Exedy Corporation (7278) AI Stock Analysis

• Market Cap: ¥203.41B
• Dividend Yield: 5.39%
• Average Volume (3M): 149.57K
• Price to Earnings (P/E): 16.7
• Beta (1Y): 0.48
• 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: 74 Outperform
• Price Target: ¥6,093.00 ▲(9.78% Upside)

Exedy Corporation's overall stock score is driven by its stable financial performance and strong technical indicators. The company's conservative financial structure and efficient cash flow management support its resilience. The stock's valuation is fair, with an attractive dividend yield enhancing its appeal. Technical analysis indicates a bullish trend, contributing positively to the score.

Positive Factors

Cash Generation Ability

Strong cash generation supports operational flexibility and investment capacity, ensuring the company can sustain growth and manage downturns.

Balance Sheet Health

A conservative leverage approach provides financial stability, reducing risk and enhancing the company's ability to withstand economic fluctuations.

Market Position

Strong market position in the automotive components sector ensures continued demand and supports long-term revenue stability.

Negative Factors

Revenue Growth Challenges

Declining revenue growth can limit expansion opportunities and affect long-term competitiveness if not addressed through strategic initiatives.

Profitability Challenges

Modest profitability margins may hinder reinvestment and shareholder returns, necessitating efficiency improvements or cost management.

Revenue Decline

A decline in revenue growth could signal market share loss or demand issues, impacting long-term financial performance if not reversed.

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 position with strong cash flow generation and a conservative balance sheet. Despite challenges in revenue growth, the company maintains profitability and operational efficiency. The low leverage and solid equity position provide a buffer against potential market fluctuations.

Income Statement

Exedy Corporation's income statement shows a mixed performance. The TTM data indicates a slight decline in revenue growth, but the company maintains a healthy gross profit margin of 19.75%. The net profit margin is modest at 3.90%, reflecting some profitability challenges. EBIT and EBITDA margins are stable, indicating efficient operations despite revenue fluctuations.

Balance Sheet

The balance sheet is relatively strong with a debt-to-equity ratio of 0.31, suggesting a conservative leverage approach. Return on equity is moderate at 6.26%, indicating decent returns for shareholders. The equity ratio is solid, reflecting a stable financial structure with a significant portion of assets financed by equity.

Cash Flow

Cash flow analysis reveals a positive trajectory with a 9.95% growth in free cash flow. The operating cash flow to net income ratio is healthy at 0.72, indicating strong cash generation relative to net income. The free cash flow to net income ratio of 0.80 suggests efficient cash management and the ability to cover net income with free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	303.91B	309.56B	308.34B	285.64B	261.10B	227.42B
Gross Profit	59.94B	59.43B	53.85B	44.77B	47.94B	40.33B
EBITDA	34.89B	36.77B	7.07B	30.76B	39.79B	28.54B
Net Income	12.71B	12.74B	-10.02B	4.59B	12.48B	4.98B
Balance Sheet
Total Assets	306.69B	303.91B	321.94B	331.88B	332.79B	312.74B
Cash, Cash Equivalents and Short-Term Investments	74.95B	68.16B	76.15B	61.69B	57.38B	53.34B
Total Debt	54.87B	56.29B	29.98B	33.65B	37.91B	42.27B
Total Liabilities	110.34B	109.64B	88.40B	91.97B	96.76B	96.01B
Stockholders Equity	183.20B	180.48B	218.55B	225.56B	221.76B	203.93B
Cash Flow
Free Cash Flow	31.14B	23.93B	28.13B	14.78B	13.63B	13.11B
Operating Cash Flow	38.78B	31.50B	37.61B	27.22B	28.43B	30.11B
Investing Cash Flow	-8.05B	-8.72B	-13.41B	-12.79B	-15.49B	-16.77B
Financing Cash Flow	-16.64B	-28.72B	-11.41B	-11.18B	-10.54B	-8.45B

Exedy Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5550.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 5550 is above the 20-day moving average (MA) of 5466.50, above the 50-day MA of 5346.60, and above the 200-day MA of 4687.52, indicating a bullish trend. The MACD of 65.87 indicates Negative momentum. The RSI at 60.91 is Neutral, neither overbought nor oversold. The STOCH value of 80.43 is Negative, 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	80 Outperform	¥181.83B	10.66	―	4.47%	2.01%	25.09%
5191	79 Outperform	¥268.81B	9.23	―	2.94%	2.19%	27.44%
7242	78 Outperform	¥227.69B	7.90	12.15%	2.87%	3.95%	136.86%
7283	77 Outperform	¥142.03B	10.42	―	3.30%	0.29%	9.87%
7278	74 Outperform	¥203.41B	16.68	6.56%	5.39%	-2.26%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7220	61 Neutral	¥174.12B	19.04	―	1.93%	-3.23%	24.93%

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.

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.

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.