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Futaba Industrial Co., Ltd.
(7241)
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Rating:71Outperform
Price Target:
¥1,094.00
▲(4.49% Upside)
Action:Upgraded
Date:04/29/26
The score is driven primarily by improving financial quality (stronger FY2026 profitability and sharply lower leverage) and very favorable valuation (low P/E and high dividend yield). These positives are tempered by weak technical momentum and fundamental risk from two years of revenue contraction and historically uneven free cash flow.
Positive Factors
De-levered Balance Sheet
A materially lower debt-to-equity (~0.16x in FY2026) meaningfully reduces financial risk and interest burden, increasing flexibility to fund capex, absorb OEM demand swings, and support dividends or buybacks. This durable improvement strengthens solvency across cycles.
Negative Factors
Two-Year Revenue Contraction
Two consecutive years of top-line decline signal weakening demand or lost content per vehicle, which erodes scale economics in a parts business tied to OEM programs. Persistent revenue shrinkage can pressure utilization, margins and supplier competitiveness over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
De-levered Balance Sheet
A materially lower debt-to-equity (~0.16x in FY2026) meaningfully reduces financial risk and interest burden, increasing flexibility to fund capex, absorb OEM demand swings, and support dividends or buybacks. This durable improvement strengthens solvency across cycles.
Read all positive factors
Futaba Industrial Co., Ltd. (7241) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥87.50B
Dividend Yield3.88%
Average Volume (3M)187.74K
Price to Earnings (P/E)5.5
Beta (1Y)1.21
Revenue Growth-4.13%
EPS Growth158.53%
CountryJP
Employees10,690
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)72.08
Shares Outstanding89,580,826
10 Day Avg. Volume171,230
30 Day Avg. Volume187,743
Financial Highlights & Ratios
PEG Ratio0.03
Price to Book (P/B)0.62
Price to Sales (P/S)0.13
P/FCF Ratio7.47
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥1,190.00Price Target Upside13.66% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)154.7
Revenue Forecast (FY)¥704.65B
Futaba Industrial Co., Ltd. Business Overview & Revenue Model
Company Description
Headquartered in Okazaki, Japan, Futaba Industrial Co., Ltd. was established in 1935 and operates both within Japan and across global markets. The company specializes in the production and distribution of a diverse array of items, including automo...
How the Company Makes Money
Futaba Industrial generates revenue primarily by manufacturing and selling automotive-related components to customers (typically vehicle manufacturers and/or their supply chains) under supply agreements tied to vehicle production programs. Its ear...
Futaba Industrial Co., Ltd. Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
74
Positive
Cash Flow
60
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 684.57B | 677.92B | 707.10B | 795.80B | 708.07B | 572.12B |
| Gross Profit | 46.47B | 49.28B | 44.29B | 46.28B | 31.90B | 28.14B |
| EBITDA | 40.21B | 42.37B | 41.46B | 48.93B | 37.35B | 30.59B |
| Net Income | 6.45B | 16.03B | 6.21B | 12.83B | 10.58B | 3.31B |
Balance Sheet | ||||||
| Total Assets | 301.75B | 334.33B | 313.91B | 334.78B | 319.77B | 309.49B |
| Cash, Cash Equivalents and Short-Term Investments | 22.75B | 21.38B | 13.72B | 25.03B | 10.34B | 6.73B |
| Total Debt | 56.98B | 53.65B | 56.79B | 62.02B | 81.67B | 98.14B |
| Total Liabilities | 178.60B | 188.48B | 190.75B | 203.88B | 220.02B | 219.47B |
| Stockholders Equity | 117.54B | 138.88B | 117.62B | 124.38B | 94.07B | 84.22B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 11.46B | 52.00M | 42.45B | 23.56B | 846.00M |
| Operating Cash Flow | 0.00 | 38.64B | 24.79B | 57.37B | 47.74B | 35.47B |
| Investing Cash Flow | 0.00 | -26.53B | -23.19B | -16.21B | -22.31B | -35.55B |
| Financing Cash Flow | 0.00 | -6.35B | -10.36B | -27.75B | -22.01B | -3.45B |
Futaba Industrial Co., Ltd. Technical Analysis
Positive
1047.00
Price Trends
976.84
Positive
1003.45
Negative
990.55
Negative
Market Momentum
-8.36
Negative
56.16
Neutral
59.35
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7241, the sentiment is Positive. The current price of 1047 is above the 20-day moving average (MA) of 953.30, above the 50-day MA of 976.84, and above the 200-day MA of 990.55, indicating a neutral trend. The MACD of -8.36 indicates Negative momentum. The RSI at 56.16 is Neutral, neither overbought nor oversold. The STOCH value of 59.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7241.
Futaba Industrial Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | ¥264.07B | 8.84 | ― | 3.36% | 4.38% | 12.45% | |
74 Outperform | ¥604.93B | 10.35 | 8.58% | 2.62% | 8.21% | 72.79% | |
71 Outperform | ¥87.50B | 5.53 | ― | 3.88% | -4.13% | 158.53% | |
68 Neutral | ¥208.90B | 29.14 | ― | 4.77% | -3.95% | -13.56% | |
64 Neutral | ¥160.52B | 6.15 | 13.11% | 2.87% | 9.86% | 120.23% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | ¥394.71B | 16.96 | 3.70% | 3.42% | 4.24% | 39.04% |
* Consumer Cyclical Sector Average
JP:7241
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Futaba Industrial Co., Ltd. Corporate Events
Futaba Industrial Posts Strong Profit Rebound and Lifts Dividend Despite Lower Sales
Apr 27, 2026
Futaba Industrial reported fiscal 2026 consolidated net sales of ¥677.9 billion, down 4.1% year on year, but delivered a strong profit recovery, with operating profit up 23.3% to ¥18.7 billion and profit attributable to owners of parent ...
Futaba Industrial Lifts Year-End Dividend, Deepens Focus on Shareholder Returns
Apr 27, 2026
Futaba Industrial Co., Ltd., a Japanese automotive-related components manufacturer listed on the Tokyo and Nagoya exchanges, positions shareholder returns as a central management priority. The company applies a progressive dividend policy, targeti...
Futaba Industrial Beats Full-Year Forecast on Strong Japan Operations and FX Gains
Apr 27, 2026
Futaba Industrial reported that its full-year results for the fiscal year ended March 31, 2026, exceeded its earlier consolidated forecast, driven by higher net sales and stronger operating performance, especially in its Japan segment. Operating p...
Futaba Industrial Halves Treasury Share Disposal for Employee Stock Incentive
Mar 2, 2026
Futaba Industrial has completed payment procedures for a disposal of treasury shares under its restricted stock incentive plan for the Futaba Employee Shareholding Association. The plan, originally approved in October 2025, is intended to grant re...
Futaba Industrial Divests Loss-Making Chinese Subsidiary to Refocus on Growth Areas
Feb 27, 2026
Futaba Industrial Co., Ltd. has decided to transfer all equity in its wholly owned Chinese subsidiary, Tianjin Shuang Shye Mechanical Industrial Co., Ltd., to Hong Kong-based Souzousha Company Limited. Tianjin Shuang Shye, established in 2002 to m...
Futaba Industrial to Appoint New President in Management Reshuffle
Feb 27, 2026
Futaba Industrial Co., Ltd. has announced planned changes to its top management, appointing operating officer Toshiyuki Hisatsune as representative director and president and promoting Toshio Yokota to representative director and vice president, w...
Futaba Industrial Slashes Capital at Chinese Auto-Parts Subsidiary to Boost Efficiency
Feb 2, 2026
Futaba Industrial will reduce the capital of its wholly owned Chinese subsidiary, Dongguan Futaba Metal Products Co., Ltd., which manufactures and sells automotive and other vehicle parts in Dongguan, Guangdong, from USD 23.29 million to a planned...
Futaba Industrial Raises Full-Year Sales Forecast on Better Business and FX Assumptions
Feb 2, 2026
Futaba Industrial Co., Ltd. has revised its consolidated full-year forecast for the fiscal year ending March 31, 2026, raising projected net sales from ¥650.0 billion to ¥666.0 billion, while leaving operating profit, ordinary profit, an...
Futaba Industrial Injects Capital into Chinese Unit Ahead of Liquidation
Feb 2, 2026
Futaba Industrial will inject USD 20.5 million (about ¥3.1 billion) into its Chinese subsidiary Tianjin Shuang Shye Mechanical Industrial, raising the unit’s capital to USD 27 million and making it a specified subsidiary as its capital ...
Futaba Industrial Lifts Profit Outlook Despite Lower Sales, Boosts Dividend Payout
Feb 2, 2026
Futaba Industrial reported consolidated net sales of ¥502.5 billion for the nine months ended 31 December 2025, down 4.6% year on year, but sharply improved profitability with operating profit up 36.9% to ¥13.6 billion and profit attribu...
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.