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Koito Manufacturing Co Ltd (JP:7276)
:7276

Koito Manufacturing Co (7276) AI Stock Analysis

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Koito Manufacturing Co

(OTC:7276)

Rating:72Outperform
Price Target:
¥1,960.00
▲(11.74%Upside)
Koito Manufacturing Co has a robust financial standing with strong revenue growth and balance sheet stability, which is the most significant factor driving the score. The company's attractive valuation further supports its investment appeal. However, neutral technical indicators suggest limited short-term price momentum.

Koito Manufacturing Co (7276) vs. iShares MSCI Japan ETF (EWJ)

Koito Manufacturing Co Business Overview & Revenue Model

Company DescriptionKoito Manufacturing Co., Ltd. is a leading Japanese company in the automotive industry, primarily engaged in the manufacturing and sale of automotive lighting equipment. The company caters to major automobile manufacturers globally, providing a wide range of products including LED headlights, rear combination lamps, and other lighting components. With a strong emphasis on research and development, Koito continually innovates to improve vehicle safety and efficiency, maintaining a significant presence in the automotive sector.
How the Company Makes MoneyKoito 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, characterized by consistent revenue growth, a strong balance sheet with low financial leverage, and stable cash flows. However, there is room for improvements in operational efficiency and managing cash flow volatility.
Income Statement
75
Positive
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
80
Positive
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
72
Positive
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 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income StatementTotal Revenue
916.71B950.29B864.72B760.72B706.38B
Gross Profit
96.67B106.67B95.83B96.05B97.24B
EBIT
44.87B55.99B46.85B53.43B56.71B
EBITDA
108.89B104.04B88.17B89.25B94.67B
Net Income Common Stockholders
46.24B40.88B29.66B38.34B37.61B
Balance SheetCash, Cash Equivalents and Short-Term Investments
276.15B302.87B315.04B323.94B303.89B
Total Assets
889.95B965.60B905.91B855.24B782.16B
Total Debt
5.73B14.29B22.65B25.02B20.95B
Net Debt
-265.12B-288.58B-292.39B-298.92B-282.94B
Total Liabilities
210.08B246.33B235.41B227.92B212.73B
Stockholders Equity
627.20B671.93B628.83B591.16B537.83B
Cash FlowFree Cash Flow
39.16B59.05B19.93B36.77B41.43B
Operating Cash Flow
88.36B96.37B59.76B65.71B74.96B
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
Negative
Last Price1754.00
Price Trends
50DMA
1755.15
Negative
100DMA
1852.67
Negative
200DMA
1909.86
Negative
Market Momentum
MACD
2.43
Negative
RSI
47.88
Neutral
STOCH
39.86
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7276, the sentiment is Negative. The current price of 1754 is below the 20-day moving average (MA) of 1769.25, below the 50-day MA of 1755.15, and below the 200-day MA of 1909.86, indicating a bearish trend. The MACD of 2.43 indicates Negative momentum. The RSI at 47.88 is Neutral, neither overbought nor oversold. The STOCH value of 39.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7276.

Koito Manufacturing Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
$417.74B13.626.26%2.43%7.87%25.91%
81
Outperform
¥183.81B6.49
4.43%-0.95%21.28%
78
Outperform
¥5.15T13.317.87%2.92%0.24%37.62%
76
Outperform
$1.27T12.515.15%3.95%-0.27%24.00%
72
Outperform
$539.84B11.217.02%3.05%-3.53%21.38%
67
Neutral
¥193.73B22.98
5.11%3.58%-17.59%
62
Neutral
$6.88B11.322.95%3.87%2.70%-24.57%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7276
Koito Manufacturing Co
1,754.00
-363.06
-17.15%
JP:6995
TOKAI RIKA CO., LTD.
2,144.00
67.15
3.23%
JP:7313
TS Tech Co., Ltd.
1,635.50
-148.63
-8.33%
JP:6923
Stanley Electric Co
2,792.00
-11.09
-0.40%
JP:6902
DENSO
1,930.00
-469.86
-19.58%
JP:7259
Aisin Seiki Co
1,747.00
-118.34
-6.34%

Koito Manufacturing Co Corporate Events

Koito Manufacturing Announces Share Buyback Plan to Boost Shareholder Returns
May 29, 2025

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
Apr 24, 2025

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
Apr 24, 2025

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
Apr 24, 2025

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
Apr 24, 2025

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
Apr 24, 2025

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
Apr 24, 2025

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
Apr 1, 2025

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.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.