	3.31B	4.09B	6.36B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
18.09B	25.03B	10.34B	6.73B	9.53B	9.38B
	Total Assets
306.50B	334.78B	319.77B	309.49B	290.19B	253.52B
	Total Debt
54.55B	60.02B	80.86B	97.28B	86.14B	80.47B
	Net Debt
36.46B	34.99B	70.53B	90.54B	76.61B	71.10B
	Total Liabilities
179.65B	203.88B	220.02B	219.47B	202.98B	177.03B
	Stockholders Equity
120.88B	124.38B	94.07B	84.22B	77.64B	67.48B
Cash Flow		Free Cash Flow
0.00	41.65B	22.94B	846.00M	-1.86B	7.42B
	Operating Cash Flow
0.00	57.37B	47.74B	35.47B	22.79B	34.02B
	Investing Cash Flow
0.00	-16.21B	-22.31B	-35.55B	-24.67B	-26.44B
	Financing Cash Flow
0.00	-27.75B	-22.01B	-3.45B	1.75B	-5.57B

Futaba Industrial Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 716.00
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 716 is below the 20-day moving average (MA) of 738.65, below the 50-day MA of 747.80, and above the 200-day MA of 711.25, indicating a neutral trend. The MACD of -10.77 indicates Positive momentum. The RSI at 37.94 is Neutral, neither overbought nor oversold. The STOCH value of 4.94 is Positive, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5970	82 Outperform	¥73.61B	5.92		5.84%	-1.56%	-5.89%
7292	79 Outperform	¥68.79B	11.76		3.46%	4.40%	3.95%
7250	72 Outperform	¥79.24B	5.70		4.49%	-0.59%	-20.67%
6463	69 Neutral	¥62.31B	7.23		5.22%	-0.69%	8.49%
Sector *	63 Neutral	$6.96B	11.51	2.80%	3.85%	2.70%	-24.43%
7241	61 Neutral	¥64.13B	10.32		5.31%	-11.15%	-51.63%
5988	61 Neutral	¥59.97B	34.81		5.78%	-1.86%	-55.33%

Futaba Industrial Co., Ltd. Corporate Events

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.