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

• Market Cap: ¥212.98B
• Dividend Yield: 1.54%
• Average Volume (3M): 596.11K
• Price to Earnings (P/E): 27.4
• Beta (1Y): 1.26
• Revenue Growth: -0.78%
• EPS Growth: -2.01%
• Country: JP
• Employees: 12,830
• Sector: Consumer Cyclical
• Sector Strength: 69
• Industry: Auto - Parts
• EPS (TTM): 39.90
• Shares Outstanding: 65,556,760
• 10 Day Avg. Volume: 462,040
• 30 Day Avg. Volume: 596,113
• PEG Ratio: 1.68
• Price to Book (P/B): 1.82
• 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: 10.77% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 70 Outperform
• Price Target: ¥3,427.00 ▲(5.45%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. 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 Industry Co., Ltd. generates revenue primarily through the production and sale of automotive components, particularly high-precision gears and drive train components. The company's key revenue streams include direct sales to global automotive manufacturers and original equipment manufacturers (OEMs). Musashi Seimitsu's strategic partnerships with major automotive companies enhance its market position and contribute significantly to its revenue. The company's focus on innovation and efficiency in manufacturing processes helps maintain competitive pricing, driving sales and profitability. Additionally, the company may engage in research and development collaborations, which can provide additional revenue opportunities.

Musashi Seimitsu Industry Co., Ltd. Financial Statement Overview

Summary

Musashi Seimitsu Industry Co., Ltd. exhibits strong financial health with consistent revenue growth and profitability in the auto-parts sector. The balance sheet is well-positioned but carries some leverage risk. Cash flows are robust, supporting future investments and operational stability. Overall, the company is on a solid financial trajectory with some areas for improvement in managing debt levels.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	347.20B	349.92B	301.50B	241.90B	204.71B
Gross Profit	52.66B	50.71B	35.45B	32.03B	29.68B
EBITDA	36.64B	36.35B	26.44B	26.32B	26.51B
Net Income	7.78B	7.92B	2.44B	5.43B	7.38B
Balance Sheet
Total Assets	285.13B	290.34B	269.28B	259.96B	226.07B
Cash, Cash Equivalents and Short-Term Investments	33.85B	26.70B	26.11B	27.55B	24.14B
Total Debt	96.79B	99.37B	99.16B	96.58B	77.49B
Total Liabilities	161.15B	164.95B	154.85B	147.69B	130.15B
Stockholders Equity	114.76B	115.78B	102.73B	100.59B	85.14B
Cash Flow
Free Cash Flow	16.86B	18.65B	4.25B	-11.99B	5.41B
Operating Cash Flow	31.92B	31.64B	19.41B	5.80B	18.26B
Investing Cash Flow	-16.10B	-15.99B	-17.93B	-20.13B	-12.20B
Financing Cash Flow	-7.74B	-17.75B	-4.51B	14.76B	-6.89B

Musashi Seimitsu Industry Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3250.00
• 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:7220, the sentiment is Positive. The current price of 3250 is above the 20-day moving average (MA) of 3109.60, above the 50-day MA of 2882.22, and above the 200-day MA of 2822.13, indicating a bullish trend. The MACD of 120.19 indicates Positive momentum. The RSI at 63.35 is Neutral, neither overbought nor oversold. The STOCH value of 71.84 is Neutral, 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
7220	70 Outperform	¥212.98B	27.36		1.54%	-0.78%	-2.01%
Sector *	62 Neutral	C$5.30B	8.88	20.23%	3.48%	3.08%	9.19%
60V	―	€915.61M	10.54	6.70%	3.49%	―	―
64M	―	€1.16B	12.48	6.34%	7.03%	―	―
6995	81 Outperform	¥199.86B	7.05		4.32%	-0.95%	21.31%
7296	78 Outperform	¥144.79B	9.11		4.27%	6.80%	31.44%
7313	67 Neutral	¥209.05B	24.80		4.91%	3.58%	-17.59%

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.