Tokyo Seimitsu Co., Ltd (7729) AI Stock Analysis

• Market Cap: ¥710.21B
• Dividend Yield: 2.28%
• Average Volume (3M): 393.49K
• Price to Earnings (P/E): 32.4
• Beta (1Y): 1.53
• Revenue Growth: 9.53%
• EPS Growth: -11.17%
• Country: JP
• Employees: 2,658
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 157.41
• Shares Outstanding: 42,275,482
• 10 Day Avg. Volume: 330,170
• 30 Day Avg. Volume: 393,493
• PEG Ratio: 0.39
• Price to Book (P/B): 1.84
• Price to Sales (P/S): 2.14
• P/FCF Ratio: 16.73
• 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: ¥17,002.95
• Price Target Upside: -1.72% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 548.73
• Revenue Forecast (FY): ¥163.95B

• Rating: 77 Outperform
• Price Target: ¥17,956.00 ▲(3.79% Upside)
• Action: Reiterated Date: 02/10/26
• Date: Action: Reiterated 02/10/26

The score is driven primarily by strong financial performance (growth, profitability, improving free cash flow, and a solid balance sheet) and supportive technical momentum with a clear uptrend. The main offsets are overbought technical conditions (high RSI) and a relatively high P/E with only a moderate dividend yield.

Positive Factors

Balance Sheet Strength

A very high equity ratio and minimal leverage provide durable financial flexibility, allowing the company to fund capital expenditures, R&D and withstand cyclical downturns without stressing liquidity. Strong equity cushions risk and supports strategic investments over months.

Cash Generation

The turnaround to positive free cash flow and strong conversion of reported income into operating cash indicate reliable internal funding for capex, service expansion and shareholder returns. Steady cash generation improves resilience in multi-month cycles.

Margins and Revenue Growth

Healthy top-line growth coupled with robust gross and operating margins signals durable pricing power and efficient manufacturing for capital equipment. These margins support reinvestment and buffer profitability through product mix shifts over medium-term horizons.

Negative Factors

EPS Decline

A sizable negative EPS growth rate highlights pressure on reported earnings that could reflect margin swings, non-recurring items or demand softness. Persisting EPS declines would constrain returns, reduce reinvestment capacity and weaken investor confidence over months.

Operational EBIT Volatility

Noticeable EBIT variability reduces predictability of core operating performance and complicates multi-quarter planning. For a capital-equipment supplier this volatility can reflect timing of large orders and mix shifts, creating lumpy earnings and uneven cash needs.

Cyclical End-Market Exposure

Heavy dependence on semiconductor and manufacturing capex makes revenues cyclical and sensitive to industry investment swings. This structural exposure can amplify downturns, delay recoveries and pressure aftermarket revenues and utilization over multiple quarters.

Tokyo Seimitsu Co., Ltd Business Overview & Revenue Model

Company Description

Tokyo Seimitsu Co., Ltd. manufactures and sells semiconductor production equipment (SPE) and metrology instruments in Japan. The company operates through SPE and Metrology Equipment segments. It provides dicing machines, precision dicing blades, probing machines, polish grinders, high rigid grinders, chemical mechanical planarizers, wafer edge grinding machines, and sliced wafer demounting and cleaning machines. The company also offers multipurpose measuring instruments, including coordinate measuring machines, surface texture and contour measuring instruments, roundness and cylindrical profile measuring instruments, optical measuring instruments, optical shaft measuring systems, and X-ray CT systems. In addition, it provides automatic measuring instruments, such as in process and post process gauge products, various types of sensors and electric/air micrometers, high precision digital measurement instruments, and laser interferometer/built-in measuring instruments. The company was formerly known as Tokyo Seimitsu Kogu Co., Ltd. and changed its name to Tokyo Seimitsu Co., Ltd. in April 1962. Tokyo Seimitsu Co., Ltd. was incorporated in 1949 and is headquartered in Hachioji, Japan.

How the Company Makes Money

Tokyo Seimitsu generates revenue through the sale of its precision measurement and inspection equipment, primarily targeting the semiconductor industry. The company's revenue model is built on multiple streams, which include direct sales of measurement systems to manufacturers, aftermarket services such as maintenance and calibration, and ongoing support contracts. Key revenue streams also include the development of custom solutions tailored to specific client needs, which often involve long-term partnerships with major semiconductor companies. Additionally, Tokyo Seimitsu benefits from strategic collaborations and alliances that enhance its product offerings and market reach, contributing to stable earnings.

Tokyo Seimitsu Co., Ltd Financial Statement Overview

Summary

Strong overall fundamentals supported by consistent revenue growth (+11.8% from 2024 to 2025), solid profitability (41.5% gross margin; 17.0% net margin), and improved free cash flow (turnaround to positive in 2025). Balance sheet is stable with high equity ratio (73.6%) and low leverage (debt-to-equity 0.11), though some EBIT fluctuations suggest operational volatility.

Income Statement

Tokyo Seimitsu Co., Ltd has demonstrated consistent revenue growth with a 11.8% increase from 2024 to 2025. The company maintains strong profitability metrics, with a gross profit margin of 41.5% and a net profit margin of 17.0% for 2025. EBIT and EBITDA margins are solid at 19.7% and 26.3%, respectively, indicating efficient core operations. However, fluctuations in EBIT over the years suggest some operational volatility.

Balance Sheet

The balance sheet reflects a robust financial position with an improving equity ratio of 73.6% for 2025, indicating financial stability. The debt-to-equity ratio is moderate at 0.11, suggesting manageable leverage levels. Return on equity stands at 14.6%, showcasing effective use of shareholders' equity, although there is room for improvement in maximizing returns.

Cash Flow

The company exhibits a strong cash flow position, with a significant turnaround in free cash flow from negative in 2024 to positive in 2025, representing a notable free cash flow growth. The operating cash flow to net income ratio is 1.12, indicating the company's ability to convert income into cash flow effectively. The free cash flow to net income ratio is 0.75, highlighting a healthy cash generation from operations.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2021
Income Statement
Total Revenue	151.78B	150.53B	134.68B	146.80B	130.70B	97.11B
Gross Profit	62.99B	62.45B	54.76B	61.83B	53.01B	36.91B
EBITDA	38.78B	39.63B	30.04B	37.22B	33.14B	19.76B
Net Income	25.31B	25.64B	19.38B	23.63B	21.33B	12.18B
Balance Sheet
Total Assets	229.98B	237.95B	225.52B	209.03B	190.19B	161.56B
Cash, Cash Equivalents and Short-Term Investments	49.15B	54.54B	36.78B	40.08B	49.03B	43.66B
Total Debt	17.80B	20.08B	25.17B	14.19B	5.49B	7.58B
Total Liabilities	56.35B	61.72B	67.10B	63.01B	59.20B	44.78B
Stockholders Equity	172.62B	175.17B	157.64B	145.36B	130.41B	116.26B
Cash Flow
Free Cash Flow	0.00	19.25B	-5.96B	-8.06B	14.34B	16.01B
Operating Cash Flow	0.00	28.82B	4.89B	1.00B	24.06B	22.06B
Investing Cash Flow	0.00	2.54B	-10.56B	-8.42B	-9.04B	-5.19B
Financing Cash Flow	0.00	-13.99B	1.62B	-2.17B	-10.35B	-8.28B

Tokyo Seimitsu Co., Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 17300.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7729, the sentiment is Positive. The current price of 17300 is above the 20-day moving average (MA) of 16119.75, above the 50-day MA of 13737.60, and above the 200-day MA of 10474.06, indicating a bullish trend. The MACD of 1151.48 indicates Negative momentum. The RSI at 65.10 is Neutral, neither overbought nor oversold. The STOCH value of 79.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7729.

Tokyo Seimitsu Co., Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6920	81 Outperform	¥3.04T	34.81	53.12%	1.11%	32.51%	57.19%
7729	77 Outperform	¥710.21B	32.37	12.66%	2.28%	9.53%	-11.17%
6857	77 Outperform	¥18.73T	67.97	47.37%	0.25%	63.36%	149.43%
7735	77 Outperform	¥2.09T	25.76	21.73%	2.29%	11.29%	11.38%
6146	75 Outperform	¥8.19T	62.35	25.78%	0.79%	13.45%	20.37%
8035	73 Outperform	¥20.16T	40.09	27.73%	1.79%	16.74%	16.03%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%