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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)

Rating:70Outperform
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. (7241) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionFutaba 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 MoneyFutaba 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
62
Positive
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
68
Positive
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
55
Neutral
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.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue707.10B795.80B708.07B572.12B466.81B
Gross Profit45.79B47.54B33.01B29.11B29.37B
EBITDA37.16B50.13B38.99B31.56B32.53B
Net Income6.21B12.83B10.58B3.31B4.09B
Balance Sheet
Total Assets313.91B334.78B319.77B309.49B290.19B
Cash, Cash Equivalents and Short-Term Investments13.72B25.03B10.34B6.73B9.53B
Total Debt53.91B60.02B80.86B97.28B86.14B
Total Liabilities190.75B203.88B220.02B219.47B202.98B
Stockholders Equity117.62B124.38B94.07B84.22B77.64B
Cash Flow
Free Cash Flow52.00M41.65B22.94B846.00M-1.86B
Operating Cash Flow24.79B57.37B47.74B35.47B22.79B
Investing Cash Flow-23.19B-16.21B-22.31B-35.55B-24.67B
Financing Cash Flow-10.36B-27.75B-22.01B-3.45B1.75B

Futaba Industrial Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price834.00
Price Trends
50DMA
754.94
Positive
100DMA
759.90
Positive
200DMA
722.86
Positive
Market Momentum
MACD
10.24
Positive
RSI
53.59
Neutral
STOCH
58.42
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

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
¥79.33B6.38
4.60%-1.56%-5.87%
77
Outperform
¥72.78B12.44
3.29%4.40%3.95%
75
Outperform
¥87.36B6.28
3.61%-0.59%-20.66%
73
Outperform
¥69.11B8.02
4.73%-0.69%8.45%
70
Outperform
¥74.69B12.02
2.40%-11.15%-51.63%
67
Neutral
¥267.20B13.406.45%2.59%5.22%-11.90%
63
Neutral
¥58.33B33.86
5.16%-1.86%-55.23%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7241
Futaba Industrial Co., Ltd.
834.00
76.99
10.17%
JP:5970
G-Tekt Corporation
1,850.00
143.14
8.39%
JP:5988
PIOLAX, Inc.
1,783.00
-529.57
-22.90%
JP:6463
TPR Co., Ltd.
2,114.00
-203.50
-8.78%
JP:7250
Pacific Industrial Co., Ltd.
1,442.00
69.02
5.03%
JP:7292
Murakami Corporation
6,390.00
1,775.70
38.48%

Futaba Industrial Co., Ltd. Corporate Events

Futaba Industrial Completes Treasury Shares Disposal for Stock Compensation
Jul 18, 2025

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
Jun 20, 2025

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
May 29, 2025

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
May 14, 2025

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
Apr 24, 2025

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
Apr 24, 2025

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.

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: Jun 27, 2025