Mazda Motor (7261) AI Stock Analysis

• Market Cap: ¥529.72B
• Dividend Yield: 6.1%
• Average Volume (3M): 7.64M
• Price to Earnings (P/E): 4.6
• Beta (1Y): 1.40
• Revenue Growth: 3.96%
• EPS Growth: -45.09%
• Country: JP
• Employees: 48,783
• Sector: Consumer Cyclical
• Sector Strength: 64
• Industry: Auto - Manufacturers
• EPS (TTM): 87.65
• Shares Outstanding: 631,803,960
• 10 Day Avg. Volume: 6,838,850
• 30 Day Avg. Volume: 7,638,100
• PEG Ratio: -2.57
• Price to Book (P/B): 0.31
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.26
• 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: ¥968.21
• Price Target Upside: 15.13% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

• Rating: 71 Outperform
• Price Target: ¥972.00 ▲(15.58%Upside)

Mazda Motor's strong financial performance and attractive valuation are the primary drivers of its score. The company shows robust revenue growth and stable margins, though cash flow challenges and rising debt may pose risks. The stock's valuation is compelling with a low P/E ratio and high dividend yield offering upside potential. Technical indicators suggest a neutral outlook, with the price hovering around moving averages.

Mazda Motor Business Overview & Revenue Model

Company Description

Mazda Motor Corporation is a Japanese multinational automaker headquartered in Fuchū, Aki District, Hiroshima Prefecture, Japan. The company specializes in the design, manufacturing, and sale of passenger cars and commercial vehicles under the Mazda brand. Known for its innovative engineering and stylish designs, Mazda produces a range of vehicles including sedans, SUVs, and sports cars. The company's commitment to driving pleasure and fuel efficiency is embodied in its Skyactiv technology and Kodo design philosophy.

How the Company Makes Money

Mazda Motor Corporation generates revenue primarily through the sale of its vehicles, which include a diverse lineup of passenger cars, SUVs, and commercial vehicles. The company’s revenue streams are mainly driven by vehicle sales, parts and accessories, and after-sales services. Additionally, Mazda engages in strategic partnerships and alliances with other automobile manufacturers and suppliers to optimize production costs and expand its market reach. The company also invests in research and development to innovate and enhance its product offerings, thus maintaining competitiveness in the global automotive market.

Mazda Motor Financial Statement Overview

Summary

Mazda Motor exhibits strong financial health with robust revenue growth, solid profitability margins, a well-managed balance sheet, and strong cash flows. The company's financial fundamentals are sound, positioning it well within the auto manufacturing sector, though net profit margins could be improved.

Income Statement

Mazda Motor has shown a solid performance in its income statement. The TTM (Trailing-Twelve-Months) gross profit margin stands at 21.5%, reflecting efficient cost management. The net profit margin is 2.7%, indicating profitability, though there's room for improvement. Revenue growth is strong, with a 29.1% increase from 2023 to 2024, showcasing robust demand and sales expansion. The EBIT margin is 4.0%, and the EBITDA margin is 6.4%, both indicating stable operational efficiency.

Balance Sheet

Mazda's balance sheet reflects a healthy financial position with a debt-to-equity ratio of 0.39, indicating moderate leverage. The return on equity (ROE) is 7.4%, demonstrating effective utilization of equity for generating profits. The equity ratio is 45.2%, indicating a strong equity base relative to total assets. The company maintains a solid cash position, enhancing financial stability.

Cash Flow

The cash flow analysis reveals a positive trend, with a free cash flow growth rate of -19.4% from 2023 to TTM. The operating cash flow to net income ratio is 2.65, suggesting strong cash generation relative to net income. The free cash flow to net income ratio is 1.84, highlighting effective cash management and ample liquidity to fund operations and investments.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
4.95T	4.83T	3.83T	3.12T	2.88T	3.43T
	Gross Profit
1.06T	1.04T	801.52B	687.70B	613.64B	746.64B
	EBIT
198.56B	250.50B	141.97B	104.23B	8.82B	43.60B
	EBITDA
314.67B	419.51B	247.92B	194.51B	98.58B	135.87B
	Net Income Common Stockholders
132.78B	207.70B	142.81B	81.56B	-31.65B	12.13B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.07T	922.56B	717.10B	740.39B	739.00B	568.96B
	Total Assets
3.97T	3.79T	3.26T	2.97T	2.92T	2.79T
	Total Debt
699.08B	575.79B	624.10B	677.46B	755.93B	619.87B
	Net Debt
-263.27B	-242.77B	-4.00B	8.06B	164.83B	97.91B
	Total Liabilities
2.16T	2.03T	1.80T	1.65T	1.72T	1.58T
	Stockholders Equity
1.79T	1.74T	1.44T	1.30T	1.18T	1.18T
Cash Flow		Free Cash Flow
244.65B	303.65B	38.30B	49.80B	34.02B	-87.52B
	Operating Cash Flow
352.36B	418.89B	137.42B	189.16B	120.06B	34.83B
	Investing Cash Flow
-161.01B	-179.89B	-99.43B	-136.24B	-78.86B	-127.58B
	Financing Cash Flow
95.92B	-84.70B	-89.86B	-86.41B	99.35B	-24.27B

Mazda Motor Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 841.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7261, the sentiment is Negative. The current price of 841 is below the 20-day moving average (MA) of 882.73, below the 50-day MA of 868.63, and below the 200-day MA of 986.71, indicating a bearish trend. The MACD of -6.49 indicates Positive momentum. The RSI at 43.71 is Neutral, neither overbought nor oversold. The STOCH value of 9.26 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7261.

Mazda Motor Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7270	75 Outperform	¥1.84T	5.51	12.64%	4.35%	-0.37%	-9.93%
7261	71 Outperform	¥529.72B	4.65	6.30%	6.10%	3.96%	-45.09%
7202	70 Outperform	$1.25T	9.95	9.10%	4.67%	-5.27%	-20.14%
7211	67 Neutral	$605.67B	14.48	4.11%	3.90%	-0.05%	-73.17%
Sector *	62 Neutral	$6.84B	11.41	2.80%	3.87%	2.70%	-24.58%
7272	61 Neutral	$1.03T	12.74	7.19%	4.28%	4.48%	-51.81%
7201	51 Neutral	$1.24T	12.25	-12.13%	4.40%	-0.41%	-269.88%

Mazda Motor Corporate Events

Mazda Motor Corporation Announces FY2025 Financial Results Amid Uncertain Forecast

Mazda Motor Corporation has released its consolidated financial results for the fiscal year ending March 31, 2025, showing significant changes in financial metrics compared to the previous year. The company has not yet established a financial forecast for the next fiscal year due to uncertainties in the business environment, such as the U.S. government’s tariff policies, which may impact its operations and stakeholders.