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

• Market Cap: ¥212.47B
• Dividend Yield: 4.77%
• Average Volume (3M): 221.99K
• Price to Earnings (P/E): 16.0
• Beta (1Y): 0.71
• 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): 66.04
• Revenue Forecast (FY): ¥415.17B

• Rating: 58 Neutral
• Price Target: ¥2,058.00 ▲(11.79% Upside)
• Action: Reiterated Date: 02/08/26
• Date: Action: Reiterated 02/08/26

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

An extremely low debt-to-equity ratio provides durable financial flexibility for a cyclic OEM supplier. It reduces refinancing and interest risk, supports funding of program-related capex or temporary working-capital needs, and enables opportunistic investment or M&A when competitors struggle.

Core OEM seat expertise

Specialization in seat systems creates entrenched engineering expertise and long vehicle-program relationships with OEMs. Multi-year platform production cycles and high switching costs for OEMs generate recurring revenues and a durable competitive moat versus generalist suppliers.

Positive EBITDA margin

A near-7% EBITDA margin indicates underlying manufacturing economics and the ability to cover fixed costs despite recent earnings pressure. If volumes and working-capital normalize, this margin base supports sustained operating cash generation and reinvestment in product programs.

Negative Factors

Negative free cash flow

A material swing to negative free cash flow constrains the company’s capacity to fund capex, repay or refinance debt, and sustain dividends without external funding. For a capital-intensive parts supplier, persistent negative FCF increases reinvestment and liquidity risk over the medium term.

Revenue decline and margin squeeze

Declining revenue and narrowing operating/net margins point to weaker pricing power, mix deterioration, or volume softness with OEMs. Over multiple model cycles this undermines scale economics, pressures margins further, and reduces funds available for R&D and capacity upkeep.

Weak earnings growth & returns

A steep EPS decline and very low ROE despite a strong balance sheet signal operational underperformance. Low returns on shareholder capital suggest the business is not converting assets into profitable growth, limiting long-term shareholder value unless operational efficiency improves.

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	30.65B	35.10B	35.08B	30.70B	36.99B	47.82B
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	150.75B	150.67B	139.59B	158.40B
Total Debt	10.41B	5.76B	4.66B	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: Negative
• Last Price: 1841.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7313, the sentiment is Negative. The current price of 1841 is below the 20-day moving average (MA) of 1927.33, below the 50-day MA of 1929.31, and above the 200-day MA of 1816.37, indicating a bearish trend. The MACD of -36.47 indicates Positive momentum. The RSI at 27.10 is Positive, neither overbought nor oversold. The STOCH value of 3.19 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
7259	77 Outperform	¥1.74T	14.23	8.34%	2.03%	4.33%	524.86%
7239	76 Outperform	¥72.10B	7.00	11.87%	5.00%	-10.87%	153.16%
7282	75 Outperform	¥508.85B	7.76	8.58%	2.62%	1.44%	-0.92%
5991	74 Outperform	¥539.46B	11.33	―	2.60%	1.06%	-5.99%
3116	66 Neutral	¥473.31B	10.02	3.70%	3.42%	2.10%	-50.33%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7313	58 Neutral	¥212.47B	16.01	―	4.77%	-3.71%	-51.81%

TS Tech Co., Ltd. Corporate Events

TS Tech Completes ¥5 Billion Share Buyback Program

TS Tech has completed a share repurchase program authorized by its board in May 2025, acquiring 171,000 common shares on the Tokyo Stock Exchange between March 1 and March 16, 2026, for about 320.6 million yen. This latest buyback brings the cumulative total under the program to 2,717,300 shares, with nearly the entire 5 billion yen budget deployed, signaling an active capital-return policy and potential support for earnings per share and shareholder value.

The completed repurchase represents around two-thirds of the initially authorized share volume but effectively exhausts the monetary limit, indicating management prioritized price over quantity in executing the program. For investors, the near-full use of the authorized funds underscores confidence in the company’s prospects and may bolster TS Tech’s positioning in the automotive supplier sector by improving capital efficiency and potentially stabilizing its share price.

The most recent analyst rating on (JP:7313) stock is a Hold with a Yen1854.00 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 Nears Upper Limit of ¥5 Billion Share Buyback Program

TS Tech Co., Ltd. has disclosed the latest status of its share buyback program, reporting the purchase of 265,300 shares of common stock for approximately ¥524 million on the Tokyo Stock Exchange between February 1 and February 28, 2026. This transaction is part of a broader board-approved authorization from May 2025 that allows up to 4.14 million shares and ¥5 billion in repurchases through March 24, 2026.

As of February 28, 2026, TS Tech has cumulatively acquired 2,546,300 shares for about ¥4.68 billion under this program, nearing the upper monetary limit set by the board. The ongoing buyback underscores management’s capital allocation strategy, which may support shareholder value by improving capital efficiency and potentially signaling confidence in the company’s prospects.

The most recent analyst rating on (JP:7313) stock is a Hold with a Yen2060.00 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 Revamps Organization and Leadership to Bolster Growth and Efficiency

TS Tech is overhauling its internal structure to support expanding business with new customers, renaming its New Business Management Division as the Business Development Division and consolidating several manufacturing-related departments to streamline technology development and production control. The company will also rename its Saitama Plant to the Gyoda Plant, centralize certain production management functions, fold sustainability and public relations into the Administration Department, and spin off an Affiliates Administration Department to reinforce group-wide management.

Alongside the organizational reshuffle, TS Tech announced a broad slate of director and officer reassignments effective April and June 2026, including elevating Eiji Toba to Representative Director, President and revising responsibilities for senior executives overseeing sales, purchasing, business development, and administration. These moves signal an effort to tighten governance, improve operational efficiency across global operations, and better align leadership roles with the company’s growth and restructuring agenda, potentially affecting how TS Tech manages its overseas affiliates and large-scale production launches.

The most recent analyst rating on (JP:7313) stock is a Hold with a Yen2060.00 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 Names Eiji Toba President in Leadership Transition Ahead of New Mid-Term Plan

TS Tech has announced a leadership reshuffle, with the board approving the appointment of Eiji Toba as representative director and president effective April 1, 2026, while current president Masanari Yasuda will remain a representative director until his scheduled retirement at the end of his term in June 2026. Toba, a long-time TS Tech executive with extensive overseas and divisional leadership experience, is being elevated from representative director and senior managing officer as the company prepares a new management structure aimed at boosting corporate value under its upcoming 16th Medium-Term Management Plan for fiscal years 2027 to 2029.

The succession plan underscores TS Tech’s intent to strengthen its global management capabilities by promoting a leader who has overseen key regions such as North America, Asia, and Europe, as well as corporate manufacturing and development functions. This transition signals a continuity-oriented yet forward-looking shift in governance designed to support execution of the next medium-term strategy, which will be closely watched by investors and business partners as the company navigates industry change and seeks sustained growth.

The most recent analyst rating on (JP:7313) stock is a Hold with a Yen2060.00 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 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.