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Exedy Corporation (JP:7278)
:7278
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Exedy Corporation (7278) AI Stock Analysis

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JP:7278

Exedy Corporation

(7278)

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Outperform 74 (OpenAI - 5.2)
Rating:74Outperform
Price Target:
¥6,861.00
▲(22.30% Upside)
Action:Reiterated
Date:07/31/26
The score is driven primarily by improving financial performance and a conservative balance sheet, tempered by earnings/cash flow volatility (notably the sharp TTM free cash flow decline). Technicals add support as the stock trades above major moving averages, while valuation is helped by a high dividend yield alongside a moderate P/E.
Positive Factors
Conservative balance sheet
A low TTM debt-to-equity (~0.28) and a sizeable equity base provide lasting financial resilience against cyclical downturns. This capital structure supports continued supplier/customer relationships and gives the firm flexibility to fund capex or sustain distributions over the next several quarters without immediate refinancing risk.
Negative Factors
Earnings and FCF volatility
Large swings in reported profits and a steep TTM FCF drop reduce predictability of cash available for reinvestment or payouts. Such volatility often reflects sensitivity to volume, pricing or working-capital swings and undermines confidence in multi-quarter cash forecasting and capital allocation plans.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
A low TTM debt-to-equity (~0.28) and a sizeable equity base provide lasting financial resilience against cyclical downturns. This capital structure supports continued supplier/customer relationships and gives the firm flexibility to fund capex or sustain distributions over the next several quarters without immediate refinancing risk.
Read all positive factors

Exedy Corporation (7278) vs. iShares MSCI Japan ETF (EWJ)

Exedy Corporation Business Overview & Revenue Model

Company Description
Exedy Corporation (7278) is a Japan-based manufacturer of drivetrain components, primarily focused on clutches, torque converters, and related transmission parts for automotive applications. The company supplies products for both original equipmen...
How the Company Makes Money
Exedy primarily makes money by designing, manufacturing, and selling drivetrain and power transmission components. Key revenue streams generally include: (1) OEM supply: selling clutches/clutch systems, torque converters, and related transmission ...

Exedy Corporation Financial Statement Overview

Summary
Financials are improving after a weak 2024: TTM profitability is positive again (gross margin ~20.6%, net margin ~4.5%) and ROE is back to ~7.4%. Balance sheet remains conservative (TTM debt-to-equity ~0.28), but earnings have been volatile across periods and TTM free cash flow declined sharply (-59.3%), which raises durability/sustainability concerns despite still-strong absolute FCF (~¥33.2B).
Income Statement
74
Positive
Balance Sheet
80
Positive
Cash Flow
66
Positive
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue307.17B303.93B309.56B308.34B285.64B261.10B
Gross Profit64.23B62.76B57.68B51.69B42.60B45.80B
EBITDA37.82B38.09B35.70B7.12B30.82B39.81B
Net Income14.36B13.68B12.74B-10.02B4.59B12.48B
Balance Sheet
Total Assets316.81B320.10B303.91B321.94B331.88B332.79B
Cash, Cash Equivalents and Short-Term Investments68.83B74.47B68.16B74.04B59.54B55.41B
Total Debt54.21B54.56B57.73B31.18B34.69B38.86B
Total Liabilities113.24B111.83B109.64B88.39B91.97B96.76B
Stockholders Equity190.64B192.71B180.48B218.55B225.56B221.76B
Cash Flow
Free Cash Flow33.21B33.40B23.93B28.71B15.25B14.50B
Operating Cash Flow40.84B40.57B31.50B37.61B27.22B28.43B
Investing Cash Flow-20.95B-20.09B-8.72B-13.41B-12.79B-15.49B
Financing Cash Flow-19.96B-16.96B-28.72B-11.41B-11.18B-10.54B

Exedy Corporation Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
¥203.86B10.254.47%7.40%25.62%
74
Outperform
¥220.58B15.397.38%5.39%0.38%30.22%
63
Neutral
¥1.61T9.978.25%2.92%5.69%27.94%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
61
Neutral
¥574.87B18.393.52%22.68%220.06%
60
Neutral
¥675.19B35.331.57%2.96%4.64%106.98%
49
Neutral
¥222.94B152.111.93%3.50%-77.77%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7278
Exedy Corporation
6,040.00
1,217.45
25.24%
JP:7259
Aisin Seiki Co
2,241.00
4.78
0.21%
JP:6473
JTEKT
2,121.00
771.91
57.22%
JP:6471
NSK Ltd.
1,176.00
442.93
60.42%
JP:7220
Musashi Seimitsu Industry Co., Ltd.
3,400.00
238.35
7.54%
JP:7296
F.C.C.Co., Ltd.
4,210.00
1,285.23
43.94%

Exedy Corporation Corporate Events

Exedy Q1 Profit Rises as FX Tailwinds and Motorcycle Sales Offset China Weakness
Jul 30, 2026
Exedy Corporation reported higher net sales for the first quarter of the fiscal year ending March 2027, supported by favorable foreign exchange movements, price pass-through to customers and robust growth in new business products in Japan and moto...
EXEDY Lifts Q1 Profits and Plans Higher Dividend for FY2026
Jul 30, 2026
EXEDY Corporation reported a 4.5% year-on-year increase in first-quarter FY2026 revenue to ¥75.1 billion, with operating profit up slightly to ¥4.95 billion and profit attributable to owners of the parent rising 24.8%. Earnings per share...
Exedy Reports Progress on Share Buyback Program
Jul 1, 2026
Exedy Corporation has disclosed progress on its ongoing share buyback program, authorized by its board in April 2026 under provisions of the Companies Act. In June, the company repurchased 182,800 common shares on the Tokyo Stock Exchange at a tot...
Exedy Links Executive Stock Compensation to Performance Under New Governance Structure
Jun 19, 2026
Exedy Corporation has overhauled its executive pay framework following shareholder approval to shift to a company-with-nominating-committee governance structure. The firm will replace its existing restricted stock compensation with a new performan...
Exedy Reports Initial Progress on ¥8 Billion Share Buyback Program
Jun 1, 2026
Exedy Corporation has disclosed progress on its ongoing share buyback program authorized by the board in late April, reporting the purchase of 184,100 common shares on the Tokyo Stock Exchange during May for a total of about ¥1.10 billion. Th...
Exedy Weighs Possible Reduction in Investment Unit to Broaden Investor Base
May 25, 2026
Exedy Corporation has acknowledged that lowering its minimum investment unit could help attract a broader base of investors and improve liquidity in its shares. The company’s current investment unit exceeds 500,000 yen, triggering disclosure...
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.Date of analysis: Jul 31, 2026