Murakami Corporation (7292) AI Stock Analysis

• Market Cap: ¥76.76B
• Dividend Yield: 3.21%
• Average Volume (3M): 2.53K
• Price to Earnings (P/E): 11.7
• Beta (1Y): 0.77
• Revenue Growth: 4.44%
• EPS Growth: 14.91%
• Country: JP
• Employees: 3,760
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 144.50
• Shares Outstanding: 12,100,000
• 10 Day Avg. Volume: 2,670
• 30 Day Avg. Volume: 2,530
• PEG Ratio: 2.53
• Price to Book (P/B): 0.68
• Price to Sales (P/S): 0.56
• P/FCF Ratio: 10.82
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ¥7,514.00 ▲(4.65% Upside)

Murakami Corporation's strong financial performance, characterized by robust revenue growth and a solid balance sheet, is the primary driver of its stock score. The valuation is reasonable with an attractive dividend yield, supporting the overall score. However, technical indicators suggest a neutral to slightly bearish short-term outlook, which tempers the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for Murakami's products and successful market expansion, enhancing long-term business prospects.

Balance Sheet Health

A strong balance sheet with low leverage provides financial stability and flexibility, enabling Murakami to invest in growth opportunities and withstand economic downturns.

Cash Generation

Strong cash generation supports ongoing operations, debt servicing, and potential reinvestment in innovation, ensuring long-term sustainability.

Negative Factors

Operating Cash Flow Decline

A decline in operating cash flow may indicate challenges in cash conversion efficiency, potentially impacting liquidity and operational flexibility.

Cash Conversion Efficiency

Reduced cash conversion efficiency can limit the company's ability to fund operations and growth initiatives, posing a risk to financial health.

Potential Risks

Monitoring cash flow efficiency is crucial as further declines could strain financial resources, affecting Murakami's ability to maintain its competitive position.

Murakami Corporation Business Overview & Revenue Model

Company Description

Murakami Corporation manufactures and sells rear-view mirrors in Japan. The company offers rearview, electronic, and concave mirrors. It also provides heated washer and projection related products. In addition, the company offers opt-electronics solutions, such as dichroic and half mirror, UV, IR, and dichroic filter; cold mirror, band-pass, and trimming filters, as well as Ar, Cr, and laser mirrors. The company was founded in 1882 and is based in Shizuoka, Japan.

How the Company Makes Money

Murakami Corporation generates revenue through the production and sale of automotive components to major automobile manufacturers. The company’s revenue model is primarily based on B2B sales, where it supplies parts to OEMs (Original Equipment Manufacturers) and Tier 1 suppliers in the automotive sector. Key revenue streams include contracts for long-term supply agreements, one-time sales of specialized components, and service agreements for technical support and maintenance of their products. Additionally, partnerships with leading automotive companies enhance their market position and contribute to steady revenue growth, as they often engage in joint development projects that open new avenues for product innovations and increased sales.

Murakami Corporation Financial Statement Overview

Summary

Murakami Corporation exhibits a strong financial position with steady revenue and profit growth, robust balance sheet metrics, and solid cash flow management. The company maintains low leverage and high liquidity, positioning it well within the Auto - Parts industry. Potential risks include the slight decline in operating cash flow efficiency, which should be monitored.

Income Statement

Murakami Corporation has demonstrated strong revenue growth over the past years, with a notable increase in total revenue from ¥73.6 billion in 2022 to ¥109.2 billion in 2025. The gross profit margin remains healthy at approximately 15.4% in 2025. Net profit margin improved slightly, indicating efficient cost management. EBIT and EBITDA margins have shown consistent growth, reflecting operational efficiency.

Balance Sheet

The company's balance sheet is robust with a low debt-to-equity ratio of 0.002, showcasing low financial leverage. The equity ratio is strong at around 76.9%, indicating a high proportion of equity financing. Return on equity is stable, supported by consistent net income growth. The substantial cash reserves further enhance financial stability.

Cash Flow

Murakami Corporation's cash flow position is solid, with a positive free cash flow trend, despite a decline in operating cash flow from ¥11.9 billion in 2024 to ¥9.8 billion in 2025. The free cash flow to net income ratio is healthy, indicating strong cash generation relative to earnings. The operating cash flow to net income ratio suggests a slight decline in cash conversion efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	110.42B	109.20B	104.60B	90.64B	73.59B	74.15B
Gross Profit	17.82B	16.87B	16.08B	13.04B	12.07B	11.81B
EBITDA	14.71B	14.01B	13.63B	11.75B	10.11B	9.97B
Net Income	6.40B	5.94B	5.89B	5.37B	3.87B	3.70B
Balance Sheet
Total Assets	112.69B	115.53B	106.81B	100.36B	89.20B	84.87B
Cash, Cash Equivalents and Short-Term Investments	45.41B	47.58B	43.29B	39.47B	34.82B	32.68B
Total Debt	4.92B	215.00M	105.00M	1.63B	1.62B	1.62B
Total Liabilities	22.52B	23.26B	20.75B	21.33B	17.18B	17.38B
Stockholders Equity	87.28B	88.92B	82.98B	76.11B	69.69B	65.00B
Cash Flow
Free Cash Flow	0.00	5.61B	8.21B	4.86B	3.33B	4.89B
Operating Cash Flow	0.00	9.84B	11.92B	7.77B	6.03B	8.38B
Investing Cash Flow	0.00	-4.50B	-2.97B	-2.62B	-2.62B	-2.56B
Financing Cash Flow	0.00	-3.05B	-6.17B	-2.26B	-2.22B	-1.38B

Murakami Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7180.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7292, the sentiment is Negative. The current price of 7180 is above the 20-day moving average (MA) of 6952.00, above the 50-day MA of 6762.00, and above the 200-day MA of 6302.43, indicating a neutral trend. The MACD of 49.12 indicates Positive momentum. The RSI at 44.38 is Neutral, neither overbought nor oversold. The STOCH value of 27.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7292.

Murakami Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5970	85 Outperform	¥86.46B	7.11	―	4.95%	-5.89%	8.95%
6463	80 Outperform	¥90.30B	8.59	―	3.85%	-4.47%	29.68%
7250	78 Outperform	¥194.16B	12.22	―	1.03%	3.62%	3.64%
7292	72 Outperform	¥76.76B	11.66	―	3.21%	4.44%	14.91%
7241	68 Neutral	¥95.83B	8.70	―	3.88%	-7.35%	43.31%
5988	66 Neutral	¥44.10B	52.18	―	5.35%	-6.20%	-64.65%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%