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Musashi Co Ltd (JP:7521)
:7521
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Musashi Co (7521) AI Stock Analysis

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JP:7521

Musashi Co

(7521)

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Outperform 80 (OpenAI - 4o)
Rating:80Outperform
Price Target:
¥2,669.00
▲(16.30% Upside)
Musashi Co's overall stock score is driven by its strong financial performance and attractive valuation. The company's robust profitability, solid balance sheet, and impressive cash flow generation are significant strengths. The technical analysis supports a positive trend, although caution is advised due to the nearing overbought condition. The low P/E ratio and reasonable dividend yield enhance the stock's appeal, making it a potentially undervalued investment opportunity.

Musashi Co (7521) vs. iShares MSCI Japan ETF (EWJ)

Musashi Co Business Overview & Revenue Model

Company DescriptionMusashi Co (7521) is a leading manufacturer and supplier of precision automotive components, primarily focusing on the production of engine parts and transmission systems. The company operates within the automotive sector, catering to both domestic and international markets. Musashi Co is known for its commitment to innovation, quality, and sustainability, producing a wide range of products that include cylinder heads, crankshafts, and gear components, which are essential for the performance and efficiency of modern vehicles.
How the Company Makes MoneyMusashi Co generates revenue primarily through the sale of its automotive components to major car manufacturers and aftermarket suppliers. The company's revenue model is largely based on long-term contracts with OEMs (Original Equipment Manufacturers), ensuring a steady flow of income. Key revenue streams include direct sales of precision components, engineering services, and product development projects. Additionally, Musashi Co benefits from strategic partnerships with automotive manufacturers that enhance its market reach and enable collaborative innovations. The company's focus on research and development also allows it to introduce new products and technologies, further driving sales and profitability.

Musashi Co Financial Statement Overview

Summary
Musashi Co's financial performance is impressive, characterized by strong profitability and robust cash flow generation. The company demonstrated remarkable growth in revenue and profit margins, supported by efficient operational management and cost control. A stable financial structure with low leverage and a strong equity position further enhances its financial stability.
Income Statement
85
Very Positive
Musashi Co exhibits a strong income statement with improving profitability metrics. The gross profit margin increased to 28.6% for the latest year, and the net profit margin surged to 9.2%, indicating efficient cost management and increased profitability. The revenue growth rate of 12.8% from 2024 to 2025 is also a positive indicator, showcasing the company's ability to grow its top line effectively. Additionally, significant improvements in EBIT and EBITDA margins to 9.0% and 13.9% respectively, highlight robust operational performance.
Balance Sheet
77
Positive
The balance sheet of Musashi Co is strong, with a healthy equity ratio of 68.2%, demonstrating a solid capital structure. The debt-to-equity ratio remains low at 0.10, indicating prudent leverage management. Return on Equity (ROE) improved significantly to 10.1%, reflecting enhanced shareholder value. The company has a substantial cash position, further reinforcing its financial stability. However, the growth in stockholders' equity is moderate, indicating room for improvement in asset growth.
Cash Flow
80
Positive
Musashi Co's cash flow statement is robust, with significant positive free cash flow growth from the previous year, indicating strong liquidity and the ability to fund operations and investments. The operating cash flow to net income ratio is 0.97, indicating that the company is efficiently converting its income into cash. The free cash flow to net income ratio of 0.91 further supports the company's strong cash generation capability, highlighting its ability to sustain operations and pursue growth opportunities.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue39.56B37.39B33.14B37.07B36.21B30.26B
Gross Profit11.54B10.68B8.09B9.44B8.76B6.77B
EBITDA4.66B5.18B1.60B3.16B2.35B454.00M
Net Income4.04B3.43B767.00M1.76B981.00M-28.00M
Balance Sheet
Total Assets49.32B49.81B45.03B43.89B43.48B41.31B
Cash, Cash Equivalents and Short-Term Investments21.94B22.29B16.66B20.68B19.48B18.48B
Total Debt5.28B3.52B3.52B3.52B3.52B3.52B
Total Liabilities14.75B15.84B14.83B15.20B16.46B14.28B
Stockholders Equity34.57B33.97B30.20B28.70B27.02B27.03B
Cash Flow
Free Cash Flow0.003.12B-725.00M1.34B1.90B-1.05B
Operating Cash Flow0.003.33B-322.00M1.59B2.60B-689.00M
Investing Cash Flow0.002.33B-3.37B-10.00M-904.00M-612.00M
Financing Cash Flow0.00-434.00M-324.00M-390.00M-594.00M-591.00M

Musashi Co Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price2295.00
Price Trends
50DMA
2281.31
Negative
100DMA
2031.96
Positive
200DMA
1839.01
Positive
Market Momentum
MACD
5.25
Positive
RSI
46.05
Neutral
STOCH
53.48
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7521, the sentiment is Neutral. The current price of 2295 is below the 20-day moving average (MA) of 2312.44, above the 50-day MA of 2281.31, and above the 200-day MA of 1839.01, indicating a neutral trend. The MACD of 5.25 indicates Positive momentum. The RSI at 46.05 is Neutral, neither overbought nor oversold. The STOCH value of 53.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7521.

Musashi Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$15.77B3.912.11%22.72%824.03%
73
Outperform
¥15.70B23.551.02%24.54%31.33%
71
Outperform
¥10.10B5.544.55%-2.82%18.67%
70
Outperform
¥10.75B12.532.87%16.82%52.74%
70
Outperform
¥15.10B23.772.54%4.58%13.71%
62
Neutral
$20.33B14.63-3.31%3.23%1.93%-12.26%
62
Neutral
¥8.53B13.612.02%0.55%95.43%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7521
Musashi Co
2,275.00
671.77
41.90%
JP:6554
SUS Co., Ltd.
1,221.00
620.80
103.43%
JP:7119
halmek holdings Co.,Ltd.
1,376.00
501.40
57.33%
JP:7490
Nissin Shoji Co., Ltd.
1,290.00
428.00
49.65%
JP:7670
O-WELL CORPORATION
989.00
152.38
18.21%
JP:9564
FCE Inc.
732.00
299.04
69.07%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 23, 2025