Tachi-S Co (7239) AI Stock Analysis

0 Followers

Tachi-S Co

(TSE/TYO:7239)

Select Model

Rating:80Outperform

Price Target:JPY 2,655.00▲(21.07% Upside)

Action:reiterated

Date:08/17/26

The score is driven primarily by improved financial strength (profitability recovery and materially lower leverage) and compelling valuation (low P/E and high dividend yield). Technicals add support with an uptrend and positive momentum, while the main constraints are shrinking revenue and some volatility/softening in 2026 profitability and cash-flow conversion.

Positive Factors

Conservative balance sheet and sharply reduced leverageMarkedly lower leverage and stronger equity provide durable financial flexibility for an auto supplier. Reduced refinancing and interest burden improve resilience to cyclical OEM demand, support investment in tooling/R&D for program wins, and lower bankruptcy risk during downturns.

Negative Factors

Declining revenue / shrinking top linePersistent revenue declines undermine operating leverage for a parts supplier reliant on OEM volumes. If tied to lost program share or weaker vehicle production, shrinking sales constrain margin expansion, limit R&D/capex flexibility, and raise execution risk versus peers.

Tachi-S Co (7239) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 526.48M
Dividend Yield: 5.04%
Average Volume (3M): 96.55K
Price to Earnings (P/E): 7.2
Beta (1Y): 0.80
Revenue Growth: -1.64%
EPS Growth: 8.09%
Country: Japan
Employees: 8,790
Sector: Consumer Cyclical
Sector Strength: 61
Industry: Auto - Parts

Tachi-S Co Business Overview & Revenue Model

Company Description

TACHI-S Co., Ltd. is a global manufacturer and distributor specializing in automotive seating solutions, with operations spanning Japan and international markets. The company provides a comprehensive array of seating systems for drivers, front passen...

How the Company Makes Money

Tachi-S makes money primarily by supplying automotive seating to vehicle manufacturers (OEMs). Its core revenue stream is the sale of complete seats (e.g., front and rear seats and related seat systems) delivered to OEM assembly plants, typically und...

Tachi-S Co Financial Statement Overview

Summary

Strong recovery from 2021–2022 with sustained profitability since 2023, improved gross margins, and sharply reduced leverage. Offsetting factors are recent revenue declines, softer 2026 net margin/ROE versus 2025, and uneven cash generation with only moderate earnings-to-cash conversion.

Income Statement

72Positive

Balance Sheet

86Very Positive

Cash Flow

70Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2026	Mar 2025	Mar 2024	Mar 2023
Income Statement
Total Revenue	267.76B	285.39B	269.01B	292.95B	243.44B	206.44B
Gross Profit	27.91B	29.76B	31.06B	28.41B	20.17B	12.87B
EBITDA	15.33B	21.59B	16.73B	14.23B	14.19B	5.16B
Net Income	12.90B	11.31B	9.30B	5.42B	5.82B	-2.06B
Balance Sheet
Total Assets	164.75B	173.05B	170.37B	183.31B	170.67B	159.00B
Cash, Cash Equivalents and Short-Term Investments	42.45B	43.68B	45.69B	39.19B	34.11B	32.41B
Total Debt	11.09B	14.52B	6.42B	14.84B	22.82B	25.03B
Total Liabilities	68.89B	74.86B	64.47B	87.01B	84.19B	79.81B
Stockholders Equity	94.89B	96.28B	104.89B	89.78B	80.37B	72.86B
Cash Flow
Free Cash Flow	0	5.30B	8.81B	14.80B	239.00M	-4.35B
Operating Cash Flow	0	9.76B	13.58B	18.45B	3.74B	-354.00M
Investing Cash Flow	0	3.96B	-3.59B	-2.08B	6.67B	2.01B
Financing Cash Flow	0	-9.29B	-12.37B	-13.37B	-10.01B	-812.00M

Tachi-S Co Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

JP:7239 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:7239	80Outperform	JPY 75.11B	7.22	10.60%	5.04%	-1.64%	8.09%
JP:7988	74Outperform	JPY 419.61B	14.06	―	5.23%	4.44%	-29.27%
JP:6995	72Outperform	JPY 247.24B	11.96	―	4.24%	5.48%	-42.91%
JP:7241	65Neutral	JPY 82.75B	5.97	―	4.89%	1.85%	29.15%
JP:7313	64Neutral	JPY 201.82B	24.84	―	5.51%	0.39%	24.56%
Sector *	61Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
JP:3116	60Neutral	JPY 357.28B	13.20	5.79%	4.31%	7.82%	37.25%

* Consumer Cyclical Sector Average

Performance Comparison

JP:7239 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:7239	Tachi-S Co	2193.00	310.12	16.47%
JP:3116	Toyota Boshoku Corp	1996.00	-214.75	-9.71%
JP:6995	TOKAI RIKA CO., LTD.	2832.00	77.94	2.83%
JP:7241	Futaba Industrial Co., Ltd.	920.00	18.83	2.09%
JP:7313	TS Tech Co., Ltd.	1671.00	-99.60	-5.63%
JP:7988	Nifco Inc.	2410.00	201.99	9.15%

Tachi-S Co Corporate Events

Tachi-S Delivers Strong Q1 Earnings but Keeps Cautious Full-Year Outlook

Aug 5, 2026

In the first quarter of FY2026, Tachi-S Co. posted net sales of ¥66.6 billion, up 4.2% year on year, while operating income surged nearly 80% and ordinary income rose 146.6%, lifting net income attributable to owners of the parent to ¥1.47...

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

Tachi-S Co AI Stock Analysis