Muto Seiko Co. (7927) AI Stock Analysis

• Market Cap: ¥12.06B
• Dividend Yield: 6.27%
• Average Volume (3M): 17.93K
• Price to Earnings (P/E): 8.1
• Beta (1Y): 0.84
• Revenue Growth: 6.38%
• EPS Growth: -23.94%
• Country: JP
• Employees: 3,126
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 59.76
• Shares Outstanding: 7,739,548
• 10 Day Avg. Volume: 18,020
• 30 Day Avg. Volume: 17,933
• PEG Ratio: -0.51
• Price to Book (P/B): 0.60
• Price to Sales (P/S): 0.40
• P/FCF Ratio: -28.54
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: ¥1,948.00 ▲(16.79% Upside)

Muto Seiko Co. receives a strong overall score due to its solid financial performance, particularly its robust revenue growth and healthy balance sheet. The technical indicators suggest a positive market trend, and the valuation metrics highlight the stock's potential undervaluation and attractive dividend yield. However, challenges in net income and cash flow management slightly temper the overall outlook.

Muto Seiko Co. Business Overview & Revenue Model

Company Description

Muto Seiko Co. manufactures and sells plastic parts worldwide. It offers plastic parts for digital home appliances, such as digital and video cameras; and center panel units, including car navigation systems, air conditioners, audio, and automobile-related parts, as well as molds for injection molding and presses. The company was founded in 1956 and is headquartered in Kakamigahara, Japan.

How the Company Makes Money

Muto Seiko generates revenue primarily through the sale of its precision watch movements and components to various watch manufacturers. The company has established long-term partnerships with several well-known luxury watch brands, which contribute significantly to its earnings. Additionally, Muto Seiko may also engage in contract manufacturing and offer custom engineering solutions, providing tailored products to meet specific client needs. The combination of high-quality production, strategic partnerships, and a reputation for precision helps secure a consistent revenue stream for the company.

Muto Seiko Co. Financial Statement Overview

Summary

Muto Seiko Co. demonstrates robust revenue growth and maintains a solid balance sheet with low leverage, which is favorable for financial stability. However, the decrease in net income and negative free cash flow in the latest period could indicate potential operational or investment challenges. Overall, the company is financially sound, but attention to cost management and cash flow sustainability is crucial.

Income Statement

Muto Seiko Co. has shown a positive revenue growth trend over the years, with a noticeable increase from 2024 to 2025. The gross profit margin for 2025 was approximately 19.65%, and the net profit margin for the same year was around 5.48%. The EBIT and EBITDA margins were 7.42% and 13.17%, respectively, indicating solid profitability and operational efficiency. However, the decline in net income from the previous year suggests potential challenges in cost management or other expenses.

Balance Sheet

The company maintains a healthy balance sheet with a debt-to-equity ratio of approximately 0.36 in 2025, indicating a conservative leverage position. The return on equity (ROE) was about 8.22%, reflecting moderate profitability for shareholders. The equity ratio was 59.2%, which showcases a strong equity base relative to total assets, signifying financial stability.

Cash Flow

The cash flow statement shows challenges in free cash flow, which turned negative in 2025 compared to positive free cash flow in prior years. The operating cash flow remained positive, but the significant capital expenditures resulted in negative free cash flow growth. The operating cash flow to net income ratio was 1.5, which suggests effective cash generation from operations relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	28.10B	27.57B	26.32B	26.17B	20.23B	19.23B
Gross Profit	5.65B	5.55B	5.28B	5.01B	3.46B	3.67B
EBITDA	3.77B	3.63B	3.89B	3.26B	2.12B	1.84B
Net Income	1.45B	1.51B	1.77B	1.30B	521.26M	288.41M
Balance Sheet
Total Assets	30.89B	31.03B	29.48B	25.94B	24.57B	23.14B
Cash, Cash Equivalents and Short-Term Investments	9.91B	10.37B	10.26B	8.76B	7.97B	8.11B
Total Debt	6.98B	6.65B	5.25B	4.86B	5.28B	6.08B
Total Liabilities	12.24B	11.72B	10.57B	9.72B	10.17B	10.39B
Stockholders Equity	17.71B	18.37B	17.96B	15.34B	13.74B	12.01B
Cash Flow
Free Cash Flow	0.00	-388.72M	1.06B	1.21B	99.29M	1.08B
Operating Cash Flow	0.00	2.27B	3.86B	2.59B	1.43B	1.99B
Investing Cash Flow	0.00	-2.50B	-4.00B	-918.48M	-1.23B	-1.59B
Financing Cash Flow	0.00	379.51M	-237.03M	-746.61M	-1.04B	-175.13M

Muto Seiko Co. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1668.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7927, the sentiment is Positive. The current price of 1668 is below the 20-day moving average (MA) of 1681.50, below the 50-day MA of 1682.66, and above the 200-day MA of 1552.46, indicating a neutral trend. The MACD of -4.65 indicates Positive momentum. The RSI at 46.42 is Neutral, neither overbought nor oversold. The STOCH value of 23.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7927.

Muto Seiko Co. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7927	79 Outperform	¥12.06B	8.13	―	6.27%	6.38%	-23.94%
6658	76 Outperform	¥10.13B	5.50	―	4.43%	1.68%	15.79%
6928	74 Outperform	¥13.02B	18.90	―	3.67%	8.68%	859.21%
6919	66 Neutral	¥9.99B	54.14	―	5.83%	-2.65%	-74.99%
6772	65 Neutral	¥11.40B	19.19	―	1.81%	1.49%	-26.82%
7908	63 Neutral	¥12.21B	11.84	―	3.20%	0.30%	4.85%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%