Musashi Co (7521) AI Stock Analysis

• Market Cap: ¥17.10B
• Dividend Yield: 2.5%
• Average Volume (3M): 9.14K
• Price to Earnings (P/E): 10.5
• Beta (1Y): 0.54
• Revenue Growth: 23.68%
• EPS Growth: 80.23%
• Country: JP
• Employees: 528
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 2.19
• Shares Outstanding: 7,950,000
• 10 Day Avg. Volume: 6,920
• 30 Day Avg. Volume: 9,136
• PEG Ratio: <0.01
• Price to Book (P/B): 0.34
• Price to Sales (P/S): 0.31
• P/FCF Ratio: 3.70
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 80 Outperform
• Price Target: ¥2,881.00 ▲(20.09% 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.

Positive Factors

Strong balance sheet

A high equity ratio (68.2%) and very low leverage (debt/equity 0.10) provide durable financial flexibility. This capital structure supports investment, cushions cycles, and lowers refinancing risk, allowing management to pursue strategic initiatives without pressuring cash flow.

Robust cash generation

High conversion of earnings into cash (OCF/Net Income 0.97; FCF/Net Income 0.91) indicates sustainable internal funding for operations, capex and dividends. Strong free cash flow reduces dependence on external financing and supports long-term reinvestment.

Improving profitability & growth

Simultaneous margin expansion and 12.8% top-line growth suggest lasting operational improvement and pricing or mix advantages. Higher EBIT/EBITDA margins point to scalable operations that can sustain profit growth as revenues expand over the medium term.

Negative Factors

EPS volatility

A large negative EPS growth reading implies recent earnings volatility or base effects that can undermine confidence in recurring profitability. Persistent EPS swings can make forecasting harder and may signal exposure to cyclicality or one-off items affecting reported earnings.

Moderate equity growth

Moderate growth in shareholders' equity suggests the company may be growing assets and reinvestment at a restrained pace. Over time, limited equity expansion can constrain scale, M&A firepower, and the ability to materially increase operating capacity or diversify revenue streams.

Limited forward visibility

Absence of management guidance reduces visibility for investors and planners, making medium-term cash flow and capex planning less predictable. Over a 2-6 month horizon, no guidance can increase uncertainty around forecasts and shareholder expectations.

Musashi Co Business Overview & Revenue Model

Company Description

Musashi Co., Ltd. provides information/industrial, printing, cash handling, and election systems equipment in Japan and internationally. The company offers media conversion services to digitalize documents and microfilms; data entry services; and information processing services, including production of microfilm images. It also engages in the consultation and sale of scanners, electronic archive systems, and electronic document systems and other information products, as well as industrial non-destructive inspection systems for buildings and manufactured products; manufacture and sale of thermal enlarger printers and thermal papers; and development and sale of image processing software. In addition, the company consults and sells printing equipment, materials, and software for digital pre-press systems and print-on-demand systems, and laser systems; and develops and sells a compact print-on-demand system for business cards and cards, as well as provides maintenance services for equipment. Further, the company offers cash handling machines for various industries, such as finance, retail, courier, transport, and entertainment under the tellac name; security products, including administrative products for keys; and exports cash handling machines comprising bill counters and bill binding machines to international markets. Additionally, it provides election systems equipment comprising ballot paper dispensers, counters, reader sorters, issuers, self-opening ballot papers, administrative software, promotional items, and other tools; and various types of paper and paperboards for printing, publishing, information, special paper, office paper, cardboard, as well as processed paper products. Furthermore, it engages in the real estate and auto leasing, as well as insurance brokerage activities. Musashi Co., Ltd. was incorporated in 1946 and is headquartered in Chuo, Japan.

How the Company Makes Money

Musashi 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 demonstrates strong financial performance with impressive profitability and revenue growth. The company has a solid balance sheet with low leverage and a strong equity position, alongside robust cash flow generation, indicating financial stability and growth potential.

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	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	39.56B	37.39B	33.14B	37.07B	36.21B	30.26B
Gross Profit	11.54B	10.68B	8.09B	9.44B	8.76B	6.77B
EBITDA	4.66B	5.18B	1.60B	3.16B	2.35B	454.00M
Net Income	4.04B	3.43B	767.00M	1.76B	981.00M	-28.00M
Balance Sheet
Total Assets	49.32B	49.81B	45.03B	43.89B	43.48B	41.31B
Cash, Cash Equivalents and Short-Term Investments	21.94B	22.29B	16.66B	20.68B	19.48B	18.48B
Total Debt	5.28B	3.52B	3.52B	3.52B	3.52B	3.52B
Total Liabilities	14.75B	15.84B	14.83B	15.20B	16.46B	14.28B
Stockholders Equity	34.57B	33.97B	30.20B	28.70B	27.02B	27.03B
Cash Flow
Free Cash Flow	0.00	3.12B	-725.00M	1.34B	1.90B	-1.05B
Operating Cash Flow	0.00	3.33B	-322.00M	1.59B	2.60B	-689.00M
Investing Cash Flow	0.00	2.33B	-3.37B	-10.00M	-904.00M	-612.00M
Financing Cash Flow	0.00	-434.00M	-324.00M	-390.00M	-594.00M	-591.00M

Musashi Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2399.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 2399 is below the 20-day moving average (MA) of 2497.50, below the 50-day MA of 2448.74, and above the 200-day MA of 2139.35, indicating a bullish trend. The MACD of 14.51 indicates Positive momentum. The RSI at 52.48 is Neutral, neither overbought nor oversold. The STOCH value of 51.02 is Neutral, 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	¥17.10B	10.52	―	2.50%	23.68%	80.23%
3106	75 Outperform	¥159.97B	13.29	―	2.66%	-1.63%	67.13%
4206	73 Outperform	¥254.60B	13.61	―	3.90%	2.65%	7.16%
5821	73 Outperform	¥65.31B	19.14	―	1.52%	5.75%	59.69%
6554	69 Neutral	¥9.62B	10.01	―	3.90%	13.59%	52.99%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
3401	53 Neutral	¥327.33B	-4.01	-20.43%	3.72%	-8.20%	―