Aisin Seiki Co (7259) AI Stock Analysis

• Market Cap: ¥1.43T
• Dividend Yield: 3.95%
• Average Volume (3M): 3.56M
• Price to Earnings (P/E): 13.3
• Beta (1Y): 1.10
• Revenue Growth: -0.27%
• EPS Growth: 24.00%
• Country: JP
• Employees: 115,140
• Sector: Consumer Cyclical
• Sector Strength: 59
• Industry: Auto - Parts
• EPS (TTM): 139.26
• Shares Outstanding: 809,023,900
• 10 Day Avg. Volume: 4,488,840
• 30 Day Avg. Volume: 3,564,250
• PEG Ratio: 0.55
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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: ¥1,880.76
• Price Target Upside: 2.77% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

Aisin Seiki Co's stock is well-positioned with a stable financial foundation and strong technical indicators. The company's valuation appears attractive, with a competitive P/E ratio and a robust dividend yield. While revenue growth is a challenge, the company's solid balance sheet and effective cash flow management provide a buffer. The technical analysis indicates strong momentum, but investors should be cautious of potential overbought conditions.

Aisin Seiki Co Business Overview & Revenue Model

Company Description

Aisin Seiki Co., Ltd. is a prominent Japanese corporation that operates in the automotive sector, specializing in the production of automotive components and systems. Headquartered in Kariya, Aichi Prefecture, Japan, Aisin Seiki is a subsidiary of the Toyota Group and is renowned for its innovation and technological advancement in automotive parts. The company's core products include drivetrain systems, body parts, brake systems, engine components, and electronics. Aisin Seiki has established itself as a key player in the global automotive industry, supplying parts to major automobile manufacturers worldwide.

How the Company Makes Money

Aisin Seiki Co., Ltd. generates revenue primarily through the design, manufacturing, and sale of automotive parts and systems. The company's revenue streams are diversified across several product categories, including drivetrain components, engine-related parts, body-related products, and electronics. A significant portion of its earnings comes from supplying these components to major automobile manufacturers, including its parent company, Toyota Motor Corporation. Aisin Seiki also benefits from strategic partnerships and joint ventures that enhance its production capabilities and expand its market reach. Additionally, the company invests in research and development to innovate and improve its product offerings, contributing to sustained revenue growth. Other factors such as global automotive industry trends, technological advancements, and regulatory changes also influence Aisin Seiki's financial performance.

Aisin Seiki Co Financial Statement Overview

Summary

Aisin Seiki Co presents a stable financial profile with effective cost management and operational efficiency reflected in its profit margins. While revenue growth is currently subdued, the company maintains a solid balance sheet with prudent leverage and strong equity. Cash flow generation remains healthy, though free cash flow growth has faced challenges.

Income Statement

Aisin Seiki Co has shown a stable revenue base with a moderate gross profit margin of approximately 11.5% in the latest year. The net profit margin improved to around 2.2%, reflecting effective cost management. Revenue growth from 2024 to 2025 was slightly negative, indicating challenges in expanding market share or pricing power. EBIT and EBITDA margins indicate robust operational efficiency, with an EBIT margin of 3.9% and an EBITDA margin of 10.3% for 2025. Overall, the company exhibits stable profitability despite recent revenue challenges.

Balance Sheet

The company's balance sheet is solid with a debt-to-equity ratio of 0.35, suggesting a conservative leverage approach. A return on equity of 5.4% reflects moderate profitability relative to shareholder equity. The equity ratio stands at 46.1%, indicating a balanced asset financing strategy. The reduction in total assets over the period suggests asset optimization efforts. Aisin Seiki Co maintains a stable financial position with manageable debt levels and strong equity support.

Cash Flow

Cash flow management has been effective, with a positive operating cash flow to net income ratio of 3.2, demonstrating strong cash generation relative to reported earnings. However, the free cash flow growth rate is negative due to reduced capital expenditures, impacting overall cash availability. The free cash flow to net income ratio of 1.1 in 2025 indicates a balanced cash conversion efficiency. The company effectively manages its cash flows, albeit with some pressures on free cash flow growth.

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
4.91T	4.40T	3.92T	3.53T	3.78T
	Gross Profit
550.66B	401.39B	448.49B	404.53B	384.17B
	EBIT
132.95B	57.94B	182.01B	145.33B	56.13B
	EBITDA
439.08B	351.74B	437.68B	398.50B	350.53B
	Net Income Common Stockholders
90.81B	37.67B	141.94B	105.64B	24.06B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
527.19B	362.02B	454.21B	585.28B	782.94B
	Total Assets
4.64T	4.14T	4.21T	4.03T	3.99T
	Total Debt
794.66B	910.47B	944.31B	976.02B	1.01T
	Net Debt
267.47B	592.77B	557.40B	455.99B	330.36B
	Total Liabilities
2.24T	2.14T	2.21T	2.27T	2.20T
	Stockholders Equity
2.14T	1.75T	1.76T	1.54T	1.28T
Cash Flow		Free Cash Flow
255.28B	-900.00M	-40.69B	127.99B	1.94B
	Operating Cash Flow
499.74B	237.97B	193.34B	343.31B	327.55B
	Investing Cash Flow
-93.15B	-186.86B	-204.95B	-138.18B	-273.88B
	Financing Cash Flow
-211.70B	-127.75B	-135.86B	-373.88B	275.38B

Aisin Seiki Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1830.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7259, the sentiment is Positive. The current price of 1830 is above the 20-day moving average (MA) of 1546.18, above the 50-day MA of 1668.44, and above the 200-day MA of 1639.29, indicating a bullish trend. The MACD of 32.31 indicates Negative momentum. The RSI at 67.54 is Neutral, neither overbought nor oversold. The STOCH value of 84.59 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7259.

Aisin Seiki Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7270	79 Outperform	$1.72T	4.31	15.47%	4.05%	6.27%	19.66%
7203	78 Outperform	¥36.36T	7.25	14.89%	3.24%	6.94%	15.37%
7259	76 Outperform	¥1.43T	13.28	5.15%	3.95%	-0.27%	24.00%
7261	73 Outperform	$549.87B	4.14	7.58%	5.78%	5.40%	-35.16%
7267	71 Outperform	$7.16T	6.79	8.11%	4.29%	12.25%	15.01%
7201	64 Neutral	$1.20T	12.25	1.86%	4.03%	3.17%	-74.41%
Sector *	61 Neutral	$6.65B	11.64	3.00%	3.98%	2.61%	-21.41%

Aisin Seiki Co Corporate Events

Aisin Corporation Announces Strategic Stock Repurchase and Cancellation Plan

Aisin Corporation has announced its plan to repurchase and cancel a portion of its treasury shares as part of its 2025 Medium-term Management Plan. This move aims to enhance capital efficiency and corporate value, with the company planning to repurchase up to 130 million shares and cancel 50 million shares. The repurchase will be conducted between May 1, 2025, and March 31, 2026, through market purchases on the Tokyo Stock Exchange. This strategic decision is expected to positively impact the company’s financial structure and shareholder value.

Aisin Corporation Reports FY2025 Financial Results with Strategic Stock Split and Repurchase Plans

Aisin Corporation reported its consolidated financial results for FY2025, showing a slight decrease in revenue by 0.3% to 4,896,104 million yen, while operating profit increased significantly by 41.5%. The company also announced a stock split and plans for share repurchase and cancellation, indicating strategic financial maneuvers to enhance shareholder value.