Nissan Shatai Co., Ltd. (7222) AI Stock Analysis

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Nissan Shatai Co., Ltd.

(TSE/TYO:7222)

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Rating:65Neutral

Price Target:JPY 908.00▲(3.65% Upside)

Action:reiterated

Date:08/17/26

The score is driven primarily by improving financial performance, led by a strong, low-debt balance sheet and a clear 2026 earnings/margin rebound. Offsetting this, cash flow has been volatile in recent years and technical indicators show only neutral momentum with the price still below longer-term moving averages. Valuation is moderate (P/E ~14.5) with a modest dividend yield (~1.61%), providing neither a major tailwind nor a major headwind.

Positive Factors

Conservative balance sheetVery low leverage and a substantial equity buffer reduce financial risk and provide resilience through vehicle-cycle downturns. This gives Nissan Shatai greater flexibility to sustain operations and fund production needs without heavy dependence on borrowing.

Negative Factors

High Nissan customer concentrationDependence on the Nissan ecosystem limits customer diversification and makes revenue sensitive to Nissan’s model cycles, production plans, and platform allocations. A reduced allocation or weaker Nissan demand could therefore impair utilization, sales, and margins.

Nissan Shatai Co., Ltd. (7222) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 112.02B
Dividend Yield: 1.77%
Average Volume (3M): 106.98K
Price to Earnings (P/E): 12.8
Beta (1Y): 0.88
Revenue Growth: 14.95%
EPS Growth: 61.68%
Country: Japan
Employees: 3,639
Sector: Consumer Cyclical
Sector Strength: 61
Industry: Auto - Manufacturers

Nissan Shatai Co., Ltd. Business Overview & Revenue Model

Company Description

Nissan Shatai Co., Ltd., a subsidiary of Nissan Motor Co., Ltd., is an automotive company involved in the design, development, global manufacturing, and sales of a diverse range of vehicles, primarily under the Nissan brand. Its comprehensive product...

How the Company Makes Money

Nissan Shatai makes money mainly by manufacturing vehicles on behalf of automakers and selling those finished vehicles (and in some cases related components) to its customers under contract/production arrangements. Its core revenue stream is automobi...

Nissan Shatai Co., Ltd. Financial Statement Overview

Summary

Overall fundamentals are improving but not yet fully stable. Income statement trends show a meaningful 2026 rebound with revenue up ~8% YoY and stronger margins (EBIT margin ~3.5%, net margin ~1.7%), but profitability has been volatile historically and remains thin. The balance sheet is a major strength with very low leverage (debt-to-equity ~0.02) and a solid equity buffer, though ROE (~3.7%) is still modest. Cash flow recovered in 2026 (FCF +11.6B) but prior negative FCF in 2024–2025 keeps the quality of earnings/cash conversion less consistent.

Income Statement

66Positive

Balance Sheet

82Very Positive

Cash Flow

60Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2026	Mar 2025	Mar 2024	Mar 2023
Income Statement
Total Revenue	389.89B	350.51B	403.80B	301.07B	307.52B	215.36B
Gross Profit	20.00B	20.09B	21.69B	16.35B	18.90B	10.45B
EBITDA	23.48B	14.92B	25.11B	7.01B	11.61B	4.45B
Net Income	8.21B	3.03B	6.89B	407.00M	3.88B	-2.22B
Balance Sheet
Total Assets	264.11B	272.67B	277.14B	260.47B	250.43B	232.53B
Cash, Cash Equivalents and Short-Term Investments	86.64B	93.06B	74.71B	41.41B	49.43B	52.87B
Total Debt	2.48B	17.15B	4.03B	24.67B	2.27B	4.06B
Total Liabilities	85.04B	96.11B	93.31B	86.13B	77.44B	60.34B
Stockholders Equity	179.07B	176.56B	183.82B	174.33B	172.99B	172.19B
Cash Flow
Free Cash Flow	0	-2.01B	11.65B	-4.83B	988.00M	3.41B
Operating Cash Flow	0	9.00B	22.18B	7.69B	10.98B	7.87B
Investing Cash Flow	0	59.10B	-10.00B	-12.11B	-9.30B	-75.16B
Financing Cash Flow	0	-16.46B	-18.24B	-3.59B	-5.12B	-5.63B

Nissan Shatai Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price876.00

Price Trends

50DMA899.36Negative

100DMA921.83Negative

200DMA959.96Negative

Market Momentum

MACD-8.05Negative

RSI47.50Neutral

STOCH57.81Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7222, the sentiment is Negative. The current price of 876.00 is below the 20-day moving average (MA) of 876.45, below the 50-day MA of 899.36, and below the 200-day MA of 959.96, indicating a bearish trend. The MACD of -8.05 indicates Negative momentum. The RSI at 47.50 is Neutral, neither overbought nor oversold. The STOCH value of 57.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7222.

Nissan Shatai Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

JP:7222 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:7203	73Outperform	JPY 40.43T	10.02	11.22%	2.91%	7.35%	-2.62%
JP:7261	70Outperform	JPY 724.35B	5.79	6.60%	4.81%	10.37%	272.05%
JP:7202	69Neutral	JPY 1.51T	10.80	9.88%	4.20%	―	―
JP:7222	65Neutral	JPY 119.20B	12.79	―	1.77%	14.95%	61.68%
Sector *	61Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
JP:7201	45Neutral	JPY 986.33B	-2.25	-8.56%	―	2.24%	61.57%
JP:7211	45Neutral	JPY 496.32B	42.34	1.19%	2.93%	7.37%	―

* Consumer Cyclical Sector Average

Performance Comparison

JP:7222 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:7222	Nissan Shatai Co., Ltd.	876.00	-169.01	-16.17%
JP:7203	Toyota Motor Corp (UK)	3435.00	354.11	11.49%
JP:7211	Mitsubishi Motors Corp	341.40	-24.01	-6.57%
JP:7202	Isuzu Motors	2213.50	-10.03	-0.45%
JP:7261	Mazda Motor Corp	1143.50	72.68	6.79%
JP:7201	Nissan Motor Co	277.80	-106.00	-27.62%

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: Aug 17, 2026

Nissan Shatai Co., Ltd. AI Stock Analysis