Mabuchi Motor Co (MBUMY) AI Stock Analysis

• Market Cap: $2.70B
• Dividend Yield: 1.72%
• Average Volume (3M): 0.00
• Price to Earnings (P/E): 5.5
• Beta (1Y): 0.24
• Revenue Growth: 1.59%
• EPS Growth: 38.15%
• Country: US
• Employees: 18,032
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 0.43
• Shares Outstanding: 260,649,840
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: <0.01
• Price to Book (P/B): 0.56
• Price to Sales (P/S): 0.88
• P/FCF Ratio: 7.06
• Enterprise Value/Market Cap: 98.35
• Enterprise Value/Revenue: 1.36
• Enterprise Value/Gross Profit: 4.68
• Enterprise Value/Ebitda: 7.63
• 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: 84 Outperform
• Price Target: $12.50 ▲(34.70% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is driven primarily by strong financial quality (especially an exceptionally low-leverage balance sheet and improved 2025 profitability) and an attractive valuation (low P/E with a solid dividend yield). Technicals are supportive but tempered by overbought momentum signals, which add near-term pullback risk.

Positive Factors

Conservative Balance Sheet

An exceptionally conservative balance sheet with minimal debt gives Mabuchi durable financial flexibility. It reduces refinancing risk, supports ongoing R&D, capex and dividend payments, and preserves strategic options to invest or absorb shocks across business cycles over the medium term.

Steady Revenue Growth

Consistent revenue growth from 2021–2025 reflects diversified demand across automotive, consumer and industrial markets. That trend supports scale, predictable topline cash flow, long-term customer relationships and sustained ability to fund product development and incremental capacity.

Improving Cash Generation

Positive operating cash flow each year and stronger free cash flow in 2023–2025 indicate improving cash conversion. Durable cash generation enhances self-funded capex, dividend sustainability and lower reliance on external funding for strategic investments across the next several quarters.

Negative Factors

Earnings Volatility

A notable net margin dip in 2024 shows earnings can swing meaningfully. Such volatility complicates forecasting and capital allocation, and if margins remain sensitive to input costs or demand cycles, it may constrain sustained profit growth and investment plans.

Uneven Free Cash Flow History

Historical negative free cash flow in 2021–2022 reveals inconsistent conversion of profits to cash, implying working-capital or capex timing risks. Even with recent improvement, this past volatility could limit capacity to fund growth or raise dividends during downturns.

Modest Capital Efficiency

Modest ROE indicates conservative capital deployment and lower capital efficiency. While this limits financial risk, it also reduces potential upside for shareholders absent margin expansion, higher-return investments, or productivity gains over the medium term.

Mabuchi Motor Co Business Overview & Revenue Model

Company Description

Mabuchi Motor Co., Ltd. engages in the manufacture and sale of small electric motors. It provides motors for use in automotive products, home appliances, power tools, housing equipment, office equipment, health and medical care products, light electric vehicles, collaborative robots, and personal care products. The company sells its products in Japan, Europe, China, the Asia Pacific, and the Americas. Mabuchi Motor Co., Ltd. was incorporated in 1926 and is headquartered in Matsudo, Japan.

How the Company Makes Money

Mabuchi Motor generates revenue primarily through the sale of its electric motors to a wide array of industries. The company operates on a business-to-business (B2B) model, with key revenue streams including direct sales to manufacturers of consumer electronics, automotive components, and industrial machinery. Mabuchi's motors are critical components in products such as power tools, toys, and household appliances, providing consistent demand. Additionally, the company benefits from long-term partnerships and contracts with major players in its target markets, which help ensure a steady flow of orders and contribute to its financial stability. Mabuchi also invests in research and development to innovate and improve motor technology, keeping it competitive in the marketplace and allowing for potential expansion into new sectors.

Mabuchi Motor Co Financial Statement Overview

Summary

Strong overall fundamentals: steadily growing revenue (2021–2025), a meaningful profitability rebound in 2025, and an exceptionally conservative balance sheet with minimal leverage. Key risks are earnings volatility (notable 2024 net margin dip) and historically uneven free cash flow (negative FCF in 2021–2022), though cash performance improved in 2024–2025.

Income Statement

Revenue has grown steadily across recent years (2021–2025), culminating in a solid 2025 result. Profitability improved meaningfully in 2025 versus 2024, with stronger gross profit and operating profit margins and a notable rebound in net profit margin. A key watch-out is earnings volatility: net profit margin dropped sharply in 2024 versus 2023 before recovering in 2025, indicating results can swing even as revenue trends upward.

Balance Sheet

The balance sheet is exceptionally conservative: debt is minimal relative to equity across all reported periods, with an extremely low debt-to-equity ratio in 2025. Equity has grown over time, supporting a strong financial cushion and flexibility through cycles. The main weakness is that returns on equity have been modest (where provided), suggesting the company prioritizes balance-sheet strength over aggressive capital efficiency.

Cash Flow

Cash generation is generally healthy, with positive operating cash flow each year and strong free cash flow in 2023–2025. Cash conversion is mixed: operating cash flow has exceeded net income recently (2023–2025), but free cash flow has not consistently tracked earnings, including negative free cash flow in 2021 and 2022. While 2024–2025 show stabilization and improvement, historical volatility tempers the score.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	195.86B	210.13B	196.21B	178.66B	156.71B	134.59B
Gross Profit	56.86B	62.48B	52.88B	44.15B	37.46B	36.41B
EBITDA	34.83B	40.66B	35.85B	28.37B	22.52B	23.77B
Net Income	9.27B	27.55B	12.83B	19.42B	14.29B	14.25B
Balance Sheet
Total Assets	334.03B	370.42B	354.99B	336.61B	307.78B	285.70B
Cash, Cash Equivalents and Short-Term Investments	125.78B	143.50B	134.94B	116.60B	103.11B	105.50B
Total Debt	1.77B	1.30B	517.00M	830.00M	1.11B	122.00M
Total Liabilities	30.39B	35.95B	35.37B	31.57B	27.61B	25.80B
Stockholders Equity	303.63B	334.46B	319.62B	305.03B	280.17B	259.91B
Cash Flow
Free Cash Flow	0.00	26.33B	40.13B	18.73B	-267.00M	-879.00M
Operating Cash Flow	0.00	37.08B	40.13B	31.74B	10.21B	8.74B
Investing Cash Flow	0.00	-11.03B	-15.75B	-15.61B	-10.47B	-12.97B
Financing Cash Flow	0.00	-18.23B	-16.18B	-11.85B	-10.09B	-11.29B

Mabuchi Motor Co Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 9.28
• 50DMA: Positive
• 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 MBUMY, the sentiment is Neutral. The current price of 9.28 is below the 20-day moving average (MA) of 11.04, below the 50-day MA of 10.05, and above the 200-day MA of 8.64, indicating a neutral trend. The MACD of 0.31 indicates Positive momentum. The RSI at 44.34 is Neutral, neither overbought nor oversold. The STOCH value of 12.85 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MBUMY.

Mabuchi Motor Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MBUMY	84 Outperform	$2.70B	5.54	8.36%	1.72%	1.59%	38.15%
LEA	72 Outperform	$6.05B	14.06	8.79%	2.63%	-1.90%	-13.86%
VC	72 Outperform	$2.43B	12.87	13.90%	0.57%	-4.03%	-39.51%
DORM	65 Neutral	$3.23B	18.56	14.34%	―	7.94%	34.84%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
DAN	59 Neutral	$3.49B	38.91	-2.91%	1.70%	-18.23%	―
SMP	53 Neutral	$804.78M	10.25	11.76%	3.32%	23.96%	11.01%