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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 66 (OpenAI - 5.2)
Rating:66Neutral
Price Target:
¥1,003.00
▼(-19.76% Downside)
Action:Reiterated
Date:05/16/26
The score is driven primarily by solid-but-mixed financials (stronger balance sheet and revenue recovery offset by margin pressure and negative 2026 free cash flow) and attractive valuation (low P/E and a ~3.1% yield). Technical indicators are the main drag, with the stock trading below key moving averages and a negative MACD.
Positive Factors
Revenue recovery
A multi-year revenue recovery culminating in a 9.2% YoY rebound in 2026 demonstrates durable demand for precision automotive parts. Sustained top-line growth improves scale economics, supports long-term supplier relationships and capacity utilization, and provides a steadier base to fund reinvestment and product-quality programs over the next several quarters.
Negative Factors
Margin compression
A decline in net margin from roughly 5.2% to 2.7% materially reduces internal returns and the company's ability to fund R&D, precision tooling and quality programs from operating profits. Persistently compressed margins indicate limited pricing power versus rising input or energy costs and erode long-term ROE and competitiveness in automotive supply contracts.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue recovery
A multi-year revenue recovery culminating in a 9.2% YoY rebound in 2026 demonstrates durable demand for precision automotive parts. Sustained top-line growth improves scale economics, supports long-term supplier relationships and capacity utilization, and provides a steadier base to fund reinvestment and product-quality programs over the next several quarters.
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
Revenue has grown strongly since 2021 with a 2026 rebound, and the balance sheet has improved materially with lower leverage and growing equity. However, profitability has softened versus the 2024 peak (lower net/operating margins and ROE), and 2026 free cash flow turned sharply negative, indicating cash-flow volatility.
Income Statement
66
Positive
Balance Sheet
74
Positive
Cash Flow
58
Neutral
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue40.12B43.79B40.47B42.55B34.23B29.67B
Gross Profit7.34B7.38B7.44B7.68B5.73B4.36B
EBITDA5.02B5.09B5.25B6.35B4.89B4.15B
Net Income1.70B1.19B1.79B2.22B1.02B373.65M
Balance Sheet
Total Assets42.33B47.72B43.89B42.82B39.36B36.91B
Cash, Cash Equivalents and Short-Term Investments9.50B9.62B9.68B10.33B8.55B6.82B
Total Debt4.19B6.78B4.09B4.08B6.71B8.20B
Total Liabilities11.80B14.57B12.83B12.67B14.04B14.19B
Stockholders Equity24.04B25.96B24.05B22.72B18.58B16.50B
Cash Flow
Free Cash Flow0.00-2.11B846.36M4.89B3.55B714.42M
Operating Cash Flow0.004.72B4.42B7.42B4.98B2.37B
Investing Cash Flow0.00-7.42B-3.13B-2.82B-1.11B-1.70B
Financing Cash Flow0.001.74B-2.10B-3.66B-2.67B-1.39B

Tanaka Seimitsu Kogyo Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1250.00
Price Trends
50DMA
1021.26
Negative
100DMA
1093.07
Negative
200DMA
1095.86
Negative
Market Momentum
MACD
-28.39
Positive
RSI
33.51
Neutral
STOCH
35.27
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7218, the sentiment is Negative. The current price of 1250 is above the 20-day moving average (MA) of 968.95, above the 50-day MA of 1021.26, and above the 200-day MA of 1095.86, indicating a bearish trend. The MACD of -28.39 indicates Positive momentum. The RSI at 33.51 is Neutral, neither overbought nor oversold. The STOCH value of 35.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7218.

Tanaka Seimitsu Kogyo Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
¥163.67B8.884.47%1.64%19.87%
75
Outperform
¥215.10B15.797.50%5.39%-1.82%23.07%
74
Outperform
¥73.13B9.235.20%3.67%6.47%40.87%
73
Outperform
¥91.10B6.754.95%-1.72%8.59%
66
Neutral
¥9.41B7.802.91%8.19%-33.62%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
48
Neutral
¥292.72B231.501.93%<0.01%-83.75%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7218
Tanaka Seimitsu Kogyo Co., Ltd.
974.00
-15.66
-1.58%
JP:7246
Press Kogyo Co., Ltd.
791.00
272.96
52.69%
JP:7278
Exedy Corporation
5,870.00
1,938.06
49.29%
JP:5970
G-Tekt Corporation
2,104.00
470.33
28.79%
JP:7220
Musashi Seimitsu Industry Co., Ltd.
4,600.00
1,948.17
73.46%
JP:7296
F.C.C.Co., Ltd.
3,420.00
804.51
30.76%
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: May 16, 2026