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: -3.23%
• EPS Growth: 24.93%
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: ¥3,088.00 ▲(7.37% Upside)

The overall stock score of 61 reflects strong financial performance, which is the most significant factor. However, bearish technical indicators and a moderately high valuation weigh down the score. The absence of earnings call insights and corporate events means these factors did not influence the score.

Positive Factors

Cash Generation

Strong cash generation supports future investments and operational stability, ensuring the company can fund growth initiatives and manage economic fluctuations effectively.

Market Position

Partnerships with leading automotive manufacturers strengthen market presence, ensuring steady demand for products and reinforcing competitive advantages in the industry.

Profitability

Sustained profitability and margin improvements indicate efficient operations and pricing power, contributing to long-term financial health and shareholder value.

Negative Factors

Revenue Growth

Negative revenue growth suggests challenges in maintaining sales momentum, which could impact future profitability and market share if not addressed.

Leverage Risk

High leverage can strain financial flexibility, increasing vulnerability to interest rate hikes and economic downturns, potentially affecting long-term stability.

Net Income Volatility

Volatile net income growth can undermine investor confidence and complicate strategic planning, posing challenges for sustaining long-term financial performance.

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

Company Description

Musashi Seimitsu Industry Co., Ltd. manufactures and sells transportation equipment in Japan and internationally. The company provides parts for automobiles, such as power train, and linkage and suspension products. It also manufactures and supplies transmission gears, camshafts, and other drive parts for motorcycles, general-purpose engines, and all-terrain vehicles. Musashi Seimitsu Industry Co., Ltd. has a strategic collaboration with Aquarius Engines (A.M) Ltd. for research and development, assembly, distribution, marketing, and sales of the Aquarius engines and generators. The company was formerly known as Musashi Sangyo and changed its name to Musashi Seimitsu Industry Co., Ltd. in September 1963. Musashi Seimitsu Industry Co., Ltd. was founded in 1938 and is headquartered in Toyohashi, Japan.

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: Neutral
• Last Price: 2876.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Neutral. The current price of 2876 is below the 20-day moving average (MA) of 3011.95, below the 50-day MA of 3264.18, and below the 200-day MA of 2928.95, indicating a bearish trend. The MACD of -142.23 indicates Positive momentum. The RSI at 40.48 is Neutral, neither overbought nor oversold. The STOCH value of 61.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	¥252.59B	6.97	―	3.57%	1.36%	139.77%
7296	80 Outperform	¥155.68B	9.83	―	5.03%	2.01%	25.09%
7242	77 Outperform	€224.92B	7.80	12.15%	2.79%	3.95%	136.86%
7278	69 Neutral	€191.73B	15.72	6.56%	5.64%	-2.26%	―
7313	65 Neutral	¥222.06B	33.42	―	4.64%	-3.71%	-51.81%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7220	61 Neutral	¥234.70B	36.04	―	1.54%	-3.23%	24.93%

Musashi Seimitsu Industry Co., Ltd. Corporate Events

Musashi Seimitsu Reports Profit Growth Amid Decline in Sales

Musashi Seimitsu Industry Co., Ltd. reported its consolidated financial results for the six months ended September 30, 2025, showing a decrease in net sales by 2.8% compared to the previous year. Despite this, the company achieved significant growth in profits, with operating profit increasing by 8.4% and profit attributable to owners of the parent rising by 45.8%. The company also announced the inclusion of Musashi Energy Solutions North America, Inc. in its consolidation scope, indicating strategic expansion in its operations.

The most recent analyst rating on (JP:7220) stock is a Hold with a Yen3397.00 price target. To see the full list of analyst forecasts on Musashi Seimitsu Industry Co., Ltd. stock, see the JP:7220 Stock Forecast page.