Univance Corporation (7254) AI Stock Analysis

• Market Cap: ¥15.66B
• Dividend Yield: 1.76%
• Average Volume (3M): 14.81K
• Price to Earnings (P/E): 6.0
• Beta (1Y): 1.74
• Revenue Growth: -4.44%
• EPS Growth: -17.38%
• Country: JP
• Employees: 1,546
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 22.05
• Shares Outstanding: 23,396,788
• 10 Day Avg. Volume: 13,730
• 30 Day Avg. Volume: 14,813
• PEG Ratio: 0.04
• Price to Book (P/B): 0.30
• Price to Sales (P/S): 0.15
• P/FCF Ratio: 1.59
• 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: 76 Outperform
• Price Target: ¥990.00 ▲(16.47% Upside)

Univance Corporation's strong financial performance and attractive valuation are the primary drivers of its stock score. The technical analysis indicates bullish momentum, though caution is advised due to overbought signals. The absence of earnings call data and corporate events does not impact the overall score.

Positive Factors

Cash Generation Ability

Univance's strong cash generation ability, with a 14.8% free cash flow growth rate, ensures it can fund operations and investments, supporting long-term growth.

Balance Sheet Health

Low leverage with a debt-to-equity ratio of 0.02 provides Univance with financial flexibility and reduces risk, supporting sustainable operations.

Operational Efficiency

High operational efficiency, as indicated by strong EBIT and EBITDA margins, enhances Univance's profitability and competitiveness in the market.

Negative Factors

Revenue Growth Trends

While positive, the modest revenue growth rate of 2.2% may not keep pace with industry peers, potentially impacting Univance's market position.

Industry Challenges

Negative revenue growth suggests Univance faces industry challenges, which could hinder its ability to capitalize on market opportunities.

Market Position

Operating in a highly competitive industry, Univance may struggle to differentiate its products, affecting its ability to maintain or grow market share.

Univance Corporation Business Overview & Revenue Model

Company Description

Univance Corporation manufactures and sells drivetrain transmission products for automotive, agricultural, industrial, and off highway applications in Japan and internationally. The company offers gear boxes for truck motors and generators; transfer cases and transmissions for longitudinal engine layouts; part time transfer cases for SUV and pick-up applications; PTUs for transversely engine layouts; transmissions and reduction units for agricultural machinery vehicles; and reduction gearboxes for construction vehicles. It also provides functional, CVT, AT, transmission, differential, steering, and engine components for automotive sector, as well as clutches for automatic transmissions. The company was founded in 1937 and is headquartered in Kosai, Japan.

How the Company Makes Money

Univance Corporation generates revenue through multiple streams, primarily by selling its electronic components and systems to clients across diverse sectors. The company's key revenue sources include the production of printed circuit boards, which are integral to many electronic devices, and electronic control units that are essential for automotive applications. Additionally, Univance may engage in long-term partnerships with leading companies in the automotive and electronics industries, allowing for stable and recurring revenue through contracts and bulk orders. The company's focus on research and development also enables it to introduce new products that meet evolving market demands, thereby enhancing its competitive edge and revenue potential.

Univance Corporation Financial Statement Overview

Summary

Univance Corporation demonstrates strong financial performance with consistent revenue growth, improving profitability, and solid operational efficiency. The company has a low debt-to-equity ratio, a healthy return on equity, and robust cash flow generation, indicating effective capital management and financial health.

Income Statement

Univance Corporation exhibits strong financial performance with consistent revenue growth and improving profitability. The gross profit margin for the most recent year is 17.3%, and the net profit margin has improved to 5.5%. The revenue growth rate from 2024 to 2025 is 2.2%, indicating steady growth. EBIT and EBITDA margins reflect solid operational efficiency at 7.5% and 13.5%, respectively.

Balance Sheet

The balance sheet shows a stable financial position with a debt-to-equity ratio of 0.02, suggesting low leverage. The return on equity is a healthy 11.1%, demonstrating effective use of shareholder funds. The equity ratio stands at 59.4%, indicating a strong equity base supporting the company's assets.

Cash Flow

Cash flow analysis reveals robust cash generation capabilities. The company has a free cash flow growth rate of 14.8% from 2024 to 2025, highlighting efficient capital management. Operating cash flow to net income ratio is 2.43, and free cash flow to net income ratio is 1.69, both indicating strong cash flow relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	52.85B	53.92B	52.77B	48.60B	49.06B	46.25B
Gross Profit	9.38B	9.75B	9.71B	6.58B	8.81B	5.57B
EBITDA	6.91B	7.27B	5.86B	4.77B	7.25B	3.41B
Net Income	2.60B	2.96B	1.77B	788.00M	2.84B	-1.31B
Balance Sheet
Total Assets	45.79B	44.89B	46.36B	43.06B	42.94B	44.35B
Cash, Cash Equivalents and Short-Term Investments	8.39B	7.98B	5.20B	3.71B	2.98B	2.83B
Total Debt	547.83M	580.35M	2.39B	5.15B	7.02B	10.62B
Total Liabilities	19.07B	18.25B	21.70B	22.51B	24.24B	28.33B
Stockholders Equity	26.70B	26.64B	24.66B	20.55B	18.70B	16.02B
Cash Flow
Free Cash Flow	0.00	4.99B	4.34B	2.75B	3.20B	-911.96M
Operating Cash Flow	0.00	7.18B	6.56B	5.24B	5.44B	2.95B
Investing Cash Flow	0.00	-2.29B	-2.11B	-2.45B	-1.63B	-3.81B
Financing Cash Flow	0.00	-2.10B	-3.03B	-2.10B	-3.83B	529.05M

Univance Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 850.00
• 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:7254, the sentiment is Positive. The current price of 850 is above the 20-day moving average (MA) of 811.45, above the 50-day MA of 692.69, and above the 200-day MA of 497.73, indicating a bullish trend. The MACD of 44.02 indicates Positive momentum. The RSI at 65.63 is Neutral, neither overbought nor oversold. The STOCH value of 67.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7254.

Univance Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7228	81 Outperform	¥9.36B	7.65	―	3.19%	5.38%	5.29%
6493	80 Outperform	¥18.30B	9.05	―	1.95%	0.29%	1092.40%
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%
7273	62 Neutral	¥21.92B	8.11	―	3.30%	34.99%	468.97%
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%	―