Exedy Corporation (7278) AI Stock Analysis

• Market Cap: €241.21B
• Dividend Yield: 4.86%
• Average Volume (3M): 168.73K
• Price to Earnings (P/E): 17.0
• Beta (1Y): 0.55
• Revenue Growth: -1.42%
• EPS Growth: N/A
• Country: JP
• Employees: 11,444
• Sector: Consumer Cyclical
• Sector Strength: 72
• Industry: Auto - Parts
• EPS (TTM): 74.41
• Shares Outstanding: 48,593,735
• 10 Day Avg. Volume: 311,220
• 30 Day Avg. Volume: 168,733
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: €4,524.01
• Price Target Upside: -11.98% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 73 Outperform
• Price Target: ¥5,356.00 ▲(4.20% Upside)

The most significant strength is the company's robust financial performance, characterized by improved profitability and cash flow. The reasonable valuation with a high dividend yield further enhances its appeal. However, technical analysis indicates the stock might be overbought, suggesting potential short-term risks.

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 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's financial performance reflects resilience and strategic management. The company has effectively turned around its income statement with improved profitability, maintained a stable balance sheet with effective leverage management, and demonstrated robust cash flow growth. While challenges in equity reduction need monitoring, the overall financial health suggests a positive outlook.

Income Statement

The company shows a strong recovery in net income from a loss in 2024 to a significant profit in 2025, indicating improved operational efficiency. Gross profit margins have been stable, and there is a noticeable improvement in EBIT and EBITDA margins. Revenue growth has been moderate, but the positive trajectory in profitability metrics suggests a robust income statement performance.

Balance Sheet

The balance sheet exhibits a solid equity base with a favorable debt-to-equity ratio. However, the decline in stockholders' equity from 2024 to 2025 indicates potential challenges. The company maintains a strong liquidity position with substantial cash and cash equivalents, highlighting financial stability.

Cash Flow

The cash flow statement demonstrates consistent free cash flow generation, with a positive growth rate. Operating cash flow remains strong relative to net income, indicating effective cash management. The company has successfully reduced capital expenditures, contributing to improved free cash flow.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	309.56B	308.34B	285.64B	261.10B	227.42B
Gross Profit	59.43B	53.85B	44.77B	47.94B	40.33B
EBITDA	36.77B	7.07B	30.76B	39.79B	28.54B
Net Income	12.74B	-10.02B	4.59B	12.48B	4.98B
Balance Sheet
Total Assets	303.91B	321.94B	331.88B	332.79B	312.74B
Cash, Cash Equivalents and Short-Term Investments	68.16B	76.15B	61.69B	57.38B	53.34B
Total Debt	56.29B	29.98B	33.65B	37.91B	42.27B
Total Liabilities	109.64B	88.40B	91.97B	96.76B	96.01B
Stockholders Equity	180.48B	218.55B	225.56B	221.76B	203.93B
Cash Flow
Free Cash Flow	23.93B	28.13B	14.78B	13.63B	13.11B
Operating Cash Flow	31.50B	37.61B	27.22B	28.43B	30.11B
Investing Cash Flow	-8.72B	-13.41B	-12.79B	-15.49B	-16.77B
Financing Cash Flow	-28.72B	-11.41B	-11.18B	-10.54B	-8.45B

Exedy Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5140.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 5140 is above the 20-day moving average (MA) of 4532.75, above the 50-day MA of 4295.30, and above the 200-day MA of 4288.03, indicating a bullish trend. The MACD of 207.85 indicates Negative momentum. The RSI at 84.45 is Negative, neither overbought nor oversold. The STOCH value of 94.25 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
7278	73 Outperform	€241.21B	17.02	6.32%	4.86%	-1.42%	―
Sector *	62 Neutral	AU$3.09B	28.98	25.32%	4.54%	2.36%	-27.72%
60V	―	€1.01B	6.78	10.75%	―	―	―
7283	80 Outperform	¥116.75B	9.87		3.69%	1.71%	-11.98%
7296	78 Outperform	¥147.34B	9.17		6.73%	2.11%	16.65%
5191	77 Outperform	¥207.76B	7.62		2.70%	0.49%	27.98%
7220	64 Neutral	¥198.64B	30.50		1.65%	-4.23%	-28.48%

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.