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

• Market Cap: ¥18.75B
• Dividend Yield: 2.7%
• Average Volume (3M): 59.98K
• Price to Earnings (P/E): 8.0
• Beta (1Y): 0.75
• 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: ¥1,149.00 ▲(32.83% 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

Low Leverage

A very low debt-to-equity ratio (~0.04) provides durable financial flexibility and downside protection. This balance-sheet strength supports investment in tooling, EMV programs and R&D, helps absorb cyclical auto demand swings, and reduces refinancing risk over the next several quarters.

Return to Profitability

Moving from prior losses to positive TTM net income and operating profit re-establishes an earnings base, improving supplier credibility and access to capital. A sustained profitable profile allows reinvestment in product development and supports long-term relationships with OEM customers.

OEM-focused B2B Model

A business model centered on series production and development-linked OEM contracts yields recurring, program-level revenue and customer lock-in. Participation in platform design and long production lifecycles supports predictable volumes and stable industrial demand over multiple quarters.

Negative Factors

Thin Margins

Low gross and net margins limit the company's ability to absorb raw-material or logistics cost shocks and reduce headroom for margin expansion. Over time, thin margins constrain free cash generation and the resources available for capex, R&D, or cushioning OEM price pressure.

Negative Free Cash Flow

Negative free cash flow despite positive operating cash flow indicates higher capex or working-capital strain. Persistent negative FCF erodes cash buffers, undermines funding flexibility for new model investments, and could force trade-offs between dividends, capex and debt if sustained.

Soft Revenue Momentum

A declining top line reduces economies of scale and raises dependence on a smaller set of programs. Continued revenue weakness can pressure margins and weaken negotiating leverage with OEMs, making it harder to restore stronger, more stable earnings growth 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	10.09B	9.16B	6.05B	6.47B	5.85B
EBITDA	5.32B	3.40B	2.97B	2.09B	3.44B	3.09B
Net Income	2.03B	2.08B	-70.00M	-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	2.92B	6.86B	9.95B	8.62B	8.86B
Total Liabilities	23.43B	25.29B	29.91B	34.01B	30.38B	32.68B
Stockholders Equity	54.02B	52.70B	50.85B	48.51B	49.44B	49.27B
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: Neutral
• Last Price: 865.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7266, the sentiment is Neutral. The current price of 865 is below the 20-day moving average (MA) of 974.90, below the 50-day MA of 947.82, and above the 200-day MA of 807.63, indicating a neutral trend. The MACD of -13.93 indicates Positive momentum. The RSI at 39.89 is Neutral, neither overbought nor oversold. The STOCH value of 16.81 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
7244	81 Outperform	¥46.39B	7.97	8.46%	2.64%	-6.35%	18.49%
6923	78 Outperform	¥284.51B	8.56	6.37%	2.88%	4.86%	10.95%
7276	76 Outperform	¥706.48B	14.05	7.20%	2.41%	-0.73%	88.36%
7282	75 Outperform	¥487.78B	7.76	8.58%	2.62%	1.44%	-0.92%
7266	71 Outperform	¥18.75B	8.04	―	2.70%	-8.63%	-55.68%
7280	70 Outperform	¥56.34B	14.59	―	0.99%	-0.83%	-27.20%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%