GMB Corporation (7214) AI Stock Analysis

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GMB Corporation

(TSE/TYO:7214)

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Rating:52Neutral

Price Target:JPY 986.00▲(1.02% Upside)

Action:reiterated

Date:08/23/26

The score is held back primarily by weak financial performance: FY2026 net losses, higher leverage, and volatile/negative free cash flow outweigh strong revenue growth and modest gross-margin improvement. Technicals are a meaningful offset with an above-average uptrend (price above key moving averages and positive MACD). Valuation is mixed: the ~3.6% dividend yield helps, but the negative P/E reflects ongoing profitability risk.

Positive Factors

Strong revenue growthThe 46.3% FY2026 revenue increase indicates strong recent expansion in demand for GMB’s products. If sustained, higher volumes can improve production scale, broaden customer relevance, and provide a stronger base from which to restore earnings over the next several quarters.

Negative Factors

Net loss and thin operating marginsThe return to a net loss shows that strong sales growth has not yet translated into dependable profitability. Thin EBIT margins leave limited room to absorb cost pressure or weaker demand, making earnings recovery dependent on sustained improvement in pricing, mix, efficiency, or volume.

GMB Corporation (7214) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 5.26B
Dividend Yield: 4.10%
Average Volume (3M): 8,365
Price to Earnings (P/E): -25.5
Beta (1Y): 0.85
Revenue Growth: 4.47%
EPS Growth: 58.91%
Country: Japan
Employees: 2,499
Sector: General
Sector Strength: 55
Industry: Auto - Parts

GMB Corporation Business Overview & Revenue Model

Company Description

GMB Corporation is a global producer and distributor of a comprehensive range of automotive components. Its product portfolio encompasses crucial cooling system elements such as electronic and conventional water pumps, alongside fan clutches. The com...

How the Company Makes Money

GMB Corporation makes money by manufacturing and selling automotive components, with revenue primarily derived from (1) sales to vehicle manufacturers and tiered automotive suppliers (OEM/OES supply) and (2) sales into the replacement/aftermarket for...

GMB Corporation Financial Statement Overview

Summary

Despite strong FY2026 revenue growth (+46.3%) and slightly improved gross margin (~16–18%), profitability deteriorated with a return to a net loss (net margin ~-1.0%) and thin EBIT margins (~2–4%). Leverage increased (debt-to-equity ~1.76), and cash flow quality is weak and volatile with FY2026 free cash flow meaningfully negative (~-¥2.5B), limiting financial flexibility.

Income Statement

51Neutral

Balance Sheet

44Neutral

Cash Flow

37Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	108.03B	105.28B	103.71B	96.29B	87.17B	71.41B
Gross Profit	20.17B	19.40B	18.11B	16.67B	14.26B	11.80B
EBITDA	7.84B	7.57B	6.94B	6.21B	7.34B	5.76B
Net Income	-202.98M	-1.04B	592.37M	408.99M	1.21B	660.23M
Balance Sheet
Total Assets	96.53B	96.15B	88.55B	85.11B	79.24B	70.42B
Cash, Cash Equivalents and Short-Term Investments	6.96B	7.58B	6.15B	4.79B	7.01B	5.92B
Total Debt	40.42B	40.14B	33.38B	31.75B	29.32B	25.45B
Total Liabilities	62.91B	61.87B	54.57B	51.83B	47.24B	40.64B
Stockholders Equity	22.51B	22.79B	23.11B	22.85B	22.07B	21.15B
Cash Flow
Free Cash Flow	742.30M	-2.50B	631.94M	-2.77B	-122.73M	-4.59B
Operating Cash Flow	3.30B	1.41B	6.83B	2.15B	3.42B	-958.82M
Investing Cash Flow	-2.24B	-3.59B	-6.01B	-4.91B	-3.15B	-2.47B
Financing Cash Flow	616.31M	3.14B	518.41M	379.69M	635.56M	1.81B

GMB Corporation Technical Analysis

Technical Analysis SentimentNegative

Last Price976.00

Price Trends

50DMA1089.64Negative

100DMA1055.61Negative

200DMA986.80Negative

Market Momentum

MACD-31.57Positive

RSI29.49Positive

STOCH13.46Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7214, the sentiment is Negative. The current price of 976.00 is below the 20-day moving average (MA) of 1057.45, below the 50-day MA of 1089.64, and below the 200-day MA of 986.80, indicating a bearish trend. The MACD of -31.57 indicates Positive momentum. The RSI at 29.49 is Positive, neither overbought nor oversold. The STOCH value of 13.46 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7214.

GMB Corporation Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:7214 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:7296	77Outperform	JPY 199.65B	9.28	―	5.25%	10.24%	30.00%
JP:7212	69Neutral	JPY 13.51B	1.99	―	3.32%	2.75%	―
JP:7247	63Neutral	JPY 11.51B	8.62	―	4.41%	7.94%	-52.23%
JP:7280	61Neutral	JPY 54.94B	4.37	―	2.06%	3.27%	-17.13%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:7214	52Neutral	JPY 5.34B	-25.46	―	4.10%	4.47%	58.91%
JP:7215	51Neutral	JPY 3.63B	-4.84	―	―	-3.73%	-330.65%

* General Sector Average

Performance Comparison

JP:7214 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:7214	GMB Corporation	976.00	144.52	17.38%
JP:7212	F-Tech Inc.	723.00	36.33	5.29%
JP:7215	FALTEC Co., Ltd.	385.00	35.00	10.00%
JP:7247	Mikuni Corporation	340.00	-0.41	-0.12%
JP:7280	Mitsuba Corporation	1110.00	206.65	22.88%
JP:7296	F.C.C.Co., Ltd.	4230.00	1136.76	36.75%

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: Aug 23, 2026

GMB Corporation AI Stock Analysis