Koito Manufacturing Co (7276) AI Stock Analysis

• Market Cap: ¥659.07B
• Dividend Yield: 2.4%
• Average Volume (3M): 804.50K
• Price to Earnings (P/E): 14.2
• Beta (1Y): 0.58
• Revenue Growth: -0.73%
• EPS Growth: 88.36%
• Country: JP
• Employees: 23,807
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 6.35
• Shares Outstanding: 307,833,160
• 10 Day Avg. Volume: 729,430
• 30 Day Avg. Volume: 804,500
• PEG Ratio: 0.60
• Price to Book (P/B): 0.87
• Price to Sales (P/S): 0.59
• P/FCF Ratio: 13.55
• 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: ¥1,924.93
• Price Target Upside: -17.58% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: ¥2,614.00 ▲(11.92% Upside)

Koito Manufacturing Co's strong financial performance and positive technical indicators are the primary drivers of its stock score. The company's robust balance sheet and consistent revenue growth underpin its financial health, while technical analysis suggests bullish momentum. The valuation is reasonable, with a fair P/E ratio and an attractive dividend yield. The absence of earnings call data and corporate events does not impact the overall assessment.

Positive Factors

Strong Financial Health

Koito's robust balance sheet and low leverage indicate financial stability, allowing the company to invest in growth opportunities and withstand economic fluctuations.

Innovation and R&D Focus

Koito's commitment to R&D ensures it stays at the forefront of lighting technology, meeting evolving customer needs and maintaining a competitive edge in the automotive industry.

Strategic Partnerships

Long-term partnerships with major automakers provide Koito with a reliable revenue stream and strengthen its market position in the automotive lighting sector.

Negative Factors

Decline in Free Cash Flow

A decline in free cash flow generation can limit Koito's ability to fund new projects or return capital to shareholders, potentially impacting long-term growth.

Revenue Growth Concerns

Slower revenue growth compared to previous periods may indicate challenges in expanding market share or adapting to industry changes, impacting future profitability.

Moderate Free Cash Flow to Net Income

A moderate free cash flow to net income ratio suggests that while cash generation is stable, there may be constraints on liquidity, affecting financial flexibility.

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 generates revenue primarily through the sale of automotive lighting products and systems to major automotive manufacturers, including original equipment manufacturers (OEMs) and aftermarket suppliers. The company has established long-term partnerships with leading automakers, ensuring a steady demand for its products. Key revenue streams include the production and sale of headlights, taillights, and other lighting components, which are critical for vehicle safety and compliance with regulatory standards. Additionally, Koito benefits from ongoing trends in the automotive industry, such as the increasing adoption of electric vehicles and advancements in lighting technology, which drive demand for innovative lighting solutions. The company's strong focus on research and development allows it to remain competitive by introducing new products and technologies that meet evolving customer needs.

Koito Manufacturing Co Financial Statement Overview

Summary

Koito Manufacturing Co demonstrates financial stability with strong profitability and a solid balance sheet. The company maintains efficient operations and a low-risk financial structure, despite challenges in revenue growth.

Income Statement

Koito Manufacturing Co's income statement shows a stable gross profit margin around 10.5% in the TTM, with a slight decline in revenue growth. The net profit margin is consistent at approximately 5%, indicating steady profitability. However, the negative revenue growth rate in the TTM suggests a potential challenge in maintaining revenue levels.

Balance Sheet

The balance sheet is strong with a low debt-to-equity ratio of 0.009, indicating minimal leverage and financial risk. The return on equity is healthy at around 7.2% in the TTM, reflecting efficient use of equity. The equity ratio is robust, suggesting a solid capital structure.

Cash Flow

The cash flow statement reveals a positive free cash flow growth rate of 14% in the TTM, indicating improved cash generation. The operating cash flow to net income ratio is stable, suggesting consistent cash flow relative to earnings. However, the free cash flow to net income ratio is moderate, indicating room for improvement in cash conversion.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	919.49B	916.71B	950.29B	864.72B	760.72B	706.38B
Gross Profit	102.79B	96.67B	106.67B	95.83B	96.05B	97.24B
EBITDA	91.46B	108.89B	104.04B	91.32B	97.76B	97.97B
Net Income	46.80B	46.24B	40.88B	29.66B	38.34B	37.61B
Balance Sheet
Total Assets	899.35B	889.95B	965.60B	905.91B	855.24B	782.16B
Cash, Cash Equivalents and Short-Term Investments	270.10B	276.15B	302.87B	315.04B	323.94B	303.89B
Total Debt	7.35B	5.73B	14.29B	22.65B	25.02B	20.95B
Total Liabilities	214.20B	210.09B	246.33B	235.41B	227.92B	212.73B
Stockholders Equity	631.25B	627.20B	671.93B	628.83B	591.16B	537.83B
Cash Flow
Free Cash Flow	40.30B	40.08B	59.26B	19.93B	36.77B	41.43B
Operating Cash Flow	94.80B	88.36B	96.37B	59.76B	65.71B	74.96B
Investing Cash Flow	-14.68B	-40.99B	-50.16B	-71.54B	-52.15B	-1.09B
Financing Cash Flow	-66.08B	-78.35B	-59.68B	-13.28B	-8.49B	-18.32B

Koito Manufacturing Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2335.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 2335.5 is above the 20-day moving average (MA) of 2273.13, above the 50-day MA of 2280.02, and above the 200-day MA of 1979.99, indicating a bullish trend. The MACD of 12.16 indicates Negative momentum. The RSI at 59.52 is Neutral, neither overbought nor oversold. The STOCH value of 88.73 is Negative, 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
6995	81 Outperform	¥270.97B	7.48	―	3.34%	1.36%	139.77%
6923	78 Outperform	¥402.32B	14.93	6.37%	2.89%	4.86%	10.95%
7259	77 Outperform	¥2.28T	13.50	8.34%	1.98%	4.33%	524.86%
7276	76 Outperform	¥659.07B	14.22	7.20%	2.40%	-0.73%	88.36%
6902	72 Outperform	¥5.89T	16.82	6.98%	2.99%	2.41%	11.03%
7313	65 Neutral	¥215.57B	40.52	―	4.81%	-3.71%	-51.81%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Koito Manufacturing Co Corporate Events

Koito Manufacturing Announces Share Buyback Progress

Koito Manufacturing Co., Ltd. announced the acquisition of 32,200 of its own common shares through market purchases on the Tokyo Stock Exchange, with an aggregate acquisition cost of ¥73,097,200 during November 2025. This move is part of a larger plan approved by the Board of Directors to acquire up to 37 million shares, representing 13.04% of the total issued shares, with a maximum budget of ¥50 billion, aiming to enhance shareholder value and optimize capital structure.

Koito Sells European Subsidiary to Strengthen Revenue Base

Koito Manufacturing Co., Ltd. announced the sale of its subsidiary, Koito Europe Limited, to Shapers’ Group Limited as part of its strategy to streamline operations and strengthen its revenue base. This move is expected to enhance Koito’s market positioning by allowing the subsidiary to grow under a local manufacturer with strong ties to local OEMs, despite the declining market share of Japanese automakers in the UK.

Koito Manufacturing Completes Major Share Buyback

Koito Manufacturing Co., Ltd. has completed a significant acquisition of its own shares, purchasing 10 million common shares for approximately ¥23.4 billion between October 1 and October 31, 2025. This move is part of a broader strategy approved by the Board of Directors to acquire up to 37 million shares, aiming to optimize capital structure and enhance shareholder value.

Koito Completes Major Share Buyback Initiative

Koito Manufacturing Co., Ltd. has completed the acquisition of 10 million of its own shares for a total cost of 23.415 billion yen through the Tokyo Stock Exchange’s Off-Auction Own Share Repurchase Trading System. This move is part of a larger initiative approved by the Board of Directors to acquire up to 37 million shares, reflecting a strategic effort to enhance shareholder value and optimize capital structure.

Koito Manufacturing Announces Share Repurchase Plan

Koito Manufacturing Co., Ltd. has announced a plan to repurchase its own shares, aiming to increase corporate value and enhance shareholder returns. The company will acquire 10 million common shares at a total cost of 23.415 billion yen through the Tokyo Stock Exchange’s off-auction trading system, with the transaction set to occur on October 29, 2025.

Koito Manufacturing Revises Medium-Term Plan Amid Market Challenges

Koito Manufacturing Co., Ltd. has revised its 1st Medium-Term Management Plan due to significant changes in the business environment, including certification issues in Japan, U.S. tariff policies, and rising interest rates affecting sales in Asia. The company anticipates lower net sales and operating profits than initially planned, driven by reduced global automobile production and a loss of market share in China due to the shift towards electric vehicles. Despite these challenges, Koito is focusing on improving efficiency and streamlining operations to enhance profitability and strengthen its earnings base over the medium to long term.

Koito Manufacturing Reports Improved Profits in H1 Fiscal 2025

Koito Manufacturing Co., Ltd. reported its consolidated earnings for the first half of fiscal 2025, showing a slight increase in net sales and significant improvements in operating and ordinary profits compared to the previous year. The company’s financial position remains strong with a high equity ratio, and it has maintained its dividend forecast, indicating stability and potential growth opportunities for stakeholders.

Koito Manufacturing Exceeds Forecasts and Raises Full-Year Outlook

Koito Manufacturing Co., Ltd. reported better-than-expected financial results for the first half of fiscal 2025, driven by increased global automobile production and effective operational improvements. As a result, the company has revised its full-year forecast upwards, anticipating higher net sales and profits, reflecting its strengthened market position and positive industry trends.

Koito Manufacturing Maintains Stable Dividend Amid Growth Focus

Koito Manufacturing Co., Ltd. has announced a dividend proposal following a board meeting on October 28, 2025, maintaining a dividend of ¥28 per share, consistent with the previous fiscal year and forecasts. This decision reflects Koito’s commitment to stable shareholder returns and sustainable growth, indicating a positive outlook for stakeholders.

Koito Manufacturing Announces Share Acquisition Strategy

Koito Manufacturing Co., Ltd. has announced the acquisition of 1,149,000 of its own shares, with an aggregate acquisition cost of ¥2,546,559,950, conducted through market purchases on the Tokyo Stock Exchange during September 2025. This move is part of a broader strategy, as resolved by the Board of Directors, to acquire up to 37 million shares by May 2026, potentially impacting the company’s market positioning and shareholder value.