Tachi-S Co (7239) AI Stock Analysis

• Market Cap: $68.02B
• Dividend Yield: 5.24%
• Average Volume (3M): 120.41K
• Price to Earnings (P/E): 6.8
• Beta (1Y): 0.85
• 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: 0.47
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: ¥2,227.00 ▲(11.18% 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.

Tachi-S Co Business Overview & Revenue Model

Company Description

Tachi-S Co., Ltd. (7239) is a leading manufacturer specializing in automotive seating systems and interior components. The company operates primarily within the automotive sector, providing innovative seating solutions for a variety of vehicles, including passenger cars, commercial vehicles, and electric vehicles. Tachi-S is recognized for its commitment to quality, safety, and advanced technology, offering products that enhance comfort and functionality for drivers and passengers alike.

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: 2003.00
• 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 2003 is above the 20-day moving average (MA) of 1971.95, above the 50-day MA of 1961.14, and above the 200-day MA of 1746.40, indicating a bullish trend. The MACD of 7.62 indicates Positive momentum. The RSI at 52.66 is Neutral, neither overbought nor oversold. The STOCH value of 47.19 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	76 Outperform	$68.02B	6.85	10.83%	5.24%	-7.35%	44.66%
7292	72 Outperform	¥77.45B	12.29	―	3.25%	4.49%	5.84%
7229	72 Outperform	¥45.05B	11.47	―	2.36%	-13.35%	-19.38%
7241	68 Neutral	¥84.19B	7.64	―	3.95%	-7.35%	43.31%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7280	61 Neutral	¥42.75B	3.58	―	1.05%	-1.12%	-24.58%
7294	50 Neutral	¥22.19B	-1.79	―	3.34%	-4.86%	-162.41%

Tachi-S Co Corporate Events

Tachi-S Co., Ltd. Reports Decline in Q1 FY2025 Financial Results

Tachi-S Co., Ltd. reported a decline in net sales and net income for the first quarter of FY2025, with net sales down by 12.5% and net income attributable to owners of the parent plummeting by 98.6% compared to the same period last year. The company also transferred part of its equity interest in two subsidiaries, affecting its consolidation scope, and maintained its dividend forecast for FY2025, indicating a cautious approach amidst challenging market conditions.