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

• Market Cap: ¥10.10B
• Dividend Yield: 3.09%
• Average Volume (3M): 2.98K
• Price to Earnings (P/E): 5.6
• Beta (1Y): 0.77
• Revenue Growth: -4.87%
• EPS Growth: -19.12%
• Country: JP
• Employees: 1,402
• Sector: Consumer Cyclical
• Sector Strength: 62
• Industry: Auto - Parts
• EPS (TTM): 30.64
• Shares Outstanding: 9,763,600
• 10 Day Avg. Volume: 1,000
• 30 Day Avg. Volume: 2,980
• PEG Ratio: 0.04
• Price to Book (P/B): 0.35
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 1.86
• 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

• Rating: 73 Outperform
• Price Target: ¥1,135.00 ▲(9.66%Upside)

The overall stock score is primarily driven by strong financial performance and attractive valuation. Technical analysis indicates positive price momentum, although it is tempered by neutral RSI levels, suggesting balanced investor sentiment. The stock's low P/E ratio and solid dividend yield offer further appeal, particularly for value-focused investors.

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

Company Description

Tanaka 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 Money

Tanaka 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

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
43.00B	40.47B	42.55B	34.23B	29.67B	26.04B
	Gross Profit
8.12B	7.44B	7.68B	5.73B	4.36B	3.21B
	EBIT
3.60B	2.70B	3.66B	2.19B	1.30B	-239.35M
	EBITDA
5.82B	5.49B	6.60B	5.55B	3.60B	2.06B
	Net Income Common Stockholders
2.11B	1.79B	2.22B	1.02B	373.65M	-571.96M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
10.33B	9.68B	10.33B	8.55B	6.82B	7.10B
	Total Assets
42.68B	43.72B	42.68B	39.28B	36.84B	36.90B
	Total Debt
4.08B	4.44B	4.08B	6.71B	8.20B	9.25B
	Net Debt
-6.25B	-5.24B	-6.25B	-1.84B	1.38B	2.15B
	Total Liabilities
12.53B	12.66B	12.53B	13.96B	14.12B	15.74B
	Stockholders Equity
22.72B	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	-1.02B
	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: Neutral
• Last Price: 1035.00
• 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:7218, the sentiment is Neutral. The current price of 1035 is above the 20-day moving average (MA) of 1026.95, above the 50-day MA of 1013.42, and above the 200-day MA of 986.23, indicating a neutral trend. The MACD of 3.06 indicates Positive momentum. The RSI at 47.78 is Neutral, neither overbought nor oversold. The STOCH value of 55.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	79 Outperform	¥8.02B	2.72		3.64%	2.17%	66.19%
7247	76 Outperform	¥9.53B	4.42		4.93%	1.49%	93.90%
7218	73 Outperform	¥10.10B	5.58		3.09%	-4.87%	-19.12%
7228	71 Outperform	¥8.68B	6.97		3.48%	8.63%	9.65%
7273	64 Neutral	¥10.35B	164.23		0.63%	2.22%	-90.98%
Sector *	62 Neutral	$6.88B	11.32	2.90%	3.87%	2.70%	-24.57%
5985	51 Neutral	¥8.82B	―		3.25%	24.16%	93.48%