Ichikoh Industries,Ltd. (7244) AI Stock Analysis

• Market Cap: ¥34.84B
• Dividend Yield: 3.59%
• Average Volume (3M): 88.04K
• Price to Earnings (P/E): 7.4
• Beta (1Y): 1.09
• Revenue Growth: -10.60%
• EPS Growth: -27.09%
• Country: JP
• Employees: 2,930
• Sector: Consumer Cyclical
• Sector Strength: 59
• Industry: Auto - Parts
• EPS (TTM): 10.68
• Shares Outstanding: 96,431,145
• 10 Day Avg. Volume: 86,830
• 30 Day Avg. Volume: 88,036
• PEG Ratio: 0.71
• Price to Book (P/B): 0.64
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.56
• 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: N/A
• Number of Analyst Covering: 0

• Rating: 68 Neutral
• Price Target: ¥426.00 ▲(17.36%Upside)

Ichikoh Industries scores a 68, reflecting solid financial health with strong cash generation capabilities and a robust equity position. However, recent declines in revenue and profitability margins raise some concerns. The technical analysis indicates mixed signals with potential short-term volatility. On the valuation front, the low P/E ratio and reasonable dividend yield suggest the stock is relatively undervalued, providing an attractive entry point for investors seeking value.

Ichikoh Industries,Ltd. Business Overview & Revenue Model

Company Description

Ichikoh Industries, Ltd. (7244) is a Japanese company primarily engaged in the manufacturing and sales of automotive equipment. The company focuses on the production of automotive lighting equipment, mirrors, and accessories, serving both automotive manufacturers and the aftermarket. With a commitment to innovation and quality, Ichikoh Industries plays a significant role in the automotive supply chain, providing essential components that enhance vehicle safety and design.

How the Company Makes Money

Ichikoh Industries makes money through the production and sale of automotive lighting equipment, mirrors, and related accessories. The company's primary revenue streams come from supplying these components to major automotive manufacturers as original equipment, as well as selling in the aftermarket for vehicle repair and customization. Ichikoh Industries benefits from its strategic partnerships with global automotive brands, which ensures a steady demand for its products. Additionally, the company's focus on research and development allows it to innovate and offer advanced lighting solutions, which can command higher prices and increase profitability.

Ichikoh Industries,Ltd. Financial Statement Overview

Summary

Ichikoh Industries demonstrates stable operational efficiency with some concerns over recent profitability declines and rising leverage. While the company's financial health remains solid with strong cash generation and a robust equity position, the decrease in revenue and profitability margins in the latest year suggests potential challenges that require monitoring.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
125.54B	145.90B	135.45B	125.51B	113.86B
	Gross Profit
21.91B	27.73B	23.20B	24.77B	22.25B
	EBIT
4.88B	7.42B	5.52B	5.56B	2.47B
	EBITDA
10.91B	15.75B	9.62B	13.91B	10.04B
	Net Income Common Stockholders
4.47B	7.84B	4.42B	3.98B	2.86B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
12.64B	8.94B	8.63B	5.72B	5.43B
	Total Assets
130.09B	129.42B	125.92B	112.52B	109.63B
	Total Debt
4.38B	5.97B	7.78B	9.95B	10.10B
	Net Debt
-8.26B	-2.97B	-856.00M	4.23B	4.67B
	Total Liabilities
59.14B	64.69B	70.91B	63.12B	65.09B
	Stockholders Equity
70.05B	64.04B	54.33B	48.80B	43.56B
Cash Flow		Free Cash Flow
7.40B	8.05B	7.64B	3.11B	-723.00M
	Operating Cash Flow
11.05B	13.37B	13.01B	9.21B	11.22B
	Investing Cash Flow
-4.73B	-9.61B	-5.91B	-6.68B	-10.96B
	Financing Cash Flow
-3.04B	-3.80B	-4.40B	-2.35B	-2.92B

Ichikoh Industries,Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 363.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 363 is below the 20-day moving average (MA) of 374.15, below the 50-day MA of 380.68, and below the 200-day MA of 406.55, indicating a bearish trend. The MACD of -7.30 indicates Positive momentum. The RSI at 35.86 is Neutral, neither overbought nor oversold. The STOCH value of 24.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	80 Outperform	¥79.02B	13.02		3.66%	1.29%	19.15%
7242	78 Outperform	€154.31B	10.92	6.70%	3.67%	-1.01%	-5.92%
7231	77 Outperform	¥52.64B	8.04		6.46%	-9.99%	37.21%
7283	70 Outperform	¥108.31B	8.07		4.33%	7.29%	13.03%
7244	68 Neutral	¥34.84B	7.42	6.95%	3.59%	-10.60%	-27.09%
7220	67 Neutral	¥176.48B	22.67		1.86%	-0.78%	-2.01%
Sector *	63 Neutral	$6.98B	11.41	2.80%	4.24%	2.68%	-24.94%

Ichikoh Industries,Ltd. Corporate Events

Ichikoh Industries Reports Q1 2025 Financial Results with Mixed Performance

Ichikoh Industries, Ltd. reported its consolidated financial results for the first quarter of 2025, showing a decline in net sales and operating profit compared to the previous year. Despite the decrease in sales, the company experienced a significant increase in ordinary profit and profit attributable to owners of the parent, indicating improved efficiency and cost management. The financial outlook for the fiscal year 2025 remains cautious, with a slight decrease in expected net sales but an optimistic view on operating profit growth, reflecting strategic adjustments to enhance profitability.

Ichikoh Industries Announces New Share Issuance for Executive Compensation

Ichikoh Industries, Ltd. has announced the issuance of new shares as part of a stock compensation system for its directors and executive officers. This move aims to incentivize sustainable corporate value improvement by linking compensation to medium- to long-term performance. The issuance involves 67,980 common shares, with a total value of 26,240,280 yen, and is part of a broader strategy to align executive compensation with company performance and corporate social responsibility goals.

Ichikoh Industries Details Parent Company Influence and Strategic Synergies

Ichikoh Industries, Ltd. has announced details regarding its controlling shareholders, highlighting the influence of its parent company, Valeo S.E., which holds a 61.15% indirect voting right. This relationship allows Ichikoh to leverage synergies in business operations, including joint purchasing and shared services, while maintaining a cooperative relationship with Valeo S.E. The presence of Valeo executives on Ichikoh’s board underscores the strategic alignment between the two companies, potentially impacting Ichikoh’s management decisions and business activities.