Cash GenerationExceptional free cash flow growth (108.5%) and a high operating cash flow to net income ratio (2.6) show durable conversion of earnings into cash. Reliable cash generation supports capex, maintenance of service contracts, dividend capacity, debt reduction and funding of strategic investments.

Conservative Balance SheetA low debt-to-equity ratio (0.29) and ~48% equity ratio indicate a conservative capital structure that reduces financial stress in downturns. This preserves borrowing capacity for strategic investments, supports long-term contracts, and provides resilience without jeopardizing operations.

Revenue Growth & Margin ImprovementSustained revenue growth (8.6% year) alongside improved gross (14.8%) and net margins (2.2%) signals durable demand and better cost control. Margin expansion with top-line growth supports reinvestment in products and services and strengthens competitive positioning over the medium term.

Bears Say

Low Return On EquityROE at ~4.4% remains low relative to typical corporate benchmarks, indicating limited efficiency in converting equity into profit. Persistently low ROE can constrain shareholder returns, limit attractiveness to investors, and suggest management needs to improve asset utilization or strategy.

Thin Operating ProfitabilityAn EBIT margin of about 2.9% points to thin operating profitability, leaving limited buffer against rising costs. Low operating margins constrain the company’s ability to invest in R&D, scale services, or absorb input-price shocks, making long-term margin improvement critical for durable competitiveness.

Modest Net MarginA net margin near 2.2% is modest; after financing and taxes the retained earnings cushion is small. This limits the company’s capacity to self-fund larger strategic initiatives, reduces shock absorption in downturns, and may necessitate external funding for material expansion.

3577 FAQ

What was Tokai Senko K.K.’s price range in the past 12 months?

Tokai Senko K.K. lowest stock price was ¥775.00 and its highest was ¥1067.00 in the past 12 months.

What is Tokai Senko K.K.’s market cap?

Tokai Senko K.K.’s market cap is ¥3.26B.

When is Tokai Senko K.K.’s upcoming earnings report date?

Tokai Senko K.K.’s upcoming earnings report date is May 11, 2026 which is in 64 days.

How were Tokai Senko K.K.’s earnings last quarter?

Tokai Senko K.K. released its earnings results on Feb 05, 2026. The company reported ¥57.63 earnings per share for the quarter, beating the consensus estimate of N/A by ¥57.63.

Is Tokai Senko K.K. overvalued?

According to Wall Street analysts Tokai Senko K.K.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Tokai Senko K.K. pay dividends?

Tokai Senko K.K. pays a Annually dividend of ¥25 which represents an annual dividend yield of 2.77%. See more information on Tokai Senko K.K. dividends here

What is Tokai Senko K.K.’s EPS estimate?

Tokai Senko K.K.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Tokai Senko K.K. have?

Tokai Senko K.K. has 3,614,252 shares outstanding.

What happened to Tokai Senko K.K.’s price movement after its last earnings report?

Tokai Senko K.K. reported an EPS of ¥57.63 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went up 0.703%.

Which hedge fund is a major shareholder of Tokai Senko K.K.?

Currently, no hedge funds are holding shares in JP:3577

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

Tokai Senko K.K.

Tokai Senko K.K. engages in textile designing, printing, dyeing, and finishing activities. The company also develops and sells industrial machineries. Tokai Senko K.K. was founded in 1941 and is headquartered in Nagoya, Japan.