Tanaka Seimitsu Kogyo Co., Ltd. (7218) AI Stock Analysis

Tanaka Seimitsu Kogyo Co., Ltd.

(TSE/TYO:7218)

Select Model

Rating:77Outperform

Price Target:JPY 1,317.00▲(14.22% Upside)

Action:reiterated

Date:09/26/26

Driven by an exceptionally attractive valuation with a low P/E ratio and strong bullish technical momentum across all major moving averages. While the company boasts a highly stable balance sheet and robust revenue growth, the overall score is partially tempered by recent profit margin compression and deeply negative free cash flow.

Positive Factors

Revenue RecoveryThe strong recovery in revenue since 2021, including renewed growth in 2026, indicates that the company has regained scale after a weaker period. Sustained demand for its precision components can support capacity utilization, customer relationships, and future earnings recovery.

Negative Factors

Margin CompressionThe decline in net and operating margins shows that recent revenue growth is not translating proportionally into profit. Persistent margin pressure would reduce earnings resilience, limit internal funding for investment, and make results more sensitive to changes in production volumes and product mix.

Tanaka Seimitsu Kogyo Co., Ltd. (7218) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 9.83B
Dividend Yield: 3.04%
Average Volume (3M): 3,540
Price to Earnings (P/E): 5.6
Beta (1Y): 0.43
Revenue Growth: 13.29%
EPS Growth: 11.39%
Country: Japan
Employees: 1,383
Sector: General
Sector Strength: 55
Industry: Auto - Parts

Tanaka Seimitsu Kogyo Co., Ltd. Business Overview & Revenue Model

Company Description

Tanaka Seimitsu Kogyo Co., Ltd. manufactures and sells automobile and motorcycle parts, and other miscellaneous parts in Japan and internationally. The company offers rocker arm, valve spring retainer, piston pin, synchroset, synchronizer ring and sp...

How the Company Makes Money

Tanaka Seimitsu Kogyo generates revenue primarily by manufacturing and selling precision metal parts to business customers (B2B), with demand largely tied to production volumes in end markets such as automotive and industrial machinery. Its key reven...

Tanaka Seimitsu Kogyo Co., Ltd. Financial Statement Overview

Summary

Displays a resilient balance sheet with low leverage and steady top-line growth. However, overall performance is constrained by shrinking net profit margins and deeply negative free cash flow driven by high capital expenditures.

Income Statement

62Positive

Balance Sheet

78Positive

Cash Flow

55Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	45.62B	43.79B	40.47B	42.55B	34.23B	29.67B
Gross Profit	7.62B	7.38B	7.44B	7.68B	5.73B	4.36B
EBITDA	5.35B	5.09B	5.25B	6.35B	4.89B	4.15B
Net Income	2.15B	1.19B	1.79B	2.22B	1.02B	373.65M
Balance Sheet
Total Assets	47.91B	47.72B	43.89B	42.82B	39.36B	36.91B
Cash, Cash Equivalents and Short-Term Investments	11.49B	9.62B	9.68B	10.33B	8.55B	6.82B
Total Debt	6.05B	6.78B	4.09B	4.08B	6.71B	8.20B
Total Liabilities	13.72B	14.57B	12.83B	12.67B	14.04B	14.19B
Stockholders Equity	27.08B	25.96B	24.05B	22.72B	18.58B	16.50B
Cash Flow
Free Cash Flow	0	-2.11B	846.36M	4.89B	3.55B	714.42M
Operating Cash Flow	0	4.72B	4.42B	7.42B	4.98B	2.37B
Investing Cash Flow	0	-7.42B	-3.13B	-2.82B	-1.11B	-1.70B
Financing Cash Flow	0	1.74B	-2.10B	-3.66B	-2.67B	-1.39B

Tanaka Seimitsu Kogyo Co., Ltd. Technical Analysis

Technical Analysis SentimentPositive

Last Price1153.00

Price Trends

50DMA1117.42Positive

100DMA1062.69Positive

200DMA1081.35Positive

Market Momentum

MACD0.74Negative

RSI62.62Neutral

STOCH75.61Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7218, the sentiment is Positive. The current price of 1153.00 is above the 20-day moving average (MA) of 1118.45, above the 50-day MA of 1117.42, and above the 200-day MA of 1081.35, indicating a bullish trend. The MACD of 0.74 indicates Negative momentum. The RSI at 62.62 is Neutral, neither overbought nor oversold. The STOCH value of 75.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7218.

Tanaka Seimitsu Kogyo Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:7218 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:7296	81Outperform	JPY 188.75B	9.60	―	5.50%	7.40%	25.62%
JP:7218	77Outperform	JPY 11.03B	5.58	―	3.04%	13.29%	11.39%
JP:7246	75Outperform	JPY 84.97B	9.39	8.11%	5.07%	11.43%	84.06%
JP:5970	72Outperform	JPY 91.75B	6.00	―	4.74%	4.78%	34.18%
JP:7278	66Neutral	JPY 187.35B	15.36	6.44%	6.30%	0.21%	0.59%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:7220	50Neutral	JPY 160.59B	110.09	―	1.44%	3.50%	-77.77%

* General Sector Average

Performance Comparison

JP:7218 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:7218	Tanaka Seimitsu Kogyo Co., Ltd.	1153.00	97.95	9.28%
JP:7246	Press Kogyo Co., Ltd.	908.00	275.47	43.55%
JP:7278	Exedy Corporation	5160.00	195.77	3.94%
JP:5970	G-Tekt Corporation	2111.00	224.91	11.92%
JP:7220	Musashi Seimitsu Industry Co., Ltd.	2432.00	-1106.59	-31.27%
JP:7296	F.C.C.Co., Ltd.	3945.00	917.67	30.31%

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: Sep 26, 2026

Tanaka Seimitsu Kogyo Co., Ltd. AI Stock Analysis