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

• Market Cap: ¥234.70B
• Dividend Yield: 1.54%
• Average Volume (3M): 576.92K
• Price to Earnings (P/E): 36.0
• Beta (1Y): 1.23
• Revenue Growth: -4.23%
• EPS Growth: -28.48%
• Country: JP
• Employees: 12,830
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 40.68
• Shares Outstanding: 65,581,860
• 10 Day Avg. Volume: 476,920
• 30 Day Avg. Volume: 576,920
• PEG Ratio: -10.19
• Price to Book (P/B): 1.40
• Price to Sales (P/S): 0.46
• P/FCF Ratio: 9.50
• 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: ¥3,900.00
• Price Target Upside: 19.82% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: ¥3,397.00 ▲(4.36% Upside)

Musashi Seimitsu Industry Co., Ltd. demonstrates strong financial performance with robust cash flows and revenue growth. However, technical indicators suggest potential short-term weakness, and the valuation appears high relative to peers. These factors combined result in a moderate overall stock score.

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

Company Description

Musashi Seimitsu Industry Co., Ltd. (7220) is a leading Japanese manufacturer specializing in precision components primarily for the automotive and motorcycle sectors. Founded in 1956, the company focuses on the production of high-quality machined parts, including gears, engine components, and transmission systems. Musashi Seimitsu operates in both the domestic and international markets, providing innovative solutions that meet the stringent quality and performance standards of its clients.

How the Company Makes Money

Musashi Seimitsu generates revenue primarily through the manufacturing and sale of precision machined components, particularly for the automotive and motorcycle industries. The company has established long-term relationships with major automobile manufacturers and suppliers, which account for a significant portion of its revenue. Key revenue streams include the production of engine parts, transmission components, and various other mechanical parts tailored to customer specifications. Additionally, Musashi Seimitsu leverages its technological expertise to develop new products and solutions, enhancing its market competitiveness. Strategic partnerships with automotive giants and ongoing investments in research and development further contribute to its earnings by enabling the company to innovate and expand its product offerings.

Musashi Seimitsu Industry Co., Ltd. Financial Statement Overview

Summary

Musashi Seimitsu Industry Co., Ltd. exhibits strong financial health with consistent revenue growth and profitability. The balance sheet is stable but carries some leverage risk. Cash flows are robust, supporting future investments and operational stability.

Income Statement

Musashi Seimitsu Industry Co., Ltd. has demonstrated steady revenue growth with a 43.6% increase from 2022 to 2023 and a more moderate pace thereafter. Gross profit and EBIT margins show sound profitability, with improvements in EBIT margin from 2022 to 2025. However, net income growth has been inconsistent, indicating volatility in net profitability.

Balance Sheet

The company's balance sheet reflects a stable equity position with an improving equity ratio over the years. The debt-to-equity ratio remains relatively high, suggesting potential leverage risk. However, the return on equity has been positive, indicating effective use of shareholders' equity.

Cash Flow

Consistent positive operating cash flow and improving free cash flow highlight strong cash generation capabilities. The free cash flow has grown significantly since 2023, showing effective capital expenditure management. However, fluctuations in financing activities may pose some risks.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	341.33B	347.20B	349.92B	301.50B	241.90B	204.71B
Gross Profit	52.14B	52.66B	50.71B	35.45B	32.03B	29.68B
EBITDA	36.19B	36.64B	36.35B	27.28B	26.32B	26.51B
Net Income	6.51B	7.78B	7.92B	2.44B	5.43B	7.38B
Balance Sheet
Total Assets	287.34B	285.13B	290.34B	269.28B	259.96B	226.07B
Cash, Cash Equivalents and Short-Term Investments	38.04B	33.85B	26.70B	26.11B	27.55B	24.14B
Total Debt	101.37B	96.79B	99.37B	99.16B	96.58B	77.49B
Total Liabilities	165.07B	161.15B	164.95B	154.85B	147.69B	130.15B
Stockholders Equity	112.85B	114.76B	115.78B	102.73B	100.59B	85.14B
Cash Flow
Free Cash Flow	0.00	16.86B	18.65B	4.25B	-11.99B	5.41B
Operating Cash Flow	0.00	31.92B	31.64B	19.41B	5.80B	18.26B
Investing Cash Flow	0.00	-16.10B	-15.99B	-17.93B	-20.13B	-12.20B
Financing Cash Flow	0.00	-7.74B	-17.75B	-4.51B	14.76B	-6.89B

Musashi Seimitsu Industry Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3255.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7220, the sentiment is Negative. The current price of 3255 is below the 20-day moving average (MA) of 3297.00, below the 50-day MA of 3396.35, and above the 200-day MA of 2961.56, indicating a neutral trend. The MACD of -9.59 indicates Negative momentum. The RSI at 45.78 is Neutral, neither overbought nor oversold. The STOCH value of 37.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
7242	77 Outperform	¥206.58B	8.56	10.75%	2.80%	-0.17%	72.81%
6995	72 Outperform	¥247.33B	6.83	―	3.57%	1.36%	139.77%
7296	71 Outperform	¥155.68B	9.83	―	5.03%	2.01%	25.09%
7278	69 Neutral	€191.73B	15.72	6.56%	5.64%	-2.26%	―
7313	65 Neutral	¥222.06B	33.42	―	4.66%	-2.24%	-43.32%
7220	64 Neutral	¥234.70B	36.04	―	1.54%	-4.23%	-28.48%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Musashi Seimitsu Industry Co., Ltd. Corporate Events

Musashi Seimitsu Reports Decline in Q1 2025 Financial Results Amid Strategic Expansion

Musashi Seimitsu Industry Co., Ltd. reported a decline in its financial performance for the three months ending June 30, 2025, with net sales decreasing by 6.6% and net profit attributable to owners of the parent dropping by 43.3% compared to the same period in the previous year. Despite this downturn, the company has included Musashi Energy Solutions North America Inc. in its scope of consolidation, indicating a strategic move to expand its operations in the energy solutions sector.

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.