TS Tech Co., Ltd. (7313) AI Stock Analysis

• Market Cap: ¥237.72B
• Dividend Yield: 4.77%
• Average Volume (3M): 221.99K
• Price to Earnings (P/E): 45.5
• Beta (1Y): 0.68
• Revenue Growth: -3.71%
• EPS Growth: -51.81%
• Country: JP
• Employees: 14,719
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 28.50
• Shares Outstanding: 124,000,000
• 10 Day Avg. Volume: 174,950
• 30 Day Avg. Volume: 221,993
• PEG Ratio: -2.02
• Price to Book (P/B): 0.67
• Price to Sales (P/S): 0.45
• P/FCF Ratio: 17.50
• 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: 58 Neutral
• Price Target: ¥2,058.00 ▲(11.79% Upside)

The score is held back primarily by weakening financial performance and a sharp deterioration in cash generation (negative TTM free cash flow), despite a very strong low-leverage balance sheet. Technicals are supportive with an upward trend, but valuation is a headwind due to the high P/E even with a solid dividend yield.

Positive Factors

Very low leverage

Extremely low debt (D/E ~0.03x) gives the company lasting financial flexibility to absorb auto-cycle shocks, fund capex for program launches, and support R&D or dividends without pressuring liquidity. This balance-sheet strength improves resilience over multiple production cycles.

Program-based B2B model

A program-based supply model tied to OEM production creates multi-year, volume-driven revenue streams and deeper engineering integration. Long production lives and engineering services raise switching costs and provide predictable backbone revenue across model cycles, supporting midterm stability.

Underlying EBITDA profitability

A ~6.9% EBITDA margin shows the business can generate positive core operating cash before capex and financing. In a low-margin auto-supply sector this indicates structural cost competence and capacity to cover fixed costs, supporting program fulfillment and reinvestment when volumes recover.

Negative Factors

Negative free cash flow

A sharp reversal to negative FCF (~-¥11.5B) after prior positive years reduces the firm's ability to self-fund capex, development for new programs, and shareholder distributions. Persistent weak cash conversion raises financing or working-capital pressure across model cycles.

Margin compression

Compressed operating and net margins materially reduce the cushion to absorb input cost inflation or pricing pressure from OEMs. Structural margin erosion limits reinvestment and weakens returns on new contracts, making long-term profitability recovery more challenging without structural cost fixes.

Weak top-line and EPS trends

Declining revenue and steep EPS contraction alongside low ROE (~1.7%) point to deteriorating earnings quality and limited shareholder returns. If sustained, these trends signal structural demand, pricing or execution weaknesses that hinder long-term capital efficiency and investor returns.

TS Tech Co., Ltd. Business Overview & Revenue Model

Company Description

TS TECH Co., Ltd. develops, manufactures, and sells seats for automobiles. It also offers interior trims and components for automobiles; motorcycle seats; and resin-based parts and accessories for motorcycles. The company provides front, mid, and rear seats, as well as door trims for automobiles; chairs for medical care; and products for off-road and recreational use. It also operates in Japan, the United States, Canada, Mexico, Brazil, China, Thailand, the Philippines, India, Indonesia, the United Kingdom, and Hungary. The company was formerly known as Tokyo Seat Co., Ltd. and changed its name to TS TECH Co., Ltd. in October 1997. TS TECH Co., Ltd. was incorporated in 1948 and is headquartered in Asaka, Japan.

How the Company Makes Money

TS Tech Co., Ltd. generates revenue primarily through the production and sale of automotive seating systems and related interior components. Its key revenue streams include direct sales to major automotive manufacturers, which often require custom solutions tailored to specific vehicle models. The company benefits from long-term contracts and partnerships with prominent automotive brands, ensuring a steady demand for its products. Additionally, TS Tech invests in research and development to innovate and improve its product offerings, which can lead to increased market share and profitability. Factors contributing to its earnings include the growing automotive market, advancements in automotive technology, and a strong focus on sustainability and efficiency in manufacturing processes.

TS Tech Co., Ltd. Financial Statement Overview

Summary

Fundamentals are mixed: TTM revenue fell (-3.2%) and margins compressed (net margin ~1.2%, operating margin ~3.5%). The balance sheet is very strong with low leverage (debt-to-equity ~0.03x), but cash flow is a key concern as free cash flow turned negative (~-¥11.5B TTM) after being consistently positive in prior years.

Income Statement

TTM (Trailing-Twelve-Months) revenue declined (-3.2%) and profitability has compressed versus prior years: net margin is ~1.2% (TTM) vs ~1.9% in FY2025 and ~2.3% in FY2024, while operating margin also stepped down (to ~3.5% TTM). The positive is the company remains profitable with a still-reasonable EBITDA margin (~6.9% TTM), but the overall trajectory shows weaker pricing/power and earnings quality than the stronger FY2021–FY2022 period.

Balance Sheet

The balance sheet is a clear strength with very low leverage: debt-to-equity is ~0.03x in TTM (Trailing-Twelve-Months) and has remained low across the annual periods, indicating ample financial flexibility. However, returns on shareholder capital are currently modest (ROE ~1.7% TTM), reflecting the recent earnings softness despite the strong capital base.

Cash Flow

Cash generation weakened materially in TTM (Trailing-Twelve-Months): operating cash flow fell to ~¥8.2B and free cash flow turned negative (~-¥11.5B), a sharp reversal from consistently positive free cash flow in the annual periods shown (e.g., ~¥11.7B in FY2025 and ~¥21.1B in FY2024). While free cash flow growth is listed as positive in TTM, the absolute outcome (negative free cash flow and low cash conversion versus net income) raises near-term quality and reinvestment/working-capital risk.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2021
Income Statement
Total Revenue	430.86B	460.51B	441.71B	409.20B	349.96B	346.15B
Gross Profit	54.92B	62.97B	59.85B	53.41B	54.24B	57.48B
EBITDA	29.75B	34.82B	35.13B	30.21B	36.40B	40.16B
Net Income	5.17B	8.63B	10.21B	5.34B	12.42B	20.74B
Balance Sheet
Total Assets	425.89B	432.37B	446.21B	416.23B	415.99B	390.48B
Cash, Cash Equivalents and Short-Term Investments	77.45B	111.54B	161.05B	132.91B	139.59B	153.03B
Total Debt	10.41B	5.76B	4.65B	4.82B	6.03B	5.23B
Total Liabilities	99.35B	106.68B	97.51B	92.77B	90.40B	89.03B
Stockholders Equity	309.53B	306.30B	326.93B	298.79B	296.86B	277.02B
Cash Flow
Free Cash Flow	-11.49B	11.72B	21.08B	14.64B	4.38B	17.49B
Operating Cash Flow	8.18B	28.71B	37.66B	30.45B	20.02B	25.15B
Investing Cash Flow	-22.57B	-35.87B	-8.67B	-20.97B	-17.20B	-11.71B
Financing Cash Flow	-21.59B	-31.44B	-17.82B	-18.86B	-23.64B	-14.65B

TS Tech Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1841.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7313, the sentiment is Positive. The current price of 1841 is below the 20-day moving average (MA) of 1949.95, below the 50-day MA of 1900.69, and above the 200-day MA of 1789.97, indicating a bullish trend. The MACD of 26.84 indicates Negative momentum. The RSI at 59.58 is Neutral, neither overbought nor oversold. The STOCH value of 75.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7313.

TS Tech Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6995	81 Outperform	¥286.94B	8.94	―	3.36%	1.36%	139.77%
7242	78 Outperform	¥255.33B	7.63	12.15%	2.87%	3.95%	136.86%
7278	69 Neutral	¥222.77B	16.39	6.56%	5.39%	-2.26%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7220	59 Neutral	¥157.21B	81.87	―	1.93%	-3.23%	24.93%
7313	58 Neutral	¥237.72B	45.52	―	4.77%	-3.71%	-51.81%

TS Tech Co., Ltd. Corporate Events

TS Tech Q3 FY2026 Profit Slumps but Dividend and Balance Sheet Stay Robust

TS Tech reported a steep year-on-year decline in earnings for the cumulative third quarter of FY2026, with revenue down 8.7% to ¥309.9 billion and operating income halved to ¥5.6 billion, while net income attributable to owners of the parent fell 42.6% and basic earnings per share dropped to ¥39.27. Despite the weaker profits, the company’s financial position remained solid, with total assets of ¥425.9 billion and an equity ratio of 72.7%, and it maintained its dividend stance by paying a higher interim dividend and keeping its full-year dividend forecast unchanged at ¥90 per share, even as it projects full-year revenue and profit to decline from FY2025 levels, signaling both ongoing headwinds and confidence in balance sheet strength for shareholders.

The most recent analyst rating on (JP:7313) stock is a Hold with a Yen1931.00 price target. To see the full list of analyst forecasts on TS Tech Co., Ltd. stock, see the JP:7313 Stock Forecast page.

TS Tech Continues Steady Execution of Share Buyback

TS Tech reported that it bought 289,300 shares for ¥552.2 million on the Tokyo Stock Exchange between January 1 and January 31, 2026, under its ongoing board-approved buyback program. The cumulative repurchases since June 2025 now total 2,281,000 shares for ¥4.16 billion, indicating steady progress toward the ¥5 billion allocation and signaling a sustained commitment to balance sheet management and shareholder returns.

The most recent analyst rating on (JP:7313) stock is a Hold with a Yen1931.00 price target. To see the full list of analyst forecasts on TS Tech Co., Ltd. stock, see the JP:7313 Stock Forecast page.

TS Tech Reports Progress on Ongoing Share Buyback Program

TS Tech has reported the status of its ongoing share buyback program, confirming that it acquired 275,800 shares of its common stock for a total of 493,620,750 yen via market purchases on the Tokyo Stock Exchange between December 1 and December 31, 2025. This transaction forms part of a broader board-approved buyback authorization, under which the company is permitted to repurchase up to 4,140,000 shares or 5 billion yen through March 24, 2026; as of December 31, 2025, it had cumulatively bought back 1,991,700 shares for 3,603,032,800 yen, signaling continued efforts to optimize capital allocation and potentially enhance shareholder value through reduced share float.

The most recent analyst rating on (JP:7313) stock is a Sell with a Yen1500.00 price target. To see the full list of analyst forecasts on TS Tech Co., Ltd. stock, see the JP:7313 Stock Forecast page.

TS Tech Cuts Size of Treasury-Share Disposal for Employee Stock Plan After Partial Forfeiture

TS Tech Co., Ltd. has completed the payment procedures for the disposal of treasury shares used as transfer-restricted, share-based incentives under its employee stock ownership plan, following a November 14, 2025 board resolution. Due to a partial forfeiture after finalizing the number of employees consenting to participate, the company reduced the number of shares disposed from 2,795 to 1,430 and the total disposal amount from ¥5,268,575 to ¥2,695,550, all via third-party allotment to the TS Tech Employee Stock Ownership Plan; the adjustment fine-tunes the scale of equity-based compensation without altering the disposal date or price per share.

The most recent analyst rating on (JP:7313) stock is a Sell with a Yen1500.00 price target. To see the full list of analyst forecasts on TS Tech Co., Ltd. stock, see the JP:7313 Stock Forecast page.

TS Tech Expands Employee Stock Ownership Plan with Treasury Stock Disposal

TS Tech Co., Ltd. announced a resolution to dispose of treasury stock as part of an employee stock ownership plan, expanding the scope of eligible employees. This initiative aims to strengthen employee engagement and contribute to the company’s sustained growth by aligning employee interests with corporate value enhancement. The disposal involves 2,795 shares of common stock, with each eligible employee receiving 65 shares as a transfer-restricted incentive, fostering asset accumulation and management involvement.

The most recent analyst rating on (JP:7313) stock is a Sell with a Yen1500.00 price target. To see the full list of analyst forecasts on TS Tech Co., Ltd. stock, see the JP:7313 Stock Forecast page.

TS Tech Co., Ltd. Reports Decline in FY2026 First Half Earnings

TS Tech Co., Ltd. reported a decline in its financial performance for the first half of FY2026, with revenue dropping by 7% and significant decreases in operating income and net income compared to the previous year. Despite these challenges, the company plans to increase its annual cash dividends, reflecting a commitment to shareholder returns.

The most recent analyst rating on (JP:7313) stock is a Sell with a Yen1500.00 price target. To see the full list of analyst forecasts on TS Tech Co., Ltd. stock, see the JP:7313 Stock Forecast page.

TS Tech Revises FY2026 Forecasts Amid Operational Challenges

TS Tech Co., Ltd. has revised its full-year consolidated forecasts for FY2026, anticipating a decrease in revenue and profit due to factors such as exchange rate fluctuations, supply chain issues affecting major customers, increased operational expenses, and delays in launching new business models. These adjustments reflect a challenging business environment and could impact the company’s financial performance and strategic positioning.

The most recent analyst rating on (JP:7313) stock is a Sell with a Yen1500.00 price target. To see the full list of analyst forecasts on TS Tech Co., Ltd. stock, see the JP:7313 Stock Forecast page.