Yorozu (TSE:7294) Stock Looks Cheap As Profit Returns But Margins Stay Tight

Yorozu stock closed at ¥891 on the day of its Q1 2027 report, priced like a low expectation auto parts play on a modest 6.5x trailing P/E. The earnings headline is cleaner than that reputation suggests. Revenue for the quarter came in at ¥44,548m and net income reached ¥572m, keeping the company in the black after a period of losses. The main point for investors is that trailing earnings remain positive even as the share price still trades below both the broader Japan market and auto components peer P/E multiples.

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Q1 2027 Earnings Summary

• Revenue Q1 2027 vs. Q1 2026: ¥44,548m vs. ¥41,428m (up about 7.5%)
• Net Income Q1 2027 vs. Q1 2026: ¥572m profit vs. ¥160m loss (moved back into profit)
• Basic EPS Q1 2027 vs. Q1 2026: ¥27.77 per share vs. a loss of ¥6.61 per share (returned to positive earnings per share)
• Trailing 12-Month Basic EPS Q1 2027 vs. Q1 2026: ¥127.82 per share vs. a loss of ¥516.07 per share (shifted from a very large loss to positive earnings over the year)

Tired of wading through dense earnings tables and raw figures for Yorozu? Get the full picture in a clean visual format that brings its valuation into focus with our company report for Yorozu..

Yorozu earnings support a cautious cyclical upswing

For a stock often viewed as a plain global auto cyclical, Yorozu now has numbers that lean in your favour. Revenue sits at ¥44,548m versus ¥41,428m a year ago, which lines up with a recovering production backdrop. The shift from a ¥160m loss to a ¥572m profit, and from very large trailing losses to ¥127.82 in basic EPS, supports the idea that the core chassis and suspension business can still earn its keep across regions.

EV transition and cyclicality risks not fully cleared

The latest quarter does not remove the cautious side of the story. Profitability is back, yet the absolute net income of ¥572m on ¥44,548m of revenue leaves limited room for comfort if auto volumes soften or input costs rise again. The small 7 day share price decline and only modest 90 day gain show the market is still treating Yorozu as a cyclical supplier facing open questions around EV oriented platforms and long term margin resilience.

After such tight margins, are Yorozu's recent profits a fragile rebound or masking deeper issues? Review the risk analysis for Yorozu which shows 1 important warning sign

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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