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Musashi Co Ltd (JP:7521)
:7521

Musashi Co (7521) AI Stock Analysis

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JP

Musashi Co

(OTC:7521)

Rating:80Outperform
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 (7521) vs. iShares MSCI Japan ETF (EWJ)

Musashi Co Business Overview & Revenue Model

Company DescriptionMusashi 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 MoneyMusashi 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
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.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue37.39B33.14B37.07B36.21B30.26B
Gross Profit10.68B8.09B9.44B8.76B6.77B
EBITDA5.18B1.60B3.16B2.35B454.00M
Net Income3.43B767.00M1.76B981.00M-28.00M
Balance Sheet
Total Assets49.81B45.03B43.89B43.48B41.31B
Cash, Cash Equivalents and Short-Term Investments22.29B16.66B20.68B19.48B18.48B
Total Debt3.52B3.52B3.52B3.52B3.52B
Total Liabilities15.84B14.83B15.20B16.46B14.28B
Stockholders Equity33.97B30.20B28.70B27.02B27.03B
Cash Flow
Free Cash Flow3.12B-725.00M1.34B1.90B-1.05B
Operating Cash Flow3.33B-322.00M1.59B2.60B-689.00M
Investing Cash Flow2.33B-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 Price1860.00
Price Trends
50DMA
1697.46
Positive
100DMA
1682.51
Positive
200DMA
1666.32
Positive
Market Momentum
MACD
40.07
Negative
RSI
81.01
Negative
STOCH
95.57
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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$12.47B3.63
1.31%12.83%347.44%
78
Outperform
¥10.15B12.01
2.60%19.85%78.11%
73
Outperform
¥9.56B5.39
3.74%-2.30%16.63%
73
Outperform
¥16.09B25.07
1.64%26.93%35.46%
70
Outperform
¥7.07B11.49
3.02%0.78%106.93%
64
Neutral
¥11.80B18.82
1.86%8.01%28.74%
63
Neutral
$16.62B10.98-6.98%2.96%1.73%-24.23%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7521
Musashi Co
1,860.00
122.67
7.06%
JP:6554
SUS Co., Ltd.
1,144.00
438.83
62.23%
JP:7119
halmek holdings Co.,Ltd.
1,076.00
127.51
13.44%
JP:7490
Nissin Shoji Co., Ltd.
1,079.00
193.08
21.79%
JP:7670
O-WELL CORPORATION
938.00
1.75
0.19%
JP:9564
FCE Inc.
735.00
338.52
85.38%
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: Jul 10, 2025