Koito Manufacturing Co (7276) AI Stock Analysis

• Market Cap: $544.76B
• Dividend Yield: 3.05%
• Average Volume (3M): 1.06M
• Price to Earnings (P/E): 11.3
• Beta (1Y): 0.63
• Revenue Growth: -3.53%
• EPS Growth: 21.38%
• Country: JP
• Employees: 23,807
• Sector: Consumer Cyclical
• Sector Strength: 59
• Industry: Auto - Parts
• EPS (TTM): 58.75
• Shares Outstanding: 307,833,160
• 10 Day Avg. Volume: 1,326,040
• 30 Day Avg. Volume: 1,056,593
• PEG Ratio: -1.20
• Price to Book (P/B): 1.28
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 40.33
• 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: $1,743.95
• Price Target Upside: -1.28% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 3

• Rating: 75 Outperform
• Price Target: ¥1,991.00 ▲(12.71%Upside)

Koito Manufacturing Co's stock is well-supported by strong financial performance and attractive valuation metrics. While short-term technical indicators are positive, long-term signals are less favorable. The stock's overall value proposition is bolstered by its low P/E ratio and solid dividend yield.

Koito Manufacturing Co Business Overview & Revenue Model

Company Description

Koito Manufacturing Co., Ltd. manufactures and markets automotive lighting equipment, electrical equipment, and other products in Japan, North America, China, rest of Asia, Europe, and internationally. The company provides automotive lighting products and accessories, including LED, discharge, and halogen headlamps, as well as fog lamps; and signaling lamps/other lighting products comprising LED rear combination, side turn signal, and high-mounted stop lamps. It also offers aircraft lighting and other equipment, such as interior and exterior lights, and caution warning panels, as well as electrical, hydraulic, and mechanical equipment; and ship lights/special products consisting of LED marine lamps and destination indicators. In addition, it manufactures and markets electronic components, electrical devices, telecommunications equipment, precision machinery, miniature bulbs, electrical equipment, resin metal molds, railroad car control equipment, and road traffic signals and traffic control systems, as well as seats for railroad cars, etc. Further, the company provides transportation and logistics, and insurance agency services; and maintains traffic signals and safety equipment. Koito Manufacturing Co., Ltd. was founded in 1915 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Koito Manufacturing Co. makes money primarily through the production and sale of automotive lighting equipment. The company's revenue streams are largely driven by contracts with major automotive manufacturers, who integrate Koito's lighting solutions into their vehicles. In addition to supplying OEMs (Original Equipment Manufacturers), Koito also generates income from the aftermarket segment, providing replacement parts and components. The company's growth and profitability are bolstered by strategic partnerships with car manufacturers and ongoing investments in technological advancements, which enhance their product offerings and appeal to a broad range of customers in the automotive industry.

Koito Manufacturing Co Financial Statement Overview

Summary

Koito Manufacturing Co demonstrates solid financial health with consistent revenue growth, a strong balance sheet, and stable cash flows. While there is room for operational efficiency improvements, the company's low debt levels and strong equity position enhance its financial robustness.

Income Statement

Koito Manufacturing Co has demonstrated consistent revenue growth, with a significant rebound in revenue and profitability in recent years. Gross profit and net profit margins are relatively healthy, although variations in EBIT and EBITDA margins suggest room for efficiency improvements.

Balance Sheet

The company maintains a strong equity position with a low debt-to-equity ratio, indicating low financial leverage and a solid balance sheet. The equity ratio is robust, reflecting a stable asset base and strong shareholder equity.

Cash Flow

Cash flow generation is stable with strong operating cash flow relative to net income. Free cash flow has been positive, despite some fluctuations. The free cash flow to net income ratio indicates effective cash management, though free cash flow growth has been uneven.

Breakdown
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
916.71B	950.29B	864.72B	760.72B	706.38B
	Gross Profit
96.67B	106.67B	95.83B	96.05B	97.24B
	EBIT
44.87B	55.99B	46.85B	53.43B	56.71B
	EBITDA
108.89B	104.04B	88.17B	89.25B	94.67B
	Net Income Common Stockholders
46.24B	40.88B	29.66B	38.34B	37.61B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
276.15B	302.87B	315.04B	323.94B	303.89B
	Total Assets
889.95B	965.60B	905.91B	855.24B	782.16B
	Total Debt
5.73B	14.29B	22.65B	25.02B	20.95B
	Net Debt
-265.12B	-288.58B	-292.39B	-298.92B	-282.94B
	Total Liabilities
210.08B	246.33B	235.41B	227.92B	212.73B
	Stockholders Equity
627.20B	671.93B	628.83B	591.16B	537.83B
Cash Flow		Free Cash Flow
39.16B	59.05B	19.93B	36.77B	41.43B
	Operating Cash Flow
88.36B	96.37B	59.76B	65.71B	74.96B
	Investing Cash Flow
-40.99B	-50.16B	-71.54B	-52.15B	-1.09B
	Financing Cash Flow
-78.35B	-59.68B	-13.28B	-8.49B	-18.32B

Koito Manufacturing Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1766.50
• 50DMA: Positive
• 100DMA: Negative
• 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:7276, the sentiment is Positive. The current price of 1766.5 is above the 20-day moving average (MA) of 1765.80, above the 50-day MA of 1744.54, and below the 200-day MA of 1907.50, indicating a neutral trend. The MACD of 2.87 indicates Negative momentum. The RSI at 52.95 is Neutral, neither overbought nor oversold. The STOCH value of 28.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7276.

Koito Manufacturing Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7276	75 Outperform	$544.76B	11.31	7.02%	3.05%	-3.53%	21.38%
Sector *	63 Neutral	$6.98B	11.41	2.80%	4.24%	2.68%	-24.94%
ASEKF		$9.03B	11.15	5.15%	0.03%	―	―
DNZOF		$36.14B	14.45	7.87%	3.11%	―	―
STAEF		$2.88B	16.17	6.26%	0.01%	―	―
6995	81 Outperform	¥184.93B	6.53		4.60%	-0.95%	21.31%
7313	67 Neutral	¥198.20B	23.51		5.09%	3.58%	-17.59%

Koito Manufacturing Co Corporate Events

Koito Manufacturing Announces Share Buyback Plan to Boost Shareholder Returns

Koito Manufacturing Co., Ltd. has announced a decision to acquire its own shares, aiming to enhance corporate value and increase shareholder returns. The company plans to acquire up to 37 million shares, equivalent to 13.04% of its total issued shares, with a maximum expenditure of ¥50 billion, as part of its medium-term management plan to provide substantial shareholder returns.

The most recent analyst rating on (JP:7276) stock is a Sell with a Yen1800.00 price target. To see the full list of analyst forecasts on Koito Manufacturing Co stock, see the JP:7276 Stock Forecast page.

Koito Manufacturing Maintains Independence Amid Toyota Affiliation

Koito Manufacturing Co., Ltd. has announced its relationship with Toyota Motor Corporation, which holds a 22.7% voting stake in the company. While Toyota is a significant shareholder, Koito remains independent in its operations, with no business restrictions imposed by Toyota. Sales to Toyota account for 13.0% of Koito’s total sales, indicating a notable impact of Toyota’s automobile sales trends on Koito’s financial performance.

Koito Manufacturing Announces Leadership Changes to Strengthen Management

Koito Manufacturing Co., Ltd. has announced a series of leadership changes, including the appointment of Jun Toyota as the new Executive Vice President, to strengthen its management system amid challenging business conditions. These changes, subject to shareholder approval in June 2025, aim to enhance the company’s operational efficiency and market competitiveness.

Koito Manufacturing Maintains Year-End Dividend, Increases Full-Year Payout

Koito Manufacturing Co., Ltd. announced its decision to maintain a year-end dividend of ¥28 per share, consistent with the previous fiscal year and the most recent forecast. The full-year dividend is set to increase to ¥56 per share, reflecting a commitment to stable shareholder returns and sustainable growth, pending approval at the upcoming shareholders’ meeting.

Koito Manufacturing Introduces Restricted Stock Plan for Directors

Koito Manufacturing Co., Ltd. announced the introduction of a restricted stock remuneration plan for its directors, excluding outside directors, to align their interests with shareholders and enhance corporate value. The plan, subject to shareholder approval, aims to motivate directors by allowing them to share in the benefits and risks of stock price movements, with a proposed annual remuneration limit of 500 million yen for eligible directors.

Koito Manufacturing Exceeds Profit Forecasts Amid Strategic Gains

Koito Manufacturing Co., Ltd. reported its financial results for the fiscal year ending March 31, 2025, revealing a slight increase in consolidated net sales and significant growth in profit attributable to owners of the parent, driven by extraordinary gains. Despite challenges in parts supply affecting non-consolidated net sales, the company exceeded its profit forecasts due to strategic cost management and the timing of R&D expenses.

Koito Manufacturing Reports Decline in Fiscal 2024 Earnings

Koito Manufacturing Co., Ltd. reported a decline in its consolidated earnings for fiscal 2024, with net sales decreasing by 3.5% and operating profit dropping by 19.9%. Despite these declines, the company saw a 13.1% increase in profit attributable to owners of the parent. The company also announced a forecasted decrease in net sales and profits for fiscal 2025, indicating potential challenges ahead. The inclusion of Cepton Technologies, Inc. as a subsidiary and changes in accounting policies were noted, which may impact future financial results.

Koito Manufacturing to Liquidate Fuzhou Koito Amid Market Shifts

Koito Manufacturing Co., Ltd. has announced the dissolution and liquidation of its subsidiary, Fuzhou Koito Automotive Lamp Co., Ltd., due to declining sales and profits in the Chinese market, exacerbated by the rise of electric vehicles and changes in market dynamics post-COVID-19. This strategic move aims to optimize production capacity and streamline resources, with future operations in China to be conducted by Guangzhou Koito and Hubei Koito, focusing on increasing orders and improving business performance while minimizing the impact on employees and the local community.