SPK Corporation (7466) AI Stock Analysis

• Market Cap: ¥27.43B
• Dividend Yield: 2.77%
• Average Volume (3M): 11.27K
• Price to Earnings (P/E): 9.8
• Beta (1Y): 0.57
• Revenue Growth: 8.92%
• EPS Growth: 15.98%
• Country: JP
• Employees: 566
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 72.20
• Shares Outstanding: 10,453,800
• 10 Day Avg. Volume: 10,580
• 30 Day Avg. Volume: 11,273
• PEG Ratio: 2.05
• Price to Book (P/B): 0.78
• Price to Sales (P/S): 0.30
• P/FCF Ratio: 42.24
• 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: 75 Outperform
• Price Target: ¥3,074.00 ▲(29.65% Upside)
• Action: Reiterated Date: 10/29/25
• Date: Action: Reiterated 10/29/25

SPK Corporation's strong financial performance and attractive valuation are the primary drivers of its overall score. While technical indicators suggest some caution, the company's solid financial foundation and undervaluation provide a compelling investment case.

Positive Factors

Sustained revenue growth

Consistent multi-year revenue expansion demonstrates durable demand for SPK's automotive distribution offering. Steady top-line growth supports scale advantages in procurement and logistics, enabling continued reinvestment, broader product assortment, and stronger retailer relationships over the medium term.

Improving profitability and margins

Rising net and operating margins point to persistent operational efficiency and cost control across procurement and distribution functions. Sustainable margins enhance cash generation capacity, support capital allocation to maintenance capex and dividends, and provide a buffer against cost inflation in the supply chain.

Robust balance sheet and equity growth

A growing equity base and a strong equity ratio provide financial resilience and funding flexibility. Prudent leverage historically keeps debt manageable, enabling support for working capital cycles, opportunistic M&A, and cushioning through industry cyclicality without immediate need for dilutive financing.

Negative Factors

Operating cash flow volatility

Fluctuating operating cash flow and a year-over-year decline in free cash flow reduce predictability of internal funding. This volatility can constrain investments, increase reliance on external financing for growth or working capital, and complicate consistent dividend or buyback policies over the medium term.

Increase in total debt in 2025

A notable rise in total debt elevates leverage risk and interest expense sensitivity. If sustained, higher indebtedness can limit strategic flexibility, raise refinancing needs during adverse markets, and amplify earnings volatility in a cyclical auto-parts environment, warranting ongoing scrutiny of debt metrics.

Intermediary distribution business exposure

As an intermediary wholesaler, SPK's model can face structural margin pressure from supplier negotiation and retailer competition. Limited product differentiation increases exposure to pricing squeezes, inventory carrying risks, and logistics cost shifts, making scale and supplier terms critical for durable profitability.

SPK Corporation Business Overview & Revenue Model

Company Description

SPK Corporation, together with its subsidiaries, engages in the trading of automotive spare parts and accessories, and industrial vehicle parts in Japan. The company offers engines, brakes, steering and suspension products, accessories, bearings, cooling products, electric and ignition products, oil chemicals, power trains, wheels, and motor sport products. It also supplies parts and components, including various lights, multifunction switches, resin parts, various electrical and electronic parts, and filter-related parts for assembly to the manufacturers of construction vehicles, forklifts, and tractors. In addition, it supplies its products and services to 80 countries worldwide. The company was formerly known as Daido Automobile Enterprising Co., Ltd. and changed its name to SPK Corporation in 1992. SPK Corporation was incorporated in 1917 and is headquartered in Osaka, Japan.

How the Company Makes Money

SPK Corporation generates revenue through multiple key streams, primarily from the sale of specialty materials and components used in electronics and automotive applications. The company’s revenue model is driven by the demand for advanced materials in the semiconductor industry, where it provides essential products that improve the efficiency and functionality of electronic devices. Additionally, SPK collaborates with major manufacturers in the automotive sector to supply precision components that meet the stringent performance standards required for modern vehicles. Strategic partnerships with technology firms and research institutions further enhance its product development capabilities, allowing SPK to stay competitive and expand its market reach. The company also benefits from long-term contracts with key clients, providing a stable source of recurring revenue.

SPK Corporation Financial Statement Overview

Summary

SPK Corporation demonstrates strong financial health with impressive revenue and profit growth. The balance sheet is robust with a solid equity base and manageable debt levels. However, cash flow management shows some volatility, which could be an area for improvement.

Income Statement

SPK Corporation has shown a strong performance in the income statement with consistent revenue growth, rising from ¥41.9 billion in 2021 to ¥68.7 billion in 2025. The gross profit margin remains solid, and net profit margin has improved over the years, indicating efficient cost management. EBIT and EBITDA margins are healthy, underscoring operational efficiency. The revenue growth rate from 2024 to 2025 is approximately 8.6%, showcasing a positive growth trajectory.

Balance Sheet

The balance sheet of SPK Corporation is robust, featuring a solid equity base with stockholders' equity growing steadily from ¥17.9 billion in 2020 to ¥26.9 billion in 2025. The debt-to-equity ratio remains manageable, reflecting prudent leverage practices. The equity ratio is strong, indicating financial stability. However, there is a significant increase in total debt in 2025, which may need monitoring to avoid potential risks.

Cash Flow

Cash flow analysis reveals a mixed picture. Operating cash flow has fluctuated, with a dip in 2025 compared to 2024. Free cash flow is positive but has decreased from 2024 to 2025. The operating cash flow to net income ratio is stable, suggesting decent cash generation from operations. However, the free cash flow to net income ratio has been volatile, which could indicate challenges in maintaining consistent cash reserves.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	70.00B	68.72B	63.30B	54.70B	47.69B	41.90B
Gross Profit	13.25B	12.87B	11.66B	9.69B	7.90B	7.18B
EBITDA	4.56B	4.42B	3.94B	3.43B	2.68B	2.30B
Net Income	2.44B	2.50B	2.39B	2.06B	1.63B	1.38B
Balance Sheet
Total Assets	45.29B	44.17B	38.64B	34.35B	30.01B	27.93B
Cash, Cash Equivalents and Short-Term Investments	9.70B	7.87B	6.97B	6.61B	6.15B	7.35B
Total Debt	9.51B	7.59B	4.33B	3.36B	2.29B	2.40B
Total Liabilities	18.20B	17.11B	14.05B	12.18B	9.79B	9.03B
Stockholders Equity	26.97B	26.93B	24.48B	22.18B	20.22B	18.90B
Cash Flow
Free Cash Flow	0.00	495.24M	669.40M	160.36M	10.84M	1.97B
Operating Cash Flow	0.00	1.19B	1.84B	838.38M	536.48M	2.35B
Investing Cash Flow	0.00	-2.89B	-1.80B	-879.51M	-592.53M	-821.74M
Financing Cash Flow	0.00	2.49B	167.46M	426.39M	-1.19B	362.41M

SPK Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2371.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7466, the sentiment is Positive. The current price of 2371 is below the 20-day moving average (MA) of 2565.00, below the 50-day MA of 2453.60, and above the 200-day MA of 2311.73, indicating a bullish trend. The MACD of 83.45 indicates Negative momentum. The RSI at 73.62 is Negative, neither overbought nor oversold. The STOCH value of 82.96 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7466.

SPK Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7466	75 Outperform	¥27.43B	9.81	―	2.77%	8.92%	15.98%
7236	71 Outperform	¥62.90B	6.61	―	3.60%	0.14%	882.91%
7266	71 Outperform	¥22.52B	11.42	―	2.70%	-8.63%	-55.68%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7294	57 Neutral	¥22.82B	-3.57	―	3.19%	-8.99%	-62.26%
6470	51 Neutral	¥32.17B	130.91	―	2.45%	4.93%	―
6584	47 Neutral	¥32.09B	25.56	―	3.33%	-3.91%	-36.53%

SPK Corporation Corporate Events

SPK Corporation Delivers Double-Digit Profit Growth and Hikes Dividend

SPK Corporation reported strong consolidated results for the third quarter of the fiscal year ending March 2026, with net sales rising 10.7% year-on-year to ¥56.1 billion and operating profit increasing 18.3% to ¥2.8 billion. Ordinary profit climbed 18.9% and profit attributable to owners of parent advanced 18.1%, while basic earnings per share improved to ¥203.20.

The company’s financial position remained solid, as total assets expanded to ¥46.3 billion and net assets to ¥28.4 billion, with the capital adequacy ratio steady at 61.0%. Reflecting improved profitability, SPK raised its second-quarter dividend per share to ¥33.00 from ¥28.00 a year earlier, underscoring management’s confidence and delivering enhanced returns to shareholders.

The most recent analyst rating on (JP:7466) stock is a Hold with a Yen2514.00 price target. To see the full list of analyst forecasts on SPK Corporation stock, see the JP:7466 Stock Forecast page.

SPK Corporation Announces 2-for-1 Stock Split and Expansion of Authorized Shares

SPK Corporation will implement a 2-for-1 stock split of its common shares, effective April 1, 2026, aiming to improve share liquidity and broaden its investor base by halving the investment unit size. The split will double the number of issued shares to 20,907,600, and in connection with this move, the company will amend its Articles of Incorporation to increase its authorized share capital to 80,000,000 shares, supporting future equity issuance flexibility.

The company will also adjust the ceiling on shares granted annually under its restricted stock compensation plan for eligible directors from 30,000 to 60,000 shares, aligning the incentive scheme with the new share structure while preserving its economic value. There will be no change in paid-in capital, and the year-end dividend for the fiscal year ending March 2026 will be calculated on the pre-split share count, clarifying immediate implications for existing shareholders’ payouts.

The most recent analyst rating on (JP:7466) stock is a Hold with a Yen2514.00 price target. To see the full list of analyst forecasts on SPK Corporation stock, see the JP:7466 Stock Forecast page.

SPK Corporation Raises Year-End Dividend Forecast on Strong Performance

SPK Corporation has revised its dividend policy for the fiscal year ending March 2026, citing favorable business performance and an emphasis on stable shareholder returns. The board approved an increase in the planned year-end dividend from 35 yen to 40 yen per share, lifting the total annual dividend forecast from 68 yen to 73 yen.

This marks a continued step-up from the prior fiscal year, when the company paid a total of 60 yen per share, reflecting steady earnings growth and a stronger financial base. For investors, the higher payout underscores management’s confidence in ongoing business expansion and the company’s commitment to returning profits while reinforcing its balance sheet.

The most recent analyst rating on (JP:7466) stock is a Hold with a Yen2514.00 price target. To see the full list of analyst forecasts on SPK Corporation stock, see the JP:7466 Stock Forecast page.