Mazda Motor (7261) AI Stock Analysis

• Market Cap: $747.34B
• Dividend Yield: 4.52%
• Average Volume (3M): 6.42M
• Price to Earnings (P/E): 21.4
• Beta (1Y): 1.34
• 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: 0.91
• Enterprise Value/Revenue: 0.14
• Enterprise Value/Gross Profit: 0.76
• Enterprise Value/Ebitda: 5.93
• 1Y Price Target: $1,176.11
• Price Target Upside: -0.88% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: ¥1,387.00 ▲(16.90% Upside)

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

Technology & EV strategy

Mazda's proprietary SKYACTIV platform and stated emphasis on electric/hybrid development provide lasting competitive differentiation. Efficient powertrain IP and a clear EV roadmap support regulatory compliance, fuel-efficiency leadership, and higher long-term product relevance as markets shift to electrification.

Moderate leverage on balance sheet

A debt-to-equity around 0.47 implies conservative leverage that supports capital stability and flexibility. This structural balance allows Mazda to fund product development and withstand cyclical auto demand, while avoiding excessive financial stress that would impede long-term strategic investments.

Underlying product-level profitability

An 18.5% gross margin shows Mazda retains meaningful margin on vehicle production, reflecting pricing power or cost-efficient manufacturing. While net margin is slim, positive profitability indicates a viable core business capable of funding operations and incremental investments if revenue trends stabilize.

Negative Factors

Sharp revenue contraction

A pronounced negative revenue growth figure points to substantial shrinking sales that erode economies of scale and dealer relationships. Persistent top-line decline undermines R&D and EV transition funding, strains per-unit profitability, and risks market-share loss if product momentum isn't restored.

Severely weak cash generation

Extremely negative FCF growth and OCF/net income near 0 indicate poor cash conversion and liquidity stress. Structurally weak cash generation constrains capital allocation for EV capex, R&D, and marketing, forcing reliance on external financing or asset sales and reducing long-term strategic optionality.

Low ROE and weak operating margin

ROE near 2% and a slightly negative EBIT margin signal limited returns on shareholder capital and operational inefficiencies. Over time, low returns make it harder to justify ongoing investment, reduce ability to reward shareholders, and indicate the need for structural cost or portfolio changes to restore profitability.

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's financial performance is mixed. The income statement shows profitability but with declining revenue and operational challenges. The balance sheet is stable with moderate leverage, though profitability from equity is limited. The cash flow statement reveals significant cash flow challenges, indicating potential liquidity issues.

Income Statement

Mazda Motor's income statement shows a mixed performance. The TTM data indicates a decline in revenue growth rate by 1.01%, which is concerning. However, the company maintains a positive gross profit margin of 18.47% and a net profit margin of 0.69%. The EBIT margin is slightly negative, suggesting operational challenges, but the EBITDA margin remains positive at 2.37%. Overall, while profitability is present, the declining revenue and EBIT margin are areas of concern.

Balance Sheet

Mazda's balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.47, indicating moderate leverage. The return on equity (ROE) is relatively low at 1.90%, suggesting limited profitability from equity. The equity ratio is not explicitly provided, but the company's equity position appears solid given the total assets and stockholders' equity figures. Overall, the balance sheet shows stability, but profitability from equity could be improved.

Cash Flow

The cash flow statement highlights significant challenges, with a negative free cash flow growth rate of -359.10% in the TTM period. The operating cash flow to net income ratio is low at 0.04, indicating limited cash generation relative to net income. Additionally, the free cash flow to net income ratio is negative, reflecting cash flow difficulties. These factors suggest potential liquidity issues that need addressing.

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

Mazda Motor Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1186.50
• 50DMA: Negative
• 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:7261, the sentiment is Neutral. The current price of 1186.5 is below the 20-day moving average (MA) of 1227.22, below the 50-day MA of 1194.05, and above the 200-day MA of 1010.36, indicating a neutral trend. The MACD of -11.71 indicates Positive momentum. The RSI at 46.73 is Neutral, neither overbought nor oversold. The STOCH value of 25.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7261.

Mazda Motor Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7202	77 Outperform	¥1.77T	12.86	―	3.74%	-5.66%	-28.73%
7270	76 Outperform	¥2.38T	8.95	9.73%	3.61%	1.04%	-31.52%
7272	69 Neutral	¥1.11T	72.13	1.38%	4.17%	-1.83%	-89.60%
7261	65 Neutral	$747.34B	21.39	1.72%	4.52%	-0.83%	-75.20%
7211	64 Neutral	$553.47B	-82.00	-0.65%	3.33%	-0.87%	-105.50%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7201	49 Neutral	$1.32T	-1.44	-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.

The most recent analyst rating on (JP:7261) stock is a Sell with a Yen700.00 price target. To see the full list of analyst forecasts on Mazda Motor stock, see the JP:7261 Stock Forecast page.

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.

The most recent analyst rating on (JP:7261) stock is a Sell with a Yen700.00 price target. To see the full list of analyst forecasts on Mazda Motor stock, see the JP:7261 Stock Forecast page.