Ichikoh Industries,Ltd. (7244) AI Stock Analysis

• Market Cap: €46.30B
• Dividend Yield: 2.89%
• Average Volume (3M): 83.38K
• Price to Earnings (P/E): 8.1
• Beta (1Y): 1.05
• Revenue Growth: -10.13%
• EPS Growth: -15.17%
• Country: JP
• Employees: 2,930
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 16.32
• 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 ▲(11.71% 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.

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: Neutral
• Last Price: 461.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Neutral. The current price of 461 is below the 20-day moving average (MA) of 464.60, above the 50-day MA of 456.18, and above the 200-day MA of 402.94, indicating a neutral trend. The MACD of 4.79 indicates Positive momentum. The RSI at 49.69 is Neutral, neither overbought nor oversold. The STOCH value of 25.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7244.

Ichikoh Industries,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7242	77 Outperform	¥206.58B	8.56	10.75%	2.80%	-0.17%	72.81%
7283	77 Outperform	¥135.25B	9.93	―	3.53%	0.29%	9.70%
7244	74 Outperform	€46.30B	8.14	8.65%	2.89%	-10.13%	-15.17%
7231	71 Outperform	¥67.09B	9.76	―	3.58%	-6.79%	303.74%
7220	64 Neutral	¥234.70B	36.04	―	1.54%	-4.23%	-28.48%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7287	61 Neutral	¥106.63B	16.06	―	3.61%	0.60%	172.55%

Ichikoh Industries,Ltd. Corporate Events

Ichikoh Industries Reports Higher-than-Expected Profits Despite Sales Dip

Ichikoh Industries, Ltd. announced a discrepancy between its forecasted and actual financial results for the first half of the fiscal year ending December 31, 2025. Despite a slight decline in net sales, the company reported higher-than-expected operating and ordinary income, attributed to successful rationalization efforts and favorable foreign exchange rates, indicating a positive impact on its profitability and stakeholder value.

Ichikoh Industries Announces Increased Interim Dividends

Ichikoh Industries, Ltd. announced an interim dividend of 7.0 yen per share, consistent with its earlier forecast and reflecting a 0.5 yen increase from the previous year. This decision underscores the company’s commitment to returning value to shareholders and maintaining a stable financial outlook, with no changes to the year-end dividend forecast.

Ichikoh Industries Reports Strong Profit Growth Amid Sales Decline

Ichikoh Industries, Ltd. reported a significant increase in profits for the first half of the fiscal year ending December 31, 2025, despite a decline in net sales. Operating profit rose by 52.7% and ordinary profit by 57.3%, indicating improved operational efficiency. The company’s financial position remains strong with a capital adequacy ratio of 58.5%, and it has announced an increase in interim dividends, reflecting confidence in its financial stability and future prospects.