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Exedy Corporation
(7278)
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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)
Market Cap
¥220.58B
Dividend Yield4.97%
Average Volume (3M)149.57K
Price to Earnings (P/E)15.4
Beta (1Y)0.58
Revenue Growth0.38%
EPS Growth30.22%
CountryJP
Employees10,970
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)393.19
Shares Outstanding48,593,735
10 Day Avg. Volume107,910
30 Day Avg. Volume149,573
Financial Highlights & Ratios
PEG Ratio0.64
Price to Book (P/B)1.05
Price to Sales (P/S)0.66
P/FCF Ratio6.05
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)452.9
Revenue Forecast (FY)¥306.74B
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
Income Statement
74
Positive
Balance Sheet
80
Positive
Cash Flow
66
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 307.17B | 303.93B | 309.56B | 308.34B | 285.64B | 261.10B |
| Gross Profit | 64.23B | 62.76B | 57.68B | 51.69B | 42.60B | 45.80B |
| EBITDA | 37.82B | 38.09B | 35.70B | 7.12B | 30.82B | 39.81B |
| Net Income | 14.36B | 13.68B | 12.74B | -10.02B | 4.59B | 12.48B |
Balance Sheet | ||||||
| Total Assets | 316.81B | 320.10B | 303.91B | 321.94B | 331.88B | 332.79B |
| Cash, Cash Equivalents and Short-Term Investments | 68.83B | 74.47B | 68.16B | 74.04B | 59.54B | 55.41B |
| Total Debt | 54.21B | 54.56B | 57.73B | 31.18B | 34.69B | 38.86B |
| Total Liabilities | 113.24B | 111.83B | 109.64B | 88.39B | 91.97B | 96.76B |
| Stockholders Equity | 190.64B | 192.71B | 180.48B | 218.55B | 225.56B | 221.76B |
Cash Flow | ||||||
| Free Cash Flow | 33.21B | 33.40B | 23.93B | 28.71B | 15.25B | 14.50B |
| Operating Cash Flow | 40.84B | 40.57B | 31.50B | 37.61B | 27.22B | 28.43B |
| 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | ¥203.86B | 10.25 | ― | 4.47% | 7.40% | 25.62% | |
74 Outperform | ¥220.58B | 15.39 | 7.38% | 5.39% | 0.38% | 30.22% | |
63 Neutral | ¥1.61T | 9.97 | 8.25% | 2.92% | 5.69% | 27.94% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | ¥574.87B | 18.39 | ― | 3.52% | 22.68% | 220.06% | |
60 Neutral | ¥675.19B | 35.33 | 1.57% | 2.96% | 4.64% | 106.98% | |
49 Neutral | ¥222.94B | 152.11 | ― | 1.93% | 3.50% | -77.77% |
* Consumer Cyclical Sector Average
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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.