Yorozu Corporation (7294) AI Stock Analysis

• Market Cap: ¥22.19B
• Dividend Yield: 3.14%
• Average Volume (3M): 28.14K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.68
• Revenue Growth: -8.99%
• EPS Growth: -62.26%
• Country: JP
• Employees: 5,700
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 12.92
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: ¥1,037.00 ▲(8.81% Upside)

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

Strategic Partnerships

Strategic partnerships with major automotive firms ensure stable demand and enhance market position, providing long-term revenue stability.

Research and Development Focus

Investment in R&D drives innovation, enabling Yorozu to stay competitive by offering advanced solutions, thus expanding market reach.

Economies of Scale

Economies of scale reduce production costs, enhancing margin sustainability and competitive pricing, which supports long-term profitability.

Negative Factors

Negative Profit Margins

Negative profit margins indicate operational inefficiencies and potential challenges in achieving sustainable profitability.

Declining Stockholders' Equity

Decreasing equity and negative ROE suggest financial instability, limiting growth opportunities and affecting investor confidence.

Negative Free Cash Flow

Negative free cash flow indicates challenges in covering capital expenditures, potentially hindering future investments and growth.

Yorozu Corporation Business Overview & Revenue Model

Company Description

Yorozu Corporation (7294) is a Japanese automotive parts manufacturer that specializes in producing high-quality components for the automotive industry. The company operates primarily in the automotive sector, offering a range of products including suspension systems, steering systems, and a variety of electronic components. With a focus on innovation and technology, Yorozu aims to deliver advanced solutions that enhance vehicle performance and safety.

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 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 analysis reveals negative free cash flow, highlighting difficulties in covering capital expenditures.

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: Positive
• Last Price: 953.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 953 is below the 20-day moving average (MA) of 955.80, above the 50-day MA of 946.64, and above the 200-day MA of 950.40, indicating a bullish trend. The MACD of 5.33 indicates Positive momentum. The RSI at 50.37 is Neutral, neither overbought nor oversold. The STOCH value of 48.03 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	75 Outperform	¥23.03B	8.80	―	2.68%	8.92%	15.98%
7236	74 Outperform	¥37.64B	5.85	―	3.77%	0.14%	882.91%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7294	57 Neutral	¥22.19B	-1.79	―	3.14%	-8.99%	-62.26%
6584	57 Neutral	¥33.64B	79.37	―	3.16%	-3.91%	-36.53%
6470	51 Neutral	¥20.22B	575.18	―	2.91%	4.93%	―
7266	51 Neutral	¥16.66B	-64.43	―	3.11%	-8.63%	-55.68%

Yorozu Corporation Corporate Events

Yorozu Corporation Completes Strategic Share Repurchase

Yorozu Corporation has completed the acquisition of its own shares, totaling 3,706,700 shares at a cost of 3,714,113,400 yen, as part of a strategic move to adapt to changing business environments and improve capital efficiency. This repurchase, conducted through the Tokyo Stock Exchange’s ToSTNeT-3, reflects the company’s ongoing efforts to enhance shareholder value and implement a flexible capital policy.

The most recent analyst rating on (JP:7294) stock is a Hold with a Yen954.00 price target. To see the full list of analyst forecasts on Yorozu Corporation stock, see the JP:7294 Stock Forecast page.

Yorozu Corporation to Repurchase Shares in Strategic Move

Yorozu Corporation has announced its decision to acquire up to 3,992,000 shares of its own common stock through the Tokyo Stock Exchange’s off-auction trading system. This move, which represents 16.43% of its outstanding shares, is part of a strategic initiative to enhance shareholder value and optimize capital structure.

The most recent analyst rating on (JP:7294) stock is a Hold with a Yen954.00 price target. To see the full list of analyst forecasts on Yorozu Corporation stock, see the JP:7294 Stock Forecast page.

Yorozu Corporation Reports Financial Recovery Amid Sales Decline

Yorozu Corporation reported its consolidated financial results for the six months ending September 30, 2025, showing a decline in net sales by 7.9% compared to the previous year. Despite the decrease in sales, the company achieved a significant turnaround in profitability, with operating income rising by 736.1% and ordinary income reaching positive figures, indicating a recovery in its financial performance.

The most recent analyst rating on (JP:7294) stock is a Hold with a Yen954.00 price target. To see the full list of analyst forecasts on Yorozu Corporation stock, see the JP:7294 Stock Forecast page.