Musashi Seimitsu Industry Co., Ltd. (7220) AI Stock Analysis

• Market Cap: ¥205.77B
• Dividend Yield: 1.59%
• Average Volume (3M): 674.48K
• Price to Earnings (P/E): 26.4
• Beta (1Y): 1.26
• Revenue Growth: -0.78%
• EPS Growth: -2.01%
• Country: JP
• Employees: 12,830
• Sector: Consumer Cyclical
• Sector Strength: 59
• Industry: Auto - Parts
• EPS (TTM): 39.90
• Shares Outstanding: 65,556,760
• 10 Day Avg. Volume: 719,800
• 30 Day Avg. Volume: 674,476
• PEG Ratio: -3.05
• Price to Book (P/B): 1.41
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥3,600.00
• Price Target Upside: 15.57% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 70 Outperform
• Price Target: ¥3,427.00 ▲(10.02%Upside)

Musashi Seimitsu Industry Co., Ltd. demonstrates a strong financial foundation with consistent revenue and profitability, which is a major contributor to its score. Technical indicators show bullish momentum, but the overbought condition suggests caution. Valuation metrics indicate the stock may be overvalued, slightly dampening the overall score.

Musashi Seimitsu Industry Co., Ltd. Business Overview & Revenue Model

Company Description

Musashi Seimitsu Industry Co., Ltd. is a Japan-based manufacturer specializing in automobile parts and components. The company operates in the automotive sector, focusing on the production of drivetrain components, precision machinery parts, and other related products. Musashi Seimitsu is known for its high-quality gear systems, transmission components, and other automotive parts that cater to major automotive manufacturers around the world.

How the Company Makes Money

Musashi Seimitsu Industry Co., Ltd. generates revenue primarily through the manufacturing and sale of automotive parts and components. The company's key revenue streams include drivetrain components, such as gear systems and transmission parts, which are supplied to major automotive manufacturers globally. Musashi Seimitsu also collaborates with automotive companies to provide custom solutions and precision machinery parts, enhancing its earnings. Additionally, the company invests in research and development to maintain technological advancements, which helps in securing long-term contracts and partnerships with leading automotive brands, contributing significantly to its revenue.

Musashi Seimitsu Industry Co., Ltd. Financial Statement Overview

Summary

Musashi Seimitsu Industry Co., Ltd. demonstrates solid revenue growth and operational efficiency, contributing to a robust Income Statement. The Balance Sheet indicates a stable financial position with manageable leverage. However, the lack of cash flow data for TTM is a concern, limiting the assessment of liquidity. Overall, the company is in a healthy financial state with opportunities to enhance profitability and cash flow transparency.

Income Statement

Musashi Seimitsu Industry Co., Ltd. shows a strong revenue growth trajectory, with a notable increase in Total Revenue from 2023 to 2024, indicating a healthy demand for its products. The Gross Profit Margin for TTM is approximately 15.24%, and the Net Profit Margin is 1.92%, highlighting reasonable profitability. EBITDA Margin stands at 10.36%, reflecting good operational efficiency. However, Net Profit Margin is relatively low, which could point to higher operational costs or other financial pressures.

Balance Sheet

The company's balance sheet reveals a balanced financial structure with a Debt-to-Equity Ratio of approximately 0.79 for TTM, indicating moderate leverage. The Equity Ratio is 41.96%, suggesting a strong equity base relative to total assets. Return on Equity (ROE) for TTM is 5.60%, which is decent but leaves room for improvement in achieving higher returns on equity. While the leverage is manageable, the company should aim to enhance its ROE.

Cash Flow

There is a lack of data for TTM cash flow metrics, which limits comprehensive analysis. Historically, the company has generated positive Free Cash Flow, with a significant increase from 2023 to 2024, reflecting improved cash management. However, the absence of Operating Cash Flow and Free Cash Flow data for TTM presents a risk in assessing current liquidity and operational cash generation.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	349.13B	349.92B	301.50B	241.90B	204.71B	236.35B
Gross Profit	53.21B	48.23B	35.45B	32.03B	29.68B	32.69B
EBITDA	36.19B	36.35B	26.44B	25.38B	23.73B	9.50B
Net Income	6.71B	7.92B	2.44B	5.43B	7.38B	-6.90B
Balance Sheet
Total Assets	285.54B	290.34B	269.28B	259.96B	226.07B	207.33B
Cash, Cash Equivalents and Short-Term Investments	30.13B	26.70B	26.11B	27.55B	24.14B	20.66B
Total Debt	94.83B	99.37B	99.16B	96.58B	77.49B	79.11B
Total Liabilities	155.89B	164.95B	154.85B	147.69B	130.15B	124.82B
Stockholders Equity	119.84B	115.78B	102.73B	100.59B	85.14B	71.44B
Cash Flow
Free Cash Flow	0.00	18.65B	4.25B	-11.99B	5.41B	9.34B
Operating Cash Flow	0.00	31.64B	19.41B	5.80B	18.26B	26.36B
Investing Cash Flow	0.00	-15.99B	-17.93B	-20.13B	-12.20B	-18.67B
Financing Cash Flow	0.00	-17.75B	-4.51B	14.76B	-6.89B	-10.88B

Musashi Seimitsu Industry Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3115.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7220, the sentiment is Positive. The current price of 3115 is above the 20-day moving average (MA) of 2763.05, above the 50-day MA of 2628.70, and above the 200-day MA of 2725.97, indicating a bullish trend. The MACD of 72.92 indicates Negative momentum. The RSI at 71.85 is Negative, neither overbought nor oversold. The STOCH value of 87.98 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7220.

Musashi Seimitsu Industry Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6995	81 Outperform	¥191.75B	6.77		4.50%	-0.95%	21.31%
7242	78 Outperform	¥150.79B	10.67	6.70%	3.67%	-1.01%	0.48%
7296	78 Outperform	¥137.57B	8.65		4.50%	6.80%	31.44%
7220	70 Outperform	¥205.77B	26.43		1.59%	-0.78%	-2.01%
7278	70 Neutral	¥193.58B	13.56	6.34%	7.27%	0.40%	―
7313	67 Neutral	¥202.37B	24.01		5.07%	3.58%	-17.59%
Sector *	67 Neutral	¥253.98B	13.04	6.57%	2.83%	5.07%	-11.36%

Musashi Seimitsu Industry Co., Ltd. Corporate Events

Musashi Seimitsu Announces New Share Issuance for Executive Compensation

Musashi Seimitsu Industry Co., Ltd. announced the issuance of new shares as part of a restricted stock compensation plan designed to align the interests of its directors and executive officers with those of shareholders. This strategic move is intended to enhance corporate value and incentivize key personnel by issuing 25,100 shares, valued at 71,710,700 yen, to eligible directors and officers, thereby strengthening the company’s market position and stakeholder engagement.

The most recent analyst rating on (JP:7220) stock is a Buy with a Yen2500.00 price target. To see the full list of analyst forecasts on Musashi Seimitsu Industry Co., Ltd. stock, see the JP:7220 Stock Forecast page.

Musashi Seimitsu Highlights Key Relationship with Honda

Musashi Seimitsu Industry Co., Ltd. has announced its financial and operational relationship with Honda Motor Co., Ltd., highlighting that Honda holds 24.98% of its voting rights and contributes to 50.1% of its consolidated net sales. Despite this close affiliation, Musashi Seimitsu maintains its independence in business operations and decision-making, ensuring that its transactions with Honda are based on economic rationality and market considerations.

The most recent analyst rating on (JP:7220) stock is a Buy with a Yen2500.00 price target. To see the full list of analyst forecasts on Musashi Seimitsu Industry Co., Ltd. stock, see the JP:7220 Stock Forecast page.

Musashi Seimitsu Reports FY2024 Financial Results with Increased Dividends

Musashi Seimitsu Industry Co., Ltd. reported its consolidated financial results for FY2024, showing a slight decline in net sales by 0.8% to 347,196 million yen, while operating profit increased by 7.3% and ordinary profit rose by 15.6%. The company also announced an increase in annual dividends per share from 40 yen to 50 yen, reflecting a commitment to returning value to shareholders despite the challenges in net profit, which saw a decrease of 1.7%.

The most recent analyst rating on (JP:7220) stock is a Buy with a Yen2500.00 price target. To see the full list of analyst forecasts on Musashi Seimitsu Industry Co., Ltd. stock, see the JP:7220 Stock Forecast page.