Mazda Motor (7261) AI Stock Analysis

• Market Cap: ¥573.93B
• Dividend Yield: 6.04%
• Average Volume (3M): 11.14M
• Price to Earnings (P/E): 5.0
• Beta (1Y): 1.42
• Revenue Growth: 3.96%
• EPS Growth: -45.09%
• Country: JP
• Employees: 48,783
• Sector: Consumer Cyclical
• Sector Strength: 66
• Industry: Auto - Manufacturers
• EPS (TTM): 87.65
• Shares Outstanding: 631,803,960
• 10 Day Avg. Volume: 15,725,950
• 30 Day Avg. Volume: 11,141,646
• PEG Ratio: -0.40
• Price to Book (P/B): 0.36
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.15
• 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: ¥867.40
• Price Target Upside: -4.81% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 5

• Rating: 81 Outperform
• Price Target: ¥1,146.00 ▲(25.77%Upside)

Mazda Motor's stock is highly attractive based on its solid financial performance, strong technical momentum, and appealing valuation. While financials show some volatility in profitability and rising debt, the stock's low P/E ratio and high dividend yield indicate undervaluation. Strong technical indicators further enhance the stock's attractiveness.

Mazda Motor Business Overview & Revenue Model

Company Description

Mazda Motor Corporation is a Japanese multinational automaker headquartered in Hiroshima, Japan. The company is primarily engaged in the design, production, and sale of passenger cars, commercial vehicles, and automotive parts. Mazda is known for its innovative engineering, particularly its SKYACTIV technology, which enhances vehicle performance and efficiency. The company operates globally, with a strong presence in North America, Europe, and Asia, offering a diverse range of vehicles from compact cars to SUVs.

How the Company Makes Money

Mazda Motor Corporation generates revenue through the sale of its vehicles and automotive parts. The company's primary revenue stream comes from the production and sale of passenger cars and commercial vehicles. Mazda also earns money from the sale of automotive parts and accessories, which are essential for vehicle maintenance and customization. Additionally, the company engages in strategic partnerships and collaborations with other automotive firms to enhance its product offerings and technology development. Key factors contributing to Mazda's earnings include its global distribution network, brand reputation, and continuous innovation in vehicle design and performance.

Mazda Motor Financial Statement Overview

Summary

Mazda Motor has shown strong revenue growth and stable gross margins, indicating robust top-line performance. However, profitability metrics exhibit volatility, and rising debt levels could pose future risks. Cash flow management needs improvement as cash generation has weakened.

Income Statement

Mazda Motor has demonstrated strong revenue growth with a notable increase from 2022 to 2025. The gross profit margin has been stable around 21%, reflecting efficient cost management. However, net profit margin has fluctuated, peaking in 2024 and dipping slightly in 2025. The EBIT and EBITDA margins show a similar trend, indicating operational profitability but also highlighting volatility in earnings.

Balance Sheet

The company maintains a healthy equity ratio, with stockholders' equity consistently around 45% of total assets, indicating financial stability. The debt-to-equity ratio has been manageable, but the increase in total debt from 2024 to 2025 warrants attention. Return on equity has been positive, showcasing the company's ability to generate profits from shareholder investments, though it has decreased slightly in the latest year.

Cash Flow

Operating cash flow has shown a decline from 2024 to 2025, which may impact liquidity. Free cash flow also decreased, driven by reduced operating cash flow and stable capital expenditures. The operating cash flow to net income ratio indicates sufficient cash generation relative to profits, yet the declining trend suggests potential future cash flow challenges.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.02T	4.83T	3.83T	3.12T	2.88T
Gross Profit	1.08T	1.04T	801.52B	687.70B	613.64B
EBITDA	283.42B	419.51B	247.92B	194.51B	98.58B
Net Income	114.08B	207.70B	142.81B	81.56B	-31.65B
Balance Sheet
Total Assets	4.09T	3.79T	3.26T	2.97T	2.92T
Cash, Cash Equivalents and Short-Term Investments	1.21T	922.56B	717.10B	740.39B	739.00B
Total Debt	723.00B	575.79B	624.10B	677.46B	755.93B
Total Liabilities	2.28T	2.03T	1.80T	1.65T	1.72T
Stockholders Equity	1.79T	1.74T	1.44T	1.30T	1.18T
Cash Flow
Free Cash Flow	202.04B	303.65B	38.30B	49.80B	34.02B
Operating Cash Flow	305.63B	418.89B	137.42B	189.16B	120.06B
Investing Cash Flow	-199.96B	-179.89B	-99.43B	-136.24B	-78.86B
Financing Cash Flow	90.07B	-84.70B	-89.86B	-86.41B	99.35B

Mazda Motor Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 911.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• 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 Positive. The current price of 911.2 is above the 20-day moving average (MA) of 895.47, above the 50-day MA of 879.33, and below the 200-day MA of 945.33, indicating a neutral trend. The MACD of 18.02 indicates Negative momentum. The RSI at 54.18 is Neutral, neither overbought nor oversold. The STOCH value of 39.98 is Neutral, 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
7261	81 Outperform	¥573.93B	5.03	6.30%	6.04%	3.96%	-45.09%
7270	76 Outperform	$2.03T	6.07	12.64%	4.06%	-0.37%	-10.12%
7272	70 Outperform	$1.04T	12.93	7.19%	4.57%	4.48%	-51.81%
7202	68 Neutral	$1.33T	10.21	9.10%	4.76%	-5.66%	-28.73%
7211	66 Neutral	$582.93B	46.90	1.30%	3.69%	-0.42%	-90.69%
Sector *	57 Neutral	HK$25.10B	4.09	-2.03%	5.85%	-0.24%	-68.05%
7201	45 Neutral	$1.11T	12.25	-15.23%	8.23%	-3.33%	-356.10%

Mazda Motor Corporate Events

Mazda Announces Treasury Stock Disposal for Director Remuneration

Mazda Motor Corporation has announced the disposal of its treasury stock as part of a remuneration plan for its directors and executive officers. This initiative aims to align the interests of the directors with those of the shareholders by tying compensation to stock performance, thereby encouraging long-term corporate value enhancement. The plan involves the allocation of restricted stock and performance share units to eligible directors and officers, with a total of 359,700 shares being distributed. This strategic move is expected to foster a stronger connection between the company’s leadership and its shareholders, potentially impacting Mazda’s market positioning positively.

The most recent analyst rating on (JP:7261) stock is a Hold with a Yen1750.00 price target. To see the full list of analyst forecasts on Mazda Motor stock, see the JP:7261 Stock Forecast page.

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.