EXEDY Corporation, the Japanese auto parts manufacturer, released its earnings on April 22, 2026. The company trades on the Tokyo Stock Exchange under ticker 7278.T and operates in the competitive auto parts sector. With a market cap of $210.15 billion and 114,440 employees worldwide, EXEDY produces transmission components, clutches, and related parts for vehicles globally. The company’s latest earnings report provides insight into operational performance and market positioning. Meyka AI rates 7278.T with a grade of B+, reflecting solid fundamentals and growth potential in the automotive supply chain.
EXEDY Earnings Results and Stock Performance
EXEDY released its earnings report on April 22, 2026, with the stock showing modest positive momentum. The company’s share price stood at ¥5,720, up 0.70% or ¥40 from the previous close of ¥5,680.
Stock Price Movement
The stock traded within a tight range during the session, with a day low of ¥5,660 and day high of ¥5,750. Year-to-date performance shows a gain of 0.88%, while the one-year return reached 38.22%. Over three years, the stock has appreciated 202.95%, demonstrating strong long-term value creation for shareholders.
Trading Activity and Valuation
Volume reached 146,800 shares, slightly above the average of 141,196 shares. The price-to-earnings ratio stands at 17.22, indicating moderate valuation relative to earnings power. With 36.5 million shares outstanding, the company maintains a substantial market presence in Japan’s automotive supply sector.
Financial Metrics and Profitability Analysis
EXEDY demonstrates solid financial health with strong profitability metrics and efficient capital management. The company’s earnings per share reached ¥333.98, reflecting consistent profit generation across operations.
Earnings and Cash Flow Strength
Net income per share on a trailing twelve-month basis totaled ¥373.66, while operating cash flow per share reached ¥1,127.20. Free cash flow per share of ¥916.36 shows the company generates substantial cash available for dividends and reinvestment. The dividend per share stands at ¥300, representing a 5.26% yield and demonstrating management’s confidence in cash generation.
Profitability Margins
Gross profit margin of 20.25% reflects healthy pricing power in transmission components. Operating profit margin of 7.60% shows efficient cost management, while net profit margin of 4.51% indicates solid bottom-line performance. Return on equity of 7.50% and return on assets of 4.35% demonstrate reasonable returns on shareholder capital and asset deployment.
Balance Sheet Strength and Debt Management
EXEDY maintains a conservative balance sheet with manageable debt levels and strong liquidity. The company’s financial position supports ongoing operations and shareholder returns.
Liquidity and Working Capital
Current ratio of 2.62 indicates strong short-term liquidity, well above the 1.0 threshold. Cash per share of ¥1,923.83 provides substantial financial flexibility. Working capital totaled ¥108.27 billion, supporting operational needs and strategic investments. The company maintains net cash position with negative net debt to EBITDA of -0.43, showing net cash holdings.
Debt and Leverage Metrics
Debt-to-equity ratio of 0.29 reflects conservative leverage, while debt-to-assets ratio of 0.17 shows low financial risk. Interest coverage ratio of 14.42 demonstrates strong ability to service debt obligations. Book value per share of ¥5,575.75 provides solid asset backing for shareholders.
Growth Trajectory and Forward Outlook
EXEDY shows mixed growth signals with strong earnings expansion offset by modest revenue growth. The company’s long-term trajectory reflects automotive industry dynamics and market positioning.
Recent Growth Performance
Earnings per share grew 2.43% year-over-year, while net income expanded 2.27%. Operating income jumped 39.52%, showing improved operational efficiency. However, revenue growth remained modest at 0.40%, reflecting challenging market conditions in automotive production. Gross profit grew 10.36%, indicating better product mix and pricing.
Long-Term Growth Trends
Five-year revenue growth per share reached 33.98%, demonstrating solid expansion over the medium term. Net income per share grew 53.36% over five years, outpacing revenue growth and reflecting margin improvement. Dividend per share surged 84.60% over five years, showing management’s commitment to shareholder returns. Price forecasts suggest potential appreciation to ¥5,801 annually and ¥9,415 over five years.
Final Thoughts
EXEDY Corporation’s April 2026 earnings show solid profitability despite modest revenue growth of 0.40%. Operating income surged 39.52%, reflecting strong operational efficiency. The company maintains financial stability with a debt-to-equity ratio of 0.29 and current ratio of 2.62. Trading at a PE ratio of 17.22 with a B+ grade, EXEDY offers reasonable value. A 5.26% dividend yield and strong free cash flow support shareholder returns. For investors seeking stable automotive supply chain exposure, EXEDY presents a balanced opportunity in Japan’s industrial sector.
FAQs
What was EXEDY’s earnings per share in the latest report?
EXEDY reported earnings per share of ¥333.98 on a current basis, with trailing twelve-month net income per share of ¥373.66. This represents 2.43% year-over-year EPS growth, showing consistent profit generation despite modest revenue expansion.
How did EXEDY’s stock price react to earnings?
The stock rose 0.70% or ¥40 to ¥5,720 following the earnings release. Year-to-date performance shows 0.88% gains, while one-year returns reached 38.22%, reflecting positive investor sentiment toward the company’s long-term prospects.
What is EXEDY’s dividend yield and payout ratio?
EXEDY offers a 5.26% dividend yield with a dividend per share of ¥300. The payout ratio of 80.51% shows management distributes most earnings to shareholders while retaining capital for operations and growth investments.
How strong is EXEDY’s balance sheet?
EXEDY maintains strong financial health with current ratio of 2.62, debt-to-equity of 0.29, and net cash position. Interest coverage of 14.42 demonstrates solid debt servicing ability, while ¥108.27 billion working capital supports operations.
What is Meyka AI’s rating for EXEDY stock?
Meyka AI rates 7278.T with a B+ grade, reflecting solid fundamentals and growth potential. The rating considers financial metrics, sector performance, and valuation, suggesting the stock offers reasonable value for automotive sector investors.
Disclaimer:
Stock markets involve risks. This content is for informational purposes only. Earnings estimates are analyst projections and not guarantees of actual results. Past performance does not guarantee future results. Meyka AI PTY LTD provides market analysis and data insights, not financial advice. Always conduct your own research and consider consulting a licensed financial advisor.
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