Muro Corporation (7264) AI Stock Analysis

• Market Cap: ¥7.04B
• Dividend Yield: 3.95%
• Average Volume (3M): 1.31K
• Price to Earnings (P/E): 14.5
• Beta (1Y): 0.51
• Revenue Growth: -4.51%
• EPS Growth: -63.09%
• Country: JP
• Employees: 1,145
• Sector: Consumer Cyclical
• Sector Strength: 66
• Industry: Auto - Parts
• EPS (TTM): -24.08
• Shares Outstanding: 6,546,200
• 10 Day Avg. Volume: 1,310
• 30 Day Avg. Volume: 1,306
• PEG Ratio: -0.40
• Price to Book (P/B): 0.31
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥1,285.00
• Price Target Upside: 10.30% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 70 Outperform
• Price Target: ¥1,266.00 ▲(8.67%Upside)

Muro Corporation's stock score is primarily driven by its strong balance sheet and reasonable valuation. However, concerns about profitability and cash flow negatively impact the financial performance score. Technical analysis suggests moderate upward momentum, supporting the overall score.

Muro Corporation Business Overview & Revenue Model

Company Description

Muro Corporation manufactures and sells metal and resin-related parts in Japan. The company provides sprocket, cam pilot, gear ring, gear sun, angle sensor, gear sprocket, gear pulsar, and insert gear products. It also offers forged gear, rotor magnet end plate, adapter, and sprocket drive related products. The company serves vehicles, automobiles, electric bicycles, and industrial engine sectors. The company was formerly known as Muro-Kinzoku Kogyo Co, LTD. and changed its name to Muro Corporation in March 1990. The company was founded in 1953 and is headquartered in Tochigi, Japan.

How the Company Makes Money

Muro Corporation generates revenue through the sale of its automotive parts and components to vehicle manufacturers and suppliers worldwide. The company's key revenue streams include the production and distribution of precision metal and plastic parts, which are essential for the assembly and functionality of vehicles. Muro Corporation also benefits from strategic partnerships and collaborations with major automotive companies, which help to secure long-term contracts and stable demand for its products. Additionally, the company's focus on research and development enables it to maintain a competitive edge by introducing innovative solutions that cater to the latest automotive industry trends and regulations.

Muro Corporation Financial Statement Overview

Summary

Muro Corporation has a stable financial position with a strong balance sheet marked by low debt levels and a solid equity ratio. However, the company faces challenges in profitability as indicated by a declining net profit margin and negative free cash flow in 2025.

Income Statement

Muro Corporation has shown a mixed performance in its income statement. The gross profit margin for 2025 is approximately 17.33%, indicating adequate cost management. However, the net profit margin fell to 2.15% in 2025 from 5.57% in 2024, suggesting a decline in profitability. Revenue growth is inconsistent, with a decrease in 2025 compared to the previous year's revenue. EBIT and EBITDA margins also show a downtrend, reflecting higher operating expenses relative to revenue.

Balance Sheet

The balance sheet of Muro Corporation is relatively strong. The debt-to-equity ratio is low, suggesting conservative leverage usage. Return on equity decreased to 2.20% in 2025 from 6.07% in 2024, which is a concern. However, the equity ratio remains stable at around 72.39%, indicating solid capital structure and financial stability.

Cash Flow

Cash flow analysis indicates challenges. Free cash flow turned negative in 2025, down from a positive free cash flow in 2024. The operating cash flow to net income ratio is 1.39, reflecting efficient cash generation, but declining free cash flow growth is a concern. The free cash flow to net income ratio is negative, highlighting cash flow pressures.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	22.59B	23.66B	21.84B	20.53B	18.97B
Gross Profit	3.91B	4.55B	3.36B	4.01B	3.41B
EBITDA	2.38B	3.46B	2.21B	3.37B	2.90B
Net Income	486.28M	1.32B	291.52M	1.35B	974.70M
Balance Sheet
Total Assets	30.49B	32.43B	28.05B	27.36B	26.75B
Cash, Cash Equivalents and Short-Term Investments	8.59B	9.68B	7.23B	6.95B	8.08B
Total Debt	2.39B	2.72B	1.92B	1.47B	2.64B
Total Liabilities	8.42B	10.75B	8.32B	8.05B	8.96B
Stockholders Equity	22.07B	21.68B	19.74B	19.31B	17.80B
Cash Flow
Free Cash Flow	-525.50M	1.39B	-598.14M	-91.94M	579.13M
Operating Cash Flow	677.70M	3.88B	1.06B	1.74B	2.78B
Investing Cash Flow	-1.39B	-2.17B	-1.48B	-1.34B	-1.74B
Financing Cash Flow	-705.31M	394.22M	159.06M	-1.55B	1.29B

Muro Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1165.00
• 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:7264, the sentiment is Positive. The current price of 1165 is above the 20-day moving average (MA) of 1150.05, above the 50-day MA of 1146.34, and below the 200-day MA of 1169.62, indicating a neutral trend. The MACD of 3.15 indicates Negative momentum. The RSI at 60.14 is Neutral, neither overbought nor oversold. The STOCH value of 78.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7264.

Muro Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7254	78 Outperform	¥10.48B	3.55		2.38%	2.17%	66.19%
7264	70 Outperform	¥7.04B	14.48		3.95%	-4.51%	-63.09%
7235	70 Outperform	¥8.82B	6.19		6.95%	0.69%	7.21%
Sector *	63 Neutral	$16.85B	11.25	-7.01%	2.93%	1.72%	-24.85%
7291	62 Neutral	¥6.79B	120.02		4.22%	-2.95%	-97.72%
7297	58 Neutral	¥5.99B	36.06		3.53%	-2.71%	-256.29%
7277	56 Neutral	¥8.68B	―		2.61%	-3.96%	-462.50%