Musashi Co (7521) AI Stock Analysis

• Market Cap: $15.77B
• Dividend Yield: 2.11%
• Average Volume (3M): 14.42K
• Price to Earnings (P/E): 3.9
• Beta (1Y): 0.44
• Revenue Growth: 22.72%
• EPS Growth: 824.03%
• Country: JP
• Employees: 528
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Conglomerates
• EPS (TTM): 115.30
• Shares Outstanding: 7,950,000
• 10 Day Avg. Volume: 12,920
• 30 Day Avg. Volume: 14,416
• 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: -0.31
• Enterprise Value/Revenue: -0.13
• Enterprise Value/Gross Profit: -0.43
• Enterprise Value/Ebitda: -1.06
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 80 Outperform
• 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 Business Overview & Revenue Model

Company Description

Musashi 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 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'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

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
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: Neutral
• Last Price: 2295.00
• 50DMA: Negative
• 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 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7521	80 Outperform	$15.77B	3.91	―	2.11%	22.72%	824.03%
9564	73 Outperform	¥15.70B	23.55	―	1.02%	24.54%	31.33%
7670	71 Outperform	¥10.10B	5.54	―	4.55%	-2.82%	18.67%
6554	70 Outperform	¥10.75B	12.53	―	2.87%	16.82%	52.74%
7119	70 Outperform	¥15.10B	23.77	―	2.54%	4.58%	13.71%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
7490	62 Neutral	¥8.53B	13.61	―	2.02%	0.55%	95.43%