Tsuruya Co., Ltd. (5386) AI Stock Analysis

• Market Cap: ¥3.16B
• Dividend Yield: 2.92%
• Average Volume (3M): 26.55K
• Price to Earnings (P/E): 19.9
• Beta (1Y): 0.24
• Revenue Growth: -4.01%
• EPS Growth: -41.29%
• Country: JP
• Employees: 350
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction Materials
• EPS (TTM): 27.72
• Shares Outstanding: 7,767,800
• 10 Day Avg. Volume: 24,530
• 30 Day Avg. Volume: 26,553
• PEG Ratio: -6.37
• Price to Book (P/B): 0.25
• Price to Sales (P/S): 0.43
• P/FCF Ratio: 7.47
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: ¥423.00 ▲(2.17% Upside)

The overall stock score for Tsuruya Co., Ltd. is primarily influenced by its stable balance sheet and low leverage, which are positive factors. However, significant challenges in revenue growth, profitability, and cash flow generation weigh heavily on the score. The technical analysis indicates a lack of strong momentum, and the high P/E ratio suggests potential overvaluation, despite a reasonable dividend yield.

Positive Factors

Balance Sheet Health

A strong balance sheet with low leverage enhances financial stability and provides flexibility for future investments and growth initiatives.

Product Innovation

Continued investment in R&D supports long-term competitiveness by enabling the company to adapt to market needs and maintain product relevance.

Market Reach

Strategic partnerships expand market access, potentially increasing sales and strengthening the company's position in the ceramics industry.

Negative Factors

Revenue Decline

Declining revenue and margins indicate challenges in maintaining sales growth and profitability, potentially impacting long-term financial health.

Profitability Challenges

Low profitability margins limit the company's ability to reinvest in growth and may affect its competitive position in the market.

Cash Flow Issues

Weak cash flow generation can constrain operational flexibility and investment capacity, hindering long-term strategic initiatives.

Tsuruya Co., Ltd. Business Overview & Revenue Model

Company Description

Tsuruya Co., Ltd. (5386) is a Japanese company primarily engaged in the manufacturing and sale of ceramic materials and products. Operating within the ceramics industry, Tsuruya specializes in producing high-quality porcelain and stoneware, catering to both domestic and international markets. The company's portfolio includes a diverse range of items such as tableware, decorative ceramics, and industrial ceramics, emphasizing craftsmanship and innovation to meet customer needs.

How the Company Makes Money

Tsuruya Co., Ltd. generates revenue through multiple key streams. The primary source of income comes from the sale of its ceramic products, which are distributed to retailers, wholesalers, and directly to consumers. The company also benefits from contract manufacturing services, where it produces custom ceramics for other brands. Additionally, Tsuruya has established partnerships with various retailers and distributors, enhancing its market reach and sales volume. The company invests in research and development to innovate new products and improve existing ones, which also contributes to its revenue by attracting a broader customer base. Seasonal product lines and limited edition items further bolster sales, particularly during peak shopping periods.

Tsuruya Co., Ltd. Financial Statement Overview

Summary

Tsuruya Co., Ltd. demonstrates stability in its balance sheet with low leverage, but faces challenges in revenue growth and profitability. The income statement shows declining margins, and the cash flow statement highlights potential issues in cash generation. The company needs to focus on improving operational efficiency and cash flow management to enhance financial performance.

Income Statement

Tsuruya Co., Ltd. has shown a decline in revenue over the TTM period, with a negative revenue growth rate of -4.05%. The gross profit margin remains relatively stable at around 25.88%, indicating consistent cost management. However, the net profit margin is low at 1.78%, suggesting challenges in converting revenue into profit. The EBIT and EBITDA margins have also decreased, reflecting potential operational inefficiencies.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.11, indicating conservative leverage. The return on equity is modest at 1.00%, suggesting limited profitability from shareholders' investments. The equity ratio is healthy, showing a solid capital structure with equity financing a significant portion of assets.

Cash Flow

The cash flow statement reveals a significant decline in free cash flow growth at -38.64% over the TTM period, indicating potential cash generation issues. The operating cash flow to net income ratio is 0.18, suggesting that operating cash flow is not fully covering net income. The free cash flow to net income ratio is 0.68, reflecting some challenges in converting earnings into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.54B	6.82B	6.37B	7.14B	7.74B	7.29B
Gross Profit	1.69B	1.76B	1.62B	1.42B	1.82B	2.02B
EBITDA	195.54M	407.40M	415.55M	116.42M	420.80M	663.02M
Net Income	4.05M	121.42M	127.34M	-90.95M	128.90M	293.13M
Balance Sheet
Total Assets	15.54B	15.67B	15.84B	15.44B	15.73B	15.89B
Cash, Cash Equivalents and Short-Term Investments	1.72B	1.86B	1.65B	1.18B	1.63B	1.95B
Total Debt	1.30B	1.30B	1.50B	1.50B	1.50B	1.80B
Total Liabilities	3.59B	3.76B	3.95B	3.84B	4.00B	4.20B
Stockholders Equity	11.96B	11.91B	11.89B	11.60B	11.72B	11.69B
Cash Flow
Free Cash Flow	239.81M	391.77M	508.42M	-388.29M	72.81M	442.67M
Operating Cash Flow	526.69M	576.05M	661.42M	-52.29M	216.81M	494.67M
Investing Cash Flow	-541.74M	-439.91M	-156.24M	-335.73M	-144.51M	-52.53M
Financing Cash Flow	-338.27M	-334.36M	-38.37M	-55.57M	-390.61M	-101.64M

Tsuruya Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 414.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5386, the sentiment is Neutral. The current price of 414 is below the 20-day moving average (MA) of 416.30, above the 50-day MA of 413.24, and above the 200-day MA of 391.52, indicating a neutral trend. The MACD of 0.60 indicates Positive momentum. The RSI at 45.43 is Neutral, neither overbought nor oversold. The STOCH value of 20.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:5386.

Tsuruya Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5268	69 Neutral	¥10.94B	30.06	―	1.38%	-2.82%	-44.93%
5287	67 Neutral	¥4.20B	10.81	―	1.46%	-3.03%	-14.50%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5380	62 Neutral	¥1.24B	27.59	―	2.26%	-0.62%	―
5386	55 Neutral	¥3.16B	19.91	―	2.92%	-4.01%	-41.29%
5271	54 Neutral	¥2.95B	12.15	―	3.89%	0.29%	-45.50%
5269	49 Neutral	¥18.40B	-65.80	―	3.24%	-3.73%	-143.19%