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Yorozu Corporation (JP:7294)
:7294
Japanese Market

Yorozu Corporation (7294) AI Stock Analysis

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JP

Yorozu Corporation

(7294)

Rating:48Neutral
Price Target:
The stock score is primarily driven by financial performance challenges, including profitability and cash flow issues. Technical analysis reinforces a bearish outlook with oversold indicators. Valuation concerns further impact the score, as the negative P/E ratio reflects recent losses, though the dividend yield offers some relief.

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

Yorozu Corporation Business Overview & Revenue Model

Company DescriptionYorozu Corporation (7294) is a Japanese company primarily engaged in the manufacturing and sale of automotive components. Founded in 1948 and headquartered in Yokohama, Japan, the company specializes in suspension products, including components like axles, frames, and other related assemblies for automobiles. Yorozu Corporation serves a global market, supplying its products to major automotive manufacturers and leveraging its expertise in engineering and production to deliver high-quality solutions.
How the Company Makes MoneyYorozu Corporation generates revenue primarily through the manufacturing and sale of automotive components, particularly suspension systems. Its key revenue streams are derived from contracts with major automobile manufacturers who require advanced suspension systems for their vehicle production. The company's earnings are significantly influenced by its ability to maintain strategic partnerships with leading automotive brands, ensuring a steady demand for its high-quality components. Additionally, Yorozu's focus on innovation and efficiency in production processes helps maintain its competitive edge, contributing to its profitability in the global automotive components market.

Yorozu Corporation Financial Statement Overview

Summary
Yorozu Corporation faces financial headwinds with persistent losses and cash flow difficulties. While revenue shows slight growth, profitability and cash flow metrics are under pressure, raising concerns about operational efficiency and financial stability. The balance sheet remains a relative strength, but high leverage poses a risk. Strategic efforts to improve profitability and cash flow are needed to enhance financial health.
Income Statement
45
Neutral
Yorozu Corporation has shown volatile revenue growth with a TTM revenue growth rate of 3.15% from the previous year. The company faces challenges in profitability, evidenced by negative net income and declining EBIT margin at 1.93% in TTM. Gross Profit Margin remains modest at 10.57%, indicating some cost control but insufficient to overcome operating losses.
Balance Sheet
55
Neutral
The balance sheet reveals a stable equity base with an Equity Ratio of 41.68% in TTM, suggesting moderate reliance on debt financing. However, the Debt-to-Equity Ratio remains high at 0.61, indicating leverage risk. ROE has turned negative due to losses, signaling inefficiency in generating returns on equity.
Cash Flow
40
Negative
The cash flow situation is concerning, with negative free cash flow in TTM and a significant decline in operating cash flows. The Free Cash Flow to Net Income Ratio is negative, indicating cash flow challenges, exacerbated by high capital expenditures relative to cash flow generation.
Breakdown
TTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income StatementTotal Revenue
187.17B181.47B160.56B127.32B118.86B157.68B
Gross Profit
19.79B19.04B17.18B14.30B12.24B16.35B
EBIT
3.61B4.46B3.09B2.10B377.00M2.21B
EBITDA
901.00M3.40B13.43B11.91B6.53B2.33B
Net Income Common Stockholders
-9.33B-3.93B1.42B876.00M-6.20B-12.93B
Balance SheetCash, Cash Equivalents and Short-Term Investments
24.02B22.29B23.62B28.87B29.26B19.02B
Total Assets
142.31B142.26B141.51B133.99B134.72B139.70B
Total Debt
36.02B33.26B32.11B32.85B42.87B37.88B
Net Debt
12.00B10.97B8.50B3.98B13.61B18.86B
Total Liabilities
74.20B66.77B64.07B63.62B68.99B65.15B
Stockholders Equity
59.33B66.67B64.23B57.66B54.00B60.34B
Cash FlowFree Cash Flow
-6.48B-915.00M-3.13B12.24B6.90B1.19B
Operating Cash Flow
-561.00M12.53B2.92B14.91B13.22B10.82B
Investing Cash Flow
-6.03B-11.85B-5.16B-4.54B-7.05B-9.58B
Financing Cash Flow
2.16B-1.74B-4.82B-13.82B3.77B-7.72B

Yorozu Corporation Technical Analysis

Technical Analysis Sentiment
Negative
Last Price878.00
Price Trends
50DMA
945.86
Negative
100DMA
993.44
Negative
200DMA
1055.23
Negative
Market Momentum
MACD
-22.93
Negative
RSI
38.31
Neutral
STOCH
25.19
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 878 is below the 20-day moving average (MA) of 907.90, below the 50-day MA of 945.86, and below the 200-day MA of 1055.23, indicating a bearish trend. The MACD of -22.93 indicates Negative momentum. The RSI at 38.31 is Neutral, neither overbought nor oversold. The STOCH value of 25.19 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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
¥21.99B8.83
2.74%8.56%4.09%
76
Outperform
¥24.20B7.05
6.51%0.36%242.74%
74
Outperform
¥15.77B7.21
2.90%-5.40%
63
Neutral
$6.96B11.512.80%3.85%2.70%-24.43%
60
Neutral
¥21.72B29.19
4.63%1.74%-82.49%
52
Neutral
¥17.90B
3.21%0.66%-340.28%
48
Neutral
¥21.23B
3.53%-1.68%-240.66%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7294
Yorozu Corporation
884.00
-175.05
-16.53%
JP:6470
Taiho Kogyo Co., Ltd.
609.00
-150.68
-19.83%
JP:6584
Sanoh Industrial Co., Ltd.
610.00
-341.44
-35.89%
JP:7236
T.RAD Co., Ltd.
4,645.00
1,226.90
35.89%
JP:7266
Imasen Electric Industrial Co., Ltd.
686.00
86.72
14.47%
JP:7466
SPK Corporation
2,188.00
54.91
2.57%

Yorozu Corporation Corporate Events

Yorozu Corporation Announces Executive Changes
May 20, 2025

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
May 15, 2025

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
May 15, 2025

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
May 15, 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.

Yorozu Corporation Acquires Treasury Stock to Enhance Shareholder Value
Apr 10, 2025

Yorozu Corporation has announced the acquisition of 82,500 shares of its treasury stock, amounting to 90,726,100 yen, through market purchases on the Tokyo Stock Exchange. This move is part of a broader resolution to acquire up to 250,000 shares, with a maximum expenditure of 300,000,000 yen, aimed at enhancing shareholder value and optimizing capital structure.

Yorozu Corporation Announces Key Personnel Change
Mar 24, 2025

Yorozu Corporation has announced a key personnel change effective April 1, 2025, with Noriaki Wani appointed as the General Manager of the Quality Assurance Department. This change is part of the company’s ongoing efforts to enhance its operational efficiency and maintain high standards in product quality, which is crucial for its competitive positioning in the automotive industry.

Yorozu Corporation Partners with Wanouchi Town and Nissan for Sustainable EV Initiative
Mar 17, 2025

Yorozu Corporation, along with Wanouchi Town and Nissan Motor, has entered into a collaboration agreement aimed at achieving decarbonization and enhancing disaster resilience through the use of electric vehicles (EVs). This partnership supports Wanouchi Town’s Zero-Carbon City Declaration and involves initiatives such as the installation of solar power systems and EV battery chargers, contributing to the Sustainable Development Goals (SDGs) and promoting a sustainable community. The agreement is part of Nissan Motor’s ‘Blue Switch’ project, which aims to transform society through energy management and the widespread adoption of EVs, furthering the development of local communities and a zero-emission society.

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.