Koito Manufacturing Co (7276) AI Stock Analysis

• Market Cap: ¥796.07B
• Dividend Yield: 2.41%
• Average Volume (3M): 804.50K
• Price to Earnings (P/E): 19.7
• Beta (1Y): 0.69
• Revenue Growth: -0.73%
• EPS Growth: 88.36%
• Country: JP
• Employees: 23,807
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 41.09
• 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: ¥2,400.00
• Price Target Upside: -14.92% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1
• EPS Forecast (FY): 113.8
• Revenue Forecast (FY): ¥924.21B

• Rating: 76 Outperform
• Price Target: ¥3,192.00 ▲(13.15% Upside)
• Action: Reiterated Date: 02/01/26
• Date: Action: Reiterated 02/01/26

The score is driven primarily by strong financial quality—especially the very low leverage and solid profitability—partly tempered by moderate cash conversion and revenue volatility. Technicals are supportive with price above major moving averages, while valuation appears reasonable but not a clear bargain.

Positive Factors

Conservative balance sheet

Extremely low leverage and a large equity base provide durable financial flexibility: supports investment in program wins, cushions demand cyclicality, reduces refinancing and interest-rate risk, and preserves capacity for strategic M&A or capex during automotive cycles.

Solid profitability and returns

Consistent mid‑single digit net margins and stable ROE reflect resilient earnings power from OEM supply contracts. This steady profitability underpins reinvestment, dividends and long-term supplier relationships, supporting sustainable cash generation through cycles.

Global OEM footprint and program linkages

Local production and embedded program engineering create high customer switching costs and competitiveness for new vehicle platforms. Regional footprint plus engineering content increases odds of long-term program awards and recurring OEM revenue across markets.

Negative Factors

Revenue volatility

Revenue swings tied to program timing and OEM production cycles create uneven top-line visibility. This structural volatility complicates capacity planning, margins and investment cadence, and can depress multi-period growth metrics despite cyclical rebounds.

Moderate cash conversion

Operating profits do not consistently convert to cash due to working-capital and investment swings. This limits discretionary funding for capex, dividends or buybacks without using reserves, and increases sensitivity to OEM payment terms and inventory cycles.

Relatively thin margins

Modest gross and net margins constrain earnings leverage and make profitability sensitive to raw-material costs or OEM pricing pressure. Sustained margin expansion likely requires product mix shift to higher-value LED/adaptive lighting or improved cost structure.

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

Strong overall financial profile led by an exceptionally conservative balance sheet (very low leverage) and solid profitability. Main offsets are uneven revenue growth across periods and only moderate cash conversion despite positive free cash flow.

Income Statement

TTM (Trailing-Twelve-Months) revenue is up strongly (+131.1%), indicating a sharp rebound in demand/shipments, but prior-year growth was negative in FY2025 (-3.5%), showing recent volatility. Profitability is steady but mid-range for the sector, with TTM gross margin ~11.5% and net margin ~4.3%, and EBIT margin improving versus FY2024–FY2025 levels. Overall, earnings power looks resilient, but margins remain relatively thin and revenue trends have been uneven year-to-year.

Balance Sheet

The balance sheet is a clear strength: leverage is very low (TTM debt-to-equity ~0.01) supported by a large equity base (TTM equity ~¥631B). Returns are solid and stable (TTM return on equity ~7.4%) without relying on debt, which reduces financial risk and provides flexibility through cycles. The main drawback is that returns are good rather than exceptional, suggesting efficiency/asset utilization could be higher.

Cash Flow

Cash generation is positive, with TTM operating cash flow ~¥96.9B and free cash flow ~¥43.5B, and TTM free-cash-flow growth strong (+804%). However, cash conversion is only moderate: TTM free cash flow is ~45% of net income, and operating cash flow coverage is ~0.55, implying profits are not fully translating into cash consistently. Prior periods also show variability in free cash flow growth, pointing to working-capital and investment-cycle swings.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	931.54B	916.71B	950.29B	864.72B	760.72B	706.38B
Gross Profit	106.93B	96.67B	106.67B	95.83B	96.05B	97.24B
EBITDA	97.25B	108.89B	104.04B	91.32B	97.76B	97.97B
Net Income	40.08B	46.24B	40.88B	29.66B	38.34B	37.61B
Balance Sheet
Total Assets	906.57B	889.95B	965.60B	905.91B	855.24B	782.16B
Cash, Cash Equivalents and Short-Term Investments	270.30B	276.15B	302.87B	315.04B	323.94B	303.89B
Total Debt	7.60B	5.73B	14.29B	22.65B	25.02B	20.95B
Total Liabilities	217.35B	210.09B	246.33B	235.41B	227.92B	212.73B
Stockholders Equity	631.03B	627.20B	671.93B	628.83B	591.16B	537.83B
Cash Flow
Free Cash Flow	43.54B	40.08B	59.26B	19.93B	36.77B	41.43B
Operating Cash Flow	96.90B	88.36B	96.37B	59.76B	65.71B	74.96B
Investing Cash Flow	32.09B	-40.99B	-50.16B	-71.54B	-52.15B	-1.09B
Financing Cash Flow	-70.05B	-78.35B	-59.68B	-13.28B	-8.49B	-18.32B

Koito Manufacturing Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2821.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 2821 is above the 20-day moving average (MA) of 2677.70, above the 50-day MA of 2492.92, and above the 200-day MA of 2153.56, indicating a bullish trend. The MACD of 90.41 indicates Negative momentum. The RSI at 83.06 is Negative, neither overbought nor oversold. The STOCH value of 89.38 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
7244	81 Outperform	¥54.87B	8.84	8.46%	2.64%	-6.35%	18.49%
6923	78 Outperform	¥431.48B	13.36	6.37%	2.88%	4.86%	10.95%
7276	76 Outperform	¥796.07B	19.73	7.20%	2.41%	-0.73%	88.36%
7282	75 Outperform	¥595.80B	13.50	8.26%	2.62%	1.44%	-0.92%
7287	74 Outperform	¥165.33B	15.81	―	2.93%	1.77%	117.03%
6902	67 Neutral	¥6.19T	16.31	6.98%	2.98%	2.41%	11.03%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Koito Manufacturing Co Corporate Events

Koito Sets ¥11 Billion Share Buyback via ToSTNeT-3 Under Ongoing Repurchase Program

Koito Manufacturing will repurchase up to 3.9 million of its common shares for approximately ¥11 billion through the Tokyo Stock Exchange’s off-auction ToSTNeT-3 system, at the February 27 closing price of ¥2,821 per share, with trading scheduled for March 2, 2026 at 8:45 a.m. The move is part of a broader buyback program authorized in May 2025 that permits the purchase of up to 37 million shares, or 13.04% of outstanding stock, for as much as ¥50 billion over the period from June 2, 2025 to May 29, 2026, underscoring management’s intent to boost corporate value and enhance shareholder returns, though the company notes the latest tranche may be reduced or canceled depending on market conditions.

The most recent analyst rating on (JP:7276) stock is a Hold with a Yen2952.00 price target. To see the full list of analyst forecasts on Koito Manufacturing Co stock, see the JP:7276 Stock Forecast page.

Koito Reports No Share Buybacks in January Amid Ongoing ¥50 Billion Repurchase Program

Koito Manufacturing announced the January 2026 status of its ongoing share buyback program, reporting that it acquired no shares during the period from January 1 to January 31, 2026, resulting in zero outlay for acquisition costs that month. This pause comes within the framework of a previously approved buyback authorization, under which the company may purchase up to 37 million shares or ¥50 billion between June 2, 2025, and May 29, 2026; cumulatively through January 31, 2026, Koito has repurchased 16,595,400 shares for approximately ¥36.25 billion, signaling substantial execution of the program to date and an ongoing capital allocation effort that may support shareholder value and EPS, even as monthly purchasing activity fluctuates.

The most recent analyst rating on (JP:7276) stock is a Hold with a Yen2585.00 price target. To see the full list of analyst forecasts on Koito Manufacturing Co stock, see the JP:7276 Stock Forecast page.

Koito Posts Higher Sales but Lower Profit, Keeps Fiscal 2025 Outlook and Dividend

Koito Manufacturing reported modest revenue growth but weaker bottom-line performance for the first nine months of fiscal 2025, with net sales rising 2.2% year on year to ¥690.0 billion and operating profit up 11.8%, while profit attributable to owners of the parent fell 21.1%, leading to a decline in earnings per share. The company maintained its full-year forecast, projecting slightly lower net sales and largely flat operating profit compared with the previous year, along with a substantial drop in full-year profit, and confirmed its dividend outlook of ¥56 per share, while also noting a contraction in its consolidation scope following the exclusion of Koito Europe Limited, reflecting a cautious earnings outlook despite a solid balance sheet and improved comprehensive income.

The most recent analyst rating on (JP:7276) stock is a Buy with a Yen2596.00 price target. To see the full list of analyst forecasts on Koito Manufacturing Co stock, see the JP:7276 Stock Forecast page.

Koito Advances Large-Scale Share Buyback, Reaching ¥36.25 Billion by Year-End 2025

Koito Manufacturing has reported the latest progress of its share buyback program authorized by its board in May 2025, disclosing that it repurchased 153,800 common shares on the Tokyo Stock Exchange during December 2025 at a total cost of ¥351.3 million. Under the broader authorization to acquire up to 37 million shares or ¥50 billion between June 2025 and May 2026, the company has cumulatively bought 16,595,400 shares for approximately ¥36.25 billion as of December 31, 2025, signaling a substantial capital return to shareholders and a continued effort to optimize its capital structure and enhance shareholder value.

The most recent analyst rating on (JP:7276) stock is a Buy with a Yen2614.00 price target. To see the full list of analyst forecasts on Koito Manufacturing Co stock, see the JP:7276 Stock Forecast page.