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Tokai Senko K.K. (JP:3577)
:3577
Japanese Market
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Tokai Senko K.K. (3577) AI Stock Analysis

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JP:3577

Tokai Senko K.K.

(3577)

Rating:74Outperform
Price Target:
¥981.00
▲(10.10% Upside)
Tokai Senko K.K. has a strong financial performance with robust revenue growth and cash flow generation, which are the most significant factors in its score. The stock's valuation is attractive with a low P/E ratio and a decent dividend yield. Technical analysis shows a neutral trend, which slightly offsets the positive financial and valuation aspects.

Tokai Senko K.K. (3577) vs. iShares MSCI Japan ETF (EWJ)

Tokai Senko K.K. Business Overview & Revenue Model

Company DescriptionTokai Senko K.K. (3577) is a Japanese company predominantly engaged in the textile industry. The company focuses on the dyeing and processing of textiles and garments. It operates within the textile sector, providing services that enhance the quality and aesthetic appeal of fabrics through its dyeing techniques and technological capabilities.
How the Company Makes MoneyTokai Senko K.K. generates revenue primarily through its textile dyeing and processing services. The company's key revenue streams include contract work for textile dyeing, where it utilizes specialized techniques to meet the specific requirements of its clients. Additionally, the company may engage in partnerships or collaborations with textile manufacturers and fashion brands to provide customized solutions, thus enhancing its service offerings and market reach. Factors such as technological advancements in dyeing processes and maintaining quality standards play a significant role in sustaining and growing its earnings.

Tokai Senko K.K. Financial Statement Overview

Summary
Tokai Senko K.K. exhibits a positive financial performance with strong revenue growth and improved profitability margins. The balance sheet reflects a stable financial position with low leverage. The cash flow statement indicates strong cash generation, supporting future growth opportunities. While the company shows promising trends, there is room for improvement in operational efficiency and profitability.
Income Statement
75
Positive
Tokai Senko K.K. has shown a strong revenue growth rate of 8.6% from 2024 to 2025, indicating a positive trajectory in sales. The gross profit margin improved to 14.8% in 2025, reflecting better cost management. The net profit margin increased significantly to 2.2%, showing enhanced profitability. However, the EBIT margin of 2.9% suggests room for improvement in operational efficiency.
Balance Sheet
70
Positive
The company's debt-to-equity ratio decreased to 0.29, indicating a conservative leverage position. The return on equity improved to 4.4%, reflecting better utilization of shareholder funds. The equity ratio stands at 48.1%, suggesting a stable financial structure. However, the relatively low ROE indicates potential for further profitability enhancement.
Cash Flow
80
Positive
Tokai Senko K.K. demonstrated a robust free cash flow growth rate of 108.5%, highlighting strong cash generation capabilities. The operating cash flow to net income ratio of 2.6 suggests efficient cash conversion from operations. The free cash flow to net income ratio of 2.0 further underscores the company's strong cash flow position.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue14.35B14.35B13.22B13.06B11.14B10.62B
Gross Profit2.13B2.13B1.65B1.54B1.50B1.37B
EBITDA1.14B1.14B781.40M623.25M609.47M397.93M
Net Income311.01M311.71M129.81M-100.91M48.49M-174.33M
Balance Sheet
Total Assets14.89B14.89B14.55B13.94B13.38B12.91B
Cash, Cash Equivalents and Short-Term Investments3.07B3.07B2.68B2.50B2.32B2.27B
Total Debt2.11B2.11B2.52B2.83B2.65B2.53B
Total Liabilities6.30B6.30B6.54B6.62B6.23B6.05B
Stockholders Equity7.17B7.17B6.84B6.23B6.19B6.05B
Cash Flow
Free Cash Flow0.00635.39M304.80M-100.86M-181.54M-158.43M
Operating Cash Flow0.00808.81M531.06M189.36M57.18M319.79M
Investing Cash Flow0.00-41.56M-19.98M-99.13M123.23M-359.96M
Financing Cash Flow0.00-487.47M-439.78M26.95M-49.40M-114.31M

Tokai Senko K.K. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price891.00
Price Trends
50DMA
876.92
Positive
100DMA
888.89
Positive
200DMA
871.42
Positive
Market Momentum
MACD
4.92
Positive
RSI
54.48
Neutral
STOCH
58.97
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3577, the sentiment is Positive. The current price of 891 is above the 20-day moving average (MA) of 889.45, above the 50-day MA of 876.92, and above the 200-day MA of 871.42, indicating a bullish trend. The MACD of 4.92 indicates Positive momentum. The RSI at 54.48 is Neutral, neither overbought nor oversold. The STOCH value of 58.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3577.

Tokai Senko K.K. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
¥33.22B12.42
3.09%7.46%1.54%
77
Outperform
¥72.00B15.07
1.99%15.29%87.17%
74
Outperform
¥103.84B12.83
2.48%7.01%11.28%
74
Outperform
¥2.89B9.40
2.81%6.98%12.56%
66
Neutral
¥12.70B14.47
4.92%1.93%-1.93%
61
Neutral
$17.97B12.87-5.29%2.97%1.26%-14.45%
¥38.47B9.92
4.11%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3577
Tokai Senko K.K.
891.00
132.41
17.45%
JP:3104
Fujibo Holdings, Inc.
6,720.00
2,576.52
62.18%
JP:3109
Shikibo Ltd.
1,026.00
30.69
3.08%
JP:3201
Japan Wool Textile Co., Ltd.
1,651.00
379.74
29.87%
JP:3580
KOMATSU MATERE Co., Ltd.
810.00
127.29
18.64%
JP:8011
Sanyo Shokai Ltd.
3,235.00
1,012.32
45.55%
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 06, 2025