Yorozu Corporation (7294) AI Stock Analysis

• Market Cap: ¥22.24B
• Dividend Yield: 3.35%
• Average Volume (3M): 28.14K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.70
• Revenue Growth: -4.86%
• EPS Growth: -162.41%
• Country: JP
• Employees: 5,700
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): -6.65
• Shares Outstanding: 25,055,635
• 10 Day Avg. Volume: 26,250
• 30 Day Avg. Volume: 28,136
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.47
• Price to Sales (P/S): 0.14
• P/FCF Ratio: -5.69
• 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: ¥954.00
• Price Target Upside: 2.25% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 50 Neutral
• Price Target: ¥954.00 ▲(2.25% Upside)

Yorozu Corporation's overall stock score reflects significant financial and valuation challenges, with negative profitability and weak technical indicators. The dividend yield offers some support, but strategic improvements are needed to enhance financial health and investor confidence.

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 other parts, such as suspension modules, engine mounts, splash guards, and body parts for cars, trucks, and tractors. The company was formerly known as Yorozu Automotive Works and changed its name to Yorozu Corporation in June 1990. Yorozu Corporation was incorporated in 1948 and is headquartered in Yokohama, Japan.

How the Company Makes Money

Yorozu Corporation generates revenue primarily through the sale of its automotive parts and components to automobile manufacturers. Its key revenue streams include contracts and partnerships with major automotive companies for the supply of suspension systems and related parts. The company benefits from long-term relationships with leading car manufacturers, ensuring a steady demand for its products. Additionally, Yorozu's commitment to research and development allows it to introduce innovative solutions that can command premium pricing, further contributing to its earnings. The company's global presence and diversified customer base also help mitigate risks associated with market fluctuations in specific regions.

Yorozu Corporation Financial Statement Overview

Summary

Yorozu Corporation's financial statements reflect challenges in profitability and cash flow. The income statement shows negative net profit margins and inconsistent revenue growth. The balance sheet indicates a moderate debt-to-equity ratio but declining stockholders' equity. Cash flow concerns are evident with negative free cash flow and volatility in cash flow growth.

Income Statement

Yorozu Corporation's income statement shows mixed results. The gross profit margin is relatively stable, but the net profit margin is negative due to recent losses. The revenue growth rate has been inconsistent, with a decline observed in the most recent period. EBIT and EBITDA margins have also deteriorated, indicating operational challenges.

Balance Sheet

The company maintains a moderate debt-to-equity ratio, but the stockholders' equity has decreased over time. The equity ratio indicates a reasonable proportion of equity financing, which is a positive. However, the return on equity is negative due to recent net losses, highlighting profitability concerns.

Cash Flow

Yorozu's cash flow statement reveals some concerns. The free cash flow is negative, and its growth rate shows volatility. Although the operating cash flow to net income ratio suggests good cash generation relative to reported income, the negative free cash flow to net income ratio points to challenges in covering capital expenditures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	175.26B	178.41B	181.47B	160.56B	127.32B	118.86B
Gross Profit	16.31B	16.79B	19.04B	17.18B	14.30B	12.24B
EBITDA	-2.24B	-2.76B	3.40B	13.43B	11.91B	6.53B
Net Income	-12.57B	-13.45B	-3.93B	1.42B	876.00M	-6.20B
Balance Sheet
Total Assets	132.45B	136.60B	142.26B	141.51B	133.99B	134.72B
Cash, Cash Equivalents and Short-Term Investments	23.55B	27.93B	22.29B	23.62B	28.87B	29.26B
Total Debt	41.41B	42.76B	33.26B	32.11B	32.85B	42.87B
Total Liabilities	74.11B	75.39B	66.77B	64.07B	63.62B	68.99B
Stockholders Equity	50.00B	52.53B	66.67B	64.23B	57.66B	54.00B
Cash Flow
Free Cash Flow	-3.24B	-4.33B	-915.00M	-3.13B	12.24B	6.90B
Operating Cash Flow	-280.50M	4.74B	12.53B	2.92B	14.91B	13.22B
Investing Cash Flow	-3.02B	-11.81B	-11.85B	-5.16B	-4.54B	-7.05B
Financing Cash Flow	1.08B	6.76B	-1.74B	-4.82B	-13.82B	3.77B

Yorozu Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 933.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 933 is below the 20-day moving average (MA) of 943.91, below the 50-day MA of 961.73, and below the 200-day MA of 968.69, indicating a bearish trend. The MACD of -8.24 indicates Positive momentum. The RSI at 42.96 is Neutral, neither overbought nor oversold. The STOCH value of 30.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7294.

Yorozu Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7236	82 Outperform	¥37.01B	7.24	―	3.90%	1.00%	413.42%
7466	74 Outperform	¥22.82B	9.39	―	2.64%	7.79%	4.43%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
6584	61 Neutral	¥32.81B	76.13	―	3.08%	0.72%	-92.17%
6470	52 Neutral	¥19.96B	―	―	2.91%	2.93%	-349.98%
7266	51 Neutral	¥16.34B	7.96	―	3.23%	-7.01%	-108.77%
7294	50 Neutral	¥22.24B	―	―	3.35%	-4.86%	-162.41%

Yorozu Corporation Corporate Events

Yorozu Corporation Reports Improved Profitability Amid Declining Sales

Yorozu Corporation reported a decrease in net sales by 7.1% for the three months ended June 30, 2025, compared to the same period in 2024. Despite the decline in sales, the company showed improvement in operating and ordinary income, moving from a loss to a positive figure. The forecast for the fiscal year ending March 31, 2026, anticipates a slight decrease in net sales but significant growth in operating income, suggesting a potential recovery in profitability. This financial performance indicates a strategic shift that could positively impact the company’s market positioning and stakeholder confidence.

Yorozu Corporation Updates Corporate Governance Guidelines

Yorozu Corporation has revised its Corporate Governance Guidelines to align with the updated TSE Corporate Governance Code. The changes aim to strengthen the supervisory functions of the Board of Directors by increasing the number of outside directors, ensuring they possess the necessary expertise and independence to guide the company towards sustainable growth.