Tokai Senko K.K. (3577) AI Stock Analysis

• Market Cap: ¥2.86B
• Dividend Yield: 2.85%
• Average Volume (3M): 3.10K
• Price to Earnings (P/E): 9.2
• Beta (1Y): 0.31
• Revenue Growth: 6.98%
• EPS Growth: 12.56%
• Country: JP
• Employees: 777
• Sector: Consumer Cyclical
• Sector Strength: 72
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.42
• Shares Outstanding: 3,614,252
• 10 Day Avg. Volume: 3,400
• 30 Day Avg. Volume: 3,096
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥981.00
• Price Target Upside: 11.22% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• Price Target: ¥981.00 ▲(11.22% 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. Business Overview & Revenue Model

Company Description

Tokai 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 Money

Tokai 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. demonstrates a solid financial performance with notable strengths in revenue growth and cash flow generation. The company maintains a balanced capital structure with a focus on improving profitability. While there are areas to enhance operational efficiency, the overall trajectory is positive, reflecting a stable financial position.

Income Statement

Tokai Senko K.K. has shown consistent revenue growth with a recent increase of 8.57% year-over-year. Gross profit margin improved to 14.84%, reflecting effective cost management. The net profit margin increased to 2.17%, indicating improved profitability. However, EBIT and EBITDA margins suggest room for efficiency improvements.

Balance Sheet

The balance sheet shows a healthy equity ratio of 48.12%, indicating a strong capital structure. The debt-to-equity ratio is manageable at 0.29, showing moderate leverage. Return on Equity improved to 4.35%, reflecting better utilization of equity. However, potential risks include slightly high debt levels relative to equity.

Cash Flow

Free cash flow increased significantly by 108.44%, highlighting strong cash generation capabilities. The operating cash flow to net income ratio of 2.59 indicates robust cash flow relative to profitability. The company effectively converts its earnings into cash, supporting stability and growth.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	14.35B	13.22B	13.06B	11.14B	10.62B
Gross Profit	2.13B	1.65B	1.54B	1.50B	1.37B
EBITDA	1.14B	781.40M	623.25M	609.47M	397.93M
Net Income	311.71M	129.81M	-100.91M	48.49M	-174.33M
Balance Sheet
Total Assets	14.89B	14.55B	13.94B	13.38B	12.91B
Cash, Cash Equivalents and Short-Term Investments	3.07B	2.68B	2.50B	2.32B	2.27B
Total Debt	2.11B	2.52B	2.83B	2.65B	2.53B
Total Liabilities	6.30B	6.54B	6.62B	6.23B	6.05B
Stockholders Equity	7.17B	6.84B	6.23B	6.19B	6.05B
Cash Flow
Free Cash Flow	635.39M	304.80M	-100.86M	-181.54M	-158.43M
Operating Cash Flow	808.81M	531.06M	189.36M	57.18M	319.79M
Investing Cash Flow	-41.56M	-19.98M	-99.13M	123.23M	-359.96M
Financing Cash Flow	-487.47M	-439.78M	26.95M	-49.40M	-114.31M

Tokai Senko K.K. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 882.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 882 is above the 20-day moving average (MA) of 868.40, above the 50-day MA of 874.26, and above the 200-day MA of 849.51, indicating a bullish trend. The MACD of -0.54 indicates Negative momentum. The RSI at 56.81 is Neutral, neither overbought nor oversold. The STOCH value of 63.06 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3104	77 Outperform	¥67.45B	14.12		2.13%	15.29%	87.17%
3201	74 Outperform	¥92.73B	11.41		2.83%	7.01%	11.28%
3577	74 Outperform	¥2.86B	9.22		2.85%	6.98%	12.56%
3580	69 Neutral	¥31.87B	11.92		3.31%	7.46%	1.54%
3109	66 Neutral	¥12.80B	14.58		4.84%	1.93%	-1.93%
Sector *	61 Neutral	$16.99B	10.66	-7.51%	3.25%	1.53%	-15.49%