Tachi-S Co (7239) AI Stock Analysis

• Market Cap: ¥79.43B
• Dividend Yield: 5%
• Average Volume (3M): 97.77K
• Price to Earnings (P/E): 7.0
• Beta (1Y): 0.84
• Revenue Growth: -10.87%
• EPS Growth: 153.16%
• Country: JP
• Employees: 10,474
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 74.44
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: ¥2,616.00 ▲(25.05% Upside)
• Action: Reiterated Date: 10/23/25
• Date: Action: Reiterated 10/23/25

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

Improved profitability and margins

Sustained margin improvement reflects stronger cost control and pricing power across seat systems manufacturing. Higher gross and net margins increase internal funding for R&D, capex and dividends, and build a buffer against commodity or labor cost shocks over the medium term.

Stronger balance sheet and lower leverage

Material reduction in leverage and a healthy equity ratio increase financial flexibility and resilience to cyclical auto demand. Lower debt burdens reduce refinancing risk, support sustained investment in overseas plants, and improve odds of funding program bids without dilutive financing.

Positive operating cash flow and FCF

Consistent operating cash generation and a return to positive free cash flow strengthen the company's ability to self-fund capex and working capital for OEM programs. This durable cash-generation trend supports dividends and reduces reliance on external funding.

Negative Factors

Volatile and declining revenue

A material revenue decline and persistent volatility undermine predictability of margins and capacity utilization. Because sales are tied to OEM production, revenue swings can persist across quarters, pressuring long-term operating leverage and complicating strategic investment timing.

Inconsistent free cash flow growth

Irregular FCF growth makes capital allocation and dividend planning less reliable. Even with a positive FCF year, variability increases sensitivity to capex timing or program ramp delays and limits the firm's ability to commit to multi-year investments without higher liquidity buffers.

High dependence on OEM program awards

Business depends on winning and retaining vehicle platform contracts, creating structural cyclicality and competitive pressure. Losses or delayed program awards can cause multi-year revenue declines, while long sales cycles limit agility to diversify revenue quickly amid changing auto demand.

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	Mar 2025	Mar 2025	Mar 2024	Mar 2023	Mar 2022
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: 2092.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 2092 is below the 20-day moving average (MA) of 2235.40, below the 50-day MA of 2156.98, and above the 200-day MA of 1925.07, indicating a bullish trend. The MACD of 49.10 indicates Negative momentum. The RSI at 70.92 is Negative, neither overbought nor oversold. The STOCH value of 79.99 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
6995	81 Outperform	¥286.07B	8.91	―	3.36%	1.36%	139.77%
7988	79 Outperform	¥485.56B	10.81	―	1.60%	-5.16%	200.96%
7239	76 Outperform	¥79.43B	7.05	13.32%	5.00%	-10.87%	153.16%
7241	68 Neutral	¥101.56B	7.08	―	3.88%	-7.35%	43.31%
3116	66 Neutral	¥561.47B	32.90	4.51%	3.42%	2.10%	-50.33%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7313	58 Neutral	¥238.01B	45.58	―	4.77%	-3.71%	-51.81%

Tachi-S Co Corporate Events

TACHI-S Posts Lower Sales but Higher Profit Margins, Keeps FY2025 Forecast and Dividend Intact

Automotive seat maker TACHI-S Co., Ltd. reported consolidated net sales of ¥194.8 billion for the first nine months of FY2025, down 10.7% year on year, while operating income rose 10.9% to ¥5.6 billion and ordinary income jumped 28.4% to ¥7.1 billion. Net income attributable to owners of the parent was roughly flat at ¥5.1 billion, and the equity ratio improved slightly to 56.4% as total assets reached ¥173.2 billion.

The company reaffirmed its full-year FY2025 forecast, projecting a 7.5% decline in net sales to ¥264.0 billion and a 29.3% drop in net income to ¥8.0 billion, despite a small expected rise in ordinary income, while maintaining an annual dividend forecast of ¥103.80 per share. During the period, two China-based subsidiaries were reclassified as equity-method affiliates following partial equity transfers, a move that may streamline consolidation while preserving exposure to the Chinese market, and there were no changes to dividend or earnings guidance, suggesting management views current headwinds as manageable.

The most recent analyst rating on (JP:7239) stock is a Buy with a Yen2562.00 price target. To see the full list of analyst forecasts on Tachi-S Co stock, see the JP:7239 Stock Forecast page.