Check Before You Invest : Mazda Ltd

Q: Which industry/sub-sector does Mazda Ltd belong to?

Mazda Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Engineering - Industrial Equipments segment.

Q: Is Mazda Ltd a good quality company?

Mazda Ltd is a good quality company, based on a consistently good multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is Mazda Ltd undervalued or overvalued?

Mazda Ltd appears Somewhat overvalued, as its key valuation ratios are higher than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 16.03, Historic Median: 15.60. Price to Book, Current: 1.76, Historic Median: 1.87. Price to Sales, Current: 2.13, Historic Median: 1.97. EV to EBITDA, Current: 10.45, Historic Median: 9.97

Q: Is Mazda Ltd a good buy now?

Mazda Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of Mazda Ltd?

Mazda Ltd revenue growth is -14.3% for FY-2025, which is below its 5-year CAGR of 1.47%, indicating slower growth.

Q: Gross Profit margin of Mazda Ltd?

Mazda Ltd Gross profit margin which is the profit after deduction of direct costs, is 19% for FY-2025, which is in line with its 5-year median of 19%, indicating stable margins.

Q: Operating Profit Margin of Mazda Ltd?

Mazda Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 15.5% for FY-2025, which is below its 5-year median of 16.71% indicating decreasing margins.

Q: Net Profit Margin of Mazda Ltd?

Mazda Ltd Net Profit Margin is 12.86% for FY-2025, is in line with its 5-year median of 12.88%, indicating stable margins. Profitability Metrics. Gross Profit Margin (%), Current: 19, Historic Median: 19. Operating Profit Margin (%), Current: 15.5, Historic Median: 16.71. Net Profit Margin (%), Current: 12.86, Historic Median: 12.88

Q: Return on Asset of Mazda Ltd?

Mazda Ltd Return on Asset is 9.84%, which is below its 5-year historical median of 11.65%, indicating deteriorated asset utilization efficiency.

Q: Return on capital employed (ROCE) of Mazda Ltd?

Mazda Ltd Return on capital employed is 15.17% for FY-2025, which is below its 5-year historical median of 18.15%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Check Before You Invest : Mazda Ltd

Snapshot

Q.1 Which industry/sub-sector does Mazda Ltd belong to?

Mazda Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Engineering - Industrial Equipments segment.

Q.2 Is Mazda Ltd a good quality company?

Mazda Ltd is a good quality company, based on a consistently good multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Mazda Ltd undervalued or overvalued?

Mazda Ltd appears Somewhat overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	16.03	15.60
Price to Book	1.76	1.87
Price to Sales	2.13	1.97
EV to EBITDA	10.45	9.97

Q.4 Is Mazda Ltd a good buy now?

Mazda Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Mazda Ltd?

Mazda Ltd revenue growth is -14.3% for FY-2025, which is below its 5-year CAGR of 1.47%, indicating slower growth.

Q.2 Gross Profit margin of Mazda Ltd?

Mazda Ltd Gross profit margin which is the profit after deduction of direct costs, is 19% for FY-2025, which is in line with its 5-year median of 19%, indicating stable margins.

Q.3 Operating Profit Margin of Mazda Ltd?

Mazda Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 15.5% for FY-2025, which is below its 5-year median of 16.71% indicating decreasing margins.

Q.4 Net Profit Margin of Mazda Ltd?

Mazda Ltd Net Profit Margin is 12.86% for FY-2025, is in line with its 5-year median of 12.88%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	19	19
Operating Profit Margin (%)	15.5	16.71
Net Profit Margin (%)	12.86	12.88

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Mazda Ltd?

Mazda Ltd Return on Asset is 9.84%, which is below its 5-year historical median of 11.65%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Mazda Ltd?

Mazda Ltd Return on capital employed is 15.17% for FY-2025, which is below its 5-year historical median of 18.15%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of Mazda Ltd?

Mazda Ltd Return on equity is 11.24% for FY-2025, which is below its 5-year historical median of 13.64%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Mazda Ltd?

Mazda Ltd Cash conversion cycle is 110 days, in line with its 5-year historical median of 112 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	0.77	0.91
ROE (%)	11.24	13.64
ROCE (%)	15.17	18.15
Cash Conversion Cycle	110 days	112 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Mazda Ltd?

Mazda Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.18, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Mazda Ltd?

Mazda Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Mazda Ltd?

Q.1 Promoter shareholding and pledge status of Mazda Ltd?

Promoters hold 48.58% of the Mazda Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Mazda Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Mazda Ltd vs industry peers?

Mazda Ltd revenue CAGR is 1.47%, compared to the industry median CAGR of 3.04%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	-14.3	3
Gross Profit Growth (%)	-19.6	23
Operating Profit Growth (%)	-25	21.7
Net Profit Growth (%)	-21.9	26.9

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.77	0.89
ROE (%)	11.24	11.8
ROCE (%)	15.17	14.41
Cash Conversion Cycle (days)	109.55	99

Valuation & price assessment

Q.1 Stock return of Mazda Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 11.8% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	11.8%	17.3%	13.1%	0.2%

Q.2 Valuation ratios of Mazda Ltd vs historical?

The current P/E ratio of 16.03 is in line with than its historical median of 15.60, indicating that the stock is trading near its historical average valuation.

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	16.03	15.60	29.36
Price to Book	1.76	1.87	2.91
Price to Sales	2.13	1.97	2.93
EV to EBITDA	10.45	9.97	15.77

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Check Before You Invest : Mazda Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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