Aichi Corporation (6345) AI Stock Analysis

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Aichi Corporation

(TSE/TYO:6345)

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Rating:72Outperform

Price Target:JPY 1,528.00▲(18.08% Upside)

Action:reiterated

Date:10/30/26

The score is driven primarily by strong financial quality—especially the exceptionally conservative, low-risk balance sheet and solid margins—tempered by volatile free cash flow and soft recent revenue. Valuation is supportive due to a reasonable P/E and high dividend yield, while technical indicators remain a near-term headwind with bearish trend signals despite oversold readings.

Positive Factors

Conservative balance sheetA debt-light balance sheet gives Aichi substantial resilience through cyclical construction and industrial demand. Low interest obligations preserve cash for operations, investment, dividends, and customer support, while the large equity base reduces dependence on external financing.

Negative Factors

Choppy and declining revenueUneven revenue performance indicates that demand for Aichi's equipment remains cyclical or inconsistent across its construction, maintenance, utilities, and industrial markets. A prolonged top-line slowdown could limit operating leverage, reduce reinvestment capacity, and make earnings growth harder to sustain.

Aichi Corporation (6345) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 83.48B
Dividend Yield: 4.87%
Average Volume (3M): 180.96K
Price to Earnings (P/E): 13.1
Beta (1Y): 0.48
Revenue Growth: 2.38%
EPS Growth: 14.80%
Country: Japan
Employees: 1,012
Sector: General
Sector Strength: 55
Industry: Industrial - Machinery

Aichi Corporation Business Overview & Revenue Model

Company Description

Aichi Corporation manufactures and sells mechanized vehicles for electric utilities, telecommunications, construction, cargo handling, shipbuilding, and rail industries in Japan, Asia, Oceania, Europe, and internationally. It offers truck-mounted and...

How the Company Makes Money

Aichi Corporation primarily makes money by selling aerial work platforms and related work-at-height machinery to customers that need equipment for construction, facility maintenance, and infrastructure work. Revenue is generated from (1) equipment sa...

Aichi Corporation Financial Statement Overview

Summary

Strong balance sheet (essentially zero debt and solid equity base) and healthy profitability (TTM net margin ~11.6%, EBIT margin ~12.5%). Offsetting factors are choppy revenue with TTM down ~5.4% and inconsistent cash conversion, including volatile free cash flow and negative free-cash-flow-to-net-income in TTM.

Income Statement

78Positive

Balance Sheet

92Very Positive

Cash Flow

57Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	57.06B	59.61B	59.31B	53.13B	60.68B	56.59B
Gross Profit	11.61B	12.90B	13.26B	11.99B	12.74B	12.25B
EBITDA	7.64B	8.88B	8.88B	7.78B	8.84B	8.43B
Net Income	6.42B	6.66B	6.33B	5.27B	5.96B	5.64B
Balance Sheet
Total Assets	85.51B	92.81B	101.19B	95.63B	96.86B	91.74B
Cash, Cash Equivalents and Short-Term Investments	27.49B	26.71B	46.87B	42.13B	39.03B	38.08B
Total Debt	0	197.43M	214.58M	255.99M	308.30M	397.57M
Total Liabilities	10.73B	17.41B	17.17B	13.84B	18.29B	15.70B
Stockholders Equity	74.78B	75.40B	84.02B	81.79B	78.57B	76.04B
Cash Flow
Free Cash Flow	2.33B	-4.12B	6.87B	6.04B	3.72B	3.33B
Operating Cash Flow	8.49B	803.35M	9.87B	7.11B	4.51B	3.99B
Investing Cash Flow	-3.95B	-3.68B	-1.96B	32.76B	-2.25B	997.70M
Financing Cash Flow	-3.94B	-17.44B	-3.13B	-3.55B	-3.23B	-3.22B

Aichi Corporation Technical Analysis

Technical Analysis SentimentNegative

Last Price1294.00

Price Trends

50DMA1401.49Negative

100DMA1384.86Negative

200DMA1357.78Negative

Market Momentum

MACD-41.50Positive

RSI35.84Neutral

STOCH28.34Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6345, the sentiment is Negative. The current price of 1294.00 is below the 20-day moving average (MA) of 1361.10, below the 50-day MA of 1401.49, and below the 200-day MA of 1357.78, indicating a bearish trend. The MACD of -41.50 indicates Positive momentum. The RSI at 35.84 is Neutral, neither overbought nor oversold. The STOCH value of 28.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6345.

Aichi Corporation Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:6345 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:6432	82Outperform	JPY 365.75B	11.96	―	3.02%	11.87%	12.20%
JP:6345	72Outperform	JPY 82.83B	13.14	―	4.87%	2.38%	14.80%
JP:6301	70Outperform	JPY 5.37T	14.40	―	3.05%	9.23%	-2.66%
JP:6305	62Neutral	JPY 1.09T	12.95	9.48%	3.69%	6.61%	-2.27%
JP:6390	62Neutral	JPY 14.34B	2.69	―	5.71%	-1.12%	―
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

JP:6345 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:6345	Aichi Corporation	1294.00	36.13	2.87%
JP:6305	Hitachi Construction Machinery Co	5154.00	695.99	15.61%
JP:6301	Komatsu Ltd.	6235.00	1137.78	22.32%
JP:6390	KATO WORKS CO., LTD.	1225.00	-4.38	-0.36%
JP:6432	Takeuchi Mfg.Co., Ltd.	7630.00	1350.45	21.51%

Aichi Corporation Corporate Events

Aichi Corporation Profit Slides in First Half but Dividend and Full-Year Outlook Stay Firm

Oct 29, 2026

Aichi Corporation reported a challenging first half for the fiscal year ending March 31, 2027, with net sales for the six months to September 30, 2026 falling 10.4% year-on-year to ¥21,954 million and operating profit plunging 65.7% to ¥784 million....

Aichi Corporation Posts Strong Q1 Profit Rebound and Confirms Higher Dividend

Jul 30, 2026

Aichi Corporation reported a solid recovery in earnings for the three months ended June 30, 2026, with net sales rising 7.4% year-on-year to ¥9.89 billion and profit attributable to owners of parent more than doubling. Operating profit increased 10.0...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 30, 2026

Aichi Corporation AI Stock Analysis