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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:71Outperform
Price Target:JPY 1,400.00▲(0.43% Upside)
Action:reiterated
Date:11/04/26

The overall score of 71 is primarily driven by T.RAD Co.'s highly attractive valuation and robust financial turnaround. The company boasts a substantial 6.39% dividend yield, a deeply discounted P/E ratio, and expanding profit margins supported by a conservatively leveraged balance sheet. However, these strong fundamental strengths are partially offset by weak technicals; the stock is currently experiencing a severe short-to-medium-term downtrend, although deeply oversold indicators suggest the selling pressure may soon stabilize.

Positive Factors
Profitability RecoveryThe strong rebound in gross, EBIT, and net margins indicates that T.RAD has restored meaningful earnings power after weaker prior periods. If maintained, improved profitability can support reinvestment, strengthen resilience, and provide a durable foundation for shareholder returns.
Negative Factors
Moderate Revenue GrowthTop-line expansion remains limited, so future earnings growth may depend more on maintaining margin improvements than on strong demand growth. A modest revenue base can constrain operating leverage and reduce the durability of current profit gains if margins normalize.

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

-20%0%20%40%60%80%100%JP:7236+61.85%EWJ+13.61%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 79.31B
Dividend Yield
5.81%
Average Volume (3M)
351.72K
Price to Earnings (P/E)
8.9
Beta (1Y)
1.40
Revenue Growth
5.92%
EPS Growth
28.41%
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

The company exhibits a robust financial profile characterized by a successful profitability turnaround, expanding margins, and steady revenue growth. The balance sheet is conservative, featuring a low debt-to-equity ratio of 0.41, and operating cash flow has rebounded strongly to effectively cover debt obligations.

Income Statement

85Very Positive

Balance Sheet

82Very Positive

Cash Flow

78Positive
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue167.03B162.28B159.24B158.66B149.41B133.58B
Gross Profit24.92B24.37B19.64B14.90B11.86B15.10B
EBITDA18.67B16.90B12.64B10.98B4.74B11.97B
Net Income9.01B8.77B4.25B1.25B-3.60B3.60B
Balance Sheet
Total Assets106.88B99.72B97.49B103.09B94.10B93.76B
Cash, Cash Equivalents and Short-Term Investments18.71B16.44B16.93B20.63B10.71B13.75B
Total Debt22.68B21.86B21.51B24.91B22.45B19.18B
Total Liabilities51.20B46.65B48.74B57.80B50.24B47.02B
Stockholders Equity55.61B53.01B48.69B44.89B42.26B44.50B
Cash Flow
Free Cash Flow6.28B5.11B2.52B9.76B-2.47B1.45B
Operating Cash Flow14.48B12.56B7.56B16.97B4.38B7.26B
Investing Cash Flow-8.28B-7.20B-6.47B-7.08B-6.70B-5.84B
Financing Cash Flow-1.92B-5.87B-6.95B-616.00M-1.06B-3.39B

T.RAD Co., Ltd. Technical Analysis

Technical Analysis SentimentPositive
Last Price1394.00

Price Trends

50DMA1419.19Negative
100DMA1443.34Negative
200DMA1241.81Positive

Market Momentum

MACD-20.70Negative
RSI53.79Neutral
STOCH96.21Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7236, the sentiment is Positive. The current price of 1394.00 is above the 20-day moving average (MA) of 1350.85, below the 50-day MA of 1419.19, and above the 200-day MA of 1241.81, indicating a neutral trend. The MACD of -20.70 indicates Negative momentum. The RSI at 53.79 is Neutral, neither overbought nor oversold. The STOCH value of 96.21 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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:7235JP:723584OutperformJPY 14.25B7.35―4.93%7.10%13.31%
JP:6592JP:659279OutperformJPY 462.43B9.287.97%3.80%12.28%37.28%
JP:7236JP:723671OutperformJPY 81.91B8.86―5.81%5.92%28.41%
JP:6902JP:690271OutperformJPY 5.18T11.828.22%3.76%7.09%27.59%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
JP:6584JP:658440UnderperformJPY 25.40B29.52―4.07%6.48%-166.29%

* General Sector Average

Performance Comparison

-25%0%25%50%75%JP:7236JP:6902JP:6592JP:6584JP:7235Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:7236 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:7236T.RAD Co., Ltd.1394.00542.9263.79%
JP:6902DENSO CORPORATION1916.50-135.50-6.60%
JP:6592Mabuchi Motor Co 1801.50505.0538.96%
JP:6584Sanoh Industrial Co., Ltd.688.00-164.89-19.33%
JP:7235Tokyo Radiator Manufacturing Co., Ltd.1500.0095.846.83%

T.RAD Co., Ltd. Corporate Events

T.RAD Reports Material-Cost Pressure and China Supply Expansion

Nov 4, 2026

T.RAD Co., Ltd. is a thermal-management manufacturer whose product portfolio includes heat exchangers and related components. The company is using its Chinese operations to serve local demand and support global production, exports, equipment and die...

T.RAD Raises Sales Forecast but Cuts Fiscal 2027 Profit Outlook

Nov 2, 2026

T.RAD Co., Ltd. raised its consolidated fiscal 2027 net sales forecast by 1.8% to ¥168.0 billion, citing stronger expected customer sales in Japan and Europe. However, it cut operating profit to ¥11.9 billion, ordinary profit to ¥12.8 billion and pro...

T.RAD Outlines Fiscal 2027 Second-Quarter Briefing Agenda

Nov 2, 2026

T.RAD Co., Ltd.’s November 2026 second-quarter fiscal 2027 results briefing agenda covers supplementary financial explanations, the consolidated earnings forecast, tariff impacts and countermeasures, its multi-pathway and overseas strategies, manufac...

T.RAD Reports Higher Six-Month Sales and Profit

Nov 2, 2026

T.RAD Co., Ltd. reported consolidated six-month net sales of ¥82.268 billion for the period ended September 30, 2026, up 6.1% year on year. Operating income rose 3.4% to ¥5.576 billion, ordinary income increased 5.0% to ¥5.959 billion, and profit att...

T.RAD to Dispose Treasury Stock for Employee Stock Benefit Trust

Sep 14, 2026

T.RAD Co., Ltd. has approved the disposal of 570,000 shares of its treasury stock via third-party allotment to a trust account managed by Custody Bank of Japan, in connection with an additional contribution to its Employee Stock Benefit Trust (J-ESOP...

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: Nov 04, 2026