Musashi Seimitsu Industry Co., Ltd.

TSE:7220 Stock Report

Market Cap: JP¥200.8b

Musashi Seimitsu Industry Valuation

Is 7220 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 7220 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 7220 (¥3170) is trading below our estimate of fair value (¥3240.38)

Significantly Below Fair Value: 7220 is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 7220?

Key metric: As 7220 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 7220. This is calculated by dividing 7220's market cap by their current earnings.
What is 7220's PE Ratio?
PE Ratio28.4x
EarningsJP¥7.31b
Market CapJP¥200.83b

Price to Earnings Ratio vs Peers

How does 7220's PE Ratio compare to its peers?

The above table shows the PE ratio for 7220 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average11.6x
7296 F.C.C
10.7x-0.2%JP¥148.0b
3569 SeirenLtd
11.7x7.9%JP¥146.2b
7839 Shoei
16.5x8.0%JP¥115.8b
5191 Sumitomo Riko
7.3x1.9%JP¥167.5b
7220 Musashi Seimitsu Industry
28.4x22.3%JP¥200.8b

Price-To-Earnings vs Peers: 7220 is expensive based on its Price-To-Earnings Ratio (28.4x) compared to the peer average (11.6x).

Price to Earnings Ratio vs Industry

How does 7220's PE Ratio compare vs other companies in the JP Auto Components Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
7220 28.4xIndustry Avg. 8.7xNo. of Companies17PE0612182430+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 7220 is expensive based on its Price-To-Earnings Ratio (28.4x) compared to the JP Auto Components industry average (8.7x).

Price to Earnings Ratio vs Fair Ratio

What is 7220's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

7220 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio28.4x
Fair PE Ratio12.2x

Price-To-Earnings vs Fair Ratio: 7220 is expensive based on its Price-To-Earnings Ratio (28.4x) compared to the estimated Fair Price-To-Earnings Ratio (12.2x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 7220 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentJP¥3,170.00
JP¥2,383.33
-24.8%
8.2%JP¥2,600.00JP¥2,000.00n/a6
Nov ’25JP¥1,902.00
JP¥2,383.33
+25.3%
8.2%JP¥2,600.00JP¥2,000.00n/a6
Oct ’25JP¥1,993.00
JP¥2,383.33
+19.6%
8.2%JP¥2,600.00JP¥2,000.00n/a6
Sep ’25JP¥2,065.00
JP¥2,340.00
+13.3%
8.4%JP¥2,600.00JP¥2,000.00n/a5
Aug ’25JP¥2,042.00
JP¥2,340.00
+14.6%
8.4%JP¥2,600.00JP¥2,000.00n/a5
Jul ’25JP¥1,908.00
JP¥2,200.00
+15.3%
13.8%JP¥2,600.00JP¥1,800.00n/a5
Jun ’25JP¥1,721.00
JP¥2,140.00
+24.3%
14.4%JP¥2,600.00JP¥1,800.00n/a5
May ’25JP¥1,642.00
JP¥2,100.00
+27.9%
12.0%JP¥2,400.00JP¥1,800.00n/a5
Apr ’25JP¥1,645.00
JP¥2,100.00
+27.7%
12.0%JP¥2,400.00JP¥1,800.00n/a5
Mar ’25JP¥1,656.00
JP¥2,120.00
+28.0%
9.6%JP¥2,400.00JP¥1,800.00n/a5
Feb ’25JP¥1,683.00
JP¥2,200.00
+30.7%
6.4%JP¥2,400.00JP¥2,000.00n/a4
Jan ’25JP¥1,510.00
JP¥2,100.00
+39.1%
9.5%JP¥2,400.00JP¥1,800.00n/a5
Dec ’24JP¥1,609.00
JP¥2,058.33
+27.9%
8.9%JP¥2,400.00JP¥1,800.00n/a6
Nov ’24JP¥1,494.00
JP¥2,058.33
+37.8%
10.9%JP¥2,500.00JP¥1,800.00JP¥1,902.006
Oct ’24JP¥1,625.00
JP¥2,075.00
+27.7%
10.4%JP¥2,500.00JP¥1,800.00JP¥1,993.006
Sep ’24JP¥1,707.00
JP¥2,091.67
+22.5%
10.2%JP¥2,500.00JP¥1,800.00JP¥2,065.006
Aug ’24JP¥1,787.00
JP¥2,011.43
+12.6%
13.8%JP¥2,500.00JP¥1,530.00JP¥2,042.007
Jul ’24JP¥1,763.00
JP¥2,011.43
+14.1%
13.8%JP¥2,500.00JP¥1,530.00JP¥1,908.007
Jun ’24JP¥1,661.00
JP¥1,911.43
+15.1%
15.3%JP¥2,200.00JP¥1,400.00JP¥1,721.007
May ’24JP¥1,829.00
JP¥1,911.43
+4.5%
15.3%JP¥2,200.00JP¥1,400.00JP¥1,642.007
Apr ’24JP¥1,867.00
JP¥1,925.71
+3.1%
15.8%JP¥2,200.00JP¥1,400.00JP¥1,645.007
Mar ’24JP¥1,786.00
JP¥1,918.57
+7.4%
16.1%JP¥2,300.00JP¥1,400.00JP¥1,656.007
Feb ’24JP¥1,799.00
JP¥1,918.57
+6.6%
16.1%JP¥2,300.00JP¥1,400.00JP¥1,683.007
Jan ’24JP¥1,565.00
JP¥1,907.14
+21.9%
17.6%JP¥2,300.00JP¥1,400.00JP¥1,510.007
Dec ’23JP¥1,772.00
JP¥1,814.29
+2.4%
17.5%JP¥2,200.00JP¥1,400.00JP¥1,609.007
Nov ’23JP¥1,709.00
JP¥1,814.29
+6.2%
17.5%JP¥2,200.00JP¥1,400.00JP¥1,494.007

Analyst Forecast: Target price is lower than the current share price.

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