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

• Market Cap: ¥2.83B
• Dividend Yield: 1.59%
• Average Volume (3M): 26.55K
• Price to Earnings (P/E): 9.1
• 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): 11.31
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: ¥382.00 ▼(-7.06% Downside)
• Action: Reiterated Date: 02/02/26
• Date: Action: Reiterated 02/02/26

The score is primarily driven by financial performance: a strong, low-leverage balance sheet and a return to profitability are offset by thin margins/low ROE and recently negative free cash flow. Technicals are broadly neutral with mixed momentum signals, and valuation is moderate with a modest dividend yield.

Positive Factors

Conservative Balance Sheet

Very low debt-to-equity (~0.07) and a large equity base give the company durable financial flexibility. This reduces refinancing and solvency risk across business cycles, enabling capacity to invest or absorb shocks without forcing asset sales or emergency financing.

Return to Profitability

The company recovered from a FY2023 loss to positive earnings TTM, showing operational recovery and management execution. A sustained return to profitability improves reinvestment capacity and reduces restructuring risk, supporting longer-term strategic plans.

Positive Operating Cash Flow

Operating cash flow of ~271M indicates core business cash generation despite near-term FCF pressure. Positive OCF is a durable indicator that operations can fund working capital and some capex, providing a base for gradual deleveraging or targeted growth investments.

Negative Factors

Low Return on Equity

ROE around 1.3% signals the company is not generating meaningful returns from shareholders' capital. Persistently low ROE limits the ability to build retained earnings, reduces shareholder value creation, and may constrain capital-raising economics over time.

Negative Free Cash Flow

TTM free cash flow of about -145M reflects heavier spending or working-capital drag versus operating profits. Negative FCF hinders sustainable dividend funding, debt paydown, and discretionary investment, increasing reliance on balance-sheet reserves or external financing.

Weak Revenue Trend

Reported revenue growth metric shows a negative trend (~-4.3%), indicating scale erosion or soft demand. Continued top-line weakness undermines margin recovery and operating leverage, making it harder to restore historical profitability without structural fixes or market share gains.

Tsuruya Co., Ltd. Business Overview & Revenue Model

Company Description

Tsuruya Co., Ltd. manufactures and sells clay roofing tiles in Japan. It is also involved in the contract and construction of roofing works; and manufacture and sale of ceramic wall and building materials. The company engages in the design, manufacture, processing, maintenance, and sales of molds. The company was founded in 1887 and is based in Handa, Japan.

Tsuruya Co., Ltd. Financial Statement Overview

Summary

Turnaround back to positive earnings and a conservative balance sheet (very low debt-to-equity ~0.07) support the score, but profitability remains modest (net margin ~2.4%, ROE ~1.3%) and TTM free cash flow is negative (~-145M), indicating weaker cash conversion recently.

Income Statement

TTM (Trailing-Twelve-Months) revenue is slightly higher (+2%), but profitability remains modest: gross margin is ~24.8% and net margin is ~2.4%. The company has improved materially from the FY2023 loss year (negative operating profit and net loss) back to positive earnings, though current operating profit is still thin versus stronger FY2021 levels, indicating only a partial margin recovery and ongoing sensitivity to cost/price pressure.

Balance Sheet

Balance sheet looks conservative with low leverage: TTM debt-to-equity is ~0.07 (down from ~0.11–0.15 in prior annual periods), supported by a large equity base. The main weakness is low return on equity (TTM ~1.3%), which suggests the company is not generating strong profits from its capital despite the solid balance sheet.

Cash Flow

Cash generation has weakened in TTM (Trailing-Twelve-Months): operating cash flow is positive (~271M) but free cash flow is negative (~-145M), implying heavier spending or working-capital drag. This contrasts with the last two annual periods where free cash flow was solidly positive, and it indicates earnings quality/cash conversion has recently deteriorated even though profitability is positive.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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	394.59M	407.40M	415.55M	116.42M	420.80M	663.02M
Net Income	157.25M	121.42M	127.34M	-90.95M	128.90M	293.13M
Balance Sheet
Total Assets	15.46B	15.67B	15.84B	15.44B	15.73B	15.89B
Cash, Cash Equivalents and Short-Term Investments	2.48B	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	3.24B	3.76B	3.95B	3.84B	4.00B	4.20B
Stockholders Equity	12.22B	11.91B	11.89B	11.60B	11.72B	11.69B
Cash Flow
Free Cash Flow	-145.13M	391.77M	508.42M	-388.29M	72.81M	442.67M
Operating Cash Flow	270.99M	576.05M	661.42M	-52.29M	216.81M	494.67M
Investing Cash Flow	99.85M	-439.91M	-156.24M	-335.73M	-144.51M	-52.53M
Financing Cash Flow	-619.07M	-334.36M	-38.37M	-55.57M	-390.61M	-101.64M

Tsuruya Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 411.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 411 is above the 20-day moving average (MA) of 380.10, above the 50-day MA of 396.50, and above the 200-day MA of 404.05, indicating a bearish trend. The MACD of -8.77 indicates Positive momentum. The RSI at 39.51 is Neutral, neither overbought nor oversold. The STOCH value of 40.30 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
5352	76 Outperform	¥149.32B	11.95	―	2.77%	1.43%	91.97%
5357	73 Outperform	¥27.67B	9.01	―	5.04%	-2.29%	-41.92%
5268	69 Neutral	¥12.07B	18.59	―	1.24%	-2.82%	-44.93%
5356	68 Neutral	¥12.67B	11.04	―	3.42%	8.37%	8.13%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5386	58 Neutral	¥2.83B	9.08	―	1.59%	-4.01%	-41.29%
5269	49 Neutral	¥18.18B	743.26	―	3.24%	-3.73%	-143.19%