Tanaka Seimitsu Kogyo Co., Ltd. (7218) AI Stock Analysis

• Market Cap: ¥12.39B
• Dividend Yield: 2.91%
• Average Volume (3M): 2.19K
• Price to Earnings (P/E): 7.3
• Beta (1Y): 0.66
• Revenue Growth: -3.24%
• EPS Growth: -26.11%
• Country: JP
• Employees: 1,402
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 44.02
• Shares Outstanding: 9,763,600
• 10 Day Avg. Volume: 2,930
• 30 Day Avg. Volume: 2,190
• PEG Ratio: -0.29
• Price to Book (P/B): 0.40
• Price to Sales (P/S): 0.24
• P/FCF Ratio: 11.49
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: ¥1,378.00 ▲(10.24% Upside)
• Action: Reiterated Date: 12/02/25
• Date: Action: Reiterated 12/02/25

Tanaka Seimitsu Kogyo Co., Ltd. receives a strong overall score driven by robust financial performance and attractive valuation. The stock's technical indicators show strong momentum, though caution is advised due to overbought signals. The absence of recent earnings call data and corporate events limits additional insights.

Positive Factors

Strong Financial Performance

The company's consistent revenue growth and improved margins indicate robust financial health, supporting long-term business sustainability and competitiveness.

Low Leverage

Low leverage enhances financial flexibility and reduces risk, allowing the company to invest in growth opportunities without significant financial strain.

Improved Profitability

Improved profitability margins reflect better cost management and operational efficiency, contributing to stronger financial performance and shareholder value.

Negative Factors

Decline in Net Income

A decline in net income could indicate underlying challenges in sustaining profitability, potentially impacting future earnings and growth prospects.

Slowed Cash Flow Growth

Slowed cash flow growth may limit the company's ability to fund new projects and investments, affecting long-term expansion and operational flexibility.

Revenue Growth Challenges

Negative revenue growth suggests potential market or operational challenges, which could hinder the company's ability to maintain its competitive position.

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

Company Description

Tanaka Seimitsu Kogyo Co., Ltd. manufactures and sells automobile and motorcycle parts, and general-purpose parts in Japan and internationally. The company was founded in 1948 and is headquartered in Toyama, Japan.

How the Company Makes Money

Tanaka Seimitsu Kogyo generates revenue primarily through the manufacturing and sale of precision machined components and assemblies for the automotive and aerospace sectors. The company's revenue model is based on direct sales to major automotive manufacturers and aerospace companies, often through long-term contracts that provide stability and predictability in earnings. Key revenue streams include the sale of precision gears, automotive transmission components, and custom machining services. Additionally, the company benefits from partnerships with industry leaders, allowing it to secure large-scale projects and maintain a competitive edge in technology and innovation, which further contributes to its overall profitability.

Tanaka Seimitsu Kogyo Co., Ltd. Financial Statement Overview

Summary

Tanaka Seimitsu Kogyo Co., Ltd. demonstrates strong financial performance with consistent revenue growth and improved profitability margins. The balance sheet shows a strong capital structure with low leverage and healthy equity ratios. Cash flow management is positive, though there is room for improvement in sustaining cash flow growth.

Income Statement

Tanaka Seimitsu Kogyo Co., Ltd. has shown strong revenue growth over the past years, with a 13.4% increase in total revenue from 2023 to 2024, and a further 7.3% increase from 2024 to 2025. The gross profit margin improved from 14.6% in 2022 to 18.4% in 2025, indicating enhanced efficiency and cost management. The net profit margin also increased significantly, reaching 4.4% in 2025 from 1.3% in 2022. The company has improved its EBIT and EBITDA margins, reflecting better operational efficiency. However, the net income saw a decline in 2025, suggesting potential challenges in maintaining profitability.

Balance Sheet

The balance sheet of Tanaka Seimitsu Kogyo Co., Ltd. shows a stable financial position with a debt-to-equity ratio of 0.18 in 2025, indicating a low level of leverage. The return on equity (ROE) has improved to 7.4% in 2025, up from 2.3% in 2022, highlighting improved profitability from shareholders' equity. The equity ratio has remained strong, reflecting a solid capital structure. However, the company's total assets have grown modestly, and maintaining this growth could be challenging if operational efficiency does not keep pace.

Cash Flow

The cash flow analysis indicates that Tanaka Seimitsu Kogyo Co., Ltd. has maintained a positive operating cash flow, though it saw a decline from 2024 to 2025. The free cash flow grew significantly from 2023 to 2024, but the growth rate slowed in 2025. The operating cash flow to net income ratio remained strong, suggesting good cash generation relative to net income. The free cash flow to net income ratio is healthy, indicating efficient capital expenditure management. However, the overall cash flow stability could be improved to sustain long-term investments.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	40.12B	40.47B	42.55B	34.23B	29.67B	26.04B
Gross Profit	7.34B	7.44B	7.68B	5.73B	4.36B	3.21B
EBITDA	5.21B	5.49B	6.60B	5.55B	3.60B	2.06B
Net Income	1.70B	1.79B	2.22B	1.02B	373.65M	-571.96M
Balance Sheet
Total Assets	42.33B	43.72B	42.68B	39.28B	36.84B	36.90B
Cash, Cash Equivalents and Short-Term Investments	9.50B	9.68B	10.33B	8.55B	6.82B	7.10B
Total Debt	4.19B	4.09B	4.08B	6.71B	8.20B	9.25B
Total Liabilities	11.80B	12.66B	12.53B	13.96B	14.12B	15.74B
Stockholders Equity	24.04B	24.05B	22.72B	18.58B	16.50B	15.19B
Cash Flow
Free Cash Flow	0.00	846.36M	4.87B	3.51B	696.34M	790.61M
Operating Cash Flow	0.00	4.42B	7.42B	4.98B	2.37B	3.06B
Investing Cash Flow	0.00	-3.13B	-2.82B	-1.11B	-1.56B	-1.44B
Financing Cash Flow	0.00	-2.10B	-3.66B	-2.67B	-1.39B	-879.60M

Tanaka Seimitsu Kogyo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1250.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 1200.50, above the 50-day MA of 1220.24, and above the 200-day MA of 1095.13, indicating a bullish trend. The MACD of 6.53 indicates Negative momentum. The RSI at 66.39 is Neutral, neither overbought nor oversold. The STOCH value of 83.20 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7254	76 Outperform	¥17.91B	6.83	―	1.67%	-4.44%	-17.38%
7247	75 Outperform	¥14.60B	4.37	―	3.90%	-1.72%	168.62%
7218	74 Outperform	¥12.39B	7.26	―	2.91%	-3.24%	-26.11%
7228	74 Outperform	¥9.14B	8.07	―	3.19%	5.38%	5.29%
5985	66 Neutral	¥36.74B	9.29	―	0.55%	7.65%	―
7273	62 Neutral	¥20.84B	4.87	―	4.58%	34.99%	468.97%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%