Seiren Co (3569) AI Stock Analysis

• Market Cap: ¥167.93B
• Dividend Yield: 2.43%
• Average Volume (3M): 115.35K
• Price to Earnings (P/E): 12.1
• Beta (1Y): 0.63
• Revenue Growth: 6.08%
• EPS Growth: 8.55%
• Country: JP
• Employees: 6,108
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 66.07
• Shares Outstanding: 64,633,650
• 10 Day Avg. Volume: 111,670
• 30 Day Avg. Volume: 115,353
• PEG Ratio: 1.45
• Price to Book (P/B): 0.98
• Price to Sales (P/S): 0.88
• P/FCF Ratio: 9.52
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 272.1
• Revenue Forecast (FY): ¥167.00B

• Rating: 75 Outperform
• Price Target: ¥3,595.00 ▲(14.13% Upside)

Seiren Co's strong financial performance and positive technical indicators are the primary drivers of its stock score. The company's robust revenue growth and profitability, along with a solid balance sheet, provide a strong foundation. The stock's positive momentum further supports its attractiveness. While valuation metrics are reasonable, they are less impactful compared to the financial and technical strengths.

Positive Factors

Revenue Growth

The robust revenue growth indicates strong market demand and expansion, which enhances the company's market position and long-term growth prospects.

Balance Sheet Health

A strong balance sheet with low leverage provides financial stability and flexibility, allowing the company to invest in growth opportunities without significant risk.

Profitability

Solid profitability with a healthy net profit margin supports sustainable cash generation and the ability to reinvest in the business for future growth.

Negative Factors

Free Cash Flow Decline

A decline in free cash flow may limit the company's ability to fund new projects or return capital to shareholders, impacting long-term financial flexibility.

Cash Flow Conversion

A lower cash flow conversion ratio indicates that not all earnings are being effectively converted into cash, which could constrain liquidity and operational flexibility.

Investment Needs

Increased capital expenditures suggest a need for ongoing investment, which may strain financial resources if not matched by revenue growth or cost efficiencies.

Seiren Co Business Overview & Revenue Model

Company Description

Seiren Co (3569) is a Japanese company specializing in the development and manufacture of high-performance materials, particularly in the fields of automotive, electronics, and textiles. The company is known for its innovative solutions in soundproofing materials, advanced composites, and functional textiles, which cater to various industries including automotive manufacturing, consumer electronics, and industrial applications.

How the Company Makes Money

Seiren Co generates revenue primarily through the sale of its specialized materials and products, which are tailored to meet the needs of its diverse client base. Key revenue streams include the production of automotive interior materials, such as sound-absorbing and insulating products, which are in high demand due to increasing automotive noise regulations and consumer preference for quieter vehicles. Additionally, Seiren Co earns money from its electronics division by providing advanced materials used in electronic devices, where functionality and performance are critical. The company also benefits from long-term partnerships with leading automotive manufacturers and electronics companies, which provide a stable customer base and recurring revenue. Furthermore, Seiren Co invests in research and development to innovate and expand its product offerings, thereby enhancing its competitive edge and driving future growth.

Seiren Co Financial Statement Overview

Summary

Seiren Co demonstrates strong financial performance with impressive revenue growth and profitability. The balance sheet is robust with low leverage, and cash flow generation is strong, though there is room for improvement in cash flow efficiency.

Income Statement

Seiren Co demonstrates strong revenue growth with a TTM increase of 21.5% and consistent profitability, evidenced by a stable gross profit margin of approximately 27.6% and a net profit margin of 8.7%. The EBIT and EBITDA margins are healthy, indicating efficient operations. However, the slight decline in EBIT margin from the previous annual report suggests potential cost pressures.

Balance Sheet

The company's balance sheet is robust, with a low debt-to-equity ratio of 0.07, indicating conservative leverage. The return on equity is solid at 10.1%, reflecting efficient use of equity capital. However, the equity ratio of 73.7% suggests a strong reliance on equity financing, which could limit financial flexibility.

Cash Flow

Seiren Co's cash flow is strong, with a significant free cash flow growth rate of 381.8% TTM, indicating improved cash generation. The operating cash flow to net income ratio of 0.51 and a free cash flow to net income ratio of 0.72 suggest effective cash conversion. However, the operating cash flow coverage ratio remains moderate, indicating room for improvement in cash flow management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	162.60B	159.65B	141.91B	132.36B	109.77B	98.69B
Gross Profit	45.76B	44.03B	37.21B	36.74B	32.12B	27.90B
EBITDA	26.53B	25.59B	22.02B	20.31B	16.60B	12.97B
Net Income	15.15B	13.89B	12.16B	11.02B	8.55B	6.25B
Balance Sheet
Total Assets	198.73B	199.22B	187.46B	167.79B	155.49B	144.70B
Cash, Cash Equivalents and Short-Term Investments	44.83B	51.92B	46.93B	39.87B	39.59B	42.63B
Total Debt	8.88B	10.42B	18.90B	25.86B	29.75B	34.35B
Total Liabilities	51.83B	55.34B	62.77B	62.01B	63.65B	63.80B
Stockholders Equity	146.46B	143.37B	124.14B	105.07B	91.23B	80.24B
Cash Flow
Free Cash Flow	9.85B	14.76B	9.19B	4.59B	1.62B	9.73B
Operating Cash Flow	17.49B	20.54B	13.49B	12.94B	9.71B	12.96B
Investing Cash Flow	-7.61B	-11.81B	-5.28B	-9.61B	-8.65B	-1.89B
Financing Cash Flow	-9.84B	-7.80B	-7.05B	-7.01B	-6.62B	12.32B

Seiren Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3150.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3569, the sentiment is Positive. The current price of 3150 is below the 20-day moving average (MA) of 3179.00, above the 50-day MA of 3129.44, and above the 200-day MA of 2688.47, indicating a neutral trend. The MACD of 16.07 indicates Positive momentum. The RSI at 47.18 is Neutral, neither overbought nor oversold. The STOCH value of 34.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3569.

Seiren Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3104	78 Outperform	¥90.08B	17.98	―	1.79%	10.76%	54.82%
3569	75 Outperform	¥167.93B	12.14	10.24%	2.43%	6.08%	8.55%
3109	72 Outperform	¥12.91B	13.88	―	4.80%	4.49%	26.84%
3201	72 Outperform	¥108.42B	15.57	―	2.66%	7.56%	-17.12%
3110	70 Outperform	¥390.66B	27.31	11.10%	0.99%	9.49%	55.64%
3002	66 Neutral	¥139.52B	52.90	2.34%	3.38%	>-0.01%	-49.83%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Seiren Co Corporate Events

Seiren Co. Reports Positive Financial Growth in First Half of 2025

Seiren Co., Ltd. reported a positive financial performance for the six months ending September 30, 2025, with net sales increasing by 3.8% compared to the previous year. The company also saw significant growth in operating profit and ordinary profit, indicating strong operational efficiency and market positioning.

Seiren Co. Announces New Company Name Following Strategic Acquisition

Seiren Co., Ltd. has announced the trade name of a new company, NB SEIREN CO., LTD., which will be formed following the acquisition of a business from Unitika Ltd. and Nippon Ester Co., Ltd. This strategic move, set to be completed by January 1, 2026, signifies a rebirth for the company, enhancing its market position and operational capabilities.

Seiren Co. Alters Business Succession Strategy with Unitika and Nippon Ester

Seiren Co., Ltd. has announced a change in its business succession scheme involving Unitika Ltd. and Nippon Ester Co., Ltd. Originally planned as an incorporation-type company split, the method has been altered to an absorption-type company split to facilitate a smoother transaction process. This strategic move is expected to streamline operations and enhance Seiren’s market position by acquiring the textile business of Unitika and Nippon Ester, making the new entity a subsidiary of Seiren.