Muto Seiko Co. (7927) AI Stock Analysis

Muto Seiko Co.

(TSE/TYO:7927)

Select Model

Rating:78Outperform

Price Target:JPY 2,527.00▲(14.86% Upside)

Action:reiterated

Date:08/17/26

Muto Seiko's overall score of 78 reflects its strong financial fundamentals and attractive valuation, partially offset by near-term technical weakness. The company's consistent revenue growth, robust balance sheet, and healthy cash flows provide a solid foundation. The low P/E and high dividend yield suggest the stock is undervalued. However, the stock is currently experiencing a short-term pullback, as indicated by negative MACD and price below short-term moving averages, which tempers the overall outlook.

Positive Factors

Sustained Revenue and Earnings GrowthMulti-year growth indicates expanding production demand and stronger earnings capacity. For a precision-components manufacturer, sustained revenue and profit gains can support investment, customer retention, and operating scale over the medium term.

Negative Factors

Operating Margin ErosionMargin compression suggests that input costs, pricing, product mix, or manufacturing efficiency may be limiting profit conversion. If sustained, it could reduce the benefit of revenue growth and constrain funds available for reinvestment.

Muto Seiko Co. (7927) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 15.28B
Dividend Yield: 6.50%
Average Volume (3M): 16.11K
Price to Earnings (P/E): 8.1
Beta (1Y): 0.88
Revenue Growth: 8.79%
EPS Growth: 31.67%
Country: Japan
Employees: 2,975
Sector: General
Sector Strength: 55
Industry: Hardware, Equipment & Parts

Muto Seiko Co. Business Overview & Revenue Model

Company Description

Muto Seiko Co. operates globally as a manufacturer and supplier of plastic components. Its extensive product range encompasses polymer parts designed for various digital consumer electronics, such as digital and video cameras. Additionally, the compa...

How the Company Makes Money

Muto Seiko primarily makes money by producing and selling custom, precision plastic components and assemblies to corporate customers (B2B), with revenue recognized from shipments of manufactured parts. Its key revenue stream is contract manufacturing...

Muto Seiko Co. Financial Statement Overview

Summary

Muto Seiko demonstrates solid financial health with consistent revenue growth (5.7% in FY2026, 5-year CAGR ~9%), improving profitability (net margin 6.7%), a strong balance sheet (debt/equity 0.24), and robust cash generation (operating cash flow ¥3.70B). Minor fluctuations in margins and free cash flow are outweighed by the overall positive trajectory.

Income Statement

82Very Positive

Balance Sheet

88Very Positive

Cash Flow

78Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	30.56B	29.69B	27.57B	26.32B	26.17B	20.23B
Gross Profit	5.83B	5.77B	5.42B	5.17B	4.89B	3.37B
EBITDA	3.95B	4.16B	3.63B	3.89B	3.26B	2.12B
Net Income	1.89B	1.99B	1.51B	1.77B	1.30B	521.26M
Balance Sheet
Total Assets	32.97B	32.56B	31.03B	29.48B	25.94B	24.57B
Cash, Cash Equivalents and Short-Term Investments	9.30B	10.87B	10.37B	10.26B	8.76B	7.97B
Total Debt	5.07B	5.11B	6.95B	5.40B	5.00B	5.40B
Total Liabilities	10.91B	10.63B	11.72B	10.57B	9.72B	10.17B
Stockholders Equity	21.06B	20.95B	18.37B	17.96B	15.34B	13.60B
Cash Flow
Free Cash Flow	0	2.35B	-388.72M	1.09B	1.23B	109.58M
Operating Cash Flow	0	3.70B	2.27B	3.86B	2.59B	1.43B
Investing Cash Flow	0	-1.14B	-2.50B	-4.00B	-918.48M	-1.23B
Financing Cash Flow	0	-2.57B	379.51M	-237.03M	-746.61M	-1.04B

Muto Seiko Co. Technical Analysis

Technical Analysis SentimentNegative

Last Price2200.00

Price Trends

50DMA2274.10Negative

100DMA2228.24Negative

200DMA2156.13Positive

Market Momentum

MACD-18.24Positive

RSI33.87Neutral

STOCH6.18Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7927, the sentiment is Negative. The current price of 2200.00 is below the 20-day moving average (MA) of 2300.30, below the 50-day MA of 2274.10, and above the 200-day MA of 2156.13, indicating a neutral trend. The MACD of -18.24 indicates Positive momentum. The RSI at 33.87 is Neutral, neither overbought nor oversold. The STOCH value of 6.18 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7927.

Muto Seiko Co. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:7927 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:6866	78Outperform	JPY 120.91B	15.61	―	2.46%	16.76%	35.84%
JP:7927	78Outperform	JPY 16.04B	8.10	―	6.50%	8.79%	31.67%
JP:6853	71Outperform	JPY 18.86B	19.03	―	2.93%	2.51%	0.17%
JP:7723	71Outperform	JPY 42.32B	11.19	―	4.85%	8.79%	-4.45%
JP:7713	70Outperform	JPY 21.32B	19.54	―	1.39%	7.75%	15.59%
JP:6858	66Neutral	JPY 8.30B	9.75	―	3.65%	15.62%	50.30%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

JP:7927 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:7927	Muto Seiko Co.	2200.00	628.51	39.99%
JP:6853	Kyowa Electronic Instruments Co., Ltd.	735.00	67.89	10.18%
JP:6858	Ono Sokki Co., Ltd.	740.00	169.65	29.74%
JP:6866	Hioki E.E.Corporation	8960.00	3170.96	54.78%
JP:7713	Sigma Koki Co., Ltd.	3025.00	1556.90	106.05%
JP:7723	Aichi Tokei Denki Co., Ltd.	2637.00	-136.03	-4.91%

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

Muto Seiko Co. AI Stock Analysis