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

• Market Cap: ¥166.58B
• Dividend Yield: 1.94%
• Average Volume (3M): 970.23K
• Price to Earnings (P/E): 24.8
• Beta (1Y): 1.17
• Revenue Growth: 2.31%
• EPS Growth: -23.23%
• Country: JP
• Employees: 12,830
• Sector: Consumer Cyclical
• Sector Strength: 61
• Industry: Auto - Parts
• EPS (TTM): 33.53
• Shares Outstanding: 65,556,760
• 10 Day Avg. Volume: 809,750
• 30 Day Avg. Volume: 970,226
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 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: 40.79% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Musashi Seimitsu Industry Co., Ltd. shows strong financial growth and operational efficiency but faces challenges with valuation and technical indicators. The high P/E ratio suggests potential overvaluation, while the mixed technical analysis signals caution in the short term. The absence of recent cash flow data adds to the uncertainty, though the company's stable financial position mitigates some risk.

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
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
349.92B	301.50B	241.90B	204.71B	236.35B
	Gross Profit
48.23B	35.45B	32.03B	29.68B	32.69B
	EBIT
17.98B	7.68B	8.41B	7.51B	7.29B
	EBITDA
36.35B	26.44B	25.38B	23.73B	9.50B
	Net Income Common Stockholders
7.92B	2.44B	5.43B	7.38B	-6.90B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
26.70B	26.11B	27.55B	24.14B	20.66B
	Total Assets
290.34B	269.28B	259.96B	226.07B	207.33B
	Total Debt
99.37B	99.16B	96.58B	77.49B	79.11B
	Net Debt
72.67B	73.05B	69.03B	53.35B	58.44B
	Total Liabilities
164.95B	154.85B	147.69B	130.15B	124.82B
	Stockholders Equity
115.78B	102.73B	100.59B	85.14B	71.44B
Cash Flow		Free Cash Flow
18.65B	4.25B	-11.99B	5.41B	9.34B
	Operating Cash Flow
31.64B	19.41B	5.80B	18.26B	26.36B
	Investing Cash Flow
-15.99B	-17.93B	-20.13B	-12.20B	-18.67B
	Financing Cash Flow
-17.75B	-4.51B	14.76B	-6.89B	-10.88B

Musashi Seimitsu Industry Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2557.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• 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 2557 is above the 20-day moving average (MA) of 2277.05, above the 50-day MA of 2446.01, and below the 200-day MA of 2583.97, indicating a neutral trend. The MACD of 37.02 indicates Negative momentum. The RSI at 60.80 is Neutral, neither overbought nor oversold. The STOCH value of 88.81 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
6465	80 Outperform	$854.84B	22.83	10.57%	1.68%	19.26%	14.04%
6902	78 Outperform	$5.09T	13.14	7.87%	3.19%	0.24%	37.62%
7011	74 Outperform	$9.38T	36.64	10.53%	0.73%	9.25%	26.69%
7220	67 Neutral	¥166.58B	24.81		1.94%	2.31%	-23.23%
Sector *	61 Neutral	$6.69B	11.69	3.01%	3.94%	2.60%	-21.51%
6472	57 Neutral	€118.65B	30.58	-2.10%	4.97%	0.75%	-128.63%
6471	52 Neutral	¥289.83B	39.80		5.41%	-3.42%	-35.09%