Exedy Corporation (7278) AI Stock Analysis

• Market Cap: €191.73B
• Dividend Yield: 5.64%
• Average Volume (3M): 149.57K
• Price to Earnings (P/E): 15.7
• Beta (1Y): 0.49
• Revenue Growth: -2.26%
• EPS Growth: N/A
• Country: JP
• Employees: 11,444
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 97.30
• Shares Outstanding: 48,593,735
• 10 Day Avg. Volume: 107,910
• 30 Day Avg. Volume: 149,573
• PEG Ratio: -0.06
• Price to Book (P/B): 1.02
• Price to Sales (P/S): 0.59
• P/FCF Ratio: 7.69
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: ¥5,607.00 ▲(6.80% Upside)

Exedy Corporation's overall stock score is driven by its strong financial performance, particularly in cash flow generation and balance sheet stability. The valuation is attractive due to a reasonable P/E ratio and high dividend yield. However, technical indicators suggest short-term bearish momentum, which slightly offsets the positive financial and valuation aspects.

Exedy Corporation Business Overview & Revenue Model

Company Description

EXEDY Corporation, together with its subsidiaries, manufactures and sells manual and automatic transmission vehicle parts in Japan. The company provides manual and automatic transmission parts for passenger vehicles, trucks, and buses, which include clutch covers, clutch discs, motorsports, torque converters, and AT parts. It also offers separate type power shift transmissions, retarders, and dampers discs for construction machinery; differential direct connection type power shift transmissions for industrial vehicles, such as forklifts; and dual clutches for agricultural machinery. In addition, the company provides dry type pulley centrifugal clutches, wet type centrifugal clutches, wet type multi-plate clutches with coil springs, wet type multi-plate clutches with DSPs, and one-way clutches. The company was formerly known as Daikin Manufacturing Co., Ltd and changed its name to EXEDY Corporation in 1995. EXEDY Corporation was incorporated in 1950 and is headquartered in Neyagawa, Japan.

How the Company Makes Money

Exedy Corporation generates revenue primarily through the sale of its automotive components to OEMs and aftermarket retailers. The company's revenue model is centered on manufacturing and distributing high-performance clutch systems and related products, which are critical for vehicle operation. Key revenue streams include direct sales to automobile manufacturers, partnerships with aftermarket distributors, and sales through retail channels. The company has established significant partnerships with major automotive manufacturers, which not only ensures a steady demand for its products but also enhances its market presence. Additionally, the growing trend towards performance tuning and motorsports has opened up new revenue opportunities, contributing to its earnings.

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: 5250.00
• 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 5250 is above the 20-day moving average (MA) of 5250.00, above the 50-day MA of 5242.49, and above the 200-day MA of 4526.37, indicating a bullish trend. The MACD of 6.89 indicates Positive momentum. The RSI at 51.09 is Neutral, neither overbought nor oversold. The STOCH value of 34.21 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
7242	77 Outperform	¥206.58B	8.56	10.75%	2.80%	-0.17%	72.81%
7283	77 Outperform	¥135.25B	9.93	―	3.53%	0.29%	9.70%
5191	73 Outperform	¥269.43B	9.25	―	2.93%	2.19%	27.44%
7296	71 Outperform	¥155.68B	9.83	―	5.03%	2.01%	25.09%
7278	69 Neutral	€191.73B	15.72	6.56%	5.64%	-2.26%	―
7220	64 Neutral	¥234.70B	36.04	―	1.54%	-4.23%	-28.48%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Exedy Corporation Corporate Events

EXEDY Corporation Invests in Startup-Focused Fund to Drive Innovation

EXEDY Corporation has announced its decision to invest in Allegis LS II 2025-10, a fund under CGF2021 LLC, with the aim of launching new businesses through collaboration with startups. This strategic investment is part of EXEDY’s broader initiative to expand operations and enhance corporate value, although it is not expected to significantly impact the company’s consolidated financial results immediately.

The most recent analyst rating on (JP:7278) stock is a Hold with a Yen5825.00 price target. To see the full list of analyst forecasts on Exedy Corporation stock, see the JP:7278 Stock Forecast page.

Exedy Corporation Ups Financial Forecasts Amid Strong Performance

Exedy Corporation has revised its financial forecasts for the fiscal year ending March 31, 2026, increasing its revenue and profit expectations due to better-than-anticipated performance in the first half of the year. Despite global economic uncertainties, the company expects this positive trend to continue, reflecting its strong market positioning and operational efficiency.

The most recent analyst rating on (JP:7278) stock is a Hold with a Yen5825.00 price target. To see the full list of analyst forecasts on Exedy Corporation stock, see the JP:7278 Stock Forecast page.

EXEDY Corporation Reports FY2025 Q2 Financial Results with Increased Comprehensive Income

EXEDY Corporation reported its financial results for the second quarter of FY2025, showing a slight decline in revenue and operating profit compared to the previous year. Despite these declines, the company experienced a notable increase in total comprehensive income by 52.5%, indicating improved overall financial health. The company also revised its financial forecasts for FY2025, projecting a decrease in revenue and profit, but an increase in annual dividends per share, reflecting a commitment to shareholder returns.

The most recent analyst rating on (JP:7278) stock is a Hold with a Yen5825.00 price target. To see the full list of analyst forecasts on Exedy Corporation stock, see the JP:7278 Stock Forecast page.