TSE:7229Auto Components
Yutaka Giken (TSE:7229) Margin Decline Challenges High-Quality Growth Narrative
Yutaka Giken (TSE:7229) posted a net profit margin of 2.3% for the most recent period, down from 3.5% last year, as annual earnings growth slipped despite a robust five-year average of 42.4%. Shares are trading at ¥3,045, below an estimated fair value of ¥4,100.05. The company’s price-to-earnings ratio of 11.5x is higher than both the auto components industry and peer group averages. With current profitability under short-term pressure and shares trading at a discount to estimated fair value,...