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

• Market Cap: ¥3.10B
• Dividend Yield: 2.96%
• Average Volume (3M): 26.55K
• Price to Earnings (P/E): 829.4
• Beta (1Y): 0.25
• Revenue Growth: -1.64%
• EPS Growth: -98.70%
• Country: JP
• Employees: 350
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction Materials
• EPS (TTM): 8.91
• Shares Outstanding: 7,767,800
• 10 Day Avg. Volume: 24,530
• 30 Day Avg. Volume: 26,553
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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

• Rating: 54 Neutral
• Price Target: ¥409.00 ▲(0.74% Upside)

The overall stock score is primarily influenced by financial performance challenges, including declining revenue and profitability margins. Technical analysis indicates a bearish trend, and the high P/E ratio suggests overvaluation concerns. The dividend yield offers some compensation, but overall, the stock faces significant headwinds.

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 a stable financial position with strong operational cash flow and low leverage. Despite a decline in net profit margins and reduced free cash flow, the company maintains financial health with strong equity backing and efficient cash flow management.

Income Statement

Tsuruya Co., Ltd. has shown an improvement in revenue from the previous year, with a 7% growth rate. Gross profit margin remains healthy at approximately 25.9% for the latest period. However, net profit margin has decreased to 1.8% from the previous year’s 2%, indicating slight profitability pressure. The EBIT margin improved to 2.7% from 1.6% in the prior year, showing operational efficiency improvements. EBITDA margin remains stable at 6%. Although revenue growth and operational efficiencies are positive, the decline in net profit margin suggests challenges in managing costs or increased competition.

Balance Sheet

The company's balance sheet is strong with a debt-to-equity ratio of 0.11, which indicates low leverage and financial stability. Return on equity is satisfactory at 1.02%, reflecting modest shareholder returns. The equity ratio is high at 76%, suggesting a strong capital structure with significant equity financing. Overall, the balance sheet indicates financial health and low financial risk.

Cash Flow

Operating cash flow to net income ratio is robust at 4.75, demonstrating the company's strong cash-generating ability relative to net income. Free cash flow has decreased compared to the previous year, impacting free cash flow growth negatively by approximately 23%. Despite this, the free cash flow to net income ratio remains strong at 3.23, indicating good cash flow management.

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: Negative
• Last Price: 406.00
• 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 Negative. The current price of 406 is below the 20-day moving average (MA) of 412.55, below the 50-day MA of 409.21, and above the 200-day MA of 385.25, indicating a neutral trend. The MACD of -1.17 indicates Positive momentum. The RSI at 44.95 is Neutral, neither overbought nor oversold. The STOCH value of 21.93 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
5287	80 Outperform	¥4.07B	10.48	―	1.20%	5.06%	245.18%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5380	62 Neutral	¥1.29B	16.88	―	2.27%	2.34%	―
5268	60 Neutral	¥11.53B	31.69	―	1.58%	-0.66%	-11.08%
5386	54 Neutral	¥3.10B	829.41	―	2.96%	-1.64%	-98.70%
5271	54 Neutral	¥2.97B	12.03	―	3.99%	0.29%	-45.50%
5269	48 Neutral	¥18.46B	98.19	―	3.14%	-6.24%	-146.29%