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

• Market Cap: ¥165.33B
• Dividend Yield: 2.93%
• Average Volume (3M): 97.20K
• Price to Earnings (P/E): 15.8
• Beta (1Y): 1.11
• Revenue Growth: 1.77%
• EPS Growth: 117.03%
• Country: JP
• Employees: 13,291
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): N/A
• 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: 74 Outperform
• Price Target: ¥2,976.00 ▲(36.20% Upside)
• Action: Reiterated Date: 02/08/26
• Date: Action: Reiterated 02/08/26

The score is driven primarily by improving fundamentals and a solid balance sheet, reinforced by a strong upward technical trend. Offsetting factors are modest profitability/returns and a history of volatile cash-flow conversion; valuation is supportive but not a major catalyst on its own.

Positive Factors

Conservative Balance Sheet

Very low leverage and a sizable equity base provide durable financial flexibility. Conservative balance-sheet positioning helps the company absorb OEM cycle volatility, support working capital for platform ramps, and fund R&D or capex without relying on costly external debt.

Improved Cash Generation

A sustained shift to positive operating and free cash flow enhances self-funding capacity for capex, tooling and program launches. Improved cash conversion supports stable supplier and customer relationships and reduces reliance on external financing across automotive cycles.

Recovery in Profitability and Scale

Return to positive net income and expanded margins versus recent loss-making years indicates operational recovery. Sustained profitability at scale helps solidify OEM relationships, fund product development in HMI/display domains, and makes future margin improvement more attainable.

Negative Factors

Modest Returns on Capital

Low ROE signals limited ability to generate high returns from equity even after recovery. Persistently modest returns constrain long-term shareholder value creation and imply the balance sheet is underutilized relative to peers in the auto-parts sector.

Inconsistent Cash Conversion

Historical swings between negative and positive operating cash flow indicate cash generation is volatile and tied to timing of programs or working capital. This undermines predictability for capex funding, dividends and program investment over multiple quarters.

Revenue Growth Volatility

Irregular growth patterns suggest dependence on OEM program timing and model cycles. Such volatility increases forecasting risk, can pressure margins when volumes fall, and makes it harder to rely on steady scale benefits in the medium term.

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

A clear multi-year recovery with improved TTM profitability (net income ¥10.4B; net margin ~3.2%, EBIT margin ~4.8%) and a stronger, lower-leverage balance sheet (debt-to-equity ~0.19). The main constraints are still-modest margins/returns (ROE ~4.7%) and historically inconsistent cash conversion despite positive TTM free cash flow (¥16.9B).

Income Statement

TTM (Trailing-Twelve-Months) revenue is solid at ¥323.0B and profitability has improved meaningfully versus prior years: net income rose to ¥10.4B (from ¥6.1B in FY2025 annual), with net margin expanding to ~3.2% and EBIT margin to ~4.8%. Longer-term, results show a clear recovery from the FY2022 loss and very weak FY2023 profitability. Key watchouts are that margins remain modest for the sector and the TTM revenue growth rate shown is unusually high versus the steadier annual growth profile, suggesting potential volatility or a base-period effect.

Balance Sheet

Leverage looks conservative in TTM (Trailing-Twelve-Months) with debt-to-equity at ~0.19 and equity of ~¥229.3B against total assets of ~¥346.8B, indicating a solid capital base. The company also reduced leverage materially from FY2023 (debt-to-equity ~0.40) to recent periods. The main weakness is returns: TTM return on equity is ~4.7%, improved from prior years but still not strong, implying the balance sheet is safe but not being utilized at high profitability.

Cash Flow

Cash generation has improved: TTM (Trailing-Twelve-Months) operating cash flow is ¥30.2B and free cash flow is ¥16.9B, a sharp turnaround from negative cash flow in FY2022–FY2023 and from negative free cash flow in FY2025 annual. However, free cash flow is only about ~56% of net income in TTM, and cash conversion has been inconsistent across years (including periods of negative operating cash flow), which adds uncertainty around the durability of current cash performance.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	322.96B	316.40B	312.36B	275.78B	223.62B	216.93B
Gross Profit	48.65B	46.34B	42.92B	38.63B	36.11B	32.84B
EBITDA	28.84B	24.72B	26.99B	18.82B	10.69B	17.69B
Net Income	10.36B	6.12B	5.30B	1.38B	-5.18B	517.00M
Balance Sheet
Total Assets	346.77B	332.10B	338.63B	355.95B	329.55B	315.19B
Cash, Cash Equivalents and Short-Term Investments	50.37B	35.30B	33.26B	85.16B	102.80B	112.43B
Total Debt	43.09B	37.22B	25.19B	79.14B	69.13B	69.77B
Total Liabilities	115.27B	111.86B	109.58B	149.50B	134.68B	128.66B
Stockholders Equity	229.35B	216.69B	221.54B	199.62B	186.26B	179.22B
Cash Flow
Free Cash Flow	16.88B	-1.85B	13.15B	-27.61B	-12.91B	525.00M
Operating Cash Flow	30.16B	15.27B	24.64B	-18.06B	-5.44B	10.60B
Investing Cash Flow	-7.79B	-8.31B	37.93B	19.71B	-7.52B	-13.01B
Financing Cash Flow	-9.93B	-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: Negative
• STOCH: Negative

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 2716.00, below the 50-day MA of 2505.00, and above the 200-day MA of 1866.74, indicating a bullish trend. The MACD of 83.45 indicates Positive momentum. The RSI at 71.31 is Negative, neither overbought nor oversold. The STOCH value of 83.46 is Negative, 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	¥88.82B	9.02	―	4.95%	-5.89%	8.95%
7250	78 Outperform	¥182.35B	10.97	―	1.03%	3.62%	3.64%
7283	77 Outperform	¥145.52B	9.89	―	3.30%	0.29%	9.87%
7287	74 Outperform	¥165.33B	15.81	―	2.93%	1.77%	117.03%
7241	68 Neutral	¥105.06B	7.32	―	3.88%	-7.35%	43.31%
5988	66 Neutral	¥44.97B	77.23	―	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 Lifts Q3 Profits on Strong Motorcycle Instrument Sales in Asia

Nippon Seiki reported a 2.9% year-on-year increase in revenue and a 52.3% rise in operating profit for the third quarter of the fiscal year ending March 2026, driven primarily by strong sales of motorcycle instruments in ASEAN and India, while automobile instrument sales declined amid weakness in China and lower head-up display demand in North America. Profit before tax surged 125.4% year-on-year, supported by foreign exchange gains, and with revenue and operating profit already achieving 73.2% and 75.8% of the full-year plan respectively, the company maintained its full-year forecast, signaling confidence in meeting its earnings targets despite regional softness in its automotive segment.

The most recent analyst rating on (JP:7287) stock is a Buy with a Yen2771.00 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 Profit Soars on Higher Margins, Plans Sharp Dividend Hike

Nippon Seiki reported consolidated revenue of ¥234.4 billion for the nine months ended December 31, 2025, up 2.9% year-on-year, with operating profit surging 52.3% to ¥8.6 billion and profit attributable to owners of the parent jumping 179.2% to ¥6.6 billion, reflecting a marked recovery in profitability and lifting basic earnings per share to ¥115.19. The company strengthened its balance sheet, with total assets rising to ¥346.8 billion and equity attributable to owners of the parent improving to ¥229.3 billion, and, on the back of stronger earnings, it is planning a substantial dividend increase to a forecast ¥80 per share for the full fiscal year ending March 31, 2026, while maintaining its full-year guidance for modest revenue growth and a near 18% rise in operating profit, signaling improved earnings quality and enhanced returns for shareholders.

The most recent analyst rating on (JP:7287) stock is a Buy with a Yen2771.00 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 Share Buybacks in January Window

The board-approved buyback program allowing up to 2 million shares or ¥2 billion through March 31, 2026 has seen no purchases in the January 2026 window, leaving the company’s capital structure and treasury position unchanged and signaling a cautious approach to shareholder returns despite authorization to repurchase.

The most recent analyst rating on (JP:7287) stock is a Buy with a Yen2771.00 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 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.