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

JP:7265

Eiken Industries Co., Ltd

(TSE/TYO:7265)

Select Model
Rating:83Outperform
Price Target:JPY 3,425.00â–²(17.37% Upside)
Action:reiterated
Date:08/06/26

The strong overall score is primarily driven by the company's exceptional cash flow generation, a rock-solid, low-debt balance sheet, and a robust bullish technical trend. A fair valuation paired with a healthy dividend yield further bolsters the stock's appeal, though upside is slightly tempered by modest profitability margins and a low Return on Equity.

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)

-20%-10%0%10%20%30%JP:7265-12.69%EWJ+16.91%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 3.00B
Dividend Yield
3.77%
Average Volume (3M)
1,616
Price to Earnings (P/E)
14.4
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

The company boasts outstanding cash flow generation (59.8% FCF growth) and an exceptionally stable, low-debt balance sheet (0.08 D/E ratio). While revenue growth is strong at 11.2%, overall profit margins remain modest, suggesting room for operational efficiency gains.

Income Statement

72Positive

Balance Sheet

85Very Positive

Cash Flow

92Very Positive
Financial statement breakdown
BreakdownOct 2025Oct 2024Oct 2023Oct 2022Oct 2021
Income Statement
Total Revenue8.10B7.28B6.80B6.95B6.80B
Gross Profit1.18B999.21M816.60M1.02B1.26B
EBITDA648.92M532.68M377.07M605.74M830.14M
Net Income326.53M217.85M135.38M274.74M424.60M
Balance Sheet
Total Assets7.84B7.48B7.13B7.10B7.19B
Cash, Cash Equivalents and Short-Term Investments1.88B1.49B1.43B1.36B1.43B
Total Debt469.55M474.30M512.39M518.76M541.33M
Total Liabilities1.79B1.68B1.44B1.45B1.70B
Stockholders Equity6.06B5.80B5.69B5.65B5.49B
Cash Flow
Free Cash Flow512.76M321.19M53.63M150.08M304.81M
Operating Cash Flow762.39M464.70M253.89M422.07M520.18M
Investing Cash Flow-322.92M-293.52M139.03M-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

50DMA3402.47Negative
100DMA3540.19Negative
200DMA3523.02Negative

Market Momentum

MACD-138.86Positive
RSI14.34Positive
STOCH10.84Positive

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 3143.38, below the 50-day MA of 3402.47, and below the 200-day MA of 3523.02, indicating a bearish trend. The MACD of -138.86 indicates Positive momentum. The RSI at 14.34 is Positive, neither overbought nor oversold. The STOCH value of 10.84 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
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:7265JP:726583OutperformJPY 2.95B14.38―3.77%――
JP:6368JP:636875OutperformJPY 509.50B18.18―9.65%7.05%12.23%
JP:6331JP:633173OutperformJPY 63.23B7.7218.12%4.96%25.38%31.89%
JP:9551JP:955171OutperformJPY 161.54B18.569.89%2.19%12.87%-13.63%
Sector *63Neutral$10.79B15.437.44%2.01%2.89%-14.66%
JP:6370JP:637061NeutralJPY 601.86B20.527.24%2.65%0.99%24.98%
JP:7004JP:700446NeutralJPY 172.24B11.65―2.43%7.67%-30.19%

* Industrials Sector Average

Performance Comparison

0%20%40%60%JP:7265JP:6370JP:9551JP:6331JP:6368JP:7004Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:7265 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:7265Eiken Industries Co., Ltd2918.00-371.19-11.29%
JP:6370Kurita Water Industries 4647.00-1074.84-18.78%
JP:9551METAWATER Co3655.00370.6511.29%
JP:6331Mitsubishi Kakoki Kaisha,Ltd.2722.00-614.06-18.41%
JP:6368Organo Corp.2229.00-486.57-17.92%
JP:7004Hitachi Zosen Corporation1029.00-80.54-7.26%
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