Tenryu Saw Manufacturing Co., Ltd. (5945) AI Stock Analysis

• Market Cap: ¥26.06B
• Dividend Yield: 3.89%
• Average Volume (3M): 1.35K
• Price to Earnings (P/E): 13.2
• Beta (1Y): 0.17
• Revenue Growth: 1.33%
• EPS Growth: 29.73%
• Country: JP
• Employees: 972
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 43.85
• Shares Outstanding: 11,147,634
• 10 Day Avg. Volume: 1,820
• 30 Day Avg. Volume: 1,346
• PEG Ratio: 0.50
• Price to Book (P/B): 0.47
• Price to Sales (P/S): 1.32
• P/FCF Ratio: 7.83
• 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: 81 Outperform
• Price Target: ¥2,951.00 ▲(28.81% Upside)
• Action: Reiterated Date: 12/30/25
• Date: Action: Reiterated 12/30/25

The score is driven primarily by strong financial resilience (near-zero leverage) and healthy profitability, supported by reasonable valuation and an attractive dividend yield. The main drawback is technical overextension (very high RSI/Stoch), alongside historical volatility in revenue and cash-flow conversion.

Positive Factors

Conservative balance sheet (near-zero debt)

A virtually debt-free balance sheet materially lowers solvency and refinancing risk and gives management durable flexibility to fund capex, R&D or dividends from internal resources. Over the next 2–6 months this supports resilience in downturns and strategic optionality.

Healthy operating and net margins

Sustained operating and net margins at these levels indicate structural profitability in core saw-blade and cutting solutions. These margins support reliable cash generation, help absorb input cost swings and underpin long-term earnings durability in the industrial niche.

Improved cash generation in 2025

Material improvement in cash conversion in 2025 means operations funded earnings and free cash flow approached net income. This strengthens self-funding for dividends, working capital and targeted investments, improving capital allocation flexibility over coming months.

Negative Factors

Historical revenue and cash-flow volatility

Repeated swings in revenue and cash conversion reduce predictability of free cash flow and complicate multi-period planning. For a manufacturing business, this variability can force conservative capital allocation and raise the chance that dividends or growth projects are constrained during weaker periods.

Moderate return on equity

ROE near 4% signals limited efficiency in converting equity into profit, restricting shareholder value creation over time. With growing equity levels, persistently modest ROE may pressure management to find new profitable deployment or accept lower incremental returns for shareholders.

Cyclical top-line with multi-year declines

Large year-to-year swings, including multi-year declines followed by a sharp rebound, point to end-market cyclicality or lumpy orders. This structural cyclicality hinders steady growth, complicates margin expansion and makes medium-term forecasting and investment planning more uncertain.

Tenryu Saw Manufacturing Co., Ltd. Business Overview & Revenue Model

Company Description

Tenryu Saw Mfg. Co., Ltd. manufactures and sells saw blades in Japan and internationally. The company offers cutting tools, such as carbide tools for ferrous and non-ferrous metals, as well as wood applications; cutters, routers, and grinds; HSS tools; and steel center for diamond saw blade, circular and band saw blades, circular knives, and miter saw blades. It also offers machines for carbide tipped saw blades, including ultrasonic bath for saw blade; and band saw processing machines comprising automatic band saw welders, levelers, heat-tensioning machines, hard-facing alloy tipping machines, hard-facing alloy rough grinders, side grinders, and saw sharpeners, as well as narrow band saw sharpeners and cutlery. Tenryu Saw Mfg. Co., Ltd. was founded in 1909 and is based in Fukuroi, Japan.

How the Company Makes Money

Tenryu Saw Manufacturing Co., Ltd. generates revenue primarily through the sale of its cutting tools, particularly its extensive range of saw blades. The company capitalizes on its reputation for quality and precision in manufacturing to maintain a strong customer base across different industrial sectors. Key revenue streams include direct sales to manufacturers, distributors, and retailers who require reliable cutting solutions. Additionally, Tenryu may engage in strategic partnerships with other industrial tool companies to expand its market reach and enhance its product offerings. Factors such as technological innovation, customer service, and international market expansion also play significant roles in the company's earnings.

Tenryu Saw Manufacturing Co., Ltd. Financial Statement Overview

Summary

Fundamentals are strong overall, led by an exceptionally conservative balance sheet (effectively no debt) and solid profitability (net margin ~11.5%, EBIT margin ~16.3%). Offsetting this, revenue and cash-flow conversion have been volatile across years and ROE is only moderate (~4.1%), limiting the score despite low financial risk.

Income Statement

Profitability is solid, with the latest annual net margin at ~11.5% and healthy operating profitability (EBIT margin ~16.3%). Revenue rebounded strongly in 2025 (+134% vs. 2024), but the top line has been volatile across years (declines in 2023 and 2024 after a strong 2022), and margins are below the 2022 peak—suggesting earnings power is good but not fully stable.

Balance Sheet

The balance sheet is exceptionally conservative: debt is effectively negligible (debt-to-equity ~0.0006 in 2025, and zero in several prior years), providing meaningful flexibility and low financial risk. Equity has been building over time, though returns on equity are moderate (~4.1% in 2025) and below the stronger 2022 level, indicating capital is not being converted into high returns consistently.

Cash Flow

Cash generation improved materially in 2025, with operating cash flow covering net income well (~1.77x) and free cash flow close to earnings (~0.89x), which is a strong quality signal. However, cash flow has been inconsistent—2024 showed weaker cash conversion (operating cash flow coverage ~0.66x and free cash flow to net income ~0.47x), and free cash flow has swung sharply across years.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	13.15B	13.13B	11.94B	13.53B	14.39B	11.02B
Gross Profit	4.62B	4.58B	3.83B	4.61B	5.53B	4.04B
EBITDA	2.95B	3.05B	2.72B	3.27B	3.63B	2.61B
Net Income	1.45B	1.51B	1.23B	1.66B	2.13B	1.20B
Balance Sheet
Total Assets	38.84B	40.01B	37.63B	34.74B	33.62B	30.78B
Cash, Cash Equivalents and Short-Term Investments	11.84B	12.15B	10.99B	10.49B	10.29B	8.80B
Total Debt	19.73M	22.55M	0.00	0.00	0.00	0.00
Total Liabilities	3.31B	3.24B	3.38B	2.94B	3.53B	2.94B
Stockholders Equity	35.53B	36.77B	34.25B	31.80B	30.09B	27.84B
Cash Flow
Free Cash Flow	0.00	2.22B	556.64M	415.66M	1.15B	1.90B
Operating Cash Flow	0.00	2.50B	1.19B	1.90B	2.41B	2.44B
Investing Cash Flow	0.00	-1.28B	-1.17B	-1.79B	-1.50B	-195.00M
Financing Cash Flow	0.00	-831.31M	-597.83M	-646.02M	-369.38M	-356.22M

Tenryu Saw Manufacturing Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2291.00
• 50DMA: Positive
• 100DMA: Positive
• 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:5945, the sentiment is Positive. The current price of 2291 is below the 20-day moving average (MA) of 2473.45, below the 50-day MA of 2368.84, and above the 200-day MA of 2112.80, indicating a bullish trend. The MACD of 69.86 indicates Negative momentum. The RSI at 64.09 is Neutral, neither overbought nor oversold. The STOCH value of 52.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5945.

Tenryu Saw Manufacturing Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5945	81 Outperform	¥26.06B	13.22	―	3.89%	1.33%	29.73%
6278	79 Outperform	¥276.24B	24.11	―	1.17%	29.51%	48.81%
6586	77 Outperform	¥1.54T	16.74	―	2.18%	-1.72%	31.58%
5851	72 Outperform	¥86.90B	7.91	4.34%	3.36%	3.80%	-15.46%
6136	72 Outperform	¥253.90B	13.29	7.86%	2.55%	0.57%	4.54%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6474	62 Neutral	¥120.82B	17.03	2.64%	2.30%	-4.11%	46.76%