Tachi-S Co (7239) AI Stock Analysis

• Market Cap: ¥71.10B
• Dividend Yield: 5%
• Average Volume (3M): 97.77K
• Price to Earnings (P/E): 5.5
• Beta (1Y): 0.85
• Revenue Growth: -10.87%
• EPS Growth: 153.16%
• Country: JP
• Employees: 10,474
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 73.79
• Shares Outstanding: 35,242,847
• 10 Day Avg. Volume: 110,040
• 30 Day Avg. Volume: 97,770
• PEG Ratio: 0.05
• Price to Book (P/B): 0.61
• Price to Sales (P/S): 0.21
• P/FCF Ratio: 11.10
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 36,400.5
• Revenue Forecast (FY): ¥40.36T

• Rating: 76 Outperform
• Price Target: ¥2,227.00 ▲(7.58% Upside)

Tachi-S Co's stock score is driven by strong financial performance and attractive valuation metrics. The company's improved profitability, solid balance sheet, and high dividend yield are significant strengths. Technical analysis supports a positive outlook with the stock trading above key moving averages. However, inconsistent revenue growth and cash flow fluctuations slightly temper the overall score.

Positive Factors

Profitability Improvement

Improved profitability margins indicate enhanced operational efficiency, which strengthens the company's ability to reinvest in growth and innovation.

Balance Sheet Health

A strong equity ratio suggests financial stability and reduced reliance on debt, providing the company with greater resilience against economic fluctuations.

Cash Flow Stability

Consistent positive cash flow enhances the company's ability to fund operations, invest in growth opportunities, and return capital to shareholders.

Negative Factors

Inconsistent Revenue Growth

Volatile revenue growth can hinder long-term planning and investment, affecting the company's ability to capitalize on market opportunities consistently.

Free Cash Flow Growth

Inconsistent free cash flow growth may limit the company's ability to fund strategic initiatives and respond to competitive pressures effectively.

Revenue Decline

A decline in revenue growth indicates potential challenges in market demand or competitive positioning, which could impact future profitability and market share.

Tachi-S Co Business Overview & Revenue Model

Company Description

TACHI-S Co., Ltd. engages in the manufacture and sale of automotive seats in Japan and internationally. It offers driver, rear, passenger, second, third, and commercial vehicle seat systems for car categories, such as luxury brand cars, sports cars, Kei cars, and commercial vehicles. The company was formerly known as Tachikawa Spring Co., Ltd. and changed its name to TACHI-S Co., Ltd. in April 1986. TACHI-S Co., Ltd. was incorporated in 1954 and is headquartered in Akishima, Japan.

How the Company Makes Money

Tachi-S generates revenue primarily through the sale of automotive seating systems and related interior components to major automobile manufacturers. The company operates on a business model that includes direct sales to automotive OEMs (Original Equipment Manufacturers) and Tier 1 suppliers, which form the backbone of its revenue. Key revenue streams include the production of seat structures, mechanisms, and upholstery, with additional income derived from research and development contracts and collaborations with automotive partners. Significant partnerships with leading automotive brands, along with a focus on innovation in response to trends like electric vehicle production, contribute to Tachi-S's earnings and market competitiveness.

Tachi-S Co Financial Statement Overview

Summary

Tachi-S Co's financial health has strengthened over the years, demonstrating improved profitability and a solid balance sheet. While revenue growth has been inconsistent, the company's enhanced operational efficiency and reduced leverage are positive signs. The cash flow position is more stable, although there are opportunities to bolster free cash flow growth further.

Income Statement

Tachi-S Co has shown a strong recovery in profitability over the years. The gross profit margin improved from 4.82% in 2021 to 10.08% in 2025, and the net profit margin increased significantly from a negative value to 3.96% in 2025. Revenue growth has been volatile, with a notable dip in 2025, but overall, the EBIT and EBITDA margins exhibit a positive trend, indicating enhanced operational efficiency.

Balance Sheet

The balance sheet portrays a stable financial position with a decreasing debt-to-equity ratio from 0.25 in 2020 to 0.15 in 2025, suggesting reduced leverage. The equity ratio is strong, improving to 55.98% in 2025, showing that a substantial portion of the company’s assets are financed by equity. ROE climbed to 11.74% in 2025, reflecting effective use of equity to generate profits.

Cash Flow

The company's cash flow situation has improved markedly since 2021, with operating cash flow consistently positive and free cash flow turning positive in 2025 after previous years of deficits. However, the free cash flow growth rate has been inconsistent, showing room for improvement.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	276.22B	285.39B	292.95B	243.44B	206.44B	198.50B
Gross Profit	28.77B	29.76B	28.41B	20.17B	12.87B	9.56B
EBITDA	15.32B	21.59B	14.23B	14.19B	5.16B	-6.12B
Net Income	9.94B	11.31B	5.42B	5.82B	-2.06B	-13.70B
Balance Sheet
Total Assets	160.73B	171.96B	180.81B	170.00B	159.00B	150.99B
Cash, Cash Equivalents and Short-Term Investments	41.56B	43.68B	39.19B	34.11B	32.41B	29.76B
Total Debt	10.97B	14.52B	14.84B	22.82B	25.03B	21.42B
Total Liabilities	68.41B	73.77B	84.51B	83.53B	79.82B	72.33B
Stockholders Equity	91.27B	96.28B	89.78B	80.37B	72.86B	72.54B
Cash Flow
Free Cash Flow	0.00	5.30B	14.80B	239.00M	-4.35B	-6.87B
Operating Cash Flow	0.00	9.76B	18.45B	3.74B	-354.00M	-1.95B
Investing Cash Flow	0.00	3.96B	-2.08B	6.67B	2.01B	-6.33B
Financing Cash Flow	0.00	-9.29B	-13.37B	-10.01B	-812.00M	5.13B

Tachi-S Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2070.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7239, the sentiment is Positive. The current price of 2070 is above the 20-day moving average (MA) of 2031.40, above the 50-day MA of 2000.28, and above the 200-day MA of 1795.23, indicating a bullish trend. The MACD of 21.16 indicates Negative momentum. The RSI at 58.54 is Neutral, neither overbought nor oversold. The STOCH value of 88.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7239.

Tachi-S Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7280	77 Outperform	¥45.78B	3.95	―	0.99%	-0.83%	-27.20%
7239	76 Outperform	¥71.10B	5.51	13.32%	5.00%	-10.87%	153.16%
7292	72 Outperform	¥79.84B	12.13	―	3.21%	4.44%	14.91%
7229	72 Outperform	¥45.05B	8.64	―	2.37%	-13.35%	-19.38%
7241	68 Neutral	¥94.67B	8.59	―	3.88%	-7.35%	43.31%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7294	57 Neutral	¥23.32B	-2.22	―	3.19%	-8.99%	-62.26%

Tachi-S Co Corporate Events

TACHI-S CO., LTD. Announces Dividend Payment Aligned with Growth Strategy

TACHI-S CO., LTD. announced a decision to pay dividends of surplus with a record date of September 30, 2025, maintaining a dividend per share of 51.90 yen. This decision aligns with the company’s Medium-term Management Plan, which targets a minimum annual dividend of 103.8 yen per share and a total payout ratio of 50% or higher, reflecting its commitment to flexible capital measures and dividend stability.

Tachi-S Co. Reports Mixed Financial Results for Q2 FY2025

Tachi-S Co., Ltd. reported its consolidated financial results for the second quarter of FY2025, showing a decrease in net sales by 12.1% compared to the previous year, while operating income increased by 7.2%. The company also experienced a significant rise in net income attributable to owners of the parent by 164.6%. The financial results reflect strategic changes, including the exclusion of two subsidiaries from consolidation, impacting the company’s financial positioning and future forecasts.