Central Automotive Products Ltd. (8117) AI Stock Analysis

• Market Cap: ¥116.82B
• Dividend Yield: 3.01%
• Average Volume (3M): 71.83K
• Price to Earnings (P/E): 10.4
• Beta (1Y): 0.85
• Revenue Growth: 7.72%
• EPS Growth: 12.07%
• Country: JP
• Employees: 311
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 45.17
• Shares Outstanding: 60,060,000
• 10 Day Avg. Volume: 117,630
• 30 Day Avg. Volume: 71,830
• PEG Ratio: 1.13
• Price to Book (P/B): 1.67
• Price to Sales (P/S): 2.24
• P/FCF Ratio: 14.52
• 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): 162.3
• Revenue Forecast (FY): ¥44.90B

• Rating: 84 Outperform
• Price Target: ¥2,475.00 ▲(31.09% Upside)
• Action: Reiterated Date: 12/30/25
• Date: Action: Reiterated 12/30/25

The score is driven primarily by strong financial quality (expanding operating profitability and a zero-debt balance sheet), supported by attractive valuation (low P/E with a ~3% dividend). Technicals are constructive with price above key moving averages and positive momentum, though oscillators indicate momentum is closer to the upper range.

Positive Factors

High margins & improving profitability

Sustained high gross margins and a step-up in EBIT margin to ~30% reflect durable pricing power and efficient operations. This margin profile supports long-term cash generation, reinvestment capacity and resilience to input cost swings, underpinning steady operating returns.

Exceptionally conservative balance sheet

A zero-debt posture gives the company low financial risk and high optionality: it can fund capex, dividends, or acquisitions without refinancing stress. The conservative structure enhances resilience through downturns and preserves strategic flexibility over multiple quarters.

Positive cash generation in recent years

Recent solid free cash flow (~¥6.4B) and operating cash flow coverage above 1.0 in FY2024–FY2025 indicate earnings are being converted to cash. Reliable cash generation supports dividends, maintenance capex and moderate organic growth without external financing.

Negative Factors

Cash-flow volatility historically

Intermittent sharp swings in free cash flow and operating cash coverage suggest working-capital sensitivity or lumpy investments. Over 2–6 months this can constrain discretionary spending, complicate planning and reduce the predictability of funds available for growth or returns.

Only modest recent revenue growth

Revenue rising each year but with modest recent growth implies the company relies more on margin expansion than top-line scale. Slower organic growth limits market-share gains and long-term operating-leverage improvements, potentially capping faster EPS expansion absent new initiatives.

Potential underutilization of leverage

Zero debt lowers risk but may also mean missed opportunities to finance faster expansion or capex with low-cost leverage. Over the medium term, conservative capital structure can constrain growth pace and limit returns enhancement that prudent use of debt might provide.

Central Automotive Products Ltd. Business Overview & Revenue Model

Company Description

Central Automotive Products Ltd. imports, exports, and wholesales automotive parts, accessories, air conditioning component parts, and various other articles worldwide. It offers engine parts, and filter and cooling parts; chassis parts, and brake and clutch parts; electrical parts; chemical parts; air conditioning component parts; and shock absorbers, ignition coils, CV joints, clutches, and engine oils. The company was incorporated in 1943 and is headquartered in Osaka, Japan.

How the Company Makes Money

Central Automotive Products Ltd. generates revenue primarily through the sale of automotive parts and accessories. The company's key revenue streams include wholesale distribution to automotive dealers and repair shops, as well as retail sales to end consumers. Moreover, it benefits from strategic partnerships and collaborations with automotive manufacturers and suppliers, which enhance its product offerings and market reach. The company's earnings are driven by its extensive distribution network and its ability to provide a comprehensive range of high-demand automotive products.

Central Automotive Products Ltd. Financial Statement Overview

Summary

Strong profitability with consistently high gross margins (~41%–43%) and meaningful EBIT margin expansion (to ~30% in FY2025), plus a very conservative balance sheet with zero reported debt and solid ROE (~15.6%). The main offset is cash-flow volatility in prior years despite strong recent free cash flow (~¥6.4B in FY2025).

Income Statement

Central Automotive Products shows steady top-line momentum with revenue rising each year from FY2020 to FY2025 (latest annual revenue growth ~3.4%). Profitability is a clear strength: gross margin has been consistently strong (~41%–43%), while operating profitability has expanded meaningfully (EBIT margin up from ~19% in FY2020 to ~30% in FY2025). Net margin is also healthy and improving (~14.9% to ~20.9%), indicating good cost control and pricing power. The main weakness is that the most recent revenue growth rate is modest versus earlier years, suggesting growth is currently more incremental than explosive.

Balance Sheet

The balance sheet is exceptionally conservative: total debt is reported at zero across all periods, resulting in no leverage pressure and strong financial flexibility. Equity has grown steadily alongside assets, and returns on equity remain solid (~13%–16% range, ~15.6% in FY2025), implying the company is generating attractive profits without relying on borrowing. A potential downside is that the company may be underutilizing leverage to accelerate growth, but overall balance-sheet risk appears very low.

Cash Flow

Cash generation is positive, with operating cash flow and free cash flow both solid in FY2024–FY2025 (free cash flow ~¥6.4B in FY2025). Cash flow generally covers reported earnings (operating cash flow to net income above 1.0 in FY2024–FY2025), which supports earnings quality. However, cash flow has shown some volatility: free cash flow fell sharply in FY2023 versus FY2022 and operating cash flow coverage dipped below 1.0 in FY2021 and FY2023, indicating periodic working-capital or investment swings that can pressure near-term cash conversion.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	42.36B	41.56B	39.33B	35.88B	30.69B	27.57B
Gross Profit	18.63B	17.85B	17.00B	14.74B	12.54B	11.67B
EBITDA	12.98B	13.07B	10.75B	8.94B	7.09B	6.46B
Net Income	8.81B	8.68B	7.92B	6.29B	4.69B	3.86B
Balance Sheet
Total Assets	62.55B	63.49B	57.39B	49.35B	43.39B	39.39B
Cash, Cash Equivalents and Short-Term Investments	22.94B	23.56B	20.34B	16.95B	15.76B	11.27B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	6.73B	7.79B	7.47B	7.42B	6.57B	5.85B
Stockholders Equity	55.81B	55.70B	49.92B	41.93B	36.78B	33.51B
Cash Flow
Free Cash Flow	0.00	6.42B	6.17B	2.96B	5.20B	2.69B
Operating Cash Flow	0.00	8.46B	7.55B	5.69B	5.43B	3.61B
Investing Cash Flow	0.00	-2.60B	-3.69B	-2.28B	-1.02B	-1.09B
Financing Cash Flow	0.00	-2.63B	-1.99B	-1.74B	-1.14B	-881.86M

Central Automotive Products Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1888.00
• 50DMA: Negative
• 100DMA: Positive
• 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:8117, the sentiment is Negative. The current price of 1888 is below the 20-day moving average (MA) of 2169.80, below the 50-day MA of 2100.88, and below the 200-day MA of 1893.98, indicating a neutral trend. The MACD of -27.03 indicates Positive momentum. The RSI at 35.92 is Neutral, neither overbought nor oversold. The STOCH value of 13.17 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:8117.

Central Automotive Products Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8117	84 Outperform	¥116.82B	10.43	―	3.01%	7.72%	12.07%
6995	81 Outperform	¥258.37B	8.29	―	3.36%	1.36%	139.77%
7282	75 Outperform	¥509.79B	7.76	8.58%	2.62%	1.44%	-0.92%
7287	74 Outperform	¥141.65B	10.91	―	2.93%	1.77%	117.03%
3116	66 Neutral	¥481.17B	10.02	3.70%	3.42%	2.10%	-50.33%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7313	58 Neutral	¥213.25B	16.01	―	4.77%	-3.71%	-51.81%

Central Automotive Products Ltd. Corporate Events

Central Automotive Products lifts nine‑month profits and maintains strong balance sheet

Central Automotive Products reported consolidated net sales of ¥34.24 billion for the nine months ended December 31, 2025, up 12.8% year on year, with operating profit rising to ¥8.34 billion and profit attributable to owners of parent increasing 11.7% to ¥7.21 billion. Earnings per share climbed to ¥130.58 on a post-split basis, while total assets reached ¥68.78 billion and the equity ratio remained a robust 87.8%, underscoring the company’s solid financial footing.

The company forecasts full-year fiscal 2025 net sales of ¥45.5 billion, up 9.5%, and profit attributable to owners of parent of ¥9.35 billion, implying further earnings growth supported by stable margins. Central Automotive plans total annual dividends of ¥57 per share for the year ending March 31, 2026, after the stock split, signaling continued shareholder returns, and has slightly expanded its consolidation scope with the addition of Morita & Co., Ltd.

The most recent analyst rating on (JP:8117) stock is a Buy with a Yen2519.00 price target. To see the full list of analyst forecasts on Central Automotive Products Ltd. stock, see the JP:8117 Stock Forecast page.