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

• Market Cap: ¥145.35B
• Dividend Yield: 2.93%
• Average Volume (3M): 97.20K
• Price to Earnings (P/E): 10.9
• Beta (1Y): 1.17
• 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: 0.58
• 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: ¥2,641.00 ▲(20.87% 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

Low leverage and a sizable equity base provide durable financial resilience. Conservative debt levels reduce refinancing and liquidity risk, enabling the company to fund OEM program investments and weather automotive cycles without needing near-term external capital.

Recovered profitability and margins

A clear multi-year recovery to positive net income and improved margins shows operational stabilization. Sustained profitability supports reinvestment, enhances ability to compete for higher-content OEM programs, and underpins longer-term free cash generation.

Turnaround in cash generation

Material improvement to positive operating cash flow and FCF strengthens the company’s ability to fund capex, cover program ramp costs, and return cash to shareholders. Durable cash generation reduces reliance on external financing through vehicle production cycles.

Negative Factors

Low returns on equity

ROE near 4.7% indicates modest profitability versus invested capital. Persistently low returns limit shareholder value creation and signal that the balance sheet is not being deployed at high efficiency, constraining long-term capital allocation flexibility.

Volatile cash conversion history

Historic swings between negative and positive operating cash flow create uncertainty about the durability of current FCF. Variable cash conversion complicates budgeting for capex, dividends, or program investment and raises working-capital risk around OEM timing.

OEM-dependent, cyclical revenue model

Business relies on securing OEM platform awards and vehicle program volume, producing lumpy revenues tied to model cycles. This structural dependence amplifies exposure to auto industry downturns and keeps margin expansion contingent on higher-content 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 makes money primarily by manufacturing and selling automotive instrumentation and HMI-related components to vehicle manufacturers and their supply chains. Its revenue model is largely business-to-business and project-based, where sales are generated through (1) supplying instrument clusters (meter assemblies) and related dashboard display systems that are designed to OEM specifications and produced at scale over a vehicle model’s production life, and (2) providing additional in-vehicle display/HMI components and associated electronic modules that may be bundled into broader cockpit/instrumentation programs. Earnings are driven by winning OEM platform awards, then monetizing through recurring unit shipments tied to vehicle production volumes, with pricing and margins influenced by product mix (e.g., higher-value electronic/display content), manufacturing efficiency, and procurement costs. Specific details on segment revenue breakdowns, named major customers, or partnership terms are null.

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	43.54B	42.92B	36.14B	33.47B	30.17B
EBITDA	26.01B	22.59B	22.59B	14.52B	10.31B	14.12B
Net Income	10.36B	6.12B	5.30B	1.31B	-5.18B	517.00M
Balance Sheet
Total Assets	346.77B	332.10B	338.63B	356.23B	329.55B	315.19B
Cash, Cash Equivalents and Short-Term Investments	50.37B	35.30B	33.26B	30.04B	24.80B	41.65B
Total Debt	38.32B	37.22B	32.62B	84.30B	74.09B	73.19B
Total Liabilities	115.27B	111.86B	109.57B	149.85B	134.68B	128.66B
Stockholders Equity	229.35B	216.69B	221.54B	199.54B	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: Negative
• Last Price: 2185.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7287, the sentiment is Negative. The current price of 2185 is below the 20-day moving average (MA) of 2607.45, below the 50-day MA of 2594.28, and above the 200-day MA of 1951.71, indicating a neutral trend. The MACD of -30.86 indicates Positive momentum. The RSI at 46.09 is Neutral, neither overbought nor oversold. The STOCH value of 80.44 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
6995	81 Outperform	¥253.54B	8.29	―	3.36%	1.36%	139.77%
7276	76 Outperform	$706.48B	14.05	7.20%	2.41%	-0.73%	88.36%
7282	75 Outperform	¥487.78B	7.76	8.58%	2.62%	1.44%	-0.92%
7287	74 Outperform	¥145.35B	10.91	―	2.93%	1.77%	117.03%
6902	67 Neutral	¥5.27T	10.20	6.98%	2.98%	2.41%	11.03%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7313	58 Neutral	¥209.85B	16.01	―	4.77%	-3.71%	-51.81%

Nippon Seiki Co., Ltd. Corporate Events

Nippon Seiki Reports No Share Buybacks in February Despite Existing Authorization

Nippon Seiki Co., Ltd. reported that, despite board authorization granted in May 2025 to repurchase up to 2,000,000 shares for as much as 2 billion yen by March 31, 2026, it acquired no shares during the most recent period from February 1 to February 28, 2026. The lack of activity in the buyback program suggests the company has so far opted to preserve cash or wait for more favorable market conditions, leaving its share count and near-term capital structure unchanged for shareholders.

The board resolution remains in place through the end of March 2026, allowing Nippon Seiki to still execute repurchases if conditions improve. For investors, the stalled progress may temper expectations of immediate capital returns via buybacks, but it also indicates management’s cautious approach to deploying funds under the existing authorization.

The most recent analyst rating on (JP:7287) stock is a Buy with a Yen2976.00 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 Revamps Top Management to Sharpen Response to Market Change

Nippon Seiki Co., Ltd. announced board-approved changes to its top management, with current Representative Director and Chairman Koichi Sato set to become Director and Chairman, and Director and Senior Managing Officer Masahiro Yoshihara slated to be promoted to Representative Director and Vice President. The reshuffle, to be formally decided at the June 26, 2026 shareholders meeting, is aimed at strengthening the management structure and enabling faster, more flexible responses to shifts in the business environment, signaling a generational and operational transition that may influence the company’s strategic direction in global production and quality assurance.

Yoshihara, who joined the company in 1985 and has led roles including President of Shanghai Nissei Display System Co., Ltd., currently oversees Global Quality Assurance Headquarters, Global Production Headquarters, and the Nagaoka Plant, responsibilities he is expected to retain after assuming the vice presidency. His elevation to representative director, effective June 26, 2026, underscores Nippon Seiki’s emphasis on leveraging long-term internal experience and manufacturing-focused leadership to navigate evolving market conditions and sustain competitiveness in its core display and component businesses.

The most recent analyst rating on (JP:7287) stock is a Buy with a Yen2976.00 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 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.