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

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

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JP

Tanaka Seimitsu Kogyo Co., Ltd.

(7218)

Rating:72Outperform
Price Target:
¥1,127.00
▲(6.93%Upside)
Tanaka Seimitsu Kogyo Co., Ltd. benefits from strong financial performance and attractive valuation. However, technical indicators suggest caution with potential downside momentum. The absence of earnings call data and corporate events limits further analysis.

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

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

Company DescriptionTanaka Seimitsu Kogyo Co., Ltd. (7218) is a Japanese company specializing in precision machinery and components. The company operates primarily in the automotive sector, producing and supplying high-quality parts and systems critical for automotive manufacturing. Its core products include transmission components, engine parts, and other precision mechanical equipment that support the functionality and efficiency of vehicles.
How the Company Makes MoneyTanaka Seimitsu Kogyo Co., Ltd. generates revenue primarily through the manufacturing and sale of precision components to automotive manufacturers. The company operates on a business-to-business model, supplying parts directly to major automotive companies. Its revenue streams are largely dependent on long-term contracts with these manufacturers, which ensure a steady demand for its products. Additionally, any partnerships or collaborations with leading automotive firms can enhance its market presence and contribute to revenue growth. The company's ability to produce high-quality, reliable components at scale plays a crucial role in its financial success.

Tanaka Seimitsu Kogyo Co., Ltd. Financial Statement Overview

Summary
Tanaka Seimitsu Kogyo Co., Ltd. shows strong revenue growth and improved profitability margins. The balance sheet is stable with low leverage and a solid capital structure. Cash flow management is positive, though there is room for improvement in sustaining cash flow growth.
Income Statement
82
Very Positive
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
76
Positive
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
68
Positive
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.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue43.00B40.47B42.55B34.23B29.67B26.04B
Gross Profit8.12B7.44B7.68B5.73B4.36B3.21B
EBITDA5.82B5.49B6.60B5.55B3.60B2.06B
Net Income2.11B1.79B2.22B1.02B373.65M-571.96M
Balance Sheet
Total Assets41.88B43.72B42.68B39.28B36.84B36.90B
Cash, Cash Equivalents and Short-Term Investments9.96B9.68B10.33B8.55B6.82B7.10B
Total Debt2.92B4.44B4.08B6.71B8.20B9.25B
Total Liabilities10.26B12.66B12.53B13.96B14.12B15.74B
Stockholders Equity24.34B24.05B22.72B18.58B16.50B15.19B
Cash Flow
Free Cash Flow0.00846.36M4.87B3.51B696.34M790.61M
Operating Cash Flow0.004.42B7.42B4.98B2.37B3.06B
Investing Cash Flow0.00-3.13B-2.82B-1.11B-1.56B-1.02B
Financing Cash Flow0.00-2.10B-3.66B-2.67B-1.39B-879.60M

Tanaka Seimitsu Kogyo Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1054.00
Price Trends
50DMA
1025.74
Positive
100DMA
1012.02
Positive
200DMA
989.35
Positive
Market Momentum
MACD
9.96
Negative
RSI
66.00
Neutral
STOCH
37.33
Neutral
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 1054 is above the 20-day moving average (MA) of 1026.25, above the 50-day MA of 1025.74, and above the 200-day MA of 989.35, indicating a bullish trend. The MACD of 9.96 indicates Negative momentum. The RSI at 66.00 is Neutral, neither overbought nor oversold. The STOCH value of 37.33 is Neutral, 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 (56)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
¥9.56B4.81
5.57%1.49%78.77%
75
Outperform
¥9.29B3.15
2.68%2.17%66.19%
73
Outperform
¥8.59B6.90
3.52%8.63%9.65%
72
Outperform
¥10.29B5.69
3.60%-4.87%-19.11%
63
Neutral
¥15.30B242.67
4.27%2.22%-90.98%
56
Neutral
HK$23.69B3.90-1.57%6.91%0.06%-64.88%
51
Neutral
¥8.79B
3.25%24.16%93.49%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7218
Tanaka Seimitsu Kogyo Co., Ltd.
1,078.00
-39.17
-3.51%
JP:5985
SUNCALL CORPORATION
293.00
-198.00
-40.33%
JP:7228
Daytona Corporation
3,650.00
265.62
7.85%
JP:7247
Mikuni Corporation
285.00
-107.81
-27.45%
JP:7254
Univance Corporation
446.00
-138.85
-23.74%
JP:7273
Ikuyo Co., Ltd.
683.00
465.34
213.79%
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 19, 2025