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KYB Corporation (JP:7242)
:7242

KYB Corporation (7242) AI Stock Analysis

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JP:7242

KYB Corporation

(7242)

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Outperform 78 (OpenAI - 5.2)
Rating:78Outperform
Price Target:
¥5,022.00
▲(11.35% Upside)
Action:ReiteratedDate:02/18/26
The score is driven primarily by solid financial performance (improved margins and a stronger balance sheet) and strong technical uptrend signals, supported by attractive valuation (low P/E and moderate yield). Offsetting factors are choppy multi-year growth and weaker recent free-cash-flow conversion.
Positive Factors
Improved profitability margins
TTM operating margin (~7.7%) and net margin (~5.9%) reflect durable improvements in pricing power and operational control. Higher margins increase the company’s ability to fund capex, R&D and dividends, and provide earnings resilience through industry cycles.
Negative Factors
Uneven multi-year revenue growth
Historical volatility in revenue and earnings indicates material cyclicality in end markets. Uneven growth complicates capacity planning, weakens forward visibility for margins and investment returns, and raises execution risk during downturns.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved profitability margins
TTM operating margin (~7.7%) and net margin (~5.9%) reflect durable improvements in pricing power and operational control. Higher margins increase the company’s ability to fund capex, R&D and dividends, and provide earnings resilience through industry cycles.
Read all positive factors

KYB Corporation (7242) vs. iShares MSCI Japan ETF (EWJ)

KYB Corporation Business Overview & Revenue Model

Company Description
KYB Corporation manufactures and sells automotive and hydraulic components, and other products worldwide. It offers automotive products, including shock absorbers, hydraulic power steering vane pumps, steering gearbox, motors, dual pinion systems,...
How the Company Makes Money
KYB makes money primarily by manufacturing and selling components and systems that use its hydraulic and damping technologies. A major revenue stream comes from mobility-related products: selling shock absorbers and related suspension components t...

KYB Corporation Financial Statement Overview

Summary
Financials are healthy overall: profitability has improved in TTM (operating margin ~7.7%, net margin ~5.9%), leverage is moderate and improved (debt-to-equity ~0.45), and operating/free cash flow are positive. The key risks are uneven multi-year revenue/earnings and weaker recent free-cash-flow conversion (FCF down ~13% TTM and ~52% of net income).
Income Statement
74
Positive
Balance Sheet
78
Positive
Cash Flow
63
Positive
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue469.48B438.32B442.78B431.20B388.36B328.04B
Gross Profit93.90B82.64B81.28B85.25B78.76B60.31B
EBITDA46.80B39.11B39.89B50.35B48.23B46.45B
Net Income30.34B14.90B15.82B27.21B22.55B17.09B
Balance Sheet
Total Assets498.47B463.11B476.53B446.84B434.19B426.63B
Cash, Cash Equivalents and Short-Term Investments50.45B47.43B46.64B43.59B52.12B68.70B
Total Debt109.36B104.30B101.14B114.32B117.83B154.01B
Total Liabilities247.69B228.09B250.12B255.80B273.27B309.91B
Stockholders Equity241.13B225.54B217.19B182.83B153.41B110.68B
Cash Flow
Free Cash Flow20.55B26.80B15.25B12.29B14.95B9.58B
Operating Cash Flow42.92B43.85B39.86B23.91B24.25B20.83B
Investing Cash Flow-28.06B-34.13B-23.50B-13.52B-10.87B-6.28B
Financing Cash Flow-8.24B-9.10B-15.03B-20.18B-32.71B1.15B

KYB Corporation Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4510.00
Price Trends
50DMA
4561.66
Positive
100DMA
4505.92
Positive
200DMA
4009.89
Positive
Market Momentum
MACD
-20.53
Negative
RSI
59.29
Neutral
STOCH
78.12
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 4316.25, below the 50-day MA of 4561.66, and above the 200-day MA of 4009.89, indicating a bullish trend. The MACD of -20.53 indicates Negative momentum. The RSI at 59.29 is Neutral, neither overbought nor oversold. The STOCH value of 78.12 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
¥231.96B6.4313.11%2.87%3.95%136.86%
75
Outperform
¥499.02B7.768.58%2.62%1.44%-0.92%
74
Outperform
¥520.01B11.332.60%1.06%-5.99%
68
Neutral
¥207.16B-8.321.93%-3.23%24.93%
63
Neutral
¥561.86B15.033.35%3.18%0.44%-11.36%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
54
Neutral
¥1.69T14.238.34%2.03%4.33%524.86%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7242
KYB Corporation
4,615.00
1,962.88
74.01%
JP:7259
Aisin Seiki Co
2,248.50
854.62
61.31%
JP:6473
JTEKT
1,765.00
853.48
93.63%
JP:7282
Toyoda Gosei Co
4,264.00
1,949.09
84.20%
JP:5991
NHK Spring Co., Ltd.
2,567.00
1,180.95
85.20%
JP:7220
Musashi Seimitsu Industry Co., Ltd.
3,160.00
1,076.28
51.65%

KYB Corporation Corporate Events

KYB Plans Three-for-One Stock Split and Triples Authorized Shares to Court Retail Investors
Apr 8, 2026
KYB Corporation will conduct a three-for-one split of its common shares, with a record date of September 30, 2026 and an effective date of October 1, 2026, while excluding its Class A preferred shares from the split. The move, which follows a plan...
KYB to Redeem and Cancel All Class A Preferred Shares in ¥12.7 Billion Deal
Apr 8, 2026
KYB Corporation will acquire and cancel all 125 of its class A preferred shares, originally issued in June 2021 to bolster its financial base and placed with eight major financial institutions and insurers. Citing improvements in its business envi...
KYB to Cancel Nearly 20% of Treasury Shares in Capital Efficiency Move
Apr 8, 2026
KYB Corporation’s board has approved the cancellation of 9,869,864 treasury common shares, representing 19.56% of its outstanding shares before the transaction. The cancellation, scheduled for June 29, 2026, will reduce the total number of o...
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: Feb 18, 2026