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Yorozu Corporation (JP:7294)
:7294
Japanese Market
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Yorozu Corporation (7294) AI Stock Analysis

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JP:7294

Yorozu Corporation

(7294)

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Neutral 52 (OpenAI - 5.2)
Rating:52Neutral
Price Target:
¥890.00
▼(-11.44% Downside)
Action:Reiterated
Date:05/17/26
The score is driven primarily by improving but still volatile financial performance (thin profitability and uneven cash generation) and a weak technical setup (below key moving averages with negative MACD). A reasonable valuation and solid dividend yield provide some support but do not fully offset the financial and trend risks.
Positive Factors
OEM program-based business
Yorozu’s core business supplying stamped metal components to OEMs is structurally durable: program-based contracts and long vehicle model lifecycles create recurring production windows, high qualification barriers, and predictable revenue when programs are sustained, supporting steady operations.
Negative Factors
Thin net margins
With net margins around 1%, Yorozu has limited earnings buffer versus input-cost inflation, pricing pressure, or volume declines. Such compressed margins reduce retained earnings capacity and magnify the impact of cyclical downturns, making consistent profit generation fragile over time.
Read all positive and negative factors
Positive Factors
Negative Factors
OEM program-based business
Yorozu’s core business supplying stamped metal components to OEMs is structurally durable: program-based contracts and long vehicle model lifecycles create recurring production windows, high qualification barriers, and predictable revenue when programs are sustained, supporting steady operations.
Read all positive factors

Yorozu Corporation (7294) vs. iShares MSCI Japan ETF (EWJ)

Yorozu Corporation Business Overview & Revenue Model

Company Description
Yorozu Corporation designs, develops, manufactures, and sells auto parts, agricultural machinery parts, and production equipment worldwide. It offers front and rear suspension members, rear beams, links, brake pedals, and oil pans, as well as othe...
How the Company Makes Money
Yorozu primarily makes money by selling manufactured automotive components to customers (typically OEM automakers and/or tiered automotive suppliers). Revenue is generated through (1) mass production and supply of pressed/stamped metal parts used ...

Yorozu Corporation Financial Statement Overview

Summary
Financials are improving but still inconsistent. Earnings rebounded to a modest profit in FY2026 after losses in FY2024–FY2025, yet net margins remain thin (~1%). Leverage is manageable (debt-to-equity under 1.0), but cash-flow quality is below average due to multi-year free cash flow volatility and several negative FCF years prior to FY2026.
Income Statement
52
Neutral
Balance Sheet
63
Positive
Cash Flow
48
Neutral
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue175.26B176.33B178.41B181.47B160.56B127.32B
Gross Profit16.31B20.09B16.79B19.04B17.18B14.30B
EBITDA-2.24B10.09B-2.76B3.40B13.43B11.91B
Net Income-12.57B2.08B-13.45B-3.93B1.42B876.00M
Balance Sheet
Total Assets132.45B138.26B136.60B142.26B141.51B133.99B
Cash, Cash Equivalents and Short-Term Investments23.55B29.77B27.93B22.29B23.62B28.87B
Total Debt41.41B43.35B42.76B33.39B32.16B34.26B
Total Liabilities74.11B74.20B75.39B66.76B64.07B63.61B
Stockholders Equity50.00B54.65B52.53B66.67B64.23B57.66B
Cash Flow
Free Cash Flow-3.24B2.83B-4.33B-915.00M-3.13B12.24B
Operating Cash Flow-280.50M8.03B4.74B12.53B2.92B14.91B
Investing Cash Flow-3.02B-1.85B-11.81B-11.85B-5.16B-4.54B
Financing Cash Flow1.08B-3.14B6.76B-1.74B-4.82B-13.82B

Yorozu Corporation Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1005.00
Price Trends
50DMA
898.97
Negative
100DMA
960.60
Negative
200DMA
948.50
Negative
Market Momentum
MACD
-9.17
Negative
RSI
42.67
Neutral
STOCH
9.91
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7294, the sentiment is Negative. The current price of 1005 is above the 20-day moving average (MA) of 874.60, above the 50-day MA of 898.97, and above the 200-day MA of 948.50, indicating a bearish trend. The MACD of -9.17 indicates Negative momentum. The RSI at 42.67 is Neutral, neither overbought nor oversold. The STOCH value of 9.91 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7294.

Yorozu 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
¥51.59B9.478.46%2.64%-3.94%36.68%
79
Outperform
¥77.33B12.653.21%5.90%2.20%
71
Outperform
¥90.64B4.183.88%-4.13%158.47%
68
Neutral
¥212.29B21.034.77%-3.95%-13.75%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
57
Neutral
¥57.98B3.060.99%-0.22%-2.98%
52
Neutral
¥17.82B9.983.19%-1.17%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7294
Yorozu Corporation
865.00
-11.36
-1.30%
JP:7244
Ichikoh Industries,Ltd.
536.00
172.32
47.38%
JP:7241
Futaba Industrial Co., Ltd.
1,012.00
305.40
43.22%
JP:7280
Mitsuba Corporation
1,279.00
489.30
61.96%
JP:7292
Murakami Corporation
6,790.00
1,148.59
20.36%
JP:7313
TS Tech Co., Ltd.
1,783.00
268.05
17.69%

Yorozu Corporation Corporate Events

Yorozu Books ¥1.6 Billion Doubtful Accounts Allowance With No Hit to Consolidated Profit
May 15, 2026
Yorozu Corporation has reassessed the collectability of receivables from certain underperforming consolidated subsidiaries, including Yorozu Sustainable Manufacturing Center, Inc., and revised its estimation of allowance for doubtful accounts. Fol...
Yorozu Books FX Hedge Gains and Higher Interest Costs on Capacity Investments
May 15, 2026
Yorozu Corporation reported significant non-operating items for the fiscal year ended March 31, 2026, including ¥851 million in derivative valuation gains from foreign exchange forward contracts used to hedge currency risks and ¥547 mill...
Yorozu Lifts Earnings Above Forecast and Hikes Dividend for FY2026
May 15, 2026
Yorozu Corporation reported that its consolidated results for the fiscal year ended March 31, 2026 exceeded earlier forecasts, with net sales, operating income, ordinary income and net income all improving on the back of yen depreciation, recovery...
Yorozu Returns to Profit but Signals Weaker Outlook for FY 2027
May 15, 2026
Yorozu Corporation reported fiscal year 2026 consolidated net sales of ¥176.3 billion, down 1.2% year on year, but swung back to profitability with operating income of ¥4.0 billion and profit attributable to owners of parent of ¥2.1...
Yorozu to Merge Five Wholly Owned Units to Streamline Operations
Feb 26, 2026
Yorozu Corporation will implement an absorption-type merger on April 1, 2026, consolidating five wholly owned domestic subsidiaries into the parent company. The move centralizes general management functions now spread across several plants, allowi...
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: May 17, 2026