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

• Market Cap: ¥3.12B
• Dividend Yield: 1.59%
• Average Volume (3M): 26.55K
• Price to Earnings (P/E): 19.7
• Beta (1Y): 0.23
• 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: 53 Neutral
• Price Target: ¥413.00 ▲(1.47% Upside)

Tsuruya Co., Ltd. has a mixed financial performance with strong balance sheet but challenges in revenue growth and cash flow. Technical analysis indicates bearish momentum, and the valuation is moderate. The lack of earnings call and corporate events data limits further insights. The company needs to address its financial and technical challenges to improve its stock performance.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage provides financial stability and flexibility, allowing the company to invest in growth opportunities and weather economic downturns.

Stable Gross Profit Margin

A stable gross profit margin indicates effective cost management and pricing strategies, which are crucial for maintaining profitability in a competitive market.

Product Innovation

Continuous investment in R&D enhances product offerings and competitive positioning, driving long-term revenue growth and market expansion.

Negative Factors

Declining Revenue Growth

Declining revenue growth can hinder the company's ability to scale operations and compete effectively, impacting long-term financial performance.

Cash Flow Challenges

Cash flow challenges limit the company's ability to invest in growth initiatives and meet financial obligations, potentially affecting its operational stability.

Low Net Profit Margin

A low net profit margin indicates limited profitability, which can constrain reinvestment in the business and reduce shareholder returns over time.

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	6.47B	6.82B	6.37B	7.14B	7.74B	7.29B
Gross Profit	1.60B	1.76B	1.62B	1.42B	1.82B	2.02B
EBITDA	404.67M	407.40M	415.55M	116.42M	420.80M	663.02M
Net Income	156.56M	121.42M	127.34M	-90.95M	128.90M	293.13M
Balance Sheet
Total Assets	15.40B	15.67B	15.84B	15.44B	15.73B	15.89B
Cash, Cash Equivalents and Short-Term Investments	2.53B	1.86B	1.65B	1.18B	1.63B	1.95B
Total Debt	900.00M	1.30B	1.50B	1.50B	1.50B	1.80B
Total Liabilities	3.15B	3.76B	3.95B	3.84B	4.00B	4.20B
Stockholders Equity	12.24B	11.91B	11.89B	11.60B	11.72B	11.69B
Cash Flow
Free Cash Flow	-62.42M	391.77M	508.42M	-388.29M	72.81M	442.67M
Operating Cash Flow	255.26M	576.05M	661.42M	-52.29M	216.81M	494.67M
Investing Cash Flow	348.42M	-439.91M	-156.24M	-335.73M	-144.51M	-52.53M
Financing Cash Flow	-590.15M	-334.36M	-38.37M	-55.57M	-390.61M	-101.64M

Tsuruya Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 407.00
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 407 is below the 20-day moving average (MA) of 412.25, below the 50-day MA of 413.34, and above the 200-day MA of 395.18, indicating a neutral trend. The MACD of -1.80 indicates Positive momentum. The RSI at 44.44 is Neutral, neither overbought nor oversold. The STOCH value of 43.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥14.40B	67.44	―	1.25%	-2.82%	-44.93%
5287	67 Neutral	¥2.97B	12.08	―	1.97%	-3.03%	-14.50%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5380	62 Neutral	¥1.25B	27.95	―	2.29%	-0.62%	―
5271	54 Neutral	¥3.02B	12.43	―	3.86%	0.29%	-45.50%
5386	53 Neutral	¥3.12B	19.67	―	1.59%	-4.01%	-41.29%
5269	49 Neutral	¥18.07B	-141.02	―	3.26%	-3.73%	-143.19%