Mikuni Corporation (7247) AI Stock Analysis

• Market Cap: ¥13.05B
• Dividend Yield: 3.6%
• Average Volume (3M): 70.80K
• Price to Earnings (P/E): 5.2
• Beta (1Y): 1.08
• Revenue Growth: -1.72%
• EPS Growth: 168.62%
• Country: JP
• Employees: 5,001
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 4.19
• Shares Outstanding: 34,049,423
• 10 Day Avg. Volume: 60,210
• 30 Day Avg. Volume: 70,803
• PEG Ratio: 0.07
• Price to Book (P/B): 0.27
• Price to Sales (P/S): 0.10
• P/FCF Ratio: -2.96
• 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: 75 Outperform
• Price Target: ¥399.00 ▲(14.66% Upside)

Mikuni Corporation's stock score is driven by its strong financial performance, particularly in revenue growth and operational efficiency. The attractive valuation with a low P/E ratio and high dividend yield further supports the score. However, technical indicators suggest short-term bearish momentum, which slightly offsets the positive financial and valuation aspects.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for Mikuni's products and effective market strategy, supporting long-term business expansion.

Market Position

As a leader in precision components, Mikuni benefits from a strong market position, allowing it to leverage brand strength and customer loyalty.

Product Innovation

Continuous investment in R&D ensures Mikuni remains competitive by introducing innovative products, which is crucial for long-term success.

Negative Factors

Rising Debt Levels

Increasing debt can strain financial resources, potentially limiting Mikuni's ability to invest in growth opportunities and affecting financial stability.

Cash Flow Management

Negative free cash flow indicates potential liquidity issues, necessitating improved cash flow management to sustain operations and fund investments.

Profit Margin

Low net profit margins suggest challenges in cost control or pricing strategy, which could impact long-term profitability if not addressed.

Mikuni Corporation Business Overview & Revenue Model

Company Description

Mikuni Corporation (7247) is a leading Japanese manufacturer specializing in precision components for the automotive and motorcycle industries. The company operates primarily in the sectors of fuel systems, carburetors, and electronic control systems, providing high-quality products that enhance engine performance and efficiency. With a strong focus on innovation and technology, Mikuni also caters to various other markets, including industrial machinery and recreational vehicles, positioning itself as a versatile player in the precision engineering space.

How the Company Makes Money

Mikuni Corporation generates revenue primarily through the sale of its automotive and motorcycle components, including carburetors, fuel injection systems, and electronic control units. The company’s revenue model is largely reliant on contracts with major automotive manufacturers and aftermarket suppliers, which ensure steady demand for its products. Key revenue streams include direct sales to OEMs (Original Equipment Manufacturers) and aftermarket sales. Additionally, Mikuni benefits from strategic partnerships with leading automotive brands, which not only enhance its market presence but also facilitate joint development projects that can lead to new product offerings. The company’s commitment to R&D allows it to stay ahead of market trends and consumer demands, further solidifying its revenue generation capabilities.

Mikuni Corporation Financial Statement Overview

Summary

Mikuni Corporation shows strong revenue growth and improved profitability, with a stable balance sheet. However, rising debt levels and negative free cash flow require attention.

Income Statement

Mikuni Corporation has demonstrated consistent revenue growth, with a notable 12.1% increase from 2022 to 2023 and a 1.4% increase from 2024 to 2025. The company's gross profit margin for 2025 stands at a strong 15.46%, reflecting effective cost management. However, the net profit margin is relatively low at 2.13%, indicating room for improvement in profitability. EBIT and EBITDA margins are reasonably healthy at 2.99% and 10.32%, respectively, suggesting operational efficiency. Overall, the income statement reflects a steady growth trajectory and operational stability.

Balance Sheet

The debt-to-equity ratio of 1.08 in 2025 is moderate, indicating a balanced approach to leveraging. The equity ratio of 34.49% suggests a stable capital structure, but there is potential for further strengthening. Return on equity (ROE) has improved to 5.70% from previous years, showcasing enhanced profitability. However, the company should monitor its rising debt levels to ensure long-term financial stability.

Cash Flow

Operating cash flow has decreased significantly, with a negative free cash flow in 2025, reflecting capital expenditure pressures. The free cash flow to net income ratio remains negative, but the operating cash flow to net income ratio of 0.80 indicates sufficient cash generation relative to net income. Continued focus on optimizing capital expenditures and improving cash flow management is essential.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	101.77B	101.43B	99.94B	93.85B	80.79B	86.96B
Gross Profit	16.13B	15.68B	15.65B	15.27B	14.36B	10.86B
EBITDA	7.23B	10.47B	9.17B	6.10B	8.46B	5.22B
Net Income	2.52B	2.00B	1.11B	-1.68B	1.32B	-125.00M
Balance Sheet
Total Assets	113.91B	109.95B	111.54B	100.11B	96.92B	93.89B
Cash, Cash Equivalents and Short-Term Investments	3.65B	1.76B	3.11B	3.71B	5.06B	4.25B
Total Debt	46.13B	41.15B	39.78B	36.70B	36.15B	37.44B
Total Liabilities	76.33B	71.11B	70.94B	67.91B	65.00B	65.50B
Stockholders Equity	36.71B	37.93B	39.72B	31.43B	31.06B	27.56B
Cash Flow
Free Cash Flow	0.00	-3.45B	-3.14B	-1.26B	1.72B	-3.65B
Operating Cash Flow	0.00	1.73B	2.97B	4.88B	5.08B	318.00M
Investing Cash Flow	0.00	-3.13B	-5.05B	-5.44B	-2.37B	-2.88B
Financing Cash Flow	0.00	-138.00M	1.25B	-940.00M	-2.47B	2.22B

Mikuni Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 348.00
• 50DMA: Negative
• 100DMA: Negative
• 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:7247, the sentiment is Negative. The current price of 348 is below the 20-day moving average (MA) of 356.90, below the 50-day MA of 366.30, and above the 200-day MA of 316.77, indicating a neutral trend. The MACD of -6.34 indicates Positive momentum. The RSI at 40.00 is Neutral, neither overbought nor oversold. The STOCH value of 45.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7247.

Mikuni Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7235	78 Outperform	¥12.22B	7.09	―	3.73%	2.31%	10.68%
7254	76 Outperform	¥15.66B	6.04	―	1.76%	-4.44%	-17.38%
7247	75 Outperform	¥13.05B	5.20	―	3.60%	-1.72%	168.62%
7218	74 Outperform	¥10.60B	5.86	―	3.23%	-3.24%	-26.11%
5985	66 Neutral	¥31.02B	8.91	―	0.47%	7.65%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7277	56 Neutral	¥9.31B	-10.66	―	2.32%	-4.06%	―