Nippon Seiki Co., Ltd. (7287) AI Stock Analysis

• Market Cap: ¥144.49B
• Dividend Yield: 2.93%
• Average Volume (3M): 97.20K
• Price to Earnings (P/E): 15.8
• Beta (1Y): 1.13
• Revenue Growth: 1.77%
• EPS Growth: 117.03%
• Country: JP
• Employees: 13,291
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 52.89
• Shares Outstanding: 58,471,300
• 10 Day Avg. Volume: 90,470
• 30 Day Avg. Volume: 97,196
• PEG Ratio: 0.57
• Price to Book (P/B): 0.31
• Price to Sales (P/S): 0.21
• P/FCF Ratio: -36.62
• 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: ¥2,771.00 ▲(26.82% Upside)

The score is driven primarily by solid financial performance, led by strong free cash flow improvement and low leverage, with profitability trending up but ROE still modest. Technicals add support via a clear uptrend and positive MACD, while valuation is reasonable with a mid-range P/E and a moderate dividend yield.

Positive Factors

Cash flow strength

A 138% TTM free cash flow increase signals durable cash generation improvement, enhancing ability to fund capex, R&D, dividends or buybacks without relying on debt. Over the next 2–6 months this underpins financial flexibility and resilience through auto cycles.

Low leverage

Very low debt-to-equity gives Nippon Seiki structural financial strength, reducing interest burden and bankruptcy risk. This balance sheet conservatism preserves capacity to invest in new OEM programs or absorb cycle-driven volume swings over multiple quarters.

HMI / instrument cluster specialization

Focused expertise in instrument clusters, displays and sensing technologies creates a durable competitive niche with OEM integration barriers. As vehicle cockpit electronic content rises, this specialization supports recurring program wins and higher content per vehicle over coming model cycles.

Negative Factors

Modest return on equity

ROE near 3% indicates the company currently generates limited profit from shareholders' equity. Persistently low ROE constrains long-term shareholder returns and signals the need for better margin expansion or capital reallocation to improve capital efficiency over several quarters.

Thin net margins

Gross margin ~14% and net margin ~2% leave limited buffer for pricing pressure, raw material swings, or volume declines. Sustained low margins reduce reinvestment capacity and make earnings sensitive to cyclical OEM order patterns, pressuring durable profitability.

Low revenue growth & OEM program dependence

Revenue growth around 1% TTM combined with a project-based, OEM-driven model means sales hinge on winning platform awards and vehicle production timing. This structural dependence can produce lumpy, slow-growing top-line performance across multiple quarters without new program wins.

Nippon Seiki Co., Ltd. Business Overview & Revenue Model

Company Description

Nippon Seiki Co., Ltd. manufactures and sells instruments for automobiles, motorcycles, agricultural / construction machines, and boats in Japan, the Americas, Europe, and Asia. The company also provides sensors for automobiles, such as level, rotation, pressure, angle, and temperature sensor; household appliances, including displays, intercom systems, and wireless communication products, as well products which require waterproofing technology; office automation appliances comprising control panels for copiers, printers, facsimiles, and multi-functional products; and factory automation appliances, such as sequence controllers. In addition, it offers display products, which consists of passive liquid crystal display and organic light emitting diode; and manufactures and supplies gauges and displays for vehicles for the aftermarkets under the Defi brand name. Further, the company provides controllers for air-conditioning and household equipment, assemblies for factory automation, amusement units, high-density mounting boards, and electroluminescence panels and modules; PCB assemblies for amusements; and car inspection and maintenance services, as well as sells new and used automobiles. Additionally, it processes and sells resin materials; manufactures electronic sub-assemblies for instruments and remote controllers, and peripheral systems; develops and sells software products; and provides freight transportation, advertising agency, and computer services. The company also offers engages in the plastic injection molding; compounding and coloring of plastic; and trading activities. Nippon Seiki Co., Ltd. was founded in 1946 and is headquartered in Nagaoka, Japan.

How the Company Makes Money

Nippon Seiki generates revenue primarily through the sale of automotive displays and related technology to original equipment manufacturers (OEMs) in the automotive industry. The company has established long-term relationships with major automotive manufacturers, allowing it to secure significant contracts for the supply of its products. Key revenue streams include the production and sale of instrument panels, electronic displays, and vehicle information systems. Additionally, Nippon Seiki invests in research and development to innovate and enhance its product offerings, which helps maintain its competitive edge and attract new clients. Strategic partnerships with automotive companies and participation in joint development projects also contribute to its earnings, as they expand market reach and enhance product capabilities.

Nippon Seiki Co., Ltd. Financial Statement Overview

Summary

Solid overall fundamentals supported by strong cash flow improvement (TTM free cash flow growth 138.28%) and stable revenue growth (TTM +1.25%). Profitability is improving (net margin 2.10%, rising EBIT/EBITDA margins) and leverage is low (debt-to-equity 0.14), though ROE remains modest (3.06%).

Income Statement

Nippon Seiki Co., Ltd. shows a stable revenue growth with a TTM increase of 1.25%. The gross profit margin is healthy at 14.31%, and the net profit margin has improved to 2.10% in the TTM. EBIT and EBITDA margins are also on an upward trend, indicating operational efficiency. However, the margins are slightly below industry leaders, suggesting room for improvement.

Balance Sheet

The company maintains a strong equity base with a debt-to-equity ratio of 0.14 in the TTM, reflecting low leverage. Return on equity is modest at 3.06%, indicating moderate profitability. The equity ratio remains stable, suggesting financial stability. However, the company could enhance its ROE to better utilize its equity.

Cash Flow

Nippon Seiki has shown significant improvement in cash flow, with a TTM free cash flow growth of 138.28%. The operating cash flow to net income ratio is healthy, and free cash flow to net income ratio indicates efficient cash generation. The company has turned around its cash flow position from previous losses, showcasing strong cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	320.19B	316.40B	312.36B	275.78B	223.62B	216.93B
Gross Profit	47.59B	46.34B	42.92B	38.63B	36.11B	32.84B
EBITDA	26.19B	24.72B	26.99B	18.82B	10.69B	17.69B
Net Income	9.11B	6.12B	5.30B	1.38B	-5.18B	517.00M
Balance Sheet
Total Assets	332.83B	332.10B	338.63B	355.95B	329.55B	315.19B
Cash, Cash Equivalents and Short-Term Investments	53.08B	35.30B	33.26B	85.16B	102.80B	112.43B
Total Debt	27.67B	37.22B	25.19B	79.14B	69.13B	69.77B
Total Liabilities	107.48B	111.86B	109.58B	149.50B	134.68B	128.66B
Stockholders Equity	221.69B	216.69B	221.54B	199.62B	186.26B	179.22B
Cash Flow
Free Cash Flow	15.13B	-1.85B	13.15B	-27.61B	-12.91B	525.00M
Operating Cash Flow	29.68B	15.27B	24.64B	-18.06B	-5.44B	10.60B
Investing Cash Flow	-2.40B	-8.31B	37.93B	19.71B	-7.52B	-13.01B
Financing Cash Flow	-14.72B	-4.75B	-59.58B	2.03B	-5.50B	4.88B

Nippon Seiki Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2185.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7287, the sentiment is Positive. The current price of 2185 is below the 20-day moving average (MA) of 2451.40, below the 50-day MA of 2256.64, and above the 200-day MA of 1700.50, indicating a bullish trend. The MACD of 91.66 indicates Positive momentum. The RSI at 57.53 is Neutral, neither overbought nor oversold. The STOCH value of 16.39 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7287.

Nippon Seiki Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5970	85 Outperform	¥84.18B	6.92	―	4.95%	-5.89%	8.95%
7250	78 Outperform	¥182.35B	11.48	―	1.03%	3.62%	3.64%
7283	77 Outperform	¥139.12B	10.20	―	3.30%	0.29%	9.87%
7287	76 Outperform	¥144.49B	15.78	―	2.93%	1.77%	117.03%
7241	68 Neutral	¥93.05B	8.45	―	3.88%	-7.35%	43.31%
5988	66 Neutral	¥43.40B	51.35	―	5.35%	-6.20%	-64.65%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Nippon Seiki Co., Ltd. Corporate Events

Nippon Seiki Unwinds Equity Ties With Alps Alpine but Maintains Business Alliance

Nippon Seiki will dissolve its capital and business alliance with Alps Alpine Co., Ltd. and transition to a non-equity business alliance, in line with growing corporate governance emphasis on reducing cross-shareholdings. Following a board resolution on January 27, 2026, Nippon Seiki plans to sell its 2.6 million-share stake in Alps Alpine on the market, while Alps Alpine, which holds 3 million Nippon Seiki shares (5.21% of outstanding, excluding treasury stock), has confirmed it intends to sell its stake in the future as well; despite unwinding the mutual shareholdings, the companies will continue their collaboration mainly on integrated cockpit products, with Nippon Seiki stating that the impact on its consolidated results for the year ending March 31, 2026 will be immaterial and that it expects to maintain a good relationship focused on enhancing corporate value for both sides.

The most recent analyst rating on (JP:7287) stock is a Buy with a Yen3024.00 price target. To see the full list of analyst forecasts on Nippon Seiki Co., Ltd. stock, see the JP:7287 Stock Forecast page.

Nippon Seiki Reports No Progress on Authorized Share Buyback Program

Nippon Seiki announced that, despite board authorization to repurchase up to 2 million shares of common stock for a total of up to 2 billion yen between May 16, 2025, and March 31, 2026, it did not acquire any of its own shares during the period from December 1 to December 31, 2025. As of December 31, 2025, the cumulative progress under the buyback program remained at zero shares acquired for zero yen, indicating that the capital allocation initiative has yet to be executed and leaving the company’s share count and capital structure unchanged for shareholders over the reported period.

The most recent analyst rating on (JP:7287) stock is a Buy with a Yen2449.00 price target. To see the full list of analyst forecasts on Nippon Seiki Co., Ltd. stock, see the JP:7287 Stock Forecast page.

Nippon Seiki Reports No Progress in Share Buyback Program

Nippon Seiki Co., Ltd. announced the status of its share buyback program, which was resolved in May 2025. Despite the authorization to acquire up to 2 million shares, no shares were acquired during the specified period from November 1 to November 30, 2025. This indicates a lack of progress in the company’s share repurchase strategy, potentially impacting stakeholder expectations and market perceptions.

The most recent analyst rating on (JP:7287) stock is a Buy with a Yen2347.00 price target. To see the full list of analyst forecasts on Nippon Seiki Co., Ltd. stock, see the JP:7287 Stock Forecast page.

Nippon Seiki Reports Strong H1 Growth Driven by ASEAN and India Markets

Nippon Seiki Co., Ltd. reported a 2.5% increase in sales revenue and a substantial 52.3% rise in operating profit for the first half of the fiscal year ending March 2026. This growth was driven by strong sales of motorcycle instruments in ASEAN and India, despite a decrease in automobile instrument sales due to market stagnation in China and reduced head-up display sales in North America. The company maintained its interim dividend forecast and confirmed no changes to its full-year financial projections, signaling stable expectations for stakeholders.

The most recent analyst rating on (JP:7287) stock is a Hold with a Yen1845.00 price target. To see the full list of analyst forecasts on Nippon Seiki Co., Ltd. stock, see the JP:7287 Stock Forecast page.

Nippon Seiki Reports Robust Financial Growth in First Half of 2025

Nippon Seiki Co., Ltd. reported a significant improvement in its financial performance for the six months ended September 30, 2025, with revenue increasing by 2.5% and profit attributable to owners of the parent surging by 397.9% compared to the same period in the previous year. This financial upturn is indicative of the company’s strengthened market position and operational efficiency, likely benefiting stakeholders and enhancing its competitive edge in the industry.

The most recent analyst rating on (JP:7287) stock is a Hold with a Yen1845.00 price target. To see the full list of analyst forecasts on Nippon Seiki Co., Ltd. stock, see the JP:7287 Stock Forecast page.

Nippon Seiki Completes Treasury Share Disposal with Adjustments

Nippon Seiki Co., Ltd. has completed the payment procedures for the disposal of treasury shares through a third-party allotment to its Employee Stock Ownership Plan, initially resolved in July 2025. Due to a partial forfeiture of rights, the number of shares and total disposal value were adjusted, with the impact on the company’s financial results expected to be minimal.

The most recent analyst rating on (JP:7287) stock is a Hold with a Yen1845.00 price target. To see the full list of analyst forecasts on Nippon Seiki Co., Ltd. stock, see the JP:7287 Stock Forecast page.

Nippon Seiki Reports No Progress in Share Buyback Plan

Nippon Seiki Co., Ltd. announced that despite a resolution to acquire up to 2,000,000 shares of its own stock, no shares were acquired during the period from October 1 to October 31, 2025. This decision follows a board resolution from May 2025, allowing the company to repurchase shares as a strategic move to potentially enhance shareholder value and optimize capital structure, although no progress has been made as of the end of October 2025.

The most recent analyst rating on (JP:7287) stock is a Hold with a Yen1845.00 price target. To see the full list of analyst forecasts on Nippon Seiki Co., Ltd. stock, see the JP:7287 Stock Forecast page.

Nippon Seiki Announces Increased Interim Dividend

Nippon Seiki Co., Ltd. announced a decision by its Board of Directors to pay an interim dividend of 40 yen per share, with a record date of September 30, 2025, and an effective date of December 8, 2025. This marks an increase from the previous fiscal year’s interim dividend of 25 yen per share, reflecting the company’s strong financial performance and commitment to returning value to shareholders.

The most recent analyst rating on (JP:7287) stock is a Hold with a Yen1845.00 price target. To see the full list of analyst forecasts on Nippon Seiki Co., Ltd. stock, see the JP:7287 Stock Forecast page.