Mazda Motor (7261) AI Stock Analysis

• Market Cap: ¥747.65B
• Dividend Yield: 4.53%
• Average Volume (3M): 6.42M
• Price to Earnings (P/E): 22.4
• Beta (1Y): 1.36
• Revenue Growth: -0.83%
• EPS Growth: -75.20%
• Country: JP
• Employees: 48,783
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Manufacturers
• EPS (TTM): N/A
• Shares Outstanding: 631,803,960
• 10 Day Avg. Volume: 4,646,540
• 30 Day Avg. Volume: 6,424,370
• PEG Ratio: -0.12
• Price to Book (P/B): 0.33
• Price to Sales (P/S): 0.12
• P/FCF Ratio: 2.94
• 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: ¥1,000.15
• Price Target Upside: -17.55% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: ¥1,203.00 ▼(-0.82% Downside)

Mazda Motor's overall stock score is driven primarily by its mixed financial performance and positive technical indicators. The financials show profitability but with significant challenges in revenue growth and cash flow. Technical analysis suggests moderate bullish momentum, but caution is advised due to potential overbought conditions. The valuation is a concern with a high P/E ratio, although the dividend yield is a positive aspect.

Positive Factors

Innovative Technologies

Mazda's focus on innovative technologies like SKYACTIV enhances fuel efficiency and performance, providing a competitive edge in the automotive market.

Sustainability Commitment

Mazda's commitment to developing electric and hybrid vehicles aligns with global sustainability trends, potentially expanding its market share in eco-friendly segments.

Stable Balance Sheet

A stable balance sheet with moderate leverage provides Mazda with financial flexibility to invest in growth opportunities and withstand economic fluctuations.

Negative Factors

Declining Revenue Growth

Declining revenue growth suggests challenges in market expansion or product demand, potentially impacting long-term profitability and market position.

Cash Flow Challenges

Significant cash flow challenges may limit Mazda's ability to invest in new projects or manage debt, affecting its financial health and growth prospects.

Limited Profitability from Equity

Low ROE indicates limited profitability from equity investments, which could deter investors and impact the company's ability to raise capital efficiently.

Mazda Motor Business Overview & Revenue Model

Company Description

Mazda Motor Corporation engages in the manufacture and sale of passenger cars and commercial vehicles in Japan, North America, Europe, and internationally. Its principal products include four-wheeled vehicles, gasoline reciprocating engines, diesel engines, and automatic and manual transmissions for vehicles. The company was formerly known as Toyo Kogyo Co., Ltd. and changed its name to Mazda Motor Corporation in May 1984. Mazda Motor Corporation was incorporated in 1920 and is headquartered in Hiroshima, Japan.

How the Company Makes Money

Mazda generates revenue primarily through the sale of vehicles, which include passenger cars and commercial vehicles. The company operates a revenue model that relies on direct sales to consumers, dealerships, and fleet sales. Key revenue streams include new vehicle sales, financing and leasing services, and parts and accessories sales. Mazda also collaborates with other automotive manufacturers and engages in joint ventures, which can enhance its market reach and share development costs. Additionally, the company benefits from licensing its technologies and intellectual property, further contributing to its overall earnings.

Mazda Motor Financial Statement Overview

Summary

Mazda Motor faces a challenging financial landscape with declining revenue growth and profitability margins. While the balance sheet shows moderate leverage, the cash flow statement indicates significant liquidity concerns. The company needs to address operational inefficiencies and improve cash flow management to enhance financial stability and shareholder value.

Income Statement

Mazda Motor's income statement shows a mixed performance. The TTM data indicates a decline in revenue growth at -2.11%, which is concerning. However, the company maintains a stable gross profit margin of around 20.14% in TTM, though it has decreased from previous years. The net profit margin has significantly dropped to 0.45% in TTM from 2.27% in the previous annual report, indicating reduced profitability. EBIT and EBITDA margins have also decreased, reflecting challenges in operational efficiency.

Balance Sheet

Mazda's balance sheet reflects moderate financial stability. The debt-to-equity ratio in TTM is 0.42, showing a manageable level of leverage, though it has increased slightly from the previous year. The return on equity has decreased to 1.26% in TTM, indicating lower profitability for shareholders. The equity ratio remains stable, suggesting a balanced capital structure.

Cash Flow

The cash flow statement reveals significant challenges. The free cash flow growth rate has plummeted by 88.68% in TTM, indicating potential liquidity issues. The operating cash flow to net income ratio is low at 0.10, suggesting that operating cash flows are not sufficiently covering net income. The free cash flow to net income ratio is also low at 0.17, highlighting potential cash flow constraints.

Breakdown	TTM	Dec 2025	Dec 2023	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.86T	5.02T	3.83T	4.83T	3.12T	2.88T
Gross Profit	898.26B	1.08T	801.52B	1.04T	687.70B	613.64B
EBITDA	115.14B	283.42B	247.92B	419.51B	194.51B	98.58B
Net Income	33.46B	114.08B	142.81B	207.70B	81.56B	-31.65B
Balance Sheet
Total Assets	4.03T	4.09T	3.26T	3.79T	2.97T	2.92T
Cash, Cash Equivalents and Short-Term Investments	1.06T	1.21T	717.10B	922.56B	740.39B	739.00B
Total Debt	819.07B	723.00B	624.10B	575.79B	677.46B	755.93B
Total Liabilities	2.27T	2.28T	1.80T	2.03T	1.65T	1.72T
Stockholders Equity	1.74T	1.79T	1.44T	1.74T	1.30T	1.18T
Cash Flow
Free Cash Flow	-59.24B	202.04B	38.30B	303.65B	49.80B	34.02B
Operating Cash Flow	57.05B	305.63B	137.42B	418.89B	189.16B	120.06B
Investing Cash Flow	-114.75B	-199.96B	-99.43B	-179.89B	-136.24B	-78.86B
Financing Cash Flow	71.04B	90.07B	-89.86B	-84.70B	-86.41B	99.35B

Mazda Motor Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1213.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7261, the sentiment is Positive. The current price of 1213 is above the 20-day moving average (MA) of 1129.37, above the 50-day MA of 1107.25, and above the 200-day MA of 965.04, indicating a bullish trend. The MACD of 21.58 indicates Negative momentum. The RSI at 66.07 is Neutral, neither overbought nor oversold. The STOCH value of 91.24 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7261.

Mazda Motor Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7270	80 Outperform	¥2.57T	9.68	9.73%	3.46%	1.04%	-31.52%
7202	77 Outperform	$1.73T	12.77	―	3.75%	-5.66%	-28.73%
7272	69 Neutral	¥1.15T	75.49	1.38%	4.16%	-1.83%	-89.60%
7261	65 Neutral	¥747.65B	22.36	1.72%	4.53%	-0.83%	-75.20%
7211	64 Neutral	¥541.81B	-81.57	-0.65%	3.36%	-0.87%	-105.50%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7201	49 Neutral	$1.40T	-1.58	-16.69%	―	-3.01%	-755.71%

Mazda Motor Corporate Events

Mazda Announces Interim Dividends and Revises Year-End Forecast

Mazda Motor Corporation announced interim dividends from surplus with a record date of September 30, 2025, and revised its year-end dividend forecast to 30 yen per share, maintaining a full-year forecast of 55 yen per share. This decision reflects the company’s commitment to stable shareholder returns and is based on the current fiscal year’s business performance and financial condition.

Mazda Reports Decline in First Half FY2026 Financial Results

Mazda Motor Corporation reported a decline in its financial performance for the first half of fiscal year 2026, with net sales decreasing by 6.5% compared to the previous year. The company has revised its financial forecast, indicating a challenging market environment and potential implications for stakeholders.