Tachi-S Co (7239) AI Stock Analysis

• Market Cap: $67.54B
• Dividend Yield: 5.27%
• Average Volume (3M): 120.41K
• Price to Earnings (P/E): 6.8
• Beta (1Y): 0.86
• Revenue Growth: -7.35%
• EPS Growth: 44.66%
• Country: JP
• Employees: 10,474
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 0.58
• Shares Outstanding: 35,242,847
• 10 Day Avg. Volume: 87,780
• 30 Day Avg. Volume: 120,413
• 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: 0.48
• Enterprise Value/Revenue: 0.12
• Enterprise Value/Gross Profit: 1.12
• Enterprise Value/Ebitda: 2.11
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 81 Outperform
• Price Target: ¥1,990.00 ▲(0.61% Upside)

The overall stock score of 80.5 reflects Tachi-S Co's robust valuation, strong technical analysis indicators, and solid financial performance. The stock's attractive P/E ratio and dividend yield, coupled with bullish technical indicators, are key strengths. Financial performance highlights include improved profitability and reduced leverage, despite some inconsistency in revenue growth.

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: 1978.00
• 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:7239, the sentiment is Positive. The current price of 1978 is above the 20-day moving average (MA) of 1954.95, above the 50-day MA of 1926.91, and above the 200-day MA of 1723.36, indicating a bullish trend. The MACD of 8.22 indicates Positive momentum. The RSI at 56.66 is Neutral, neither overbought nor oversold. The STOCH value of 76.94 is Neutral, 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
7239	81 Outperform	$67.54B	6.80	10.83%	5.27%	-7.35%	44.66%
7292	77 Outperform	¥77.33B	12.20	―	3.31%	4.49%	5.84%
7229	72 Outperform	¥45.05B	11.56	―	2.35%	-18.46%	-48.08%
7241	70 Outperform	¥84.64B	13.11	―	4.02%	-11.96%	-46.82%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7280	61 Neutral	¥42.29B	3.55	―	1.06%	-1.12%	-24.58%
7294	50 Neutral	¥22.24B	―	―	3.32%	-4.86%	-162.41%

Tachi-S Co Corporate Events

TACHI-S CO., LTD. Unveils New Medium-term Management Plan

TACHI-S CO., LTD. has announced a new Medium-term Management Plan named ‘TVE Wave2 2027’ for fiscal years 2025 to 2027. This plan is expected to guide the company’s strategic direction and operational focus over the next three years, potentially impacting its market positioning and stakeholder interests.

TACHI-S CO., LTD. Announces Year-End Dividend for Fiscal Year 2025

TACHI-S CO., LTD. announced a year-end dividend of 51.9 yen per share for the fiscal year ending March 2025, resulting in an annual dividend of 103.8 yen per share. This decision aligns with the company’s mid-term management plan, which targets a 4% consolidated return on equity to ensure proactive shareholder returns.

TACHI-S Co., Ltd. Reports FY2024 Financial Results with Increased Net Income

TACHI-S Co., Ltd. reported its consolidated financial results for FY2024, showing a decline in net sales by 2.6% compared to the previous year. However, the company experienced significant growth in net income attributable to owners of the parent, which increased by 108.6%. The company also announced a rise in annual cash dividends per share, reflecting a positive outlook for stakeholders. Despite a decrease in total assets, the shareholder’s equity ratio improved, indicating a stronger financial position. The company is undergoing changes in its scope of consolidation and accounting policies, which may impact future financial results.

TACHI-S CO., LTD. Reports Dividend Income from Subsidiaries

TACHI-S CO., LTD. announced the receipt of dividends totaling 4,364 million yen from its consolidated subsidiaries, which will be recorded as non-operating income in its non-consolidated financial statements for the fiscal year ended March 31, 2025. This dividend income does not affect the consolidated financial results, indicating a stable financial position and continued profitability from its global subsidiaries.

TACHI-S Co., Ltd. Exceeds Financial Forecasts for FY2024

TACHI-S Co., Ltd. reported a notable difference between its forecasted and actual consolidated financial results for the fiscal year ending March 31, 2025, with actual net sales and income figures surpassing expectations due to improved earnings in Japan and North America and favorable currency conditions in Latin America. Additionally, despite a decrease in net sales, the company achieved higher non-consolidated ordinary and net income compared to the previous fiscal year, attributed to structural reforms and gains from asset sales.