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Tanaka Seimitsu Kogyo Co., Ltd. (JP:7218)
:7218
Japanese Market
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Tanaka Seimitsu Kogyo Co., Ltd. (7218) AI Stock Analysis

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JP:7218

Tanaka Seimitsu Kogyo Co., Ltd.

(7218)

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Outperform 74 (OpenAI - Gpt-5.6Sol)
Rating:74Outperform
Price Target:
¥1,299.00
▲(3.92% Upside)
Action:Upgraded
Date:09/26/26
Overall score is driven primarily by solid financial health (notably improved leverage) but tempered by margin compression and volatile free cash flow, plus a supportive technical uptrend. The biggest positive is valuation, with a very low P/E and a reasonable dividend yield.
Positive Factors
Revenue Recovery
The 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 Compression
The 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.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Recovery
The 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.
Read all positive factors

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

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...
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 re...

Tanaka Seimitsu Kogyo Co., Ltd. Financial Statement Overview

Summary
Income statement shows a solid post-2021 recovery with a strong 2026 revenue rebound, but profitability has weakened versus the 2024 peak (net margin down to ~2.7% in 2026). Balance sheet strength is a clear positive with meaningfully lower leverage (~0.26 debt-to-equity in 2026) and growing equity, though returns have cooled. Cash flow is the main drag: operating cash flow is positive but conversion is modest and 2026 free cash flow turned sharply negative (about -¥2.1B).
Income Statement
66
Positive
Balance Sheet
74
Positive
Cash Flow
58
Neutral
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue45.62B43.79B40.47B42.55B34.23B29.67B
Gross Profit7.62B7.38B7.44B7.68B5.73B4.36B
EBITDA5.35B5.09B5.25B6.35B4.89B4.15B
Net Income2.15B1.19B1.79B2.22B1.02B373.65M
Balance Sheet
Total Assets47.91B47.72B43.89B42.82B39.36B36.91B
Cash, Cash Equivalents and Short-Term Investments11.49B9.62B9.68B10.33B8.55B6.82B
Total Debt6.05B6.78B4.09B4.08B6.71B8.20B
Total Liabilities13.72B14.57B12.83B12.67B14.04B14.19B
Stockholders Equity27.08B25.96B24.05B22.72B18.58B16.50B
Cash Flow
Free Cash Flow0.00-2.11B846.36M4.89B3.55B714.42M
Operating Cash Flow0.004.72B4.42B7.42B4.98B2.37B
Investing Cash Flow0.00-7.42B-3.13B-2.82B-1.11B-1.70B
Financing Cash Flow0.001.74B-2.10B-3.66B-2.67B-1.39B

Tanaka Seimitsu Kogyo Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1250.00
Price Trends
50DMA
1090.10
Positive
100DMA
1046.98
Positive
200DMA
1102.58
Positive
Market Momentum
MACD
9.99
Positive
RSI
61.20
Neutral
STOCH
66.12
Neutral
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 1250 is above the 20-day moving average (MA) of 1135.45, above the 50-day MA of 1090.10, and above the 200-day MA of 1102.58, indicating a bullish trend. The MACD of 9.99 indicates Positive momentum. The RSI at 61.20 is Neutral, neither overbought nor oversold. The STOCH value of 66.12 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
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
¥200.84B10.35―4.56%7.40%25.62%
75
Outperform
¥93.29B10.498.11%3.65%11.43%84.06%
74
Outperform
¥11.18B5.25―2.76%13.71%25.56%
74
Outperform
¥219.12B15.217.60%5.02%0.38%30.22%
72
Outperform
¥98.11B6.55―4.17%4.78%34.18%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
49
Neutral
¥192.13B134.59―1.35%3.50%-77.77%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7218
Tanaka Seimitsu Kogyo Co., Ltd.
1,160.00
94.28
8.85%
JP:7246
Press Kogyo Co., Ltd.
1,015.00
381.52
60.23%
JP:7278
Exedy Corporation
5,980.00
855.34
16.69%
JP:5970
G-Tekt Corporation
2,304.00
367.64
18.99%
JP:7220
Musashi Seimitsu Industry Co., Ltd.
2,973.00
-549.00
-15.59%
JP:7296
F.C.C.Co., Ltd.
4,250.00
1,050.20
32.82%
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