TONE Co. Ltd. (5967) AI Stock Analysis

• Market Cap: ¥11.18B
• Dividend Yield: 2.18%
• Average Volume (3M): 15.57K
• Price to Earnings (P/E): 11.5
• Beta (1Y): 0.18
• Revenue Growth: -2.69%
• EPS Growth: 6.29%
• Country: JP
• Employees: 155
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 6.61
• Shares Outstanding: 23,426,000
• 10 Day Avg. Volume: 17,700
• 30 Day Avg. Volume: 15,566
• PEG Ratio: -0.86
• Price to Book (P/B): 0.99
• Price to Sales (P/S): 1.48
• P/FCF Ratio: 46.82
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: ¥555.00 ▲(17.83% Upside)

The overall stock score is primarily influenced by the company's stable financial position and fair valuation. However, technical analysis indicates bearish momentum, which negatively impacts the score. The absence of earnings call and corporate events data limits additional insights.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage indicates financial stability and a solid foundation for future growth, reducing risk.

Operational Efficiency

Healthy EBIT and EBITDA margins suggest effective cost management and operational efficiency, supporting long-term profitability.

Strategic Partnerships

Partnerships with carriers enhance market presence and revenue potential, providing a competitive edge in the telecommunications sector.

Negative Factors

Revenue Growth Challenges

Inconsistent revenue growth and recent declines indicate potential market challenges, impacting long-term business expansion.

Cash Flow Volatility

Volatile cash flow can hinder financial planning and investment capacity, affecting the company's ability to sustain operations.

Profit Margin Pressure

Decreasing profit margins suggest cost pressures, which could erode profitability if not addressed, impacting long-term financial health.

TONE Co. Ltd. Business Overview & Revenue Model

Company Description

Tone Co., Ltd. develops, manufactures, and sells professional hand tools, power tools, and torque measuring devices under the TONE brand name in Asia, North America, Europe, and internationally. The company operates through Domestic and Abroad segments. It also offers tool set, storage tools, automotive and cycle tools, torque wrenches, stainless steel and titanium tools, air tools, and accessory parts. In addition, the company offers saving effort tools comprising of electric tools, nutrunner, shear wrench, torshat, power digi torque/power wrench, and equipment socket. Further, the company provides work tools consisting of socket wrench set, socket adapter, hammer/blow tool, handle, T and L wrench, drivers, bits, adjustable wrench/pipe wrench, spanner/box wrench, and pilers. It serves general, aerospace, construction, automotive, bridge, plant engineering, transportation, and alternative energy industries. The company was formerly known as Maeda Metal Industries, Ltd. and changed its name to Tone Co., Ltd. in November 2013. Tone Co., Ltd. was founded in 1938 and is headquartered in Osaka, Japan.

How the Company Makes Money

TONE Co. Ltd. generates revenue primarily through the sale of its telecommunications equipment, including mobile devices and accessories. The company also earns income from service contracts, subscriptions, and maintenance agreements associated with its products. Additionally, TONE Co. Ltd. has established strategic partnerships with various telecommunications carriers, which enable it to offer bundled services and expand its market reach. The company may also engage in licensing agreements and collaborations with technology firms, contributing further to its revenue streams.

TONE Co. Ltd. Financial Statement Overview

Summary

The company shows a stable financial position with a strong balance sheet and operational efficiency. However, challenges exist in maintaining consistent revenue growth and cash flow stability. The low leverage and healthy equity position provide a buffer against potential risks, but profitability and cash flow consistency need improvement.

Income Statement

The income statement shows a mixed performance. Gross profit margins have slightly decreased over the years, indicating some pressure on cost management. Net profit margins have also declined, reflecting challenges in maintaining profitability. Revenue growth has been inconsistent, with a recent decline, which is a concern. However, EBIT and EBITDA margins remain relatively healthy, suggesting operational efficiency.

Balance Sheet

The balance sheet is strong with a low debt-to-equity ratio, indicating conservative leverage and financial stability. Return on equity has been stable, though slightly declining, which suggests consistent shareholder returns. The equity ratio is healthy, showing a strong capital structure. Overall, the balance sheet reflects financial stability and low risk.

Cash Flow

Cash flow analysis reveals volatility, with significant fluctuations in free cash flow growth. The operating cash flow to net income ratio has been inconsistent, indicating potential challenges in converting income to cash. However, the free cash flow to net income ratio is relatively stable, suggesting some resilience in cash generation capabilities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.54B	7.59B	7.58B	6.80B	6.45B	6.12B
Gross Profit	3.05B	2.96B	3.13B	3.03B	2.74B	2.65B
EBITDA	1.49B	1.27B	1.47B	1.39B	1.20B	1.30B
Net Income	958.00M	787.05M	942.67M	866.63M	692.50M	841.95M
Balance Sheet
Total Assets	14.47B	14.53B	14.87B	11.35B	9.97B	9.47B
Cash, Cash Equivalents and Short-Term Investments	2.03B	1.91B	2.25B	1.84B	1.70B	2.37B
Total Debt	1.70B	1.80B	2.21B	1.25M	102.19M	103.12M
Total Liabilities	3.08B	3.23B	4.20B	1.62B	1.46B	1.43B
Stockholders Equity	11.39B	11.30B	10.67B	9.73B	8.51B	8.04B
Cash Flow
Free Cash Flow	0.00	239.64M	-1.20B	150.75M	79.62M	997.96M
Operating Cash Flow	0.00	629.23M	-760.04M	382.33M	770.39M	1.05B
Investing Cash Flow	0.00	-352.75M	-549.50M	-238.06M	-1.35B	-49.08M
Financing Cash Flow	0.00	-607.33M	1.70B	-13.40M	-112.24M	471.87M

TONE Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 471.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5967, the sentiment is Negative. The current price of 471 is below the 20-day moving average (MA) of 514.90, below the 50-day MA of 580.24, and below the 200-day MA of 528.37, indicating a bearish trend. The MACD of -30.30 indicates Positive momentum. The RSI at 21.65 is Positive, neither overbought nor oversold. The STOCH value of 1.53 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5967.

TONE Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5957	76 Outperform	¥25.56B	12.25	―	2.82%	7.69%	-0.40%
5945	74 Outperform	¥21.50B	11.51	―	3.90%	1.33%	29.73%
5966	67 Neutral	¥5.96B	13.67	―	3.20%	1.16%	-31.17%
5952	66 Neutral	¥2.17B	13.29	―	2.75%	0.32%	19.67%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5967	61 Neutral	¥11.18B	11.46	―	2.18%	-2.69%	6.29%