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Yorozu Corporation (7294) AI Stock Analysis

JP:7294

Yorozu Corporation

(TSE/TYO:7294)

Select Model
Rating:64.4Neutral
Price Target:JPY 1,006.00â–²(19.48% Upside)
Action:reiterated
Date:08/17/26

The overall score of 64.4 reflects a mixed outlook. Financial performance is the primary concern, with thin margins and moderate leverage offsetting recent improvements. Technical indicators are positive but show overbought signals, indicating potential consolidation. Valuation is attractive with low P/E and solid dividend yield. Investors should weigh improving fundamentals against weak profitability and debt coverage.

Positive Factors
OEM program-based businessYorozu’s core business supplying stamped metal components to OEMs is structurally durable: program-based contracts and long vehicle model lifecycles create recurring production windows, high qualification barriers, and predictable revenue when programs are sustained, supporting steady operations.
Negative Factors
Thin net marginsWith net margins around 1%, Yorozu has limited earnings buffer versus input-cost inflation, pricing pressure, or volume declines. Such compressed margins reduce retained earnings capacity and magnify the impact of cyclical downturns, making consistent profit generation fragile over time.

Yorozu Corporation (7294) vs. iShares MSCI Japan ETF (EWJ)

-10%-5%0%5%10%15%20%25%JP:7294-5.43%EWJ+15.87%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 17.34B
Dividend Yield
4.04%
Average Volume (3M)
75.31K
Price to Earnings (P/E)
6.7
Beta (1Y)
0.83
Revenue Growth
2.39%
EPS Growth
―
Country
Japan
Employees
5,405
Sector
Consumer Cyclical
Sector Strength
61
Industry
Auto - Parts

Yorozu Corporation Business Overview & Revenue Model

Company Description

Yorozu Corporation is a global entity specializing in the engineering, production, and distribution of components for the automotive and agricultural machinery industries, along with manufacturing equipment. Their extensive product line features cruc...

How the Company Makes Money

Yorozu makes money primarily by manufacturing automotive components and selling them to automakers (OEMs) and automotive supply-chain customers under supply contracts tied to vehicle production programs. Revenue is generated mainly from (1) sales of...

Yorozu Corporation Financial Statement Overview

Summary

Revenue grew modestly (0.6%) to ¥176.3B, with gross margin improving to 11.4% and net margin turning positive at 1.2%. However, margins remain thin, and the company has a history of volatility. Balance sheet shows moderate leverage (debt/equity 79%) and low ROE (3.8%). Operating cash flow improved but covers only 19% of debt. Overall financial health is improving but still vulnerable.

Income Statement

50Neutral

Balance Sheet

55Neutral

Cash Flow

48Neutral
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue179.45B176.33B178.41B181.47B160.56B127.32B
Gross Profit21.21B20.09B16.79B19.04B17.18B14.30B
EBITDA10.72B10.09B-2.76B3.40B13.43B11.91B
Net Income2.81B2.08B-13.45B-3.93B1.42B876.00M
Balance Sheet
Total Assets135.66B138.26B136.60B142.26B141.51B133.99B
Cash, Cash Equivalents and Short-Term Investments26.86B29.77B27.93B22.29B23.62B28.87B
Total Debt39.31B43.35B42.76B33.39B32.16B34.26B
Total Liabilities70.78B74.20B75.39B66.76B64.07B63.61B
Stockholders Equity55.22B54.65B52.53B66.67B64.23B57.66B
Cash Flow
Free Cash Flow02.83B-4.33B-915.00M-3.13B12.24B
Operating Cash Flow08.03B4.74B12.53B2.92B14.91B
Investing Cash Flow0-1.85B-11.81B-11.85B-5.16B-4.54B
Financing Cash Flow0-3.14B6.76B-1.74B-4.82B-13.82B

Yorozu Corporation Technical Analysis

Technical Analysis SentimentNegative
Last Price842.00

Price Trends

50DMA871.63Negative
100DMA864.15Negative
200DMA898.07Negative

Market Momentum

MACD-7.74Positive
RSI45.28Neutral
STOCH18.46Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7294, the sentiment is Negative. The current price of 842.00 is below the 20-day moving average (MA) of 845.50, below the 50-day MA of 871.63, and below the 200-day MA of 898.07, indicating a bearish trend. The MACD of -7.74 indicates Positive momentum. The RSI at 45.28 is Neutral, neither overbought nor oversold. The STOCH value of 18.46 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7294.

Yorozu Corporation Peers Comparison

Overall Rating

UnderperformOutperform
Sector (61)

Financial Indicators

JP:7294 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:7244JP:724476OutperformJPY 49.31B6.699.38%3.12%2.02%29.47%
JP:7280JP:728075OutperformJPY 56.07B4.95―2.02%2.52%-4.94%
JP:7292JP:729274OutperformJPY 79.95B13.98―3.63%7.60%-9.22%
JP:7241JP:724165NeutralJPY 82.75B5.82―4.87%1.85%29.15%
JP:7294JP:729464NeutralJPY 17.34B6.73―4.04%2.39%―
JP:7313JP:731364NeutralJPY 205.03B24.86―5.34%0.39%24.56%
Sector *61Neutral$18.38B12.79-2.54%3.03%1.52%-15.83%

* Consumer Cyclical Sector Average

Performance Comparison

0%20%40%60%80%JP:7294JP:7244JP:7241JP:7280JP:7292JP:7313Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:7294 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:7294Yorozu Corporation842.00-41.59-4.71%
JP:7244Ichikoh Industries,Ltd.512.0056.5312.41%
JP:7241Futaba Industrial Co., Ltd.924.0019.002.10%
JP:7280Mitsuba Corporation1237.00315.0334.17%
JP:7292Murakami Corporation7020.00497.697.63%
JP:7313TS Tech Co., Ltd.1722.00-17.72-1.02%

Yorozu Corporation Corporate Events

Yorozu Returns to Profit in Q1 but Maintains Cautious Full-Year Outlook

Aug 7, 2026

Yorozu Corporation reported improved results for the three months ended June 30, 2026, with net sales rising 7.5% year on year to ¥44.5 billion and operating income more than doubling to ¥755 million, leading to a return to profit attributa...

Yorozu to Grant Restricted Treasury Shares to Executives and Employees

Jul 9, 2026

Yorozu Corporation will dispose of 221,400 treasury shares as restricted stock on August 4, 2026, at 857 yen per share, for a total value of about 189.7 million yen, allocating them to four directors, ten executive officers, 21 vice presidents and 77...

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