Eiken Industries Co., Ltd (7265) AI Stock Analysis

Eiken Industries Co., Ltd

(TSE/TYO:7265)

Select Model

Rating:85Outperform

Price Target:JPY 3,455.00▲(18.40% Upside)

Action:reiterated

Date:08/06/26

Eiken Industries (JP:7265) receives an overall score of 85, reflecting strong fundamentals, positive technicals, and attractive valuation. The company's revenue growth, margin expansion, and exceptional cash flow generation are supported by a rock-solid balance sheet. The stock is in a bullish trend with price above all key moving averages and positive momentum indicators. Valuation appears favorable with a P/E of 17.2 and a 2.9% dividend yield, especially considering the company's recent earnings growth. While profitability remains below peak levels, the overall outlook is positive.

Positive Factors

Very Low LeverageVery low leverage gives Eiken Industries financial flexibility to fund operations and selective growth without relying heavily on borrowing. A strong equity base also improves resilience when automotive demand fluctuates and limits the burden of interest costs on future earnings.

Negative Factors

Operating Margin PressureThe decline in EBIT and EBITDA margins signals pressure on operational efficiency despite revenue and gross-margin improvement. If this persists, incremental sales may contribute less to operating profit, limiting earnings conversion and weakening the durability of recent profitability gains.

Eiken Industries Co., Ltd (7265) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 3.03B
Dividend Yield: 3.74%
Average Volume (3M): 1,600
Price to Earnings (P/E): 14.5
Beta (1Y): 0.23
Revenue Growth: ―
EPS Growth: ―
Country: Japan
Employees: 251
Sector: Industrials
Sector Strength: 63
Industry: Industrial - Pollution & Treatment Controls

Eiken Industries Co., Ltd Business Overview & Revenue Model

Company Description

Based in Omaezaki, Japan, Eiken Industries Co.,Ltd. primarily operates as a manufacturer and supplier of filters for internal combustion engines, alongside specialized filters designed for industrial applications. Their comprehensive product line fea...

How the Company Makes Money

The company primarily makes money by manufacturing and selling automotive components to customers such as vehicle manufacturers and/or automotive parts suppliers. Revenue is generated through product sales, typically under supply contracts where Eike...

Eiken Industries Co., Ltd Financial Statement Overview

Summary

Revenue grew 11.2% with margin expansion (net margin up to 4.0% from 3.0%), strong balance sheet (debt-to-equity 7.8%, equity ratio 77.8%), and exceptional cash flow growth (59.8%). Profitability recovery ongoing but overall financial health is strong.

Income Statement

75Positive

Balance Sheet

85Very Positive

Cash Flow

90Very Positive

Financial statement breakdown
Breakdown	Oct 2025	Oct 2024	Oct 2023	Oct 2022	Oct 2021
Income Statement
Total Revenue	8.10B	7.28B	6.80B	6.95B	6.80B
Gross Profit	1.18B	999.21M	816.60M	1.02B	1.26B
EBITDA	648.92M	532.68M	377.07M	605.74M	830.14M
Net Income	326.53M	217.85M	135.38M	274.74M	424.60M
Balance Sheet
Total Assets	7.84B	7.48B	7.13B	7.10B	7.19B
Cash, Cash Equivalents and Short-Term Investments	1.88B	1.49B	1.43B	1.36B	1.43B
Total Debt	469.55M	474.30M	512.39M	518.76M	541.33M
Total Liabilities	1.79B	1.68B	1.44B	1.45B	1.70B
Stockholders Equity	6.06B	5.80B	5.69B	5.65B	5.49B
Cash Flow
Free Cash Flow	512.76M	321.19M	53.63M	150.08M	304.81M
Operating Cash Flow	762.39M	464.70M	253.89M	422.07M	520.18M
Investing Cash Flow	-322.92M	-293.52M	139.03M	-304.21M	-293.46M
Financing Cash Flow	-117.31M	-116.87M	-115.96M	-214.56M	-303.11M

Eiken Industries Co., Ltd Technical Analysis

Technical Analysis SentimentNegative

Last Price2918.00

Price Trends

50DMA3418.77Negative

100DMA3546.51Negative

200DMA3525.31Negative

Market Momentum

MACD-138.60Positive

RSI15.19Positive

STOCH8.19Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7265, the sentiment is Negative. The current price of 2918.00 is below the 20-day moving average (MA) of 3166.28, below the 50-day MA of 3418.77, and below the 200-day MA of 3525.31, indicating a bearish trend. The MACD of -138.60 indicates Positive momentum. The RSI at 15.19 is Positive, neither overbought nor oversold. The STOCH value of 8.19 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7265.

Eiken Industries Co., Ltd Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

JP:7265 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:7265	85Outperform	JPY 2.95B	14.49	―	3.74%	―	―
JP:6368	75Outperform	JPY 509.50B	17.96	―	9.76%	7.05%	12.23%
JP:6331	73Outperform	JPY 63.23B	7.65	18.12%	5.00%	25.38%	31.89%
JP:9551	71Outperform	JPY 161.54B	18.79	9.89%	2.16%	12.87%	-13.63%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
JP:6370	61Neutral	JPY 601.86B	24.94	7.24%	2.18%	0.99%	24.98%
JP:7004	46Neutral	JPY 172.24B	11.57	―	2.45%	7.67%	-30.19%

* Industrials Sector Average

Performance Comparison

JP:7265 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:7265	Eiken Industries Co., Ltd	2940.00	-349.19	-10.62%
JP:6370	Kurita Water Industries	5647.00	-74.84	-1.31%
JP:9551	METAWATER Co	3700.00	415.65	12.66%
JP:6331	Mitsubishi Kakoki Kaisha,Ltd.	2698.00	-638.06	-19.13%
JP:6368	Organo Corp.	2202.50	-513.07	-18.89%
JP:7004	Hitachi Zosen Corporation	1022.00	-87.54	-7.89%

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 06, 2026

Eiken Industries Co., Ltd AI Stock Analysis