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

• Market Cap: ¥228.01B
• Dividend Yield: 4.33%
• Average Volume (3M): 263.89K
• Price to Earnings (P/E): 34.3
• Beta (1Y): 0.69
• Revenue Growth: -2.24%
• EPS Growth: -43.32%
• Country: JP
• Employees: 14,719
• Sector: Consumer Cyclical
• Sector Strength: 78
• Industry: Auto - Parts
• EPS (TTM): 16.97
• Shares Outstanding: 124,000,000
• 10 Day Avg. Volume: 226,210
• 30 Day Avg. Volume: 263,886
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥1,700.00
• Price Target Upside: -11.23% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2

• Rating: 65 Neutral
• Price Target: ¥2,003.00 ▲(4.60% Upside)

TS Tech Co., Ltd. has a stable financial position and positive technical indicators, but faces challenges with revenue growth and cash flow. The high P/E ratio suggests potential overvaluation, though the dividend yield is attractive. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage enhances financial stability, providing the company with resilience to withstand economic fluctuations and invest in growth opportunities.

Operational Efficiency

Stable margins indicate effective cost management and operational efficiency, which can sustain profitability even in challenging market conditions.

Long-term Contracts

Long-term contracts with major automotive manufacturers provide revenue visibility and stability, reducing the risk of demand fluctuations and supporting consistent cash flow.

Negative Factors

Declining Revenue Growth

A decline in revenue growth can signal difficulties in expanding market share or product demand, potentially impacting future profitability and market position.

Cash Flow Challenges

Decreasing free cash flow growth can limit the company's ability to invest in new projects, pay down debt, or return capital to shareholders, affecting long-term financial health.

Decreased Net Profit Margin

A declining net profit margin indicates increased cost pressures or reduced pricing power, which could affect the company's ability to generate profits in the long term.

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

Company Description

TS Tech Co., Ltd. (7313) is a prominent manufacturer specializing in automotive components, particularly seating systems and interior parts. The company operates primarily within the automotive sector, providing innovative solutions that enhance comfort and safety in vehicles. TS Tech is recognized for its commitment to quality and technological advancement, catering to major automotive manufacturers worldwide with a diverse range of products designed to meet the evolving needs of modern vehicles.

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

TS Tech Co., Ltd. demonstrates a stable financial foundation with strong balance sheet metrics and operational efficiency. However, challenges in revenue growth and cash flow generation could impact future profitability.

Income Statement

TS Tech Co., Ltd. has shown a mixed performance in its income statement. The company experienced a decline in revenue growth rate in the TTM, indicating potential challenges in maintaining sales momentum. However, the gross profit margin remains stable, and the EBIT and EBITDA margins are decent, suggesting operational efficiency. The net profit margin has decreased, reflecting pressure on profitability.

Balance Sheet

The balance sheet of TS Tech Co., Ltd. is relatively strong with a low debt-to-equity ratio, indicating low leverage and financial stability. The return on equity has slightly decreased, but the equity ratio remains healthy, showing a strong capital structure. Overall, the company maintains a solid financial position.

Cash Flow

Cash flow analysis reveals some concerns, with a significant decline in free cash flow growth in the TTM. The operating cash flow to net income ratio is stable, but the free cash flow to net income ratio has decreased, indicating potential challenges in cash generation relative to earnings. The company needs to focus on improving cash flow efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	450.70B	460.51B	441.71B	409.20B	349.96B	346.15B
Gross Profit	61.69B	62.97B	59.85B	53.41B	54.24B	57.48B
EBITDA	33.54B	34.82B	35.13B	30.21B	36.40B	40.16B
Net Income	6.75B	8.63B	10.21B	5.34B	12.42B	20.74B
Balance Sheet
Total Assets	418.26B	432.37B	446.21B	416.23B	415.99B	390.48B
Cash, Cash Equivalents and Short-Term Investments	112.01B	111.54B	161.05B	132.91B	139.59B	153.03B
Total Debt	4.39B	5.76B	4.65B	4.82B	6.03B	5.23B
Total Liabilities	105.11B	106.68B	97.51B	92.77B	90.40B	89.03B
Stockholders Equity	297.94B	306.30B	326.93B	298.79B	296.86B	277.02B
Cash Flow
Free Cash Flow	7.72B	11.72B	21.08B	14.64B	4.38B	17.49B
Operating Cash Flow	26.65B	28.71B	37.66B	30.45B	20.02B	25.15B
Investing Cash Flow	-28.24B	-35.87B	-8.67B	-20.97B	-17.20B	-11.71B
Financing Cash Flow	-31.93B	-31.44B	-17.82B	-18.86B	-23.64B	-14.65B

TS Tech Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1915.00
• 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 1915 is above the 20-day moving average (MA) of 1876.50, above the 50-day MA of 1823.59, and above the 200-day MA of 1701.74, indicating a bullish trend. The MACD of 28.74 indicates Negative momentum. The RSI at 64.76 is Neutral, neither overbought nor oversold. The STOCH value of 78.50 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
7313	65 Neutral	¥228.01B	34.31		4.33%	-2.24%	-43.32%
Sector *	61 Neutral	$18.08B	12.82	-2.51%	3.03%	1.45%	-15.68%
60V	―	€1.17B	7.80	10.75%	―	―	―
64M	―	€1.16B	12.72	6.32%	―	―	―
6995	77 Outperform	¥240.77B	9.30		3.42%	-1.35%	21.33%
5191	74 Outperform	¥234.13B	8.59		2.39%	0.49%	27.98%
7220	72 Outperform	¥234.70B	36.04		1.40%	-4.23%	-28.48%

TS Tech Co., Ltd. Corporate Events

TS Tech Reports Mixed Financial Results for Q3 FY2025

In the cumulative third quarter of FY2025, TS Tech Co., Ltd. reported a 3.1% increase in revenue compared to the previous year, reaching 339,619 million yen. However, the company faced a decline in operating income and net income by 19.3% and 18.4%, respectively. Despite these challenges, TS Tech maintained a strong equity ratio, with equity attributable to owners of the parent at 72.0%. The company has also forecasted a slight revenue increase for FY2025, indicating cautious optimism for the future.