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Tanaka Seimitsu Kogyo Co., Ltd. (JP:7218)
:7218
Japanese Market
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Tanaka Seimitsu Kogyo Co., Ltd. (7218) AI Stock Analysis

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JP:7218

Tanaka Seimitsu Kogyo Co., Ltd.

(7218)

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Neutral 69 (OpenAI - 5.2)
Rating:69Neutral
Price Target:
¥1,097.00
▼(-12.24% Downside)
Action:Reiterated
Date:06/26/26
The score is driven primarily by mid-range financial performance: a clear turnaround and stronger balance sheet are offset by recent margin compression and a sharp 2026 free-cash-flow reversal. Technicals add support due to a strong uptrend above key moving averages, though momentum signals are mixed. Valuation is a positive factor given the low P/E and moderate dividend yield.
Positive Factors
Improved leverage and balance-sheet strength
Leverage has meaningfully improved versus earlier years, lowering financial risk and increasing flexibility to fund capital needs or withstand demand shocks. A stronger capital structure supports long-term stability and reduces refinancing pressure in cyclical auto markets.
Negative Factors
Margin compression
Shrinking margins materially reduce the company's ability to absorb input cost inflation or fund reinvestment. Persistent margin pressure erodes operating leverage and profitability resilience, making the business more vulnerable to price competition and OEM procurement pressure.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved leverage and balance-sheet strength
Leverage has meaningfully improved versus earlier years, lowering financial risk and increasing flexibility to fund capital needs or withstand demand shocks. A stronger capital structure supports long-term stability and reduces refinancing pressure in cyclical auto markets.
Read all positive factors

Tanaka Seimitsu Kogyo Co., Ltd. (7218) vs. iShares MSCI Japan ETF (EWJ)

Tanaka Seimitsu Kogyo Co., Ltd. Business Overview & Revenue Model

Company Description
Established in Toyama, Japan, in 1948, Tanaka Seimitsu Kogyo Co., Ltd. is a global manufacturer and supplier of components for the automotive and motorcycle industries, alongside a range of general-purpose parts....
How the Company Makes Money
The company primarily makes money by manufacturing and selling precision automotive components to customers in the automotive supply chain (e.g., vehicle manufacturers and tiered parts suppliers). Revenue is generated from (1) sales of parts produ...

Tanaka Seimitsu Kogyo Co., Ltd. Financial Statement Overview

Summary
Financials show a solid post-2021 recovery with higher revenue and improved leverage, but recent profitability and cash-flow quality have weakened. Margins have compressed (net margin down to ~2.7% in 2026 from ~5.2% in 2024), returns on equity have cooled (~4.6% in 2026), and free cash flow turned sharply negative in 2026 (about -¥2.1B) despite positive earnings.
Income Statement
66
Positive
Balance Sheet
74
Positive
Cash Flow
58
Neutral
BreakdownMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue43.79B40.47B42.55B34.23B29.67B
Gross Profit7.38B7.44B7.68B5.73B4.36B
EBITDA5.09B5.25B6.35B4.89B4.15B
Net Income1.19B1.79B2.22B1.02B373.65M
Balance Sheet
Total Assets47.72B43.89B42.82B39.36B36.91B
Cash, Cash Equivalents and Short-Term Investments9.62B9.68B10.33B8.55B6.82B
Total Debt6.78B4.09B4.08B6.71B8.20B
Total Liabilities14.57B12.83B12.67B14.04B14.19B
Stockholders Equity25.96B24.05B22.72B18.58B16.50B
Cash Flow
Free Cash Flow-2.11B846.36M4.89B3.55B714.42M
Operating Cash Flow4.72B4.42B7.42B4.98B2.37B
Investing Cash Flow-7.42B-3.13B-2.82B-1.11B-1.70B
Financing Cash Flow1.74B-2.10B-3.66B-2.67B-1.39B

Tanaka Seimitsu Kogyo Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1250.00
Price Trends
50DMA
1002.50
Positive
100DMA
1057.02
Negative
200DMA
1094.20
Negative
Market Momentum
MACD
5.67
Negative
RSI
54.02
Neutral
STOCH
94.03
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7218, the sentiment is Positive. The current price of 1250 is above the 20-day moving average (MA) of 1021.25, above the 50-day MA of 1002.50, and above the 200-day MA of 1094.20, indicating a neutral trend. The MACD of 5.67 indicates Negative momentum. The RSI at 54.02 is Neutral, neither overbought nor oversold. The STOCH value of 94.03 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7218.

Tanaka Seimitsu Kogyo Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
¥169.00B9.114.47%1.64%19.87%
75
Outperform
¥216.56B15.847.50%5.39%-1.82%23.07%
74
Outperform
¥75.26B9.485.20%3.67%6.47%41.09%
73
Outperform
¥90.11B6.684.95%-1.72%8.59%
69
Neutral
¥10.00B8.332.91%8.19%-33.60%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
48
Neutral
¥220.93B174.521.93%<0.01%-83.75%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7218
Tanaka Seimitsu Kogyo Co., Ltd.
1,025.00
51.85
5.33%
JP:7246
Press Kogyo Co., Ltd.
814.00
273.06
50.48%
JP:7278
Exedy Corporation
5,930.00
1,884.36
46.58%
JP:5970
G-Tekt Corporation
2,097.00
374.59
21.75%
JP:7220
Musashi Seimitsu Industry Co., Ltd.
3,370.00
129.31
3.99%
JP:7296
F.C.C.Co., Ltd.
3,490.00
638.23
22.38%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 26, 2026