Exedy Corporation (7278) AI Stock Analysis

• Market Cap: €199.03B
• Dividend Yield: 4.59%
• Average Volume (3M): 167.98K
• Price to Earnings (P/E): 18.1
• Beta (1Y): 0.51
• Revenue Growth: -1.42%
• EPS Growth: N/A
• Country: JP
• Employees: 11,444
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 74.41
• Shares Outstanding: 48,593,735
• 10 Day Avg. Volume: 152,460
• 30 Day Avg. Volume: 167,976
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: €5,825.31
• Price Target Upside: 6.89% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 69 Neutral
• Price Target: ¥5,825.00 ▲(6.88% Upside)

Exedy Corporation's overall stock score reflects a stable financial foundation with strong cash flow and a solid balance sheet. The technical analysis indicates strong momentum but warns of overbought conditions. Valuation metrics are reasonable, with an attractive dividend yield enhancing the investment appeal. The absence of earnings call and corporate events data limits further insights.

Exedy Corporation Business Overview & Revenue Model

Company Description

Exedy Corporation (7278) is a leading Japanese manufacturer specializing in automotive components, particularly transmission systems and related products. The company operates primarily within the automotive sector, providing high-quality clutch systems, torque converters, and advanced transmission solutions for a wide range of vehicles, including passenger cars, motorcycles, trucks, and industrial machines. Exedy is recognized globally for its commitment to innovation, quality, and performance, catering to both original equipment manufacturers (OEM) and the aftermarket segment.

How the Company Makes Money

Exedy Corporation generates revenue through the production and sale of automotive components, focusing on clutch systems and transmission parts. The company's primary revenue streams include sales to automotive manufacturers (OEMs), where it provides essential components for new vehicle production, and sales within the aftermarket sector, catering to replacement parts and maintenance needs. Exedy's earnings are bolstered by its strong relationships with major automotive brands worldwide and its ability to offer technologically advanced and reliable products. The company also benefits from strategic partnerships and joint ventures that enhance its market presence and enable it to leverage new technologies and manufacturing capabilities.

Exedy Corporation Financial Statement Overview

Summary

Exedy Corporation demonstrates a stable financial performance with strengths in cash flow generation and a solid balance sheet. The income statement reveals challenges in revenue growth and profitability, but the company's conservative leverage and strong cash flow metrics provide a solid foundation for future growth.

Income Statement

Exedy Corporation's income statement shows a mixed performance. The TTM data indicates a slight decline in revenue growth, with a negative growth rate of -1.15%. However, the company maintains a stable gross profit margin of approximately 19.2%. The net profit margin is relatively low at 4.12%, indicating room for improvement in profitability. EBIT and EBITDA margins are moderate, suggesting operational efficiency but also highlighting potential cost management issues.

Balance Sheet

The balance sheet reflects a solid financial position with a debt-to-equity ratio of 0.31, indicating conservative leverage. The return on equity (ROE) is modest at 6.32%, showing moderate efficiency in generating returns on shareholders' equity. The equity ratio is strong, suggesting a stable capital structure with a significant portion of assets financed by equity.

Cash Flow

Exedy Corporation's cash flow statement is robust, with a notable free cash flow growth rate of 18.34% in the TTM period. The operating cash flow to net income ratio is healthy at 0.66, indicating efficient cash generation relative to net income. The free cash flow to net income ratio is strong at 0.76, reflecting effective cash management and the ability to generate cash beyond net earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	306.02B	309.56B	308.34B	285.64B	261.10B	227.42B
Gross Profit	60.45B	59.43B	53.85B	44.77B	47.94B	40.33B
EBITDA	35.90B	36.77B	7.07B	30.76B	39.79B	28.54B
Net Income	11.93B	12.74B	-10.02B	4.59B	12.48B	4.98B
Balance Sheet
Total Assets	299.79B	303.91B	321.94B	331.88B	332.79B	312.74B
Cash, Cash Equivalents and Short-Term Investments	66.56B	68.16B	76.15B	61.69B	57.38B	53.34B
Total Debt	55.55B	56.29B	29.98B	33.65B	37.91B	42.27B
Total Liabilities	110.96B	109.64B	88.40B	91.97B	96.76B	96.01B
Stockholders Equity	176.37B	180.48B	218.55B	225.56B	221.76B	203.93B
Cash Flow
Free Cash Flow	28.32B	23.93B	28.13B	14.78B	13.63B	13.11B
Operating Cash Flow	35.23B	31.50B	37.61B	27.22B	28.43B	30.11B
Investing Cash Flow	-6.12B	-8.72B	-13.41B	-12.79B	-15.49B	-16.77B
Financing Cash Flow	-26.78B	-28.72B	-11.41B	-11.18B	-10.54B	-8.45B

Exedy Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5450.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7278, the sentiment is Positive. The current price of 5450 is above the 20-day moving average (MA) of 5426.00, above the 50-day MA of 5050.20, and above the 200-day MA of 4509.17, indicating a bullish trend. The MACD of 105.75 indicates Positive momentum. The RSI at 62.17 is Neutral, neither overbought nor oversold. The STOCH value of 36.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7278.

Exedy Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7296	81 Outperform	¥162.95B	10.29	8.79%	5.01%	2.11%	16.65%
7283	80 Outperform	¥122.39B	10.34	9.74%	3.52%	1.71%	-11.98%
7242	77 Outperform	¥202.81B	8.40	10.18%	2.85%	-0.17%	72.81%
5191	74 Outperform	¥232.57B	8.53	12.81%	2.95%	0.49%	27.98%
7220	72 Outperform	¥236.34B	36.29	6.78%	1.40%	-4.23%	-28.48%
7278	69 Neutral	€199.03B	18.05	6.32%	4.59%	-1.42%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Exedy Corporation Corporate Events

Exedy Corporation Announces Dividend Forecast Increase for FY 2026

Exedy Corporation announced an upward revision of its interim and year-end dividend forecast for the fiscal year ending March 2026. The decision reflects the company’s strategy to improve capital efficiency and shareholder returns, supported by positive first-quarter results and a favorable outlook for future growth and maintenance capital expenditures.

EXEDY Corporation Reports Decline in Q1 FY2025 Financial Results

EXEDY Corporation reported a decline in revenue and profit for the first quarter of FY2025 compared to the previous year. Despite a 20.3% increase in operating profit, the company saw a decrease in total comprehensive income by 80.2%. The financial forecast for FY2025 anticipates further declines in revenue and profit, with a revised dividend forecast indicating an increase in annual dividends per share.

Exedy Corporation Announces Disposal of Treasury Shares for Stock Compensation

Exedy Corporation announced the disposal of treasury shares as part of a restricted stock compensation plan aimed at aligning the interests of directors and executive officers with those of shareholders. This initiative is designed to incentivize the company’s leadership to enhance medium- and long-term business performance and shareholder value, with a transfer restriction period of 30 years to ensure sustained commitment.

EXEDY Corporation Discusses Financial Results and Strategic Plans

EXEDY Corporation held a financial results meeting for institutional investors and analysts, discussing the fiscal year ending March 2025. The meeting highlighted the company’s medium-to-long-term strategy, financial results for 2024, and forecasts for 2025, as well as progress on its ‘REVOLUTION 2026’ management plan. This includes financial, business, ESG, and IR strategies, indicating a comprehensive approach to strengthening its market position and addressing stakeholder interests.