MURAKAMI CORPORATION7292

Why the market may be pricing it low

• Over 90% of sales depend on the automotive industry, exposing results to production swings and price-cut demands from carmakers.

  自動車業界向け製品が売上高の９割以上を占めており、事業活動及び業績は自動車生産量の変動等、自動車業界の動向に左右される一面がありますRisk factors

• The core domestic mirror business failed to pass on cost inflation, cutting segment operating profit 38% and unsettling investors.

  営業利益は、将来への投資増加に加え、インフレーションや円安による原価高騰について価格転嫁が限定的にとどまったことから、1,726百万円となり、前連結会計年度に比べて1,069百万円（38.2％）の減少となりましたMD&A

What could close the gap

• Activist fund NAVF (Dalton) has held a stake since 2024 and filed four reports, and stronger engagement could shift market perception.

  ダルトン／NAVF：2024-06-18〜2026-04-08、報告書4件Shareholders

• The mid-term strategy pledges to "transform the profit structure" and pursue selective strategic investment, a concrete plan could reshape views on efficiency.

  収益構造の変革に取り組んでまいります。あわせて、将来の成長及び競争力強化に向け、選択と集中を踏まえた戦略的投資を行いManagement policy

How a buyer could still lose (value trap)

• Despite growing operating profit, ROE is only 6.6% against cash of ¥46.5bn and equity of ¥98.1bn, showing cash is not translating into returns.

  Based on the figures below

• Domestic segment profit fell 38% on delayed cost pass-through, and reliance on overseas gains alone may not resolve the discount.

  営業利益は、将来への投資増加に加え、インフレーションや円安による原価高騰について価格転嫁が限定的にとどまったことから、1,726百万円となり、前連結会計年度に比べて1,069百万円（38.2％）の減少となりましたMD&A

Financial quality (Piotroski F-score)

• ✓Profitable (ROA > 0)
• ✓Positive operating cash flow
• ✗ROA up on last year
• ✓Cash flow exceeds net profit
• ✓Leverage down on last year
• ✓Current ratio up on last year
• ✓No new shares issued
• ✓Gross margin up on last year
• ✓Asset turnover up on last year

Scored out of the checks with data, scaled to 9. Compares the latest year with the year before.

Figures

Sales

¥115.7bn

Operating profit

¥9.2bn

Net profit

¥6.1bn

Operating cash flow

¥9.9bn

Cash

¥46.5bn

Debt

¥0.0bn

Equity

¥98.1bn

Annual report for the year to 2026-03-31