Aisan Industry Co., Ltd. (7283) AI Stock Analysis

• Market Cap: ¥117.44B
• Dividend Yield: 3.3%
• Average Volume (3M): 169.29K
• Price to Earnings (P/E): 7.3
• Beta (1Y): 0.95
• Revenue Growth: 0.29%
• EPS Growth: 9.87%
• Country: JP
• Employees: 8,920
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): N/A
• Shares Outstanding: 63,406,880
• 10 Day Avg. Volume: 169,710
• 30 Day Avg. Volume: 169,290
• PEG Ratio: 0.77
• Price to Book (P/B): 0.96
• Price to Sales (P/S): 0.39
• P/FCF Ratio: 16.64
• 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: ¥2,700.00
• Price Target Upside: 20.81% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: ¥2,158.00 ▼(-3.45% Downside)
• Action: Reiterated Date: 10/23/25
• Date: Action: Reiterated 10/23/25

Aisan Industry Co., Ltd. scores well due to its strong financial performance and attractive valuation. The company's robust revenue growth and profitability, combined with a solid balance sheet, contribute significantly to its score. Technical analysis supports a positive outlook, though caution is advised due to potential overbought conditions. The absence of earnings call and corporate events data did not impact the score.

Positive Factors

Strong balance sheet

Aisan's substantial equity base and moderate leverage provide durable financial resilience through automotive demand cycles. This capital structure supports program qualification, supplier financing and selective investment in tooling or automation without excessive refinancing risk.

High quality operating cash generation

Operating cash flow materially exceeding net income suggests earnings convert well to cash, supporting working capital, dividend payments and near-term capex. This cash conversion quality underpins operational stability and funds program ramp investments over coming quarters.

Improving revenue and margins

Consistent top-line growth coupled with healthy gross and EBITDA margins reflects manufacturing efficiency and pricing discipline. These durable margin levels provide room to invest in product development and maintain competitiveness across OEM program cycles.

Negative Factors

Sharp free cash flow decline

A >70% FCF drop meaningfully reduces financial flexibility for capex, R&D or cushioning pricing pressure. If driven by working capital or higher capex for new programs, recovery is possible, but a persistent decline would constrain strategic investments and dividend resilience.

Exposure to electrification trends

Core revenue tied to fuel-system and engine components faces structural downside as OEMs accelerate EV adoption. Without clear pivot to electrified powertrain modules, Aisan risks shrinking addressable market and program losses over the medium term.

Modest net margins and limited profitability buffer

Relatively thin net margins and moderate ROE leave limited room to absorb commodity inflation, OEM price concessions or prolonged volume declines. This constrains the company's ability to fund large strategic shifts or absorb adverse cyclical swings without margin pressure.

Aisan Industry Co., Ltd. Business Overview & Revenue Model

Company Description

Aisan Industry Co., Ltd. manufactures and sells automotive parts in Japan and internationally. The company offers fuel pumps, fuel pump modules, throttle bodies, EGR valves, intake manifolds, positive crankcase ventilation valves, charcoal canisters and fuel tank close valves, and engine valves. It also provides FI systems, titanium alloy engine valves, and charcoal canisters for motorcycles; and hydrogen injectors, electric water pumps, and gas fuel systems for LPG and CNG. The company was founded in 1938 and is headquartered in Obu, Japan.

How the Company Makes Money

Aisan Industry makes money primarily by manufacturing and selling automotive components to vehicle manufacturers (OEMs) and, where applicable, to tiered automotive suppliers. Revenue is generated through (1) mass-production supply contracts tied to OEM vehicle programs, where Aisan delivers high-volume parts (notably fuel-system-related components/modules) that are installed at the factory; and (2) engineering and development activities that support those production awards (e.g., co-development, design-to-cost, validation), which are typically monetized indirectly through securing long-term supply positions and program volumes rather than as standalone services. Earnings are influenced by the number of vehicle platforms using its components, production volumes at customer plants, pricing negotiated per part/module (often with periodic price revisions), and the company’s ability to manage manufacturing costs and quality. Significant customer concentration, platform lifecycles, and powertrain mix (e.g., demand for fuel-system components versus electrified architectures) can materially affect sales and profitability. Specific partnership details and customer names are null.

Aisan Industry Co., Ltd. Financial Statement Overview

Summary

Aisan Industry Co., Ltd. demonstrates a robust financial performance with strong revenue growth and improving profitability. The balance sheet reflects stability with moderate leverage and solid equity. Despite a significant reduction in free cash flow, the company maintains strong operational cash generation. Overall, the company's financial health is strong, with positive growth trends and stable financial metrics.

Income Statement

Aisan Industry Co., Ltd. has shown strong revenue growth with an impressive 7.29% increase from 2024 to 2025. The gross profit margin is robust at 14.52%, indicating efficient production. The net profit margin rose to 3.92%, reflecting improved profitability. EBIT and EBITDA margins are healthy at 5.44% and 10.01% respectively, showcasing strong operational performance. Overall, the income statement depicts a positive trajectory with growing revenues and margins.

Balance Sheet

The company maintains a strong equity base with an equity ratio of 45.14%, demonstrating financial stability. The debt-to-equity ratio stands at 0.41, indicating moderate leverage. With a return on equity of 9.74%, Aisan Industry is generating reasonable returns for shareholders. The balance sheet reflects a solid financial position with managed debt levels and a strong equity base.

Cash Flow

The free cash flow decreased by 70.06% from 2024 to 2025, highlighting potential challenges in cash generation. However, the operating cash flow to net income ratio of 2.13 indicates strong cash generation relative to profits. The free cash flow to net income ratio of 0.59 suggests efficient use of cash. Overall, the cash flow statement shows strong operational cash generation but highlights a significant reduction in free cash flow.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	334.00B	337.26B	314.34B	240.81B	193.75B	181.43B
Gross Profit	47.14B	62.40B	54.16B	43.87B	35.42B	30.28B
EBITDA	29.60B	32.23B	30.45B	26.68B	19.98B	15.97B
Net Income	11.41B	13.23B	11.74B	8.51B	6.83B	3.52B
Balance Sheet
Total Assets	288.73B	300.98B	272.55B	225.76B	201.94B	189.92B
Cash, Cash Equivalents and Short-Term Investments	77.25B	85.78B	67.04B	45.97B	50.09B	46.33B
Total Debt	56.41B	57.30B	42.84B	49.34B	42.49B	44.08B
Total Liabilities	159.65B	160.64B	132.99B	115.38B	101.05B	102.14B
Stockholders Equity	125.09B	135.83B	134.77B	106.49B	97.05B	84.36B
Cash Flow
Free Cash Flow	0.00	7.87B	26.29B	13.84B	5.57B	11.12B
Operating Cash Flow	0.00	28.22B	38.63B	20.27B	13.54B	17.76B
Investing Cash Flow	0.00	-20.13B	-9.66B	-30.04B	-6.96B	-6.79B
Financing Cash Flow	0.00	10.95B	-11.43B	3.98B	-4.13B	-1.18B

Aisan Industry Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2235.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7283, the sentiment is Negative. The current price of 2235 is above the 20-day moving average (MA) of 2083.10, above the 50-day MA of 2174.36, and above the 200-day MA of 1998.80, indicating a bearish trend. The MACD of -75.58 indicates Positive momentum. The RSI at 33.14 is Neutral, neither overbought nor oversold. The STOCH value of 19.92 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7283.

Aisan Industry Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7283	77 Outperform	¥117.44B	7.27	―	3.30%	0.29%	9.87%
7296	74 Outperform	¥156.41B	13.70	―	4.47%	2.01%	25.09%
7287	74 Outperform	¥139.51B	10.91	―	2.93%	1.77%	117.03%
7220	71 Outperform	¥161.14B	-8.32	―	1.93%	-3.23%	24.93%
7280	70 Outperform	¥51.99B	14.59	―	0.99%	-0.83%	-27.20%
7278	69 Neutral	¥204.51B	10.65	7.50%	5.39%	-2.26%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Aisan Industry Co., Ltd. Corporate Events

Aisan Industry to Allocate Treasury Stock for New Employee Restricted Share Plan

Aisan Industry has approved the disposal of up to 320,800 shares of its treasury stock as restricted stock to its Employee Shareholding Association under a new Employee Shareholding Association-Restricted Stock Incentive Plan, with a disposal price of ¥2,195 per share and a maximum notional value of about ¥704 million. The plan, which could dilute existing share capital by roughly 0.5%, is designed as a welfare measure to help eligible employees build assets and to strengthen alignment with shareholders by tying employee interests more closely to the company’s share performance, while the company judges the scale of dilution and market impact to be limited and reasonable.

The most recent analyst rating on (JP:7283) stock is a Buy with a Yen2444.00 price target. To see the full list of analyst forecasts on Aisan Industry Co., Ltd. stock, see the JP:7283 Stock Forecast page.

Aisan Industry Raises Full-Year Profit and Dividend Forecasts on Weaker Yen Assumptions

Aisan Industry has revised its full-year consolidated forecast for the fiscal year ending March 31, 2026, increasing projected net sales from ¥310 billion to ¥320 billion and raising ordinary income and net income attributable to owners of the parent to ¥19.0 billion and ¥12.5 billion, respectively, while keeping operating income unchanged. The revision reflects a weaker yen than previously assumed—prompting an updated average exchange rate outlook and recognition of higher costs from tariffs and other factors—yet overall supports slightly stronger profit expectations and a modest increase in earnings per share. In line with these updated projections, the company has lifted its year-end dividend forecast from ¥38 to ¥40 per share, bringing the total annual dividend to ¥77, up ¥2 from the prior forecast and exceeding the previous year’s payout, signaling confidence in its earnings resilience despite currency and cost headwinds.

The most recent analyst rating on (JP:7283) stock is a Buy with a Yen2444.00 price target. To see the full list of analyst forecasts on Aisan Industry Co., Ltd. stock, see the JP:7283 Stock Forecast page.

Aisan Industry Posts Slight Profit Rise on Lower Sales, Lifts Dividend Forecast

Aisan Industry reported consolidated net sales of ¥247.2 billion for the nine months ended December 31, 2025, down 2.4% year-on-year, while operating profit fell 11.0% to ¥14.8 billion and ordinary profit declined 7.4% to ¥15.8 billion; nonetheless, profit attributable to owners of parent inched up 1.9% to ¥12.0 billion, supported by improved comprehensive income and a slightly stronger equity position, with the equity-to-asset ratio rising to 45.2%. Despite forecasting a 5.1% decline in full-year net sales to ¥320.0 billion and lower profit attributable to owners of parent, the company has revised its dividend forecast upward to a total of ¥77 per share for the fiscal year ending March 31, 2026, signaling continued emphasis on shareholder returns even as it faces softer top-line growth and has streamlined its consolidation scope by excluding its Indian subsidiary.

The most recent analyst rating on (JP:7283) stock is a Buy with a Yen2444.00 price target. To see the full list of analyst forecasts on Aisan Industry Co., Ltd. stock, see the JP:7283 Stock Forecast page.