Imasen Electric Industrial Co., Ltd. (7266) AI Stock Analysis

• Market Cap: ¥22.52B
• Dividend Yield: 2.7%
• Average Volume (3M): 59.98K
• Price to Earnings (P/E): 11.4
• Beta (1Y): 0.65
• Revenue Growth: -8.63%
• EPS Growth: -55.68%
• Country: JP
• Employees: 3,177
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 28.80
• Shares Outstanding: 22,775,352
• 10 Day Avg. Volume: 31,060
• 30 Day Avg. Volume: 59,980
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.26
• Price to Sales (P/S): 0.15
• P/FCF Ratio: 19.98
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: ¥1,193.00 ▲(37.92% Upside)
• Action: Upgraded Date: 02/09/26
• Date: Action: Upgraded 02/09/26

The score is driven primarily by solid financial stability (very low leverage) and a return to profitability, supported by constructive technical momentum and an attractive valuation (low P/E with a moderate dividend). Offsetting these positives are thin margins, slightly declining TTM revenue, and weaker cash generation signaled by negative TTM free cash flow and weak cash conversion.

Positive Factors

Balance Sheet Strength

Extremely low leverage and reduced total debt provide durable financial flexibility. This conservatism supports sustained capex or R&D funding, cushions downturns in vehicle cycles, and lowers refinancing risk—improving the firm’s ability to execute strategy over the next several quarters.

Return to Profitability

A credible return to net profitability signals operational stabilization and that restructuring or cost measures took hold. Sustained positive earnings create scope for reinvestment and dividend support, and set a base from which margin improvement or selective growth investments can compound.

OEM-focused, recurring revenue model

A business model centered on long-term OEM contracts and development-linked supply yields recurring revenues tied to vehicle programs. This entrenched B2B relationship structure provides predictable order visibility across model lifecycles and supports steady manufacturing volumes.

Negative Factors

Thin Profit Margins

Very narrow margins leave limited room to absorb raw-material, logistics, or pricing pressure common in auto supply chains. Persistently thin profitability constrains internal cash available for capex or R&D and reduces returns on invested capital over ensuing quarters.

Negative Free Cash Flow

Negative FCF despite positive operating profit indicates higher investment needs or working-capital strain. Continued weak cash conversion undermines the quality of earnings, limits debt repayment or reinvestment capacity, and raises sensitivity to funding or cyclical downturns.

Soft Revenue Trend

Declining top-line reduces economies of scale and weakens negotiating leverage with suppliers and OEMs. Absent clear new program wins, revenue erosion can perpetuate margin pressure and limit ability to scale fixed-cost absorption over the medium term.

Imasen Electric Industrial Co., Ltd. Business Overview & Revenue Model

Company Description

Imasen Electric Industrial Co., Ltd. (7266) is a Japanese company specializing in the development, manufacture, and sale of electrical equipment and components. The company operates primarily in sectors such as automotive, industrial machinery, and consumer electronics. Its core products include automotive wiring harnesses, electric connectors, and various electronic components that cater to both domestic and international markets.

How the Company Makes Money

Imasen Electric Industrial Co., Ltd. generates revenue through the production and sale of its electrical components and systems, primarily focusing on the automotive sector where demand for wiring harnesses and connectors is significant due to the growing automotive industry. The company also earns income from supplying electronic components for industrial machinery and consumer electronics. Key revenue streams include direct sales to automotive manufacturers, partnerships with major industrial clients, and contracts for large-scale projects. Additionally, Imasen benefits from strategic alliances with other technology firms, enhancing its product offerings and market reach, which in turn contributes to its overall earnings.

Imasen Electric Industrial Co., Ltd. Financial Statement Overview

Summary

Financially stable with a strong, low-leverage balance sheet (debt-to-equity ~0.04) and a credible return to profitability (TTM net income ~2.0B). However, profitability remains thin (TTM net margin ~2.3%), TTM revenue is slightly down (~-2.7%), and cash quality is a key weakness with negative TTM free cash flow (~-0.8B) and weak cash conversion.

Income Statement

Profitability has improved materially versus the loss-making period in FY2021–FY2024, with TTM (Trailing-Twelve-Months) net income of ~2.0B and positive operating profit. Margins are still modest for the industry (TTM gross margin ~9.7% and net margin ~2.3%), and revenue is slightly down in TTM (about -2.7% growth), pointing to limited top-line momentum. Overall, the income statement shows a credible turnaround, but with thin profitability and soft recent growth.

Balance Sheet

The balance sheet is a clear strength: leverage is low and improving, with total debt down sharply from prior years and a very low debt-to-equity level in TTM (about 0.04). Equity remains large and stable relative to assets, providing financial flexibility and downside protection. Return on equity is positive again in TTM but still low (around 2.4%), implying the company is conservatively financed but not yet generating strong returns on its capital base.

Cash Flow

Cash generation is mixed. Operating cash flow is positive in TTM (~2.5B) and improved from weaker years, but free cash flow turned negative in TTM (about -0.8B) after being positive in FY2025, suggesting higher investment needs and/or working-capital pressure. Cash conversion is also a concern: TTM operating cash flow is low relative to earnings and free cash flow is negative versus net income, which reduces the quality of reported profitability.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	87.90B	94.34B	99.73B	99.73B	85.16B	87.10B
Gross Profit	8.49B	7.46B	7.64B	6.29B	6.95B	6.01B
EBITDA	6.37B	6.67B	3.17B	3.19B	3.62B	3.17B
Net Income	2.03B	2.08B	-71.00M	-2.05B	-1.21B	-3.08B
Balance Sheet
Total Assets	77.81B	78.33B	81.18B	82.90B	80.16B	82.28B
Cash, Cash Equivalents and Short-Term Investments	15.70B	15.23B	12.29B	17.28B	19.71B	20.07B
Total Debt	2.42B	3.56B	6.86B	9.95B	8.62B	8.86B
Total Liabilities	23.43B	25.29B	29.91B	34.02B	30.38B	32.69B
Stockholders Equity	54.02B	52.70B	50.85B	48.51B	49.43B	49.26B
Cash Flow
Free Cash Flow	-755.00M	690.00M	-963.00M	-2.43B	-411.00M	462.00M
Operating Cash Flow	2.46B	2.77B	958.00M	-787.00M	3.50B	3.04B
Investing Cash Flow	-1.51B	4.50B	-1.21B	-2.05B	-3.46B	-2.72B
Financing Cash Flow	-1.32B	-4.99B	-5.00B	-30.00M	-1.33B	4.60B

Imasen Electric Industrial Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 865.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7266, the sentiment is Positive. The current price of 865 is below the 20-day moving average (MA) of 975.65, below the 50-day MA of 939.12, and above the 200-day MA of 787.17, indicating a bullish trend. The MACD of 37.81 indicates Negative momentum. The RSI at 75.00 is Negative, neither overbought nor oversold. The STOCH value of 78.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7266.

Imasen Electric Industrial Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6382	82 Outperform	¥24.16B	9.48	―	5.56%	3.55%	27.86%
7299	79 Outperform	¥22.30B	9.59	―	2.86%	19.42%	74.63%
7266	71 Outperform	¥22.52B	11.42	―	2.70%	-8.63%	-55.68%
7273	62 Neutral	¥20.84B	4.87	―	4.58%	34.99%	468.97%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
6470	51 Neutral	¥32.17B	130.91	―	2.45%	4.93%	―
6584	47 Neutral	¥32.09B	25.56	―	3.33%	-3.91%	-36.53%