Mikuni Corporation (7247) AI Stock Analysis

• Market Cap: ¥9.53B
• Dividend Yield: 4.93%
• Average Volume (3M): 58.70K
• Price to Earnings (P/E): 4.4
• Beta (1Y): 1.02
• Revenue Growth: 1.49%
• EPS Growth: 93.90%
• Country: JP
• Employees: 5,001
• Sector: Consumer Cyclical
• Sector Strength: 64
• Industry: Auto - Parts
• EPS (TTM): 65.24
• Shares Outstanding: 34,049,423
• 10 Day Avg. Volume: 65,920
• 30 Day Avg. Volume: 58,703
• PEG Ratio: -0.38
• Price to Book (P/B): 0.26
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: 76 Outperform
• Price Target: ¥321.00 ▲(13.03%Upside)

Mikuni Corporation's overall stock score is driven by its strong financial performance and attractive valuation. The company's robust revenue growth and effective cost management bolster its financial standing, while a low P/E ratio and high dividend yield enhance its valuation attractiveness. Technical analysis indicates a mixed sentiment with potential for future stability or growth. However, attention is needed on cash flow management and debt levels.

Mikuni Corporation Business Overview & Revenue Model

Company Description

Mikuni Corporation (7247) is a Japan-based company primarily engaged in the manufacturing and sale of automotive components. The company's core product offerings include fuel injection systems, carburetors, and other engine-related components for automobiles and motorcycles. Mikuni serves various sectors, including automotive, power sports, and industrial machinery, with a focus on delivering high-quality and technologically advanced products to enhance engine performance and efficiency.

How the Company Makes Money

Mikuni Corporation makes money through the production and sale of automotive components, primarily focusing on fuel injection systems and carburetors. The company's revenue streams are largely driven by its sales to original equipment manufacturers (OEMs) in the automotive and motorcycle industries. Additionally, Mikuni generates income through after-market sales and services, providing replacement parts and maintenance solutions. Strategic partnerships with global automotive manufacturers and a robust supply chain management enhance its earnings by ensuring a steady demand for its products across various markets. Technological innovation and a strong commitment to quality also play crucial roles in sustaining Mikuni's competitive edge and financial performance.

Mikuni Corporation Financial Statement Overview

Summary

Mikuni Corporation has shown positive revenue growth and maintains a stable equity base, which bodes well for long-term stability. However, profitability is under pressure with low net margins, and there are significant challenges in cash flow management, which might impede the company's ability to invest and grow without external funding. The balance sheet is moderately leveraged, providing some financial cushion, but improving cash flow and profitability remains crucial for future resilience.

Income Statement

Mikuni Corporation's revenue has shown a positive growth trajectory, particularly with a 2% increase in TTM revenue compared to the previous annual period. The gross profit margin for TTM is 15.33%, while the net profit margin is relatively low at 0.58%, indicating pressure on profitability. EBIT and EBITDA margins are moderate at 3.42% and 7.26%, respectively, suggesting reasonable operating efficiency. However, the net profit margin's low figure highlights profitability challenges, partly due to high operating costs.

Balance Sheet

The company's debt-to-equity ratio stands at 1.29, reflecting a moderate level of leverage. The return on equity (ROE) is notably low at 1.57% for TTM, pointing to inefficiencies in generating returns from shareholders' equity. However, the equity ratio is strong at 31.71%, indicating a stable financial structure with significant equity backing total assets. This balance between leverage and equity provides a reasonable level of financial stability.

Cash Flow

Mikuni Corporation faces challenges in cash flow management, with a lack of operating cash flow and free cash flow data for TTM. Historically, the company has experienced fluctuating free cash flow, with negative figures in several periods. The absence of critical cash flow metrics and consistent negative free cash flow raises concerns about the company's ability to fund operations and growth internally.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
101.72B	99.94B	93.85B	80.79B	86.96B	110.50B
	Gross Profit
15.59B	15.65B	15.27B	14.36B	10.86B	14.08B
	EBIT
3.48B	3.67B	3.09B	3.32B	569.00M	2.41B
	EBITDA
7.38B	9.17B	8.24B	8.08B	5.22B	4.08B
	Net Income Common Stockholders
588.00M	1.11B	-1.68B	1.32B	-125.00M	-4.01B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.14B	3.11B	3.71B	5.06B	4.25B	4.67B
	Total Assets
118.11B	111.54B	100.11B	96.92B	93.89B	90.40B
	Total Debt
48.43B	39.78B	36.70B	36.15B	37.44B	34.53B
	Net Debt
44.29B	36.67B	32.99B	31.09B	33.19B	29.86B
	Total Liabilities
79.72B	70.94B	67.91B	65.00B	65.50B	63.67B
	Stockholders Equity
37.45B	39.72B	31.43B	31.06B	27.56B	25.84B
Cash Flow		Free Cash Flow
0.00	-3.14B	-1.26B	1.72B	-3.65B	-5.07B
	Operating Cash Flow
0.00	2.97B	4.88B	5.08B	318.00M	2.39B
	Investing Cash Flow
0.00	-5.05B	-5.44B	-2.37B	-2.88B	-7.00B
	Financing Cash Flow
0.00	1.25B	-940.00M	-2.47B	2.22B	3.02B

Mikuni Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 284.00
• 50DMA: Positive
• 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:7247, the sentiment is Negative. The current price of 284 is below the 20-day moving average (MA) of 286.90, above the 50-day MA of 279.38, and below the 200-day MA of 308.18, indicating a neutral trend. The MACD of 0.75 indicates Positive momentum. The RSI at 50.12 is Neutral, neither overbought nor oversold. The STOCH value of 22.22 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
7254	79 Outperform	¥8.02B	2.72		3.64%	2.17%	66.19%
7247	76 Outperform	¥9.53B	4.42		4.93%	1.49%	93.90%
7218	73 Outperform	¥10.10B	5.58		3.09%	-4.87%	-19.12%
7235	70 Outperform	¥8.58B	6.02		5.00%	0.69%	7.21%
Sector *	62 Neutral	$6.84B	11.41	2.80%	3.87%	2.70%	-24.58%
7277	53 Neutral	¥8.14B	―		2.79%	-3.96%	-462.49%
5985	51 Neutral	¥8.82B	―		3.25%	24.16%	93.48%