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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)

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Outperform 74 (OpenAI - 5.2)
Rating:74Outperform
Price Target:
¥1,159.00
▲(10.70% Upside)
Action:Reiterated
Date:08/04/26
The score is driven primarily by improving financial quality (stronger FY2026 margins and sharply lower leverage) and very attractive valuation (low P/E and high dividend yield). Technicals are supportive with price above key moving averages and positive MACD, though elevated stochastic indicates the stock may be closer to overextended in the near term. The main risk tempering the score is the two-year revenue decline and historically uneven free cash flow.
Positive Factors
Lower leverage / stronger balance sheet
A sharply lower debt-to-equity (~0.16x) materially improves financial flexibility and reduces interest burden, giving management capacity to fund capex, support customers, or sustain dividends. Over the next 2–6 months this de-risking strengthens resilience to downturns and strategic optionality.
Negative Factors
Two-year revenue decline
Consecutive revenue declines over two years signal weakening top-line momentum and potential loss of platform-related shipments or market share. Persistent top-line contraction can pressure margins, constrain scale economics, and limit the durability of recent profit improvements unless revenue recovery resumes.
Read all positive and negative factors
Positive Factors
Negative Factors
Lower leverage / stronger balance sheet
A sharply lower debt-to-equity (~0.16x) materially improves financial flexibility and reduces interest burden, giving management capacity to fund capex, support customers, or sustain dividends. Over the next 2–6 months this de-risking strengthens resilience to downturns and strategic optionality.
Read all positive factors

Futaba Industrial Co., Ltd. (7241) vs. iShares MSCI Japan ETF (EWJ)

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

Company Description
Headquartered in Okazaki, Japan, Futaba Industrial Co., Ltd. was established in 1935 and operates both within Japan and across global markets. The company specializes in the production and distribution of a diverse array of items, including automo...
How the Company Makes Money
Futaba Industrial generates revenue primarily through the manufacture and sale of automotive components and related assemblies to vehicle manufacturers and other customers in the automotive supply chain. Its core revenue stream is sales of these p...

Futaba Industrial Co., Ltd. Financial Statement Overview

Summary
Financials are improving but mixed. FY2026 profitability strengthened meaningfully (higher gross and net margins with a sharp net income rebound) and leverage de-risked substantially (debt-to-equity down to ~0.16x). Offsetting this, revenue declined for two consecutive years (FY2025 and FY2026) and free cash flow has been volatile despite a FY2026 rebound.
Income Statement
64
Positive
Balance Sheet
74
Positive
Cash Flow
60
Neutral
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue689.61B677.92B707.10B795.80B708.07B572.12B
Gross Profit48.93B49.28B44.29B46.28B31.90B28.14B
EBITDA42.90B42.37B41.46B48.93B37.35B30.59B
Net Income15.89B16.03B6.21B12.83B10.58B3.31B
Balance Sheet
Total Assets335.60B334.33B313.91B334.78B319.77B309.49B
Cash, Cash Equivalents and Short-Term Investments24.55B21.38B13.72B25.03B10.34B6.73B
Total Debt51.16B53.65B56.79B62.02B81.67B98.14B
Total Liabilities189.13B188.48B190.75B203.88B220.02B219.47B
Stockholders Equity139.25B138.88B117.62B124.38B94.07B84.22B
Cash Flow
Free Cash Flow0.0011.46B52.00M42.45B23.56B846.00M
Operating Cash Flow0.0038.64B24.79B57.37B47.74B35.47B
Investing Cash Flow0.00-26.53B-23.19B-16.21B-22.31B-35.55B
Financing Cash Flow0.00-6.35B-10.36B-27.75B-22.01B-3.45B

Futaba Industrial Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1047.00
Price Trends
50DMA
981.52
Positive
100DMA
985.19
Positive
200DMA
998.77
Positive
Market Momentum
MACD
17.94
Negative
RSI
64.17
Neutral
STOCH
71.49
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 1047 is above the 20-day moving average (MA) of 1008.50, above the 50-day MA of 981.52, and above the 200-day MA of 998.77, indicating a bullish trend. The MACD of 17.94 indicates Negative momentum. The RSI at 64.17 is Neutral, neither overbought nor oversold. The STOCH value of 71.49 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 (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
¥650.92B10.2610.96%2.75%12.73%81.53%
77
Outperform
¥273.99B9.383.36%6.29%21.23%
74
Outperform
¥92.87B5.833.88%0.74%146.72%
68
Neutral
¥218.84B30.384.95%-3.95%-13.56%
64
Neutral
¥181.84B6.9712.23%2.87%9.86%120.23%
63
Neutral
¥400.25B18.854.95%3.70%7.17%12.68%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7241
Futaba Industrial Co., Ltd.
1,042.00
199.07
23.62%
JP:3116
Toyota Boshoku
2,198.50
7.72
0.35%
JP:7282
Toyoda Gosei Co
5,211.00
1,931.30
58.89%
JP:7242
KYB Corporation
4,500.00
1,181.23
35.59%
JP:6995
TOKAI RIKA CO., LTD.
3,065.00
634.06
26.08%
JP:7313
TS Tech Co., Ltd.
1,810.50
21.31
1.19%

Futaba Industrial Co., Ltd. Corporate Events

Futaba Industrial’s Q1 Sales Rise but Profit Margins Tighten Amid Revised Outlook
Jul 30, 2026
Futaba Industrial reported a 7.1% rise in net sales to ¥175.6 billion for the three months ended June 30, 2026, but operating profit fell 12.9% and profit attributable to owners of parent declined 5.4%, pushing basic earnings per share down t...
Futaba Industrial Introduces Long-Term Shareholder Benefits Program
Jul 30, 2026
Futaba Industrial Co., Ltd. has approved the introduction of a shareholder benefits program aimed at rewarding existing investors and making its stock more attractive to medium- and long-term holders. The initiative reflects a focus on strengtheni...
Futaba Industrial Completes Restricted Stock Treasury Share Disposal
Jul 17, 2026
Futaba Industrial Co., Ltd. has completed the payment procedures for the disposal of 22,448 treasury shares under its restricted stock compensation scheme. The shares, priced at ¥956 each for a total of ¥21,460,288, were allotted to thre...
Futaba Industrial to Grant Restricted Stock to Executives via Treasury Share Disposal
Jun 19, 2026
Futaba Industrial Co., Ltd. has approved the disposal of 22,448 treasury shares as restricted stock compensation for three internal directors and seven operating officers, at a price of ¥956 per share for a total of ¥21,460,288. The move...
Futaba Industrial Makes Minor Corrections to FY2026 Cash Flow Figures
Jun 17, 2026
Futaba Industrial Co., Ltd. has issued a correction to its consolidated financial results for the fiscal year ended March 31, 2026, revising figures in its consolidated balance sheet and consolidated statement of cash flows identified during prepa...
Futaba Details Deep but Independent Ties to Toyota Motor
May 27, 2026
Futaba Industrial has confirmed its status as an equity‑method affiliate of Toyota Motor Corporation, which holds 31.4% of its voting rights and has a representative serving as a director to offer management input. The company stresses that,...
Futaba boosts Indian unit’s capital to support auto parts expansion
May 20, 2026
Futaba Industrial Co., Ltd. has approved a substantial capital increase for its Indian subsidiary, Futaba Manufacturing Maharashtra Private Limited, raising its capital to about 4.5 billion yen. The move will make the unit a specified subsidiary, ...
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: Aug 04, 2026