Muto Seiko Co. (7927) AI Stock Analysis

• Market Cap: ¥12.22B
• Dividend Yield: 5.42%
• Average Volume (3M): 16.59K
• Price to Earnings (P/E): 8.2
• Beta (1Y): 0.87
• 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: 16,160
• 30 Day Avg. Volume: 16,593
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥1,677.00
• Price Target Upside: -2.84% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 76 Outperform
• Price Target: ¥1,677.00 ▼(-2.84% Downside)

Muto Seiko Co. is fundamentally strong with robust revenue growth and a solid balance sheet. The valuation is highly attractive due to a low P/E ratio and high dividend yield. However, technical indicators show mixed momentum, suggesting potential short-term volatility. Negative free cash flow and a decrease in net income indicate areas of concern that need to be addressed.

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 Co. generates revenue primarily through the sale of its precision instruments and related products. The company leverages its expertise in precision engineering to deliver innovative and reliable solutions that meet the demands of various industrial applications. Its key revenue streams include direct sales to businesses in the automotive and electronics sectors, as well as partnerships with distributors and retailers who supply their products to end-users. Additionally, Muto Seiko may engage in research and development partnerships to create new technologies, which can also contribute to its earnings.

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	27.57B	27.57B	26.32B	26.17B	20.23B	19.23B
Gross Profit	5.55B	5.42B	5.28B	5.01B	3.46B	3.67B
EBITDA	3.86B	3.63B	3.89B	3.26B	2.12B	1.84B
Net Income	1.51B	1.51B	1.77B	1.30B	521.26M	288.41M
Balance Sheet
Total Assets	31.03B	31.03B	29.48B	25.94B	24.70B	23.14B
Cash, Cash Equivalents and Short-Term Investments	10.37B	10.37B	10.26B	8.76B	7.97B	8.11B
Total Debt	6.65B	6.65B	5.25B	4.86B	5.28B	6.08B
Total Liabilities	11.72B	11.72B	10.57B	9.72B	10.17B	10.39B
Stockholders Equity	18.37B	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: 1726.00
• 50DMA: Positive
• 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 1726 is above the 20-day moving average (MA) of 1708.40, above the 50-day MA of 1657.48, and above the 200-day MA of 1561.71, indicating a bullish trend. The MACD of 12.43 indicates Positive momentum. The RSI at 62.74 is Neutral, neither overbought nor oversold. The STOCH value of 45.06 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	76 Outperform	¥12.22B	8.24	―	5.42%	6.38%	-23.94%
6919	75 Outperform	10.73B	56.31	2.64%	5.42%	-2.65%	-74.99%
6658	73 Outperform	9.98B	4.84	20.90%	4.55%	2.22%	28.89%
7908	70 Neutral	12.16B	14.09	5.25%	3.10%	6.68%	-5.98%
6772	65 Neutral	12.70B	20.55	9.36%	1.78%	1.49%	-26.82%
6928	64 Neutral	11.42B	16.63	2.05%	4.18%	8.68%	859.21%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%