AKEBONO BRAKE INDUSTRY CO (7238) AI Stock Analysis

• Market Cap: $31.75B
• Dividend Yield: N/A
• Average Volume (3M): 1.21M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.32
• Revenue Growth: -1.97%
• EPS Growth: -160.25%
• Country: JP
• Employees: 5,548
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): -0.46
• Shares Outstanding: 273,755,220
• 10 Day Avg. Volume: 1,351,060
• 30 Day Avg. Volume: 1,211,140
• PEG Ratio: -1.10
• Price to Book (P/B): 0.36
• Price to Sales (P/S): 0.11
• P/FCF Ratio: -4.02
• Enterprise Value/Market Cap: 1.63
• Enterprise Value/Revenue: 0.32
• Enterprise Value/Gross Profit: 3.19
• Enterprise Value/Ebitda: 7.21
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: ¥112.00 ▼(-4.27% Downside)

The overall stock score is primarily influenced by the company's mixed financial performance, with revenue growth offset by profitability and cash flow challenges. Technical analysis suggests a neutral trend with potential for upward movement. Valuation concerns due to a negative P/E ratio further weigh down the score.

AKEBONO BRAKE INDUSTRY CO Business Overview & Revenue Model

Company Description

AKEBONO BRAKE INDUSTRY CO (7238) is a leading manufacturer of brake systems and components for automotive and industrial applications. Established in Japan, the company specializes in developing advanced braking technologies, including disc brakes, drum brakes, and brake pads, catering primarily to the automotive sector. AKEBONO serves major automobile manufacturers and is recognized for its commitment to safety, innovation, and high-quality products.

How the Company Makes Money

AKEBONO BRAKE INDUSTRY CO generates revenue primarily through the sale of its brake systems and components to automotive manufacturers and aftermarket suppliers. The company has established long-term contracts with major automotive OEMs (Original Equipment Manufacturers), which provide a stable revenue stream. Additionally, AKEBONO benefits from the aftermarket segment by supplying brake parts to repair shops and retailers. The company also invests in research and development to innovate new braking technologies, enhancing its product offerings and maintaining competitiveness in the market. Strategic partnerships with automotive companies and participation in joint ventures further contribute to its earnings, allowing for expanded market reach and shared resources.

AKEBONO BRAKE INDUSTRY CO Financial Statement Overview

Summary

AKEBONO BRAKE INDUSTRY CO's financial performance reveals strengths in operational margins and a stable asset base. However, the variability in revenue growth, declining net income, and negative free cash flow indicate areas of concern. The company should focus on improving cash flow management to enhance financial stability.

Income Statement

The company shows a mixed performance with fluctuating revenue growth. The gross profit margin is consistent, though there is a noticeable dip in net profit margin in recent years. The EBIT and EBITDA margins have improved, indicating better operational efficiency.

Balance Sheet

The balance sheet is stable with a manageable debt-to-equity ratio, though there is a trend of increasing debt levels. The return on equity has shown variability, reflecting the changes in net income. The equity ratio remains healthy, suggesting a strong asset base.

Cash Flow

Cash flow from operations has weakened, and free cash flow has turned negative, indicating potential liquidity issues. The operating cash flow to net income ratio shows inconsistency, suggesting challenges in converting profits to cash.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	161.67B	161.67B	166.30B	153.98B	135.50B	134.00B
Gross Profit	16.21B	16.21B	15.78B	13.60B	17.34B	12.67B
EBITDA	7.17B	14.17B	12.00B	9.98B	12.33B	-3.27B
Net Income	168.00M	168.00M	3.45B	960.00M	4.15B	-11.91B
Balance Sheet
Total Assets	128.33B	128.33B	150.47B	141.30B	139.67B	132.63B
Cash, Cash Equivalents and Short-Term Investments	18.30B	18.30B	26.95B	25.50B	30.30B	29.59B
Total Debt	35.13B	35.13B	49.49B	49.93B	50.27B	49.09B
Total Liabilities	72.38B	72.38B	90.01B	91.01B	90.77B	89.98B
Stockholders Equity	49.52B	49.52B	52.40B	43.38B	42.59B	37.26B
Cash Flow
Free Cash Flow	-4.43B	-4.43B	3.42B	-2.89B	458.00M	2.02B
Operating Cash Flow	1.45B	1.45B	7.62B	4.65B	5.47B	5.59B
Investing Cash Flow	5.97B	5.97B	-3.52B	-6.43B	-2.24B	-2.74B
Financing Cash Flow	-18.54B	-18.54B	-1.92B	-1.74B	-1.15B	-4.98B

AKEBONO BRAKE INDUSTRY CO Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 117.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7238, the sentiment is Neutral. The current price of 117 is below the 20-day moving average (MA) of 117.10, above the 50-day MA of 115.62, and above the 200-day MA of 108.66, indicating a neutral trend. The MACD of 0.75 indicates Positive momentum. The RSI at 47.19 is Neutral, neither overbought nor oversold. The STOCH value of 12.42 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7238.

AKEBONO BRAKE INDUSTRY CO Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7242	77 Outperform	¥200.80B	8.32	10.75%	2.88%	-0.17%	72.81%
7283	77 Outperform	¥135.25B	9.93	―	3.53%	0.29%	9.70%
7296	71 Outperform	¥155.68B	9.83	―	5.07%	2.01%	25.09%
7278	69 Neutral	€191.73B	15.72	6.56%	5.64%	-2.26%	―
7220	64 Neutral	¥234.70B	36.04	―	1.40%	-4.23%	-28.48%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7238	49 Neutral	$31.75B	-3.21	-12.12%	―	-1.97%	-160.25%

AKEBONO BRAKE INDUSTRY CO Corporate Events

AKEBONO BRAKE Reports Q1 2025 Financial Results with Slight Sales Growth but Continued Losses

AKEBONO BRAKE INDUSTRY CO., LTD. reported its consolidated financial results for the three months ended June 30, 2025, showing a slight increase in net sales by 0.4% compared to the previous year. However, the company experienced a loss attributable to owners of the parent, with a negative comprehensive income of ¥1,837 million. The financial forecast for the fiscal year ending March 31, 2026, anticipates a decline in net sales by 4.4% and a continued loss, reflecting challenges in the market and potential implications for stakeholders.