AKEBONO BRAKE INDUSTRY CO (7238) AI Stock Analysis

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AKEBONO BRAKE INDUSTRY CO

(TSE/TYO:7238)

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Rating:58Neutral

Price Target:JPY 109.00▲(3.81% Upside)

Action:reiterated

Date:11/14/26

The score is driven primarily by a mixed financial profile: improved profitability, lower leverage, and positive TTM free cash flow are supportive, but the sharp TTM revenue decline and thin margins reduce confidence in earnings durability. Valuation helps with a low P/E (~10.3), while technicals are neutral-to-soft with a negative MACD and price still below key longer-term moving averages.

Positive Factors

Improved LeverageLower leverage improves financial flexibility and reduces the balance-sheet burden carried by the operating business. Debt-to-equity below 1.0 gives Akebono more capacity to withstand weaker earnings and fund necessary investment without relying as heavily on additional borrowing.

Negative Factors

Sharp Revenue DeclineA roughly 32% TTM revenue decline is a significant challenge for a components supplier because lower scale can weaken operating leverage and make earnings less durable. Continued top-line pressure would constrain reinvestment, reduce bargaining strength, and make the profitability rebound harder to sustain.

AKEBONO BRAKE INDUSTRY CO (7238) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 180.91M
Dividend Yield: ―
Average Volume (3M): 4.09M
Price to Earnings (P/E): 10.3
Beta (1Y): 1.30
Revenue Growth: -1.43%
EPS Growth: ―
Country: Japan
Employees: 5,096
Sector: Consumer Cyclical
Sector Strength: 61
Industry: Auto - Parts

AKEBONO BRAKE INDUSTRY CO Business Overview & Revenue Model

Company Description

Akebono Brake Industry Co., Ltd. is a global leader in the research, development, manufacturing, and distribution of braking systems and associated components. Its operations span across Japan, North America, Europe, and various other Asian countries...

AKEBONO BRAKE INDUSTRY CO Financial Statement Overview

Summary

Mixed fundamentals: profitability rebounded and leverage improved (debt-to-equity ~0.68), and TTM operating/free cash flow turned positive (~7.8B / ~2.2B). Offsetting this, revenue is sharply down in TTM (~-32%) and net margins remain thin (~1.8%), limiting earnings durability and downside cushion.

Income Statement

54Neutral

Balance Sheet

62Positive

Cash Flow

58Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2026	Mar 2025	Mar 2024	Mar 2023
Income Statement
Total Revenue	159.22B	161.67B	160.11B	166.30B	153.98B	135.50B
Gross Profit	17.08B	16.21B	18.25B	15.78B	13.60B	17.34B
EBITDA	10.84B	9.77B	11.74B	9.66B	6.46B	9.89B
Net Income	-1.36B	168.00M	1.84B	3.45B	960.00M	4.15B
Balance Sheet
Total Assets	125.10B	128.33B	128.85B	150.47B	141.30B	139.67B
Cash, Cash Equivalents and Short-Term Investments	17.23B	18.30B	18.09B	26.95B	25.50B	30.30B
Total Debt	36.29B	35.13B	35.25B	49.30B	49.93B	50.27B
Total Liabilities	72.83B	72.38B	71.24B	90.01B	91.01B	90.77B
Stockholders Equity	45.96B	49.52B	50.63B	52.40B	43.38B	42.59B
Cash Flow
Free Cash Flow	1.32B	-4.43B	257.00M	3.42B	-2.89B	458.00M
Operating Cash Flow	5.97B	1.45B	4.81B	7.62B	4.65B	5.47B
Investing Cash Flow	-4.25B	5.97B	-2.42B	-3.52B	-6.43B	-2.24B
Financing Cash Flow	1.10B	-18.54B	-925.00M	-1.92B	-1.74B	-1.15B

AKEBONO BRAKE INDUSTRY CO Technical Analysis

Technical Analysis SentimentPositive

Last Price105.00

Price Trends

50DMA104.30Positive

100DMA106.75Negative

200DMA116.33Negative

Market Momentum

MACD-0.48Negative

RSI54.57Neutral

STOCH67.41Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7238, the sentiment is Positive. The current price of 105.00 is above the 20-day moving average (MA) of 102.40, above the 50-day MA of 104.30, and below the 200-day MA of 116.33, indicating a neutral trend. The MACD of -0.48 indicates Negative momentum. The RSI at 54.57 is Neutral, neither overbought nor oversold. The STOCH value of 67.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7238.

AKEBONO BRAKE INDUSTRY CO Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

JP:7238 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:7259	70Outperform	JPY 1.61T	10.83	7.07%	3.30%	5.65%	-6.26%
JP:7278	66Neutral	JPY 194.28B	15.83	6.44%	6.11%	0.21%	0.59%
Sector *	61Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
JP:7238	58Neutral	JPY 27.68B	10.28	4.13%	―	-1.43%	―
JP:6473	54Neutral	JPY 655.77B	30.84	2.71%	3.11%	3.66%	12.13%
JP:7220	47Neutral	JPY 143.34B	81.69	―	1.62%	3.60%	-81.10%

* Consumer Cyclical Sector Average

Performance Comparison

JP:7238 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:7238	AKEBONO BRAKE INDUSTRY CO	105.00	-8.00	-7.08%
JP:7259	Aisin Seiki Co	2270.50	-387.64	-14.58%
JP:6473	JTEKT Corporation	2088.50	535.68	34.50%
JP:7278	Exedy Corporation	5320.00	317.95	6.36%
JP:7220	Musashi Seimitsu Industry Co., Ltd.	2155.00	-727.27	-25.23%

AKEBONO BRAKE INDUSTRY CO Corporate Events

Akebono Presents FY2026 First-Half Consolidated Results

Nov 13, 2026

Akebono Brake Industry Co., Ltd. issued a document dated November 12, 2026, titled “Consolidated Financial Results FY2026 First Half (1H).” The presentation covers consolidated financial results for the fiscal year’s first half and defines different...

Akebono Reports Financial-Covenant Event as Lenders Grant Waivers

Nov 12, 2026

Akebono Brake Industry reported that its debt-service coverage ratio for the 12-month period ended September 30, 2026, fell below the 1.05x threshold in its 32,000 million yen loan agreement, triggering an event under its financial covenants. The com...

Akebono Brake Reports Six-Month Operating Profit Growth

Nov 12, 2026

Akebono Brake Industry reported consolidated results for the six months ended September 30, 2026. Net sales were ¥75,784 million, down 4.0% year on year, while operating profit rose 13.8% to ¥2,614 million and ordinary profit rose 157.4% to ¥1,914 mi...

Akebono Brake Completes Equity Transfer and Capital Increase at Chinese Subsidiary

Sep 28, 2026

Akebono Brake Industry has completed a previously announced transaction involving its Chinese consolidated subsidiary, Akebono Corporation (Guangzhou), by transferring a portion of its equity interests to joint venture partner Fujiwa Machinery Indust...

Akebono Revises Executive Stock Option Terms to Align With Medium-Term Plan

Sep 16, 2026

Akebono Brake Industry Co., Ltd. has approved amendments to the terms of its 14th share-based payment stock options for directors, executive officers and division head-level executives. The changes are tied to the company’s Medium-Term Business Plan...

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 14, 2026

AKEBONO BRAKE INDUSTRY CO AI Stock Analysis