Mikuni Corporation (7247) AI Stock Analysis

• Market Cap: ¥13.02B
• Dividend Yield: 3.9%
• Average Volume (3M): 70.80K
• Price to Earnings (P/E): 6.7
• Beta (1Y): 1.14
• Revenue Growth: -1.72%
• EPS Growth: 168.62%
• Country: JP
• Employees: 5,001
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 13.22
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: ¥459.00 ▲(28.93% Upside)
• Action: Reiterated Date: 11/12/25
• Date: Action: Reiterated 11/12/25

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

OEM supplier + recurring aftermarket revenue

Mikuni's core OEM supply model combined with recurring aftermarket/service sales provides durable, multi-year revenue streams tied to vehicle production and installed bases. This mix smooths demand volatility, supports spare-parts annuity revenue, and underpins long-term cash generation if OEM relationships persist.

Solid gross and EBITDA margins

Sustained gross margin (~15.5%) and a double-digit EBITDA margin (~10.3%) indicate effective cost control and manufacturing efficiency. These margins create structural resilience, enabling reinvestment in product engineering and price flexibility with OEMs, supporting medium-term profitability if operational discipline continues.

Moderate leverage with improving ROE

A moderate debt-to-equity ratio (~1.08) and a one-third equity ratio suggest a balanced capital structure that can fund capex while limiting immediate solvency risk. The improving ROE to 5.7% signals better capital efficiency, supporting sustained investment capacity and shareholder returns if debt is managed prudently.

Negative Factors

Negative free cash flow / weaker OCF

Negative free cash flow and a reduced operating cash flow imply capex or working capital pressures that erode liquidity. Over the medium term this limits financial flexibility for R&D, program wins, debt reduction or dividends, and raises the need to convert earnings into sustainable cash generation.

Low net profit margin

A net margin near 2.1% leaves limited buffer against cost inflation, customer price pressure, or cycle downturns. Even with decent gross and EBITDA margins, low net profitability constrains retained earnings for investment and increases reliance on external funding for strategic initiatives.

Slowing revenue growth rate

Revenue growth decelerated from double digits to low single digits, indicating weaker top-line momentum. Over 2-6 months this structural slowdown raises stakes for winning OEM programs or expanding aftermarket share; failure to accelerate sales could pressure margins and long-term return on invested capital.

Mikuni Corporation Business Overview & Revenue Model

Company Description

Mikuni Corporation manufactures and sells automobile products in Japan and internationally. The company's automobiles products include heaters, intake systems, valve systems, thermal control systems, sensors, pumps, etc., as well as products for motorcycles and power equipment. It also provides gas and water control devices, accessory parts for fuel cells, and humidifiers; and consumer products, as well as assistive devices and nursing care equipment. In addition, the company trades in precision processed materials comprising castings and forgings for aircraft, parts, accessories, and maintenance materials; and imports and distributes lawn mowers, turf-care equipment, and industrial machinery and parts. Further, it offers fuel injection systems and related devices, carburetors, pumps, control valves, and engine preheaters. The company was formerly known as Mikuni Kogyo Co., Ltd. and changed its name to Mikuni Corporation in 1991. Mikuni Corporation was founded in 1923 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Mikuni makes money primarily by selling manufactured components and systems to original equipment manufacturers (OEMs) and other business customers. Its core revenue stream comes from supplying vehicle/engine-related control and fuel-system parts (e.g., fuel delivery and fluid-control components) that are integrated into customers’ end products, with revenue recognized from shipments under supply agreements and purchase orders. A secondary, ongoing stream is aftermarket/service-related sales (replacement parts and related support) tied to the installed base of Mikuni-equipped vehicles/engines, which can provide recurring demand over product lifecycles. Earnings are influenced by customer production volumes, model cycles, and the company’s ability to win and retain OEM programs by meeting cost, quality, and performance requirements. Specific customer names, contract structures, segment revenue splits, and partnership details are null.

Mikuni Corporation Financial Statement Overview

Summary

Mikuni Corporation shows strong revenue growth and operational efficiency, with a notable increase in revenue and healthy EBIT and EBITDA margins. However, the low net profit margin and negative free cash flow indicate areas for improvement in profitability and cash flow management.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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	10.91B	4.25B
Total Debt	46.13B	41.15B	39.78B	36.70B	36.15B	37.44B
Total Liabilities	76.33B	71.11B	70.93B	67.91B	65.00B	65.49B
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: Positive
• Last Price: 356.00
• 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:7247, the sentiment is Positive. The current price of 356 is below the 20-day moving average (MA) of 413.05, below the 50-day MA of 405.14, and below the 200-day MA of 356.02, indicating a neutral trend. The MACD of 0.24 indicates Positive momentum. The RSI at 49.53 is Neutral, neither overbought nor oversold. The STOCH value of 76.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7247.

Mikuni Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7283	77 Outperform	¥117.44B	7.27	―	3.30%	0.29%	9.87%
7247	75 Outperform	¥13.02B	6.74	―	3.90%	-1.72%	168.62%
7296	74 Outperform	¥156.41B	13.70	―	4.47%	2.01%	25.09%
7220	71 Outperform	¥161.14B	-8.32	―	1.93%	-3.23%	24.93%
7280	70 Outperform	¥51.99B	14.59	―	0.99%	-0.83%	-27.20%
7278	69 Neutral	¥204.51B	10.65	7.50%	5.39%	-2.26%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%