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T.RAD Co., Ltd. (7236) AI Stock Analysis

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JP:7236

T.RAD Co., Ltd.

(TSE/TYO:7236)

Select Model
Rating:84.1Outperform
Price Target:JPY 1,785.00â–²(39.67% Upside)
Action:reiterated
Date:08/04/26

The overall score of 84.1 reflects strong financial fundamentals, positive technical trends, and attractive valuation. The company's robust revenue growth, improving margins, and prudent balance sheet management are key strengths. The stock's upward price momentum and low P/E further support a favorable outlook.

Positive Factors
Revenue Growth ReboundA near-term 37.7% TTM revenue rebound reflects renewed OEM demand or share gains. Durable top-line momentum supports scale economies, steadier production runs and stronger negotiating leverage with automakers, improving long-term margin and capacity utilization.
Negative Factors
Weak Free Cash Flow ConversionFree cash flow converts only ~41% of net income and recently fell sharply, indicating earnings are not consistently turning into cash. This undermines capacity to self-fund capex, pay steady dividends or deleverage, increasing reliance on external funding in stressed periods.

T.RAD Co., Ltd. (7236) vs. iShares MSCI Japan ETF (EWJ)

-25%0%25%50%75%100%125%150%JP:7236+92.47%EWJ+15.87%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 72.35B
Dividend Yield
6.34%
Average Volume (3M)
355.99K
Price to Earnings (P/E)
8.4
Beta (1Y)
1.54
Revenue Growth
1.79%
EPS Growth
60.36%
Country
Japan
Employees
4,087
Sector
General
Sector Strength
55
Industry
Auto - Parts

T.RAD Co., Ltd. Business Overview & Revenue Model

Company Description

Based in Tokyo, Japan, T.RAD Co., Ltd. operates globally, specializing in the design, production, and sale of heat exchange systems. These critical components serve a broad array of sectors, including automotive, heavy construction and industrial mac...

How the Company Makes Money

T.RAD makes money primarily by manufacturing and selling automotive thermal management components to customers in the automotive supply chain. Its revenue is largely generated from (1) sales of heat exchangers (e.g., radiators and other cooling-relat...

T.RAD Co., Ltd. Financial Statement Overview

Summary

Strong revenue growth (TTM up 37.7%), improved profitability (net margin 5.4%, EBIT 7.9%), solid balance sheet (debt/equity 0.41, ROE 17.9%), and healthy cash flow generation (operating cash flow ¥12.4B, free cash flow ¥5.0B).

Income Statement

85Very Positive

Balance Sheet

82Very Positive

Cash Flow

78Positive
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue162.89B162.28B159.24B158.66B149.41B133.58B
Gross Profit24.38B24.37B19.64B14.90B11.86B15.10B
EBITDA18.29B16.90B12.64B10.98B4.74B11.97B
Net Income8.77B8.77B4.25B1.25B-3.60B3.60B
Balance Sheet
Total Assets101.28B99.72B97.49B103.09B94.10B93.76B
Cash, Cash Equivalents and Short-Term Investments16.29B16.44B16.93B20.63B10.71B13.75B
Total Debt22.25B21.86B21.51B24.91B22.45B19.18B
Total Liabilities47.95B46.65B48.74B57.80B50.24B47.02B
Stockholders Equity53.26B53.01B48.69B44.89B42.26B44.50B
Cash Flow
Free Cash Flow5.02B5.11B2.52B9.76B-2.47B1.45B
Operating Cash Flow12.35B12.56B7.56B16.97B4.38B7.26B
Investing Cash Flow-7.57B-7.20B-6.47B-7.08B-6.70B-5.84B
Financing Cash Flow-6.15B-5.87B-6.95B-616.00M-1.06B-3.39B

T.RAD Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative
Last Price1278.00

Price Trends

50DMA1448.43Negative
100DMA1447.63Negative
200DMA1219.63Positive

Market Momentum

MACD-39.60Positive
RSI28.20Positive
STOCH4.13Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7236, the sentiment is Negative. The current price of 1278.00 is below the 20-day moving average (MA) of 1403.20, below the 50-day MA of 1448.43, and above the 200-day MA of 1219.63, indicating a neutral trend. The MACD of -39.60 indicates Positive momentum. The RSI at 28.20 is Positive, neither overbought nor oversold. The STOCH value of 4.13 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7236.

T.RAD Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

JP:7236 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:6592JP:659288OutperformJPY 440.65B8.289.03%4.01%8.19%229.76%
JP:7236JP:723684OutperformJPY 75.31B8.45―6.34%1.79%60.36%
JP:7235JP:723584OutperformJPY 13.87B7.20―5.03%5.02%11.74%
JP:6902JP:690271OutperformJPY 5.13T11.498.22%3.87%7.09%27.70%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
JP:6584JP:658446NeutralJPY 24.93B29.60―4.06%0.78%98.79%

* General Sector Average

Performance Comparison

0%50%100%JP:7236JP:6902JP:6592JP:6584JP:7235Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:7236 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:7236T.RAD Co., Ltd.1278.00630.6697.42%
JP:6902DENSO CORPORATION1862.50-219.36-10.54%
JP:6592Mabuchi Motor Co 1710.00400.8230.62%
JP:6584Sanoh Industrial Co., Ltd.690.00-195.62-22.09%
JP:7235Tokyo Radiator Manufacturing Co., Ltd.1470.00279.8923.52%

T.RAD Co., Ltd. Corporate Events

T.RAD Ups Full-Year Guidance and Raises Dividend on Stronger Outlook

Aug 3, 2026

T.RAD Co., Ltd. raised its full-year consolidated forecast for the year ending March 31, 2027, projecting net sales of ¥165 billion, operating income of ¥12.3 billion and profit attributable to owners of parent of ¥9.5 billion. The rev...

T.RAD Posts Higher Sales but Lower Operating Profit on Rising Material Costs

Aug 3, 2026

T.RAD Co., Ltd., a manufacturer of thermal management components for automotive and industrial applications, reported mixed performance across its global footprint, with domestic operations and key overseas markets including the U.S., Europe, and Asi...

T.RAD Lifts Full-Year Outlook and Dividend Despite Softer Q1 Margins

Aug 3, 2026

T.RAD reported first-quarter fiscal 2027 consolidated net sales of ¥39.7 billion, up 1.6% year on year, with operating income of ¥2.7 billion, down 8.4%, and profit attributable to owners of parent essentially flat at ¥2.1 billion, whi...

T.RAD to Grant Restricted Treasury Shares to Directors and Officers

Jul 21, 2026

T.RAD Co., Ltd. has approved the disposal of 34,415 shares of treasury stock as restricted stock compensation to five directors, four Audit & Supervisory Board Members and three Managing Executive Officers. The shares, priced at 1,470 yen each fo...

T.RAD Targets ¥200 Billion Sales on EV-Era Heat Exchanger Growth

Jul 21, 2026

T.RAD has outlined its strategy to reach ¥200 billion in net sales by fiscal 2030, centered on expanding its share in automotive heat exchangers and growing sales to Japanese OEMs’ hybrid and plug-in hybrid models. The company expects radi...

T.RAD Outlines Global OEM Strategy and Clarifies Shareholder Return Targets

Jun 29, 2026

T.RAD Co., Ltd. disclosed a summarized Q&A from its 124th Ordinary General Meeting of Shareholders, highlighting its expanding global footprint and customer base in the automotive supply chain. Management noted that its Qingdao subsidiary is alre...

T.RAD details dealings with controlling shareholders and affirms operational independence

Jun 26, 2026

T.RAD Co., Ltd. has detailed its relationships with controlling shareholders, notably Jinya Connect Co., Ltd., which holds 39% of its voting rights and conducts software licensing transactions with T.RAD’s consolidated subsidiary. The company a...

T.RAD Announces 10-for-1 Stock Split, Articles Amendment and Dividend Forecast Revision

May 25, 2026

T.RAD will implement a 10-for-1 stock split on July 1, 2026, for shareholders of record on June 30, 2026, increasing shares outstanding from 5.9 million to 59 million to lower the investment unit and broaden its investor base. In conjunction, it will...

T.RAD Sharply Hikes Year-End Dividend and Sets More Aggressive Payout Policy

May 25, 2026

T.RAD’s board has approved a proposal for a year-end dividend of ¥400 per share for the fiscal year ended March 31, 2026, to be submitted to shareholders in late June, lifting the total annual dividend to ¥560 per share. The payout, s...

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 04, 2026