Musashi Co (7521) AI Stock Analysis

• Market Cap: $12.47B
• Dividend Yield: 1.31%
• Average Volume (3M): 21.30K
• Price to Earnings (P/E): 3.6
• Beta (1Y): 0.43
• Revenue Growth: 12.83%
• EPS Growth: 347.44%
• Country: JP
• Employees: 528
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Conglomerates
• EPS (TTM): 49.64
• Shares Outstanding: 7,950,000
• 10 Day Avg. Volume: 28,650
• 30 Day Avg. Volume: 21,303
• PEG Ratio: 0.79
• Price to Book (P/B): 0.36
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: $1,922.17
• Price Target Upside: 3.34% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 80 Outperform
• Price Target: ¥2,138.00 ▲(14.95%Upside)

Musashi Co is well-positioned for success, with a strong financial performance highlighted by impressive profitability and cash flow. The stock's attractive valuation with a low P/E ratio enhances its investment appeal. While technical analysis indicates strong momentum, caution is advised due to overbought conditions.

Musashi Co Business Overview & Revenue Model

Company Description

Musashi Co., Ltd. (7521) is a Japan-based company primarily engaged in the development, manufacture, and sale of automotive parts. The company operates within the automotive sector, focusing on products such as engine components, power transmission parts, and other related accessories. Musashi Co. is known for its precision engineering and innovation, serving a wide range of automotive manufacturers globally.

How the Company Makes Money

Musashi Co. generates revenue through the sale of its automotive components to vehicle manufacturers and suppliers around the world. The company's key revenue streams include the production and distribution of engine parts, transmission components, and other essential automotive accessories. Musashi Co. maintains significant partnerships with major automotive companies, which contribute to its sales and growth. Additionally, the company's focus on research and development allows it to innovate and improve its product offerings, ensuring a competitive edge in the automotive market.

Musashi Co Financial Statement Overview

Summary

Musashi Co exhibits strong financial performance with robust profitability, a stable financial structure, and significant cash flow generation. The company shows remarkable growth in revenue and profit margins, supported by efficient operational management and cost control. Its balance sheet reflects financial stability with low leverage and a strong equity position, which enhances its capacity to invest in future growth.

Income Statement

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

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

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.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	37.39B	33.14B	37.07B	36.21B	30.26B
Gross Profit	10.68B	8.09B	9.44B	8.76B	6.77B
EBITDA	5.18B	1.60B	3.16B	2.35B	454.00M
Net Income	3.43B	767.00M	1.76B	981.00M	-28.00M
Balance Sheet
Total Assets	49.81B	45.03B	43.89B	43.48B	41.31B
Cash, Cash Equivalents and Short-Term Investments	22.29B	16.66B	20.68B	19.48B	18.48B
Total Debt	3.52B	3.52B	3.52B	3.52B	3.52B
Total Liabilities	15.84B	14.83B	15.20B	16.46B	14.28B
Stockholders Equity	33.97B	30.20B	28.70B	27.02B	27.03B
Cash Flow
Free Cash Flow	3.12B	-725.00M	1.34B	1.90B	-1.05B
Operating Cash Flow	3.33B	-322.00M	1.59B	2.60B	-689.00M
Investing Cash Flow	2.33B	-3.37B	-10.00M	-904.00M	-612.00M
Financing Cash Flow	-434.00M	-324.00M	-390.00M	-594.00M	-591.00M

Musashi Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1860.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7521, the sentiment is Positive. The current price of 1860 is above the 20-day moving average (MA) of 1740.40, above the 50-day MA of 1697.46, and above the 200-day MA of 1666.32, indicating a bullish trend. The MACD of 40.07 indicates Negative momentum. The RSI at 81.01 is Negative, neither overbought nor oversold. The STOCH value of 95.57 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7521.

Musashi Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7521	80 Outperform	$12.47B	3.63		1.31%	12.83%	347.44%
6554	78 Outperform	¥10.15B	12.01		2.60%	19.85%	78.11%
7670	73 Outperform	¥9.56B	5.39		3.74%	-2.30%	16.63%
9564	73 Outperform	¥16.09B	25.07		1.64%	26.93%	35.46%
7490	70 Outperform	¥7.07B	11.49		3.02%	0.78%	106.93%
7119	64 Neutral	¥11.80B	18.82		1.86%	8.01%	28.74%
Sector *	63 Neutral	$16.62B	10.98	-6.98%	2.96%	1.73%	-24.23%