Ichikoh Industries,Ltd. (7244) AI Stock Analysis

• Market Cap: €46.30B
• Dividend Yield: 2.81%
• Average Volume (3M): 83.38K
• Price to Earnings (P/E): 8.1
• Beta (1Y): 1.05
• Revenue Growth: -6.35%
• EPS Growth: 18.49%
• Country: JP
• Employees: 2,930
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 13.26
• Shares Outstanding: 96,431,145
• 10 Day Avg. Volume: 103,110
• 30 Day Avg. Volume: 83,380
• PEG Ratio: -0.20
• Price to Book (P/B): 0.55
• Price to Sales (P/S): 0.31
• P/FCF Ratio: 5.21
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: ¥515.00 ▲(7.74% Upside)

Ichikoh Industries receives a solid score due to its stable financial performance and attractive valuation. The positive technical indicators further support the stock's potential. However, recent declines in profitability and rising leverage are concerns that need monitoring.

Positive Factors

Strong Cash Generation

Ichikoh Industries' ability to consistently generate positive operating cash flow indicates robust financial health and operational efficiency, providing the company with the flexibility to invest in growth opportunities and manage debt effectively.

Robust Equity Position

A strong equity position enhances Ichikoh's financial stability, reducing reliance on debt and providing a buffer against economic downturns, which supports long-term sustainability and growth.

Stable Gross Profit Margin

Maintaining a stable gross profit margin indicates effective cost management and pricing strategies, which are crucial for sustaining profitability and competitiveness in the automotive parts industry.

Negative Factors

Declining Revenue Growth

Recent declines in revenue growth suggest challenges in market demand or competitive pressures, which could impact the company's ability to expand and capture market share over the long term.

Rising Leverage

Increasing leverage may strain Ichikoh's financial flexibility, potentially leading to higher interest expenses and reduced capacity to invest in growth initiatives, affecting long-term financial health.

Declining Profit Margins

Declining profit margins indicate potential cost pressures or pricing challenges, which could erode profitability and hinder the company's ability to reinvest in its business for future growth.

Ichikoh Industries,Ltd. Business Overview & Revenue Model

Company Description

Ichikoh Industries, Ltd., together with its subsidiaries, develops, manufactures, and sells automotive parts for aftermarket in Japan and internationally. It provides head, rear combination, and fog lamps; door, inside, and electronic mirrors; windshield wiper blades; and lamps for railroad carriages, house apparatus, etc., as well as automobile supplies. The company was founded in 1903 and is headquartered in Isehara, Japan. Ichikoh Industries, Ltd. is a subsidiary of Valeo Bayen.

How the Company Makes Money

Ichikoh Industries generates revenue primarily through the production and sale of automotive lighting products, which are essential components for vehicles. Their revenue model is largely based on direct sales to automotive manufacturers and aftermarket services. Key revenue streams include contracts with major automakers for lighting systems, which are driven by the increasing demand for advanced safety features and energy-efficient lighting solutions in vehicles. Additionally, Ichikoh benefits from partnerships with automotive suppliers and manufacturers that integrate their products into new vehicle designs. The company's focus on research and development allows it to innovate and stay competitive in the market, further contributing to its earnings.

Ichikoh Industries,Ltd. Financial Statement Overview

Summary

Ichikoh Industries shows stable operational efficiency with strong cash generation and a robust equity position. However, recent declines in revenue and profitability margins, along with rising leverage, suggest potential challenges.

Income Statement

Ichikoh Industries has demonstrated a volatile revenue growth with recent declines, but maintains a stable gross profit margin around 17-19%. The net profit margin fluctuated, recently declining to approximately 3% from a high of 5.4% in 2023, indicating potential cost or pricing pressures. EBIT and EBITDA margins remain stable, suggesting operational efficiency, though recent declines in profitability are concerning.

Balance Sheet

The company shows a healthy equity ratio, reflecting solid financial stability with stockholders' equity consistently above 50% of total assets. However, the debt-to-equity ratio has increased slightly, reaching approximately 0.3 in 2024, indicating rising leverage. Return on equity has been volatile, recently falling to about 6.4% from a high of 12.2% in 2023, suggesting declining efficiency in generating returns.

Cash Flow

The cash flow statement reflects a strong cash generation capability with positive operating cash flow consistently exceeding net income. Free cash flow has been healthy but slightly declining recently, potentially due to higher capital expenditures. The free cash flow to net income ratio indicates efficient cash conversion, despite recent fluctuations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	118.91B	125.54B	145.90B	135.45B	125.51B	113.86B
Gross Profit	20.62B	21.91B	27.73B	23.20B	24.77B	22.25B
EBITDA	12.73B	13.06B	15.75B	10.26B	14.50B	11.66B
Net Income	5.69B	4.47B	7.84B	4.42B	3.98B	2.86B
Balance Sheet
Total Assets	121.14B	130.09B	129.42B	125.92B	112.52B	109.63B
Cash, Cash Equivalents and Short-Term Investments	11.99B	12.64B	8.94B	8.63B	5.72B	5.43B
Total Debt	5.35B	4.38B	5.97B	7.78B	9.95B	10.10B
Total Liabilities	49.47B	59.14B	64.69B	70.91B	63.12B	65.09B
Stockholders Equity	70.84B	70.05B	64.04B	54.33B	48.80B	43.56B
Cash Flow
Free Cash Flow	0.00	7.40B	8.05B	7.64B	3.11B	-723.00M
Operating Cash Flow	0.00	11.05B	13.37B	13.01B	9.21B	11.22B
Investing Cash Flow	0.00	-4.73B	-9.61B	-5.91B	-6.68B	-10.96B
Financing Cash Flow	0.00	-3.04B	-3.80B	-4.40B	-2.35B	-2.92B

Ichikoh Industries,Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 478.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7244, the sentiment is Positive. The current price of 478 is above the 20-day moving average (MA) of 470.10, above the 50-day MA of 463.04, and above the 200-day MA of 411.70, indicating a bullish trend. The MACD of 3.73 indicates Negative momentum. The RSI at 56.50 is Neutral, neither overbought nor oversold. The STOCH value of 46.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7244.

Ichikoh Industries,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7287	79 Outperform	¥106.63B	16.06	―	3.04%	1.77%	117.03%
7242	78 Outperform	€224.92B	7.80	12.15%	2.88%	3.95%	136.86%
7283	77 Outperform	¥134.87B	9.89	―	3.46%	0.29%	9.87%
7244	74 Outperform	€46.30B	8.14	8.46%	2.81%	-6.35%	18.49%
7231	71 Outperform	¥67.09B	9.76	―	3.85%	-6.79%	303.74%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7220	61 Neutral	¥234.70B	36.04	―	1.65%	-3.23%	24.93%

Ichikoh Industries,Ltd. Corporate Events

Ichikoh Industries Reports Improved Profits Despite Sales Decline

Ichikoh Industries, Ltd. reported its consolidated financial results for the first nine months of the fiscal year ending December 31, 2025. The company experienced a decline in net sales by 6.4% compared to the previous year, although operating profit and ordinary profit saw significant increases of 72.7% and 48.1% respectively. The company also improved its capital adequacy ratio to 59.6%, indicating a stronger financial position. The forecast for the fiscal year ending December 31, 2025, anticipates a slight decrease in net sales but an increase in operating profit, suggesting a focus on operational efficiency.