Yorozu Corporation (7294) AI Stock Analysis

• Market Cap: ¥18.89B
• Dividend Yield: 3.19%
• Average Volume (3M): 28.14K
• Price to Earnings (P/E): 18.8
• Beta (1Y): 0.82
• Revenue Growth: -8.99%
• EPS Growth: -62.26%
• Country: JP
• Employees: 5,700
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 13.39
• 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: 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: 57 Neutral
• Price Target: ¥1,147.00 ▲(14.13% Upside)
• Action: Reiterated Date: 11/13/25
• Date: Action: Reiterated 11/13/25

Yorozu Corporation's overall stock score is primarily impacted by its financial performance challenges, including negative profitability and cash flow issues. Technical analysis shows some positive momentum, but valuation concerns due to a negative P/E ratio weigh on the score. The dividend yield offers a slight positive aspect in an otherwise challenging financial landscape.

Positive Factors

Recurring OEM production revenue

Yorozu's core business is recurring mass-production parts revenue tied to OEM vehicle programs. That model creates predictable, contract-driven volume streams while programs run, supporting stable near-term backlog, utilization planning and long-term supplier relationships over 2–6 months.

Manufacturing scale and technical capability

A manufacturing workforce of ~5,700 and in-house metal forming, stamping and welding capabilities signal operational scale and process know-how. Scale supports fixed-cost absorption, program qualification, and the ability to meet large OEM schedules, strengthening competitive position.

Reasonable equity financing mix

A moderate debt-to-equity profile and a reasonable equity ratio provide capital structure stability, lowering refinancing risk and preserving capacity to fund tooling or capex. This financial mix supports operational continuity and program commitments over the medium term.

Negative Factors

Negative profitability and ROE

Sustained negative net margins and negative ROE indicate the company is not converting sales into lasting profits. That limits retained earnings, reduces capacity to self-fund investments, and weakens resilience to OEM order volatility or cost shocks over the coming months.

Negative and volatile free cash flow

Negative and volatile free cash flow constrains Yorozu's ability to finance dies, tooling and necessary capex from operations, increasing reliance on external funding. Over 2–6 months this limits strategic flexibility and raises execution risk on new or existing vehicle programs.

Inconsistent and declining revenue trend

A recent revenue decline and inconsistent top-line growth reduce utilization and margin stability for a supplier whose economics depend on OEM volumes. This makes planning, cost absorption and long-term program profitability more uncertain across upcoming production cycles.

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 manufacturing and sale of automotive parts to major automobile manufacturers. The company's key revenue streams include direct sales of its products, long-term contracts with automotive OEMs (Original Equipment Manufacturers), and collaborations with partners for joint product development. Additionally, Yorozu benefits from economies of scale in production and has established strategic partnerships with leading automotive companies, which contribute to stable demand for its products. The company's focus on research and development also allows it to introduce new technologies and products, further expanding its market reach and revenue potential.

Yorozu Corporation Financial Statement Overview

Summary

Yorozu Corporation's financial performance is challenged by negative net profit margins and inconsistent revenue growth. The balance sheet shows a moderate debt-to-equity ratio, but declining stockholders' equity and negative return on equity raise concerns. Cash flow issues 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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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	136.39B
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	33.39B	32.16B	34.26B	44.77B
Total Liabilities	74.11B	75.39B	66.76B	64.07B	63.61B	70.65B
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: 1005.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 below the 20-day moving average (MA) of 1008.45, below the 50-day MA of 1036.86, and above the 200-day MA of 964.30, indicating a bearish trend. The MACD of -32.22 indicates Positive momentum. The RSI at 33.34 is Neutral, neither overbought nor oversold. The STOCH value of 17.91 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7244	81 Outperform	¥46.39B	7.97	8.46%	2.64%	-6.35%	18.49%
7292	72 Outperform	¥74.60B	12.87	―	3.21%	4.44%	14.91%
7280	70 Outperform	¥56.34B	14.59	―	0.99%	-0.83%	-27.20%
7241	68 Neutral	¥88.84B	5.17	―	3.88%	-7.35%	43.31%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7313	58 Neutral	¥209.85B	16.01	―	4.77%	-3.71%	-51.81%
7294	57 Neutral	¥18.89B	18.77	―	3.19%	-8.99%	-62.26%

Yorozu Corporation Corporate Events

Yorozu to Merge Five Wholly Owned Units to Streamline Operations

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, allowing each production site to focus more tightly on manufacturing.

By eliminating overlapping management roles and standardizing business processes, Yorozu aims to enhance group-wide profitability and strengthen its competitive position. The simplified, short-form merger requires no shareholder approval and involves no share or cash consideration, minimizing procedural friction for stakeholders while restructuring the organization for sustainable profit improvement.

The most recent analyst rating on (JP:7294) stock is a Hold with a Yen1134.00 price target. To see the full list of analyst forecasts on Yorozu Corporation stock, see the JP:7294 Stock Forecast page.

Yorozu Swings Back to Profit Despite Lower Sales, Keeps Dividend Plan Intact

Yorozu Corporation reported consolidated net sales of ¥127.4 billion for the nine months ended December 31, 2025, down 5.5% year on year, but achieved a sharp turnaround in profitability, with operating income surging to ¥1.6 billion and profit attributable to owners of parent reaching ¥464 million. The recovery from the prior-year loss was reflected in positive earnings per share of ¥19.66 and an improvement in comprehensive income, while total assets edged down to ¥131.4 billion and the equity-to-asset ratio remained stable at 38.2%.

The company maintained its dividend stance, having already paid a ¥15 interim dividend and forecasting a full-year total of ¥31 per share, unchanged from the previous fiscal year. For the full year to March 31, 2026, Yorozu continues to project a 5.3% decline in net sales to ¥169 billion but expects operating income to jump to ¥2.6 billion and profit attributable to owners of parent to reach ¥800 million, underscoring a focus on earnings recovery despite softer top-line growth and signaling improving returns for shareholders after a period of losses.

The most recent analyst rating on (JP:7294) stock is a Hold with a Yen1148.00 price target. To see the full list of analyst forecasts on Yorozu Corporation stock, see the JP:7294 Stock Forecast page.

Yorozu Swings Back to Profit Despite Lower Sales in First Nine Months of FY2025

Yorozu Corporation reported consolidated net sales of ¥127.4 billion for the nine months ended December 31, 2025, down 5.5% year on year, but achieved a sharp earnings turnaround with operating income surging to ¥1.6 billion and profit attributable to owners of parent recovering to ¥464 million. The balance sheet remained stable with total assets of ¥131.4 billion and an equity ratio of 38.2%, while the company maintained its dividend plan of ¥31 per share for FY2025 and kept its full‑year forecast unchanged, projecting lower sales but a strong profit recovery, signaling improved operational efficiency and a gradual earnings normalization for stakeholders.

The most recent analyst rating on (JP:7294) stock is a Hold with a Yen1148.00 price target. To see the full list of analyst forecasts on Yorozu Corporation stock, see the JP:7294 Stock Forecast page.