JTEKT (JTEKY) AI Stock Analysis

• Market Cap: $3.08B
• Dividend Yield: 2.37%
• Average Volume (3M): 0.00
• Price to Earnings (P/E): 48.0
• Beta (1Y): 0.57
• Revenue Growth: -2.22%
• EPS Growth: -71.92%
• Country: US
• Employees: 45,717
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 0.42
• Shares Outstanding: 106,202,705
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: -0.40
• Price to Book (P/B): 0.49
• Price to Sales (P/S): 0.19
• P/FCF Ratio: -44.94
• Enterprise Value/Market Cap: 1.18
• Enterprise Value/Revenue: <0.01
• Enterprise Value/Gross Profit: 0.01
• Enterprise Value/Ebitda: 0.03
• 1Y Price Target: $29.00
• Price Target Upside: 1.83% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 49 Neutral
• Price Target: $29.00 ▲(1.83% Upside)

JTEKT's overall stock score is primarily influenced by its financial performance and valuation. The company faces significant challenges with declining revenues and profitability, coupled with negative cash flow trends. The high P/E ratio suggests overvaluation, while technical analysis provides mixed signals. These factors collectively result in a below-average stock score.

JTEKT Business Overview & Revenue Model

Company Description

JTEKT Corporation manufactures and sells steering systems, driveline components, bearings, machine tools, electronic control devices, home accessory equipment, etc. It offers steering systems, such as electric power steering, hydraulic power steering, and unit components; driveline components, including driveshaft, propeller shaft, couplings, and Torsen limited slip differential products; wheels, such as hub units; engine and peripheral parts that include damper pulley; and transmission products, such as electric pump for idle-stop system and solenoid valves. The company also provides sensor systems comprising peripherals for social infrastructures; products for the research and development field, including semiconductor transducers, load cells, DC amplifiers, and pressure transducer for welding guns and indicators; medical equipment, such as pressure sensors for dialyzers; and heat-resistant lithium-ion capacitors. In addition, it offers ball and roller bearings; and oil seals. Further, the company provides machine tools, such as grinders, machining and gear skiving centers, cutting machines, and others. It offers its products under the JTEKT, KOYO, and TOYODA brands. The company operates in Japan, Africa, Europe, North America, the rest of Asia, Oceania, South America, and internationally. JTEKT Corporation was founded in 1921 and is headquartered in Aichi, Japan.

How the Company Makes Money

JTEKT generates revenue through several key streams primarily focused on its core sectors: automotive components and industrial machinery. The automotive segment, which includes products such as steering systems and driveline components, constitutes a significant portion of the company's revenue, driven by partnerships with major automobile manufacturers worldwide. Additionally, JTEKT's industrial machinery division, offering machine tools and precision bearings, contributes to its earnings through sales to various industries, including manufacturing and aerospace. The company also benefits from long-term contracts with clients, ensuring a steady revenue flow. Strategic collaborations and innovations in technology enhance its market presence and profitability, bolstering overall financial performance.

JTEKT Financial Statement Overview

Summary

JTEKT's financial performance is under pressure with declining revenues and profitability margins. The income statement shows a significant drop in revenue and net profit margins, while cash flow analysis reveals negative trends, indicating potential liquidity issues. The balance sheet is moderately stable but not enough to offset other weaknesses.

Income Statement

JTEKT's income statement shows a declining revenue trend with a significant drop in the TTM period. Gross profit margins are stable but low, and net profit margins have decreased, indicating pressure on profitability. The EBIT and EBITDA margins have also declined, reflecting operational challenges.

Balance Sheet

The balance sheet reflects moderate leverage with a debt-to-equity ratio that has improved over time. However, the return on equity has decreased, indicating reduced efficiency in generating returns from equity. The equity ratio remains stable, suggesting a balanced capital structure.

Cash Flow

Cash flow analysis reveals a concerning trend with negative free cash flow growth and a negative free cash flow to net income ratio in the TTM period. Operating cash flow to net income ratio is low, indicating potential liquidity issues.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.88T	1.88T	1.89T	1.68T	1.43T	1.25T
Gross Profit	286.65B	281.29B	283.93B	255.15B	209.88B	171.71B
EBITDA	111.56B	48.02B	154.62B	121.72B	107.86B	73.08B
Net Income	9.41B	13.71B	40.26B	34.28B	20.68B	800.00M
Balance Sheet
Total Assets	1.54T	1.57T	1.63T	1.44T	1.39T	1.29T
Cash, Cash Equivalents and Short-Term Investments	138.26B	120.05B	169.93B	127.40B	129.35B	122.04B
Total Debt	255.11B	240.47B	241.95B	255.17B	261.76B	286.22B
Total Liabilities	780.95B	787.92B	805.74B	740.62B	726.05B	706.21B
Stockholders Equity	729.07B	745.04B	788.98B	667.23B	624.01B	550.91B
Cash Flow
Free Cash Flow	-3.23B	-8.06B	73.01B	22.50B	24.36B	36.51B
Operating Cash Flow	90.06B	80.24B	154.46B	78.28B	67.04B	91.76B
Investing Cash Flow	-88.65B	-75.94B	-71.35B	-52.11B	-25.27B	-52.52B
Financing Cash Flow	-25.65B	-52.08B	-47.22B	-28.71B	-43.53B	-57.96B

JTEKT Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 28.48
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JTEKY, the sentiment is Positive. The current price of 28.48 is below the 20-day moving average (MA) of 29.45, below the 50-day MA of 29.62, and above the 200-day MA of 24.84, indicating a neutral trend. The MACD of -0.37 indicates Positive momentum. The RSI at 47.97 is Neutral, neither overbought nor oversold. The STOCH value of 58.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JTEKY.

JTEKT Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VC	78 Outperform	$3.10B	10.85	22.96%	0.24%	-3.26%	-45.84%
LEA	71 Outperform	$5.29B	11.62	9.51%	3.10%	-3.12%	-8.23%
ALSN	68 Neutral	$6.76B	9.18	47.08%	1.30%	2.70%	15.17%
BWA	67 Neutral	$9.22B	45.47	3.66%	1.16%	-2.12%	-69.42%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
DAN	61 Neutral	$2.48B	―	-5.00%	2.12%	-14.46%	-2170.83%
JTEKY	49 Neutral	$3.08B	48.03	1.24%	2.37%	-2.22%	-71.92%