FALTEC Co., Ltd. (7215) AI Stock Analysis

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FALTEC Co., Ltd.

(TSE/TYO:7215)

Select Model

Rating:51Neutral

Price Target:JPY 387.00▲(0.52% Upside)

Action:reiterated

Date:08/19/26

The score is held back primarily by weak and volatile financial performance (recent revenue decline, net loss in 2026, thin margins, and elevated leverage), partly offset by improving cash flow trends and a moderately positive technical backdrop (price above key moving averages with positive MACD). Valuation remains constrained due to negative earnings (negative P/E) and no dividend yield data.

Positive Factors

OEM program-based business modelFALTEC’s supply of engineered exterior and functional components to vehicle makers can support recurring volumes while awarded vehicle programs remain in production. This model also links revenue to ongoing OEM platforms and related development and tooling work, creating a foundation beyond one-time sales.

Negative Factors

Recent revenue contractionRecent revenue contraction signals weaker demand or production volumes across FALTEC’s OEM-linked business after the 2024 rebound. Continued declines would reduce scale benefits and make it harder to absorb fixed costs, creating a durable pressure on earnings and cash generation over coming quarters.

FALTEC Co., Ltd. (7215) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 3.72B
Dividend Yield: ―
Average Volume (3M): 5,076
Price to Earnings (P/E): -4.8
Beta (1Y): 0.64
Revenue Growth: -3.73%
EPS Growth: -330.65%
Country: Japan
Employees: 1,764
Sector: General
Sector Strength: 55
Industry: Auto - Parts

FALTEC Co., Ltd. Business Overview & Revenue Model

Company Description

Faltec Co., Ltd. is a global company focused on the design, development, manufacturing, and distribution of automotive parts, accessories, and related supplies. Its product offerings encompass resin-molded items like radiator grilles, various exterio...

How the Company Makes Money

FALTEC makes money primarily by manufacturing and selling automotive components to vehicle manufacturers (OEMs) and, to a lesser extent, related customers in the automotive supply chain. Revenue is generated through (1) sales of exterior parts: suppl...

FALTEC Co., Ltd. Financial Statement Overview

Summary

Cash flow is the main positive: operating cash flow is positive each year and free cash flow has turned positive in 2024–2026. However, revenue has turned negative recently (2026: -5.6%), profitability is inconsistent with recurring losses (net loss in 2026), margins are thin (EBIT margin ~2.2%), and leverage is elevated (debt-to-equity ~1.37), which raises risk when earnings weaken.

Income Statement

38Negative

Balance Sheet

44Neutral

Cash Flow

51Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	74.66B	73.20B	79.11B	81.89B	74.10B	69.12B
Gross Profit	11.77B	11.37B	12.50B	12.31B	9.59B	10.71B
EBITDA	6.10B	5.79B	7.12B	4.37B	3.37B	4.90B
Net Income	-744.00M	-836.00M	329.00M	-790.00M	-2.31B	-623.00M
Balance Sheet
Total Assets	61.61B	65.49B	67.56B	69.04B	69.38B	66.79B
Cash, Cash Equivalents and Short-Term Investments	15.69B	15.82B	14.78B	14.50B	12.22B	10.55B
Total Debt	24.71B	26.31B	25.69B	26.59B	26.28B	23.98B
Total Liabilities	39.97B	43.95B	46.12B	49.96B	50.12B	45.18B
Stockholders Equity	18.98B	18.96B	18.76B	16.45B	16.79B	19.38B
Cash Flow
Free Cash Flow	0	673.00M	1.74B	2.28B	-401.00M	-1.79B
Operating Cash Flow	0	3.85B	4.66B	6.57B	3.04B	2.19B
Investing Cash Flow	0	-2.75B	-3.14B	-3.76B	-3.63B	-4.38B
Financing Cash Flow	0	-127.00M	-1.91B	-59.00M	1.88B	-684.00M

FALTEC Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price385.00

Price Trends

50DMA412.52Negative

100DMA418.67Negative

200DMA405.62Negative

Market Momentum

MACD-8.32Positive

RSI36.75Neutral

STOCH54.61Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7215, the sentiment is Negative. The current price of 385.00 is below the 20-day moving average (MA) of 398.80, below the 50-day MA of 412.52, and below the 200-day MA of 405.62, indicating a bearish trend. The MACD of -8.32 indicates Positive momentum. The RSI at 36.75 is Neutral, neither overbought nor oversold. The STOCH value of 54.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7215.

FALTEC Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:7215 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:7212	69Neutral	JPY 13.51B	1.99	―	3.32%	2.75%	―
JP:7294	68Neutral	JPY 17.73B	6.90	―	3.97%	2.39%	―
JP:7291	59Neutral	JPY 8.18B	6.09	―	7.63%	-4.33%	882.27%
JP:7297	58Neutral	JPY 5.94B	11.80	―	3.91%	1.24%	―
JP:7214	56Neutral	JPY 5.34B	-25.46	―	4.10%	4.47%	58.91%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:7215	51Neutral	JPY 3.63B	-4.84	―	―	-3.73%	-330.65%

* General Sector Average

Performance Comparison

JP:7215 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:7215	FALTEC Co., Ltd.	385.00	35.00	10.00%
JP:7212	F-Tech Inc.	723.00	36.33	5.29%
JP:7214	GMB Corporation	976.00	144.52	17.38%
JP:7291	Nihon Plast Co., Ltd.	426.00	48.27	12.78%
JP:7294	Yorozu Corporation	856.00	-96.01	-10.08%
JP:7297	Car Mate Mfg. Co Ltd	843.00	26.84	3.29%

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 19, 2026

FALTEC Co., Ltd. AI Stock Analysis