Koito Manufacturing Co Ltd (JP:7276)
:7276
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Koito Manufacturing Co
(7276)
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Rating:70Outperform
Price Target:
¥3,048.00
▲(19.88% Upside)
Action:Reiterated
Date:05/15/26
The score is driven primarily by strong financial resilience (very low leverage and positive cash generation) but is held back by a sharp deterioration in 2026 profitability. Technicals are supportive due to strong uptrends, though momentum is overbought, and valuation is a meaningful headwind given the high P/E despite a ~2% dividend yield.
Positive Factors
Balance Sheet Strength
Extremely low leverage and a large equity base give Koito durable financial flexibility. This balance-sheet strength supports continued capex for new lighting tech, cushions cyclical automotive downcycles, and enables opportunistic investments or contract-backed production scaling.
Negative Factors
Profitability Compression
A sharp drop in net margin materially weakens Koito's earnings power. Persistently lower margins reduce retained earnings for reinvestment, constrain pricing flexibility with OEMs, and raise vulnerability to raw material or input-cost inflation over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Strength
Extremely low leverage and a large equity base give Koito durable financial flexibility. This balance-sheet strength supports continued capex for new lighting tech, cushions cyclical automotive downcycles, and enables opportunistic investments or contract-backed production scaling.
Read all positive factors
Koito Manufacturing Co (7276) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥773.07B
Dividend Yield2.41%
Average Volume (3M)804.50K
Price to Earnings (P/E)48.0
Beta (1Y)0.87
Revenue Growth3.37%
EPS Growth-62.36%
CountryJP
Employees23,807
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)60.65
Shares Outstanding307,833,160
10 Day Avg. Volume729,430
30 Day Avg. Volume804,500
Financial Highlights & Ratios
PEG Ratio-0.66
Price to Book (P/B)1.09
Price to Sales (P/S)0.71
P/FCF Ratio14.77
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)172.94
Revenue Forecast (FY)¥961.01B
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 prod...
How the Company Makes Money
Koito primarily makes money by manufacturing and selling automotive lighting products to vehicle manufacturers (OEMs). Its core revenue stream is the sale of lighting units—such as headlamps and other lamp assemblies—supplied as original equipment...
Koito Manufacturing Co Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
90
Very Positive
Cash Flow
71
Positive
| Breakdown | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 947.61B | 916.71B | 950.29B | 864.72B | 760.72B |
| Gross Profit | 111.48B | 96.67B | 106.67B | 95.83B | 96.05B |
| EBITDA | 98.14B | 108.89B | 104.04B | 91.32B | 97.76B |
| Net Income | 16.54B | 46.24B | 40.88B | 29.66B | 38.34B |
Balance Sheet | |||||
| Total Assets | 906.20B | 889.95B | 965.60B | 905.91B | 855.24B |
| Cash, Cash Equivalents and Short-Term Investments | 274.52B | 276.15B | 302.87B | 315.04B | 323.94B |
| Total Debt | 1.92B | 10.38B | 18.77B | 27.46B | 25.22B |
| Total Liabilities | 230.11B | 210.08B | 246.32B | 235.40B | 227.92B |
| Stockholders Equity | 616.83B | 627.20B | 671.93B | 628.83B | 591.16B |
Cash Flow | |||||
| Free Cash Flow | 45.36B | 39.16B | 59.05B | 19.93B | 36.77B |
| Operating Cash Flow | 99.91B | 88.36B | 96.37B | 59.76B | 65.71B |
| Investing Cash Flow | -10.84B | -40.99B | -50.16B | -71.54B | -52.15B |
| Financing Cash Flow | -71.43B | -78.35B | -59.68B | -13.28B | -8.49B |
Koito Manufacturing Co Technical Analysis
Positive
2542.50
Price Trends
2591.35
Positive
2547.45
Positive
2364.41
Positive
Market Momentum
45.83
Positive
56.06
Neutral
37.46
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 2542.5 is below the 20-day moving average (MA) of 2685.65, below the 50-day MA of 2591.35, and above the 200-day MA of 2364.41, indicating a bullish trend. The MACD of 45.83 indicates Positive momentum. The RSI at 56.06 is Neutral, neither overbought nor oversold. The STOCH value of 37.46 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | ¥51.69B | 8.17 | 8.46% | 2.64% | -3.94% | 36.68% | |
75 Outperform | ¥435.35B | 14.01 | 6.37% | 2.88% | 1.74% | 19.10% | |
74 Outperform | ¥554.02B | 9.48 | 8.58% | 2.62% | 8.21% | 72.79% | |
72 Outperform | ¥154.79B | 18.60 | ― | 2.93% | 3.63% | 35.38% | |
70 Outperform | ¥773.07B | 48.05 | 7.20% | 2.41% | 3.37% | -62.36% | |
68 Neutral | ¥5.19T | 11.64 | 6.98% | 2.98% | 5.28% | 12.66% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
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Koito Manufacturing Co Corporate Events
Koito Details Independent Stance Despite Significant Ties to Toyota
May 13, 2026
Koito Manufacturing disclosed that Toyota Motor Corporation is classified as an “other affiliated company,” holding 21.0% of Koito’s voting rights and accounting for 13.6% of its consolidated sales through purchases of automotive...
Koito Keeps Dividend Steady Despite Profit Drop and Impairment Charges
May 13, 2026
Koito Manufacturing’s board has approved a year-end dividend of ¥28 per share for the fiscal year ended March 31, 2026, matching both its prior forecast and the previous year’s payout. The total year-end dividend distribution will...
Koito Takes ¥20 Billion Impairment on LiDAR and China as Sales Beat Forecasts
May 13, 2026
Koito Manufacturing will book extraordinary impairment losses of ¥14.3 billion on its LiDAR business and ¥5.7 billion on China operations for the year ended March 31, 2026, after order cancellations in automotive LiDAR and a profitabilit...
Koito Lifts Profits but Books Sharp Earnings Drop, Targets Strong Rebound in FY2026
May 13, 2026
Koito Manufacturing reported fiscal 2025 consolidated net sales of ¥947.6 billion, up 3.4% year on year, with operating profit rising 14.6% to ¥51.4 billion and ordinary profit up 19.6% to ¥58.8 billion, while profit attributable to...
Koito Nears ¥50 Billion Buyback Limit Despite April Pause in Repurchases
May 7, 2026
Koito Manufacturing reported the latest status of its share buyback program authorized under Japan’s Companies Act, confirming that no shares were repurchased in the most recent period from April 1 to April 30, 2026, resulting in zero acquis...
Koito Reshapes Executive Lineup While Maintaining Leadership Continuity
Apr 27, 2026
Koito Manufacturing has announced planned changes to its directors, audit and supervisory board members, and corporate officers, to be formally approved at the June 26, 2026 shareholders meeting. The leadership structure largely maintains continui...
Koito Nears Completion of ¥50 Billion Share Buyback Program
Apr 1, 2026
Koito Manufacturing announced the latest status of its ongoing share buyback program, reporting the purchase of 3.9 million common shares for about ¥11.0 billion between March 1 and March 31, 2026 through market transactions on the Tokyo Stoc...
Koito Advances Large-Scale Share Buyback, Nears ¥37 Billion in Repurchases
Mar 2, 2026
Koito Manufacturing has continued its ongoing share buyback program, repurchasing 190,000 common shares on the Tokyo Stock Exchange during February 2026 at a total cost of about ¥499.8 million. The acquisitions fall under a previously authori...
Koito Nears Cap on ¥50 Billion Share Buyback With Latest ToSTNeT-3 Repurchase
Mar 2, 2026
Koito Manufacturing has completed the latest tranche of its share buyback program, purchasing 3.9 million common shares on March 2, 2026, via the Tokyo Stock Exchange’s off-auction ToSTNeT-3 system for approximately ¥11.0 billion. This ...
Koito Sets ¥11 Billion Share Buyback via ToSTNeT-3 Under Ongoing Repurchase Program
Feb 27, 2026
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 tr...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.