Musashi Seimitsu Industry Co., Ltd. (7220) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Mitsuboshi Belting Ltd.

TOKAI RIKA CO., LTD.

KYB Corp.

JTEKT Corp.

Stanley Electric Co., Ltd.

Musashi Seimitsu Industry Co., Ltd.

NHK Spring Co., Ltd.

Why is Musashi Seimitsu Industry Co., Ltd. ?

The company is Net-Debt Free

Poor long term growth as Operating profit has grown by an annual rate 44.50% of over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 6.73% signifying low profitability per unit of shareholders funds

Positive results in Mar 26

RAW MATERIAL COST(Y) Fallen by -3.96% (YoY)
NET PROFIT(9M) Higher at JPY 8,955.93 MM
CASH AND EQV(HY) Highest at JPY 76,301 MM

With ROCE of 10.40%, it has a very expensive valuation with a 1.39 Enterprise value to Capital Employed

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 28.57%, its profits have risen by 33.5% ; the PEG ratio of the company is 0.5

Underperformed the market in the last 1 year

The stock has generated a return of 28.57% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 85.83%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Musashi Seimitsu Industry Co., Ltd. should be less than 10%
Overall Portfolio exposure to Auto Components & Equipments should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Auto Components & Equipments)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Musashi Seimitsu Industry Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Musashi Seimitsu Industry Co., Ltd.

28.57%

1.61

85.38%

Japan Nikkei 225

75.22%

3.09

27.80%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.74%

EBIT Growth (5y)

44.50%

EBIT to Interest (avg)

9.46

Debt to EBITDA (avg)

2.23

Net Debt to Equity (avg)

0.55

Sales to Capital Employed (avg)

1.61

Tax Ratio

41.58%

Dividend Payout Ratio

42.09%

Pledged Shares

Institutional Holding

ROCE (avg)

7.13%

ROE (avg)

6.73%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.62

EV to EBIT

13.37

EV to EBITDA

6.91

EV to Capital Employed

1.39

EV to Sales

0.76

PEG Ratio

0.46

Dividend Yield

ROCE (Latest)

10.40%

ROE (Latest)

10.54%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Bullish

OBV

Mildly Bearish

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -3.96% (YoY

NET PROFIT(9M)

Higher at JPY 8,955.93 MM

CASH AND EQV(HY)

Highest at JPY 76,301 MM

NET SALES(Q)

Highest at JPY 94,210 MM

OPERATING PROFIT(Q)

Highest at JPY 12,644 MM

PRE-TAX PROFIT(Q)

Highest at JPY 7,611 MM

-3What is not working for the Company

ROCE(HY)

Lowest at 1.07%

INTEREST(Q)

Highest at JPY 578 MM

Here's what is working for Musashi Seimitsu Industry Co., Ltd.

Net Sales

Highest at JPY 94,210 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 12,644 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Pre-Tax Profit

Highest at JPY 7,611 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Cash and Eqv

Highest at JPY 76,301 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Net Profit

Higher at JPY 8,955.93 MM

than preceding 12 month period ended Mar 2026

MOJO Watch

In the nine month period the company has already crossed sales of the previous twelve months

Net Profit (JPY MM)

Raw Material Cost

Fallen by -3.96% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at JPY 4,797 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Here's what is not working for Musashi Seimitsu Industry Co., Ltd.

Interest

Highest at JPY 578 MM

in the last five periods and Increased by 7.84% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)