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KYB Corporation
(7242)
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Rating:71Outperform
Price Target:
¥5,022.00
▲(11.35% Upside)
Action:Upgraded
Date:08/10/26
The score is driven mainly by solid technical momentum and an attractive valuation (low P/E and good dividend yield). These positives are tempered by the biggest risk factor: inconsistent cash-flow quality and recently thin free cash flow, alongside slightly higher leverage in TTM.
Positive Factors
Diversified End-Markets
KYB’s revenue base spans OEM and aftermarket automotive shock absorbers plus hydraulic equipment for construction and industrial customers. This multi-segment exposure provides durable demand diversification across vehicle parc, OEM cycles, and industrial capex, reducing single-market dependence.
Negative Factors
Weak Cash Conversion
Thin and volatile free cash flow versus profits signals inconsistent cash conversion, likely from working-capital swings or investment timing. Over months this limits capacity to fund capex, pay down debt, or return cash to shareholders without raising external financing.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified End-Markets
KYB’s revenue base spans OEM and aftermarket automotive shock absorbers plus hydraulic equipment for construction and industrial customers. This multi-segment exposure provides durable demand diversification across vehicle parc, OEM cycles, and industrial capex, reducing single-market dependence.
Read all positive factors
KYB Corporation (7242) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥182.45B
Dividend Yield3.43%
Average Volume (3M)141.50K
Price to Earnings (P/E)7.7
Beta (1Y)0.97
Revenue Growth11.33%
EPS Growth23.30%
CountryJP
Employees13,418
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)588.71
Shares Outstanding40,598,797
10 Day Avg. Volume193,280
30 Day Avg. Volume141,503
Financial Highlights & Ratios
PEG Ratio0.05
Price to Book (P/B)0.74
Price to Sales (P/S)0.38
P/FCF Ratio-65.68
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)595.3
Revenue Forecast (FY)¥500.00B
KYB Corporation Business Overview & Revenue Model
Company Description
Headquartered in Tokyo, Japan, KYB Corporation is a long-standing global manufacturer, established in 1919. Formerly known as Kayaba Industry Co., Ltd. until its name change in October 2015, the company excels in producing a diverse array of autom...
How the Company Makes Money
KYB makes money primarily by manufacturing and selling (1) automotive suspension products and (2) hydraulic equipment and related components/systems.
1) Automotive-related revenue: KYB generates revenue from supplying shock absorbers and other su...
KYB Corporation Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
64
Positive
Cash Flow
41
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 493.75B | 481.53B | 438.32B | 442.78B | 431.20B | 388.36B |
| Gross Profit | 102.46B | 97.94B | 82.64B | 81.28B | 85.25B | 78.76B |
| EBITDA | 51.32B | 56.58B | 42.93B | 42.49B | 52.03B | 49.47B |
| Net Income | 25.20B | 29.04B | 14.90B | 15.82B | 27.21B | 22.55B |
Balance Sheet | ||||||
| Total Assets | 504.90B | 493.73B | 463.11B | 476.53B | 446.84B | 434.19B |
| Cash, Cash Equivalents and Short-Term Investments | 54.80B | 50.18B | 47.43B | 46.64B | 43.59B | 52.12B |
| Total Debt | 138.81B | 114.03B | 104.30B | 101.14B | 114.32B | 117.83B |
| Total Liabilities | 262.35B | 233.82B | 228.09B | 250.12B | 255.80B | 273.27B |
| Stockholders Equity | 233.14B | 249.78B | 225.54B | 217.19B | 182.83B | 153.41B |
Cash Flow | ||||||
| Free Cash Flow | 5.48B | -2.81B | 26.80B | 15.25B | 12.29B | 14.95B |
| Operating Cash Flow | 25.95B | 19.51B | 43.85B | 39.86B | 23.91B | 24.25B |
| Investing Cash Flow | -13.62B | -6.62B | -34.13B | -23.50B | -13.52B | -10.87B |
| Financing Cash Flow | -13.40B | -12.32B | -9.10B | -15.03B | -20.18B | -32.71B |
KYB Corporation Technical Analysis
Positive
4510.00
Price Trends
4147.80
Positive
4239.55
Positive
4338.68
Positive
Market Momentum
112.77
Negative
62.97
Neutral
59.56
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7242, the sentiment is Positive. The current price of 4510 is above the 20-day moving average (MA) of 4422.50, above the 50-day MA of 4147.80, and above the 200-day MA of 4338.68, indicating a bullish trend. The MACD of 112.77 indicates Negative momentum. The RSI at 62.97 is Neutral, neither overbought nor oversold. The STOCH value of 59.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7242.
KYB Corporation Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | ¥606.45B | 9.73 | 10.96% | 2.75% | 12.73% | 81.53% | |
78 Outperform | ¥730.48B | 21.64 | ― | 2.60% | 3.12% | -15.85% | |
71 Outperform | ¥182.45B | 7.75 | 12.23% | 2.87% | 11.33% | 23.30% | |
63 Neutral | ¥1.61T | 9.88 | 8.25% | 2.92% | 5.69% | 27.94% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | ¥675.50B | 35.35 | 1.57% | 2.96% | 4.64% | 106.98% | |
49 Neutral | ¥228.19B | 168.85 | ― | 1.93% | 3.50% | -77.77% |
* Consumer Cyclical Sector Average
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KYB Corporation Corporate Events
KYB Posts Mixed Quarterly Results and Confirms Stock Split Plan
Aug 6, 2026
KYB Corporation reported consolidated results for the three months ended June 30, 2026, showing year-on-year growth in net sales and segment profit but a decline in profit attributable to owners of the parent and earnings per share. The company...
KYB Completes Treasury Share Allotment Under Executive Stock Compensation Plan
Jul 31, 2026
KYB Corporation has completed the disposal and allotment of 3,720 treasury shares to nine executive officers under its performance-linked restricted stock compensation plan. The shares, priced at 4,140 yen each for a total value of 15,400,800 yen,...
KYB Grants Treasury Shares to Executive Officers Under Performance-Linked Stock Plan
Jul 9, 2026
KYB Corporation will dispose of 3,720 treasury shares as performance-linked stock compensation to nine executive officers who do not concurrently serve as directors, valuing the shares at ¥4,140 each for a total of ¥15.4 million. The gra...
KYB Completes Allocation of Treasury Shares for Director Stock Compensation
Jul 3, 2026
KYB Corporation has completed the allocation of 11,116 treasury shares as restricted stock compensation to three internal directors under its Post-Delivery Performance-Linked Stock Compensation Plan. The shares, priced for valuation purposes at &#...
KYB Cancels Nearly 20% of Common Shares and Retires All Preferred Stock
Jun 29, 2026
KYB Corporation has completed a major cancellation of its own shares, eliminating 9,869,864 common shares, which represented 19.56% of its outstanding common stock before the move. Following the cancellation, the company now has 40,598,798 common ...
KYB to Grant Performance-Linked Restricted Shares to Directors
Jun 25, 2026
KYB Corporation has approved the disposal of 11,116 treasury shares as restricted stock compensation for three internal directors under its Performance Share Unit Plan. The shares, valued at ¥3,830 each based on the prior trading day’s ...
KYB Grants Restricted Treasury Shares to Directors Under Performance Share Plan
Jun 24, 2026
KYB Corporation will dispose of 11,116 treasury shares as restricted stock compensation to three internal directors under its Performance Share Unit plan, at a disposal price of ¥3,830 per share, for a total value of about ¥42.6 million....
KYB Tweaks 2027 Sales Forecast in Minor Earnings Revision
Jun 23, 2026
KYB Corporation has revised its previously disclosed consolidated financial results for the fiscal year ended March 31, 2026, to correct forecast figures for the year ending March 31, 2027. The adjustment is minor, lowering projected full-year net...
KYB Raises Year-End Dividend, Signals Stronger Shareholder Returns
May 13, 2026
KYB Corporation’s board has approved a higher year-end dividend from surplus for the fiscal year ended March 31, 2026, raising the common share payout to ¥81 per share versus the earlier forecast of ¥75 and last year’s ¥...
KYB Posts Strong FY2026 Earnings but Warns of Profit Slump Ahead
May 13, 2026
KYB Corporation reported strong consolidated results for the fiscal year ended March 31, 2026, with net sales, operating profit, profit before taxes and profit attributable to owners of the parent all posting double-digit year-on-year gains. Profi...
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.