Car Mate Mfg. Co Ltd (7297) AI Stock Analysis

• Market Cap: ¥5.99B
• Dividend Yield: 3.53%
• Average Volume (3M): 693.00
• Price to Earnings (P/E): 36.1
• Beta (1Y): 0.15
• Revenue Growth: -2.71%
• EPS Growth: -256.29%
• Country: JP
• Employees: 669
• Sector: Consumer Cyclical
• Sector Strength: 66
• Industry: Auto - Parts
• EPS (TTM): -95.11
• Shares Outstanding: 7,928,885
• 10 Day Avg. Volume: 780
• 30 Day Avg. Volume: 693
• PEG Ratio: -0.87
• Price to Book (P/B): 0.40
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 27.58
• 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: ¥873.00
• Price Target Upside: 2.83% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 58 Neutral
• Price Target: ¥883.00 ▲(4.00%Upside)

Car Mate Mfg. Co Ltd's stock is evaluated at a score of 58, largely due to its mixed financial performance and concerning valuation. While the company's strong balance sheet offers some resilience, declining profitability and revenue are significant challenges. Technical indicators provide a neutral outlook, but valuation metrics raise red flags, particularly the negative P/E ratio.

Car Mate Mfg. Co Ltd Business Overview & Revenue Model

Company Description

Car Mate Mfg. Co Ltd (7297) is a Japanese company specializing in the manufacturing and distribution of automotive accessories and related products. The company operates primarily in the automotive sector, offering a wide range of products including roof racks, car interior accessories, and exterior styling parts. Car Mate is committed to enhancing the driving experience through innovation and high-quality products that cater to the needs of car enthusiasts and everyday drivers alike.

How the Company Makes Money

Car Mate Mfg. Co Ltd generates revenue through the sale of its automotive accessory products. The company's key revenue streams include the manufacturing and retail distribution of roof racks, interior accessories like organizers and phone mounts, and exterior styling parts that enhance the aesthetic and functionality of vehicles. Car Mate serves both domestic and international markets, leveraging partnerships with automotive retailers and online platforms to reach a broad customer base. Additionally, the company may engage in collaborations with car manufacturers or other businesses in the automotive industry to expand its product offerings and market reach, contributing to its earnings.

Car Mate Mfg. Co Ltd Financial Statement Overview

Summary

Car Mate Mfg. Co Ltd shows a stable balance sheet with strong equity and low leverage. However, it faces challenges in profitability and cash flow. The income statement reflects declining revenues and squeezed profitability margins, while cash flow statements indicate potential liquidity concerns. The company may need to focus on boosting revenue growth and improving operational efficiency.

Income Statement

Car Mate Mfg. Co Ltd experienced a slight revenue decline in 2024 compared to 2023, while gross profit and net income also decreased. The gross profit margin stood at 35.31%, and net profit margin was 1.33% in 2024, indicating squeezed profitability. EBIT and EBITDA margins were low, reflecting operational challenges. The revenue growth rate from 2023 to 2024 was negative, raising concerns about growth momentum.

Balance Sheet

The company maintains a strong equity position, with a debt-to-equity ratio of 0.11, suggesting low leverage. Return on Equity (ROE) was modest at 1.45%, indicating efficient use of equity capital. The equity ratio of 71.07% reflects a stable capital structure with high equity relative to total assets, showcasing financial stability.

Cash Flow

Cash flow performance was weak, with negative free cash flow in 2024. The free cash flow growth rate was negative, and the operating cash flow to net income ratio was below 1, highlighting cash flow challenges. The negative free cash flow to net income ratio indicates that operating activities are not sufficiently generating cash relative to net earnings.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	11.64B	15.96B	16.65B	15.92B	15.72B	16.72B
Gross Profit	4.13B	5.63B	6.14B	6.86B	6.65B	6.79B
EBITDA	470.56M	749.41M	977.63M	1.70B	1.63B	1.45B
Net Income	166.47M	212.48M	361.88M	973.92M	922.13M	665.10M
Balance Sheet
Total Assets	20.68B	20.68B	20.86B	20.49B	19.42B	19.08B
Cash, Cash Equivalents and Short-Term Investments	9.66B	9.66B	10.06B	11.02B	10.29B	9.74B
Total Debt	1.59B	1.59B	1.59B	1.56B	1.54B	1.65B
Total Liabilities	5.98B	5.98B	6.37B	6.49B	6.35B	6.99B
Stockholders Equity	14.70B	14.70B	14.49B	14.00B	13.06B	12.09B
Cash Flow
Free Cash Flow	0.00	-267.06M	-929.02M	719.33M	809.03M	922.37M
Operating Cash Flow	0.00	175.20M	-541.93M	999.96M	1.10B	1.34B
Investing Cash Flow	0.00	-593.19M	-168.94M	-290.18M	-273.80M	-188.50M
Financing Cash Flow	0.00	-227.27M	-187.40M	-241.73M	-272.53M	-297.95M

Car Mate Mfg. Co Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 849.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7297, the sentiment is Positive. The current price of 849 is above the 20-day moving average (MA) of 846.85, above the 50-day MA of 848.72, and above the 200-day MA of 848.44, indicating a bullish trend. The MACD of 0.33 indicates Negative momentum. The RSI at 51.47 is Neutral, neither overbought nor oversold. The STOCH value of 49.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7297.

Car Mate Mfg. Co Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7254	78 Outperform	¥10.48B	3.55		2.38%	2.17%	66.19%
7264	70 Outperform	¥7.04B	14.48		3.95%	-4.51%	-63.09%
7235	70 Outperform	¥8.82B	6.19		6.95%	0.69%	7.21%
Sector *	63 Neutral	$16.85B	11.25	-7.01%	2.93%	1.72%	-24.85%
7291	62 Neutral	¥6.79B	120.02		4.22%	-2.95%	-97.72%
7297	58 Neutral	¥5.99B	36.06		3.53%	-2.71%	-256.29%
7277	56 Neutral	¥8.68B	―		2.61%	-3.96%	-462.50%

Car Mate Mfg. Co Ltd Corporate Events

Car Mate Mfg. Co., Ltd. Reports Mixed Financial Results with Optimistic Outlook

Car Mate Mfg. Co., Ltd. reported a decrease in net sales for the fiscal year ending March 31, 2025, with a 2.7% decline compared to the previous year. Despite the drop in sales, the company saw a significant increase in operating profit by 37.1% and ordinary profit by 17.4%. The company anticipates a recovery in the upcoming fiscal year with a projected increase in net sales and profits, indicating a potential positive impact on its market positioning and stakeholder confidence.