Yorozu Corporation (7294) AI Stock Analysis

• Market Cap: ¥23.97B
• Dividend Yield: 3.11%
• Average Volume (3M): 26.69K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.68
• Revenue Growth: -4.86%
• EPS Growth: -162.41%
• Country: JP
• Employees: 5,700
• Sector: Consumer Cyclical
• Sector Strength: 82
• Industry: Auto - Parts
• EPS (TTM): -6.65
• Shares Outstanding: 25,055,635
• 10 Day Avg. Volume: 22,840
• 30 Day Avg. Volume: 26,686
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥948.00
• Price Target Upside: -5.01% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 55 Neutral
• Price Target: ¥948.00 ▼(-5.01% Downside)

Yorozu Corporation faces significant profitability and cash flow challenges, impacting its financial performance score. Technical indicators provide some positive signals, but valuation concerns due to a negative P/E ratio weigh heavily. The lack of notable earnings call insights and corporate events leaves financial performance as the most influential factor.

Yorozu Corporation Business Overview & Revenue Model

Company Description

Yorozu Corporation (7294) is a leading Japanese automotive parts manufacturer specializing in suspension systems and components. Founded in 1948, the company operates in the automotive sector and provides high-quality products such as shock absorbers, suspension arms, and other related components to major automobile manufacturers worldwide. With a strong focus on innovation and technology, Yorozu Corporation aims to enhance vehicle performance and safety through its advanced engineering and manufacturing capabilities.

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 profitability and cash flow challenges. Despite some stability in asset and equity levels, operational efficiency and cash generation need improvement. The negative net profit margin and volatile cash flow growth highlight these issues.

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	178.41B	178.41B	181.47B	160.56B	127.32B	118.86B
Gross Profit	16.78B	16.79B	19.04B	17.18B	14.30B	12.24B
EBITDA	-2.76B	-2.76B	3.40B	13.43B	11.91B	6.53B
Net Income	-13.45B	-13.45B	-3.93B	1.42B	876.00M	-6.20B
Balance Sheet
Total Assets	136.60B	136.60B	142.26B	141.51B	133.99B	134.72B
Cash, Cash Equivalents and Short-Term Investments	27.93B	27.93B	22.29B	23.62B	28.87B	29.26B
Total Debt	42.76B	42.76B	33.26B	32.11B	32.85B	42.87B
Total Liabilities	75.39B	75.39B	66.77B	64.07B	63.62B	68.99B
Stockholders Equity	52.53B	52.53B	66.67B	64.23B	57.66B	54.00B
Cash Flow
Free Cash Flow	-6.48B	-4.33B	-915.00M	-3.13B	12.24B	6.90B
Operating Cash Flow	-561.00M	4.74B	12.53B	2.92B	14.91B	13.22B
Investing Cash Flow	-6.03B	-11.81B	-11.85B	-5.16B	-4.54B	-7.05B
Financing Cash Flow	2.16B	6.76B	-1.74B	-4.82B	-13.82B	3.77B

Yorozu Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 998.00
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 998 is above the 20-day moving average (MA) of 991.45, above the 50-day MA of 950.08, and below the 200-day MA of 1008.20, indicating a neutral trend. The MACD of 12.91 indicates Positive momentum. The RSI at 59.29 is Neutral, neither overbought nor oversold. The STOCH value of 44.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7294.

Yorozu Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7466	80 Outperform	¥23.76B	9.78		2.54%	7.79%	4.43%
7236	79 Outperform	¥36.07B	7.28		3.49%	1.00%	413.42%
Sector *	61 Neutral	$17.92B	12.81	-3.11%	2.97%	1.30%	-14.28%
6584	59 Neutral	¥32.01B	75.53		3.16%	0.72%	-92.17%
6470	58 Neutral	¥20.54B	―		2.82%	2.93%	-349.98%
7266	55 Neutral	¥17.84B	7.96		2.58%	-7.01%	-108.77%
7294	55 Neutral	¥23.97B	―		3.11%	-4.86%	-162.41%

Yorozu Corporation Corporate Events

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.

Yorozu Corporation Announces Executive Changes

Yorozu Corporation has announced changes to its executive officers following a resolution at the Board of Directors meeting. These changes, which include new roles for Chikara Haruta and Norio Hirano, are expected to be approved at the upcoming Ordinary General Meeting of Shareholders, potentially impacting the company’s leadership structure and strategic direction.

Yorozu Corporation Recognizes Provision for Doubtful Accounts

Yorozu Corporation has announced the recognition of a provision for doubtful accounts in its individual financial statements for the fiscal year ended March 31, 2025. This provision, amounting to ¥2,375 million, is attributed to loans to its subsidiaries, including Wuhan Yorozu Bao Mit Automotive Co., Ltd., whose performance has been declining. While this is recorded as a non-operating expense, it will not affect the consolidated profit and loss as the amount will be eliminated in the consolidated financial statements.

Yorozu Corporation Reports Fiscal Year 2025 Financial Results with Significant Losses

Yorozu Corporation reported its consolidated financial results for the fiscal year ended March 31, 2025, showing a decline in net sales and significant losses in operating and ordinary income compared to the previous year. The company attributed these results to impairment losses on investments in related companies, impacting the valuation of shares. Despite the challenging financial performance, Yorozu plans to maintain its dividend payouts and has forecasted a modest recovery in operating income and net sales for the next fiscal year, indicating a cautious optimism for future performance.

Yorozu Corporation Revises Financial Forecast Upward for FY 2025

Yorozu Corporation announced an upward revision in its full-year consolidated financial results for the year ended March 31, 2025, surpassing previous forecasts. The improvement was mainly due to a lower-than-expected impairment loss in the Americas and Asia segments, along with increased sales in Japan, resulting in a profit attributable to owners of the parent company that exceeded initial expectations.