VT Holdings Co., Ltd. (7593) AI Stock Analysis

• Market Cap: ¥68.05B
• Dividend Yield: 4.49%
• Average Volume (3M): 314.83K
• Price to Earnings (P/E): 11.9
• Beta (1Y): 0.45
• Revenue Growth: 8.56%
• EPS Growth: -13.47%
• Country: JP
• Employees: 4,067
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Dealerships
• EPS (TTM): 12.94
• Shares Outstanding: 122,581,030
• 10 Day Avg. Volume: 299,820
• 30 Day Avg. Volume: 314,830
• PEG Ratio: -0.50
• Price to Book (P/B): 0.85
• Price to Sales (P/S): 0.17
• P/FCF Ratio: 4.93
• 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: 63 Neutral
• Price Target: ¥588.00 ▲(12.86% Upside)
• Action: Downgraded Date: 02/19/26
• Date: Action: Downgraded 02/19/26

The score is primarily constrained by weakening profitability, declining ROE, and a leveraged balance sheet, despite steady revenue and a return to positive free cash flow. Technicals are supportive with the stock above key moving averages and neutral momentum. Valuation helps, driven by a moderate P/E and strong dividend yield.

Positive Factors

Revenue Growth

A steady ~3.1% TTM revenue growth reflects persistent demand across vehicle sales and services. This durable top-line expansion supports scale benefits, provides room to invest in dealer networks and digital capabilities, and underpins medium-term recovery in profitability if costs are controlled.

Free Cash Flow

Return to positive free cash flow in FY2025 and on a TTM basis signals improved cash generation capacity. Sustainable FCF underpins dividend funding, targeted capex for service operations, and the ability to deleverage over time, increasing financial resilience versus cash-burning peers.

After-sales & Services

A multi-business model with after-sales, maintenance and parts creates recurring, higher-margin revenue streams and customer retention. Structural service demand provides steady cash inflows, smooths cyclicality of new-car sales, and strengthens long-term customer lifetime value and margin durability.

Negative Factors

Compressed Profitability

Net margins have materially compressed to roughly 1.6% TTM from prior peaks, reflecting pressure on pricing or cost absorption. Persistently thin margins limit internal reinvestment, magnify sensitivity to volume swings, and constrain the firm’s ability to rebuild returns without structural margin improvements.

Declining Return on Equity

ROE deterioration from ~22.7% to ~8.0% TTM indicates weakening capital efficiency and lower profitability on invested capital. This erosion reduces shareholder value generation, limits strategic optionality, and increases the urgency for management to improve margins or optimize capital allocation.

Leverage & Cash Conversion Risk

Leverage roughly in line with equity and only moderate cash conversion (TTM FCF ~52% of net income) constrain flexibility. Operating cash covers a modest share of debt, making the firm more vulnerable to downturns and limiting capacity for aggressive buybacks, acquisitions, or rapid deleveraging.

VT Holdings Co., Ltd. Business Overview & Revenue Model

Company Description

VT Holdings Co., Ltd. (7593) is a diversified Japanese company primarily engaged in the automotive sector. The company operates in various segments, including automobile sales, car maintenance services, and the import and sale of foreign vehicles. VT Holdings is known for its extensive dealership network, offering a range of vehicles from multiple brands, alongside providing aftermarket services and vehicle financing solutions.

How the Company Makes Money

VT Holdings generates revenue primarily through the sale of new and used automobiles, which constitutes its core revenue stream. The company benefits from a robust dealership network that facilitates vehicle sales and enhances customer reach. Additional revenue is derived from after-sales services, including maintenance and repair, which provide a steady income stream as vehicle owners return for services throughout the lifecycle of their vehicles. The company also earns from financial services related to vehicle financing and insurance solutions. Strategic partnerships with various automotive manufacturers further bolster its revenue potential, allowing VT Holdings to offer a diverse lineup of vehicles and capitalize on promotional opportunities.

VT Holdings Co., Ltd. Financial Statement Overview

Summary

Revenue is growing (~3.1% TTM) and free cash flow is positive in FY2025 and TTM, but profitability has compressed (net margin ~1.6% TTM) and leverage is meaningful (debt-to-equity ~1.13 TTM). Returns on equity have declined materially (~22.7% in FY2022 to ~8.0% TTM), and cash conversion is only moderate (FCF ~52% of net income).

Income Statement

TTM (Trailing-Twelve-Months) revenue is growing (about 3.1%), extending a multi-year upward trend. However, profitability has compressed versus prior years: the net profit margin is low (about 1.6% TTM vs. ~2.1% in FY2024 and ~4.9% in FY2022), and operating profitability is also down from earlier peaks. Overall, the top line is stable-to-growing, but earnings quality is pressured by thinner margins.

Balance Sheet

Leverage is meaningful: debt is roughly in line with equity in FY2025 and above equity in TTM (debt-to-equity ~1.13 TTM, ~0.99 FY2025), which is manageable but leaves less flexibility in a downturn. Returns on equity are positive but have trended down from earlier highs (~22.7% in FY2022 to ~8.0% TTM), indicating weaker profitability on the capital base. Asset growth is solid, but the balance sheet is not conservatively financed.

Cash Flow

Cash generation is positive in the most recent periods: free cash flow is solidly positive in FY2025 and TTM, but it has been volatile (negative in FY2023–FY2024). TTM free cash flow is below net income (about 52%), suggesting conversion is only moderate. TTM operating cash flow is healthy in absolute terms, but it covers only a modest portion of the company’s debt (about 19%), which is a constraint given the leverage profile.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	376.74B	351.63B	311.60B	266.33B	237.93B	199.53B
Gross Profit	57.96B	53.38B	49.60B	43.91B	39.89B	33.14B
EBITDA	28.33B	26.31B	25.27B	23.93B	28.03B	16.89B
Net Income	5.72B	5.30B	6.70B	7.18B	11.68B	4.71B
Balance Sheet
Total Assets	294.56B	277.90B	272.88B	229.83B	188.05B	174.01B
Cash, Cash Equivalents and Short-Term Investments	12.09B	14.64B	13.48B	12.77B	11.93B	9.33B
Total Debt	86.37B	70.88B	105.00B	85.20B	70.44B	68.27B
Total Liabilities	215.01B	197.49B	190.88B	157.09B	131.12B	128.69B
Stockholders Equity	72.52B	71.24B	72.85B	64.50B	51.34B	40.20B
Cash Flow
Free Cash Flow	11.10B	12.24B	-1.84B	-2.54B	7.86B	10.58B
Operating Cash Flow	23.39B	27.96B	12.06B	11.17B	16.82B	16.45B
Investing Cash Flow	-12.56B	-11.01B	-10.33B	-9.79B	-5.61B	-2.58B
Financing Cash Flow	-11.47B	-15.81B	-1.36B	-623.00M	-8.74B	-14.45B

VT Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 521.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7593, the sentiment is Positive. The current price of 521 is below the 20-day moving average (MA) of 559.05, below the 50-day MA of 547.84, and above the 200-day MA of 496.91, indicating a bullish trend. The MACD of 6.42 indicates Negative momentum. The RSI at 64.41 is Neutral, neither overbought nor oversold. The STOCH value of 83.63 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7593.

VT Holdings Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8291	76 Outperform	¥28.66B	11.79	―	4.79%	-6.89%	-50.31%
7134	71 Outperform	¥8.24B	10.47	―	2.82%	6.55%	1.07%
7599	70 Outperform	¥153.82B	12.08	―	2.82%	11.66%	-7.47%
7593	63 Neutral	¥68.05B	11.94	―	4.49%	8.56%	-13.47%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3186	61 Neutral	¥298.91B	23.85	―	1.24%	21.79%	9.89%
9268	55 Neutral	¥27.68B	-24.29	―	5.36%	23.82%	-151.12%

VT Holdings Co., Ltd. Corporate Events

VT Holdings Lifts Nine-Month Earnings and Keeps Dividend Outlook Steady

VT Holdings reported consolidated revenue of ¥282.8 billion for the nine months ended December 31, 2025, up 9.7% year on year, with operating profit rising 10.3% to ¥10.1 billion and profit attributable to owners of the parent increasing 8.8% to ¥5.2 billion. While equity attributable to owners of the parent improved slightly to ¥72.5 billion, the equity ratio edged down to 24.6%, indicating growth funded partly by increased assets and suggesting a modest shift in the balance sheet structure.

The company maintained its dividend policy, paying an interim dividend of ¥12 per share and forecasting a full-year total of ¥24 per share, unchanged from the prior year and signaling stable shareholder returns. For the full fiscal year ending March 31, 2026, VT Holdings forecasts revenue of ¥370 billion and a 32% jump in profit attributable to owners of the parent to ¥7.0 billion, underscoring management’s confidence in earnings momentum and a stronger profitability profile despite a slightly lower capital ratio.

The most recent analyst rating on (JP:7593) stock is a Buy with a Yen576.00 price target. To see the full list of analyst forecasts on VT Holdings Co., Ltd. stock, see the JP:7593 Stock Forecast page.