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

• Market Cap: ¥59.51B
• Dividend Yield: 4.49%
• Average Volume (3M): 314.83K
• Price to Earnings (P/E): 10.4
• Beta (1Y): 0.50
• 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: ¥535.00 ▲(2.69% 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

Sustained revenue growth indicates steady demand and expanding sales activity across the dealer network. Over 2–6 months this supports scale benefits, helps fund fixed costs, and provides a base to invest in service capabilities and digital initiatives that strengthen long-term competitiveness.

Positive Free Cash Flow

Return to positive free cash flow improves financial flexibility to service debt, fund capital expenditure, and sustain distributions. Persistent FCF over several quarters enables incremental deleveraging and targeted reinvestment in after-sales or used-vehicle channels, reinforcing structural resilience.

After-sales & Multi-business Model

A multi-business model centered on recurring after-sales creates more stable, higher-frequency revenue streams than one-off vehicle sales. This structural diversification supports customer retention, margin stability in downturns, and cross-selling opportunities that sustain cash flow over the medium term.

Negative Factors

Compressed Profitability

Declining margins signal weakening pricing power or rising costs that erode earnings power. With slim net margins, the business has less buffer for shocks and less ability to rebuild returns through incremental sales, making sustainable profit recovery more challenging over the next several quarters.

Falling Return on Equity

A material ROE decline reflects lower profitability relative to capital deployed, reducing capital efficiency. Persistently lower ROE can constrain the company’s capacity to reinvest at attractive returns, weakening long-term growth prospects and pressuring shareholder returns absent structural improvements.

Meaningful Leverage & Cash Conversion

Debt roughly in line with equity and only moderate cash conversion limit financial flexibility. High leverage combined with volatile FCF raises refinancing and interest-coverage risk, constraining capital allocation and making it harder to invest or absorb cyclical sales declines over coming months.

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

Company Description

Vt Holdings Co.,Ltd. operates as an automobile dealer in Japan. The company imports premium cars; and exports used vehicles worldwide. It is also involved in the car rental business; and system development and website production for automobile dealers. In addition, it operates in housing-related business. The company was formerly known as Honda Verno Tokai Co., Ltd. and changed its name to Vt Holdings Co.,Ltd. in April 2003. Vt Holdings Co.,Ltd. was incorporated in 1978 and is headquartered in Nagoya, Japan.

How the Company Makes Money

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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	47.68B	44.86B	39.90B	35.96B	29.17B
EBITDA	28.03B	26.05B	24.49B	21.68B	19.63B	15.09B
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	12.64B	11.84B	9.20B
Total Debt	86.37B	80.64B	105.00B	85.86B	71.04B	68.86B
Total Liabilities	215.01B	197.49B	190.88B	157.09B	131.11B	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	-1.63B	-2.33B	7.98B	10.66B
Operating Cash Flow	23.39B	27.96B	12.06B	11.17B	16.82B	16.45B
Investing Cash Flow	-12.56B	-12.01B	-9.72B	-9.77B	-5.59B	-2.58B
Financing Cash Flow	-11.47B	-14.81B	-1.97B	-648.00M	-8.77B	-14.45B

VT Holdings Co., Ltd. Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7593, the sentiment is Negative. The current price of 521 is below the 20-day moving average (MA) of 540.75, below the 50-day MA of 546.22, and above the 200-day MA of 500.99, indicating a neutral trend. The MACD of -11.69 indicates Positive momentum. The RSI at 30.92 is Neutral, neither overbought nor oversold. The STOCH value of 14.60 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥27.40B	9.94	―	4.79%	-6.89%	-50.31%
7599	66 Neutral	¥124.40B	8.08	―	2.82%	11.66%	-7.47%
7593	63 Neutral	¥59.51B	10.40	―	4.49%	8.56%	-13.47%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
2788	59 Neutral	¥4.81B	5.49	―	4.45%	-2.69%	-48.36%
3186	53 Neutral	¥227.89B	16.36	―	1.24%	21.79%	9.89%
7602	48 Neutral	¥4.45B	-10.59	―	1.08%	-2.36%	-1738.42%

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.