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

• Market Cap: ¥6.25B
• Dividend Yield: 3.44%
• Average Volume (3M): 1.45K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.26
• Revenue Growth: -7.72%
• EPS Growth: -311.30%
• Country: JP
• Employees: 669
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): -23.05
• Shares Outstanding: 7,928,885
• 10 Day Avg. Volume: 2,370
• 30 Day Avg. Volume: 1,450
• PEG Ratio: 0.07
• Price to Book (P/B): 0.42
• Price to Sales (P/S): 0.40
• P/FCF Ratio: 5.19
• 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: ¥887.00 ▲(0.11% Upside)

The overall stock score of 57 reflects the company's strong balance sheet and improving cash flows, which are offset by declining revenues and negative profitability. Technical indicators suggest moderate bullish momentum, while valuation concerns arise from a negative P/E ratio despite an attractive dividend yield.

Positive Factors

Strong Balance Sheet

A strong balance sheet with a low debt-to-equity ratio of 0.10 and high equity ratio of 73% provides financial stability and flexibility for future investments or downturns.

Improving Cash Flows

The improvement in free cash flow, despite past negatives, indicates enhanced cash generation ability, crucial for funding operations and strategic growth without relying heavily on external financing.

Cash Generating Strength

A positive operating cash flow to net income ratio suggests that the company can generate sufficient cash from operations, supporting its ability to sustain operations and invest in growth.

Negative Factors

Declining Revenues

A decline in revenue indicates potential challenges in market demand or competitive positioning, which could impact long-term growth prospects if not addressed.

Negative Profitability

Negative profitability, as shown by a -2.1% net profit margin, raises concerns about cost management and pricing power, which are critical for sustainable business operations.

Reduced Operational Efficiency

A reduction in EBIT margin to 1.9% indicates declining operational efficiency, which could hinder the company's ability to convert sales into profits, affecting overall financial health.

Car Mate Mfg. Co Ltd Business Overview & Revenue Model

Company Description

Car Mate Mfg. Co., Ltd. primarily manufactures car accessories. It offers car supplies; car wash and care poducts; deodorants; fragrances; in-vehicle carrier; light lamps; baby child; engine starters; cameras; tire chain; rod holders; service and repair parts; remote control engine starter; car security; household goods; and GPS watching services, as well as snowboards;. The company also provides outdoor, leisure, and sporting goods. Car Mate Mfg. Co., Ltd. was founded in 1966 and is headquartered in Tokyo, Japan.

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 financial resilience with a strong balance sheet and improving cash flows. However, declining revenues and negative profitability, including a net profit margin of -2.1%, pose significant challenges. The robust equity position provides a buffer against these operational issues.

Income Statement

The income statement reveals weakening financial performance. The gross profit margin was reasonable at 37.3% for the latest year, but the net profit margin turned negative at -2.1%, highlighting significant profitability issues. Revenue declined by 2.7% compared to the previous year, and the EBIT margin reduced to 1.9%, indicating operational challenges. The EBITDA margin also decreased, reflecting reduced efficiency.

Balance Sheet

The balance sheet shows a stable financial position with a strong equity base. The debt-to-equity ratio is low at 0.10, reflecting conservative leverage. The equity ratio stands at 73.0%, indicating a solid capital structure. However, the return on equity has turned negative due to the recent net loss, signaling a need for improved profitability.

Cash Flow

Cash flow analysis highlights some positive and negative aspects. Free cash flow improved significantly, but from a negative base, leading to a high growth rate. The operating cash flow to net income ratio is positive at 4.4, suggesting cash-generating strength despite the net loss. The free cash flow to net income ratio also indicates strong cash conversion, although underlying profitability remains a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.39B	15.52B	15.96B	16.65B	15.92B	15.72B
Gross Profit	4.38B	5.80B	5.63B	6.14B	6.86B	6.65B
EBITDA	-211.50M	186.00M	749.41M	977.63M	1.70B	1.63B
Net Income	-442.00M	-332.00M	212.48M	361.88M	973.92M	922.13M
Balance Sheet
Total Assets	19.90B	20.33B	20.68B	20.86B	20.49B	19.42B
Cash, Cash Equivalents and Short-Term Investments	10.31B	10.67B	9.66B	10.06B	11.02B	10.29B
Total Debt	1.46B	1.46B	1.59B	1.59B	1.56B	1.54B
Total Liabilities	5.34B	5.49B	5.98B	6.37B	6.49B	6.35B
Stockholders Equity	14.56B	14.84B	14.70B	14.49B	14.00B	13.06B
Cash Flow
Free Cash Flow	0.00	1.19B	-267.06M	-929.02M	719.33M	809.03M
Operating Cash Flow	0.00	1.45B	175.20M	-541.93M	999.96M	1.10B
Investing Cash Flow	0.00	-814.00M	-593.19M	-168.94M	-290.18M	-273.80M
Financing Cash Flow	0.00	-356.00M	-227.27M	-187.40M	-241.73M	-272.53M

Car Mate Mfg. Co Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 886.00
• 50DMA: Positive
• 100DMA: Positive
• 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 886 is above the 20-day moving average (MA) of 856.95, above the 50-day MA of 854.70, and above the 200-day MA of 842.44, indicating a bullish trend. The MACD of 10.26 indicates Negative momentum. The RSI at 69.01 is Neutral, neither overbought nor oversold. The STOCH value of 70.65 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
7235	78 Outperform	¥14.25B	7.51	―	4.02%	2.31%	10.68%
7254	76 Outperform	¥16.98B	8.01	―	1.67%	-4.44%	-17.38%
7264	70 Outperform	¥7.78B	37.94	―	3.54%	-0.72%	-72.70%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7291	60 Neutral	¥7.86B	20.74	―	4.24%	-7.88%	-73.98%
7297	57 Neutral	¥6.25B	-10.33	―	3.44%	-7.72%	-311.30%
7277	56 Neutral	¥11.47B	33.40	―	2.23%	-4.06%	―

Car Mate Mfg. Co Ltd Corporate Events

Car Mate Mfg. Co., Ltd. Reports Decline in Quarterly Financial Performance

Car Mate Mfg. Co., Ltd. reported a decline in its quarterly financial performance for June 2025, with net sales decreasing by 10.6% compared to the previous year. The company also experienced a negative operating profit and a loss attributable to the owners of the parent. Despite these challenges, the capital adequacy ratio remained stable, indicating a strong financial position. The company declared a dividend of 15 yen per share for the second quarter, reflecting its commitment to returning value to shareholders.