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Muro Corporation (7264) AI Stock Analysis

JP:7264

Muro Corporation

(TSE/TYO:7264)

Select Model
Rating:71Outperform
Price Target:JPY 1,480.00â–²(9.23% Upside)
Action:upgraded
Date:08/17/26

Muro Corporation's overall score of 71 is primarily driven by an attractive valuation profile and a rock-solid, debt-free balance sheet, which provide excellent downside protection and steady dividend income. The most significant risks capping the score are persistent operational challenges, notably sluggish revenue growth, thin profit margins, and historically unpredictable cash generation. Technically, the stock is taking a breather in the short term while holding steady above its long-term trendlines.

Positive Factors
Conservative Balance SheetConservative financing reduces balance-sheet stress and gives Muro flexibility to withstand automotive cycles, fund operations, and maintain supplier commitments without relying heavily on additional borrowing.
Negative Factors
Cyclical Margin ProfileLarge swings in profitability show that earnings are sensitive to production volumes, product mix, and operating conditions. This limits confidence that the recent profit recovery will translate into durable margins.

Muro Corporation (7264) vs. iShares MSCI Japan ETF (EWJ)

-5%0%5%10%15%20%25%JP:7264+11.69%EWJ+15.87%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 8.19B
Dividend Yield
3.39%
Average Volume (3M)
2,074
Price to Earnings (P/E)
9.8
Beta (1Y)
0.41
Revenue Growth
1.90%
EPS Growth
413.71%
Country
Japan
Employees
1,061
Sector
Consumer Cyclical
Sector Strength
61
Industry
Auto - Parts

Muro Corporation Business Overview & Revenue Model

Company Description

Muro Corporation, based in Tochigi, Japan, specializes in the production and distribution of metallic and resin-based components. Its comprehensive product range includes items such as sprockets, cam pilots, gear rings, gear suns, angle sensors, gear...

How the Company Makes Money

Muro makes money primarily by manufacturing and selling automotive fasteners and related precision metal components to automakers and automotive parts suppliers. Revenue is generated through (1) contracted supply of standardized and custom-designed f...

Muro Corporation Financial Statement Overview

Summary

Anchored by a highly stable balance sheet with negligible debt (0.07 D/E), financial performance is nonetheless weighed down by stagnant revenue growth, thin profit margins, and a low return on equity (3.1%). Historically volatile cash flows further constrain the score despite a recent rebound.

Income Statement

55Neutral

Balance Sheet

85Very Positive

Cash Flow

60Neutral
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue23.21B23.14B22.59B23.66B21.84B20.53B
Gross Profit4.37B4.43B3.91B4.43B3.25B3.89B
EBITDA2.46B2.61B2.21B2.88B1.81B2.61B
Net Income838.34M714.22M486.28M1.32B291.52M1.35B
Balance Sheet
Total Assets30.03B30.29B30.49B32.43B28.05B27.36B
Cash, Cash Equivalents and Short-Term Investments8.33B8.54B8.59B9.68B7.23B6.95B
Total Debt1.58B1.63B2.59B2.93B2.05B1.58B
Total Liabilities7.17B7.55B8.42B10.75B8.32B8.05B
Stockholders Equity22.86B22.74B22.07B21.68B19.74B19.31B
Cash Flow
Free Cash Flow0721.86M-525.50M1.43B-557.81M-68.67M
Operating Cash Flow01.52B677.70M3.88B1.06B1.74B
Investing Cash Flow0-1.04B-1.39B-2.17B-1.48B-1.34B
Financing Cash Flow0-1.10B-705.31M394.22M159.06M-1.55B

Muro Corporation Technical Analysis

Technical Analysis SentimentPositive
Last Price1355.00

Price Trends

50DMA1328.53Positive
100DMA1314.12Positive
200DMA1317.63Positive

Market Momentum

MACD6.84Negative
RSI54.82Neutral
STOCH68.73Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7264, the sentiment is Positive. The current price of 1355.00 is above the 20-day moving average (MA) of 1335.45, above the 50-day MA of 1328.53, and above the 200-day MA of 1317.63, indicating a bullish trend. The MACD of 6.84 indicates Negative momentum. The RSI at 54.82 is Neutral, neither overbought nor oversold. The STOCH value of 68.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7264.

Muro Corporation Peers Comparison

Overall Rating

UnderperformOutperform
Sector (61)

Financial Indicators

JP:7264 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:7266JP:726676OutperformJPY 19.31B6.46―3.35%-4.68%―
JP:7264JP:726471OutperformJPY 8.19B9.77―3.39%1.90%413.71%
JP:7294JP:729468NeutralJPY 17.34B6.73―4.04%2.39%―
Sector *61Neutral$18.38B12.79-2.54%3.03%1.52%-15.83%
JP:7291JP:729161NeutralJPY 8.36B6.19―7.44%-4.33%882.27%
JP:7284JP:728460NeutralJPY 4.00B86.38―4.38%-0.40%-91.96%
JP:7256JP:725640UnderperformJPY 15.36B3.14――-4.40%―

* Consumer Cyclical Sector Average

Performance Comparison

0%100%200%300%JP:7264JP:7256JP:7266JP:7284JP:7291JP:7294Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:7264 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:7264Muro Corporation1355.00142.8311.78%
JP:7256Kasai Kogyo Co., Ltd.397.00267.00205.38%
JP:7266Imasen Electric Industrial Co., Ltd.926.00172.5522.90%
JP:7284Meiwa Industry Co., Ltd.1142.00-27.16-2.32%
JP:7291Nihon Plast Co., Ltd.437.0057.4215.13%
JP:7294Yorozu Corporation842.00-41.59-4.71%
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 17, 2026