TONE Co. Ltd. (5967) AI Stock Analysis

• Market Cap: ¥11.28B
• Dividend Yield: 4.24%
• Average Volume (3M): 6.77K
• Price to Earnings (P/E): 10.1
• Beta (1Y): 0.27
• Revenue Growth: 10.47%
• EPS Growth: 48.78%
• Country: JP
• Employees: 155
• Sector: Industrials
• Sector Strength: 88
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 47.92
• Shares Outstanding: 23,426,000
• 10 Day Avg. Volume: 12,040
• 30 Day Avg. Volume: 6,773
• PEG Ratio: 0.48
• Price to Book (P/B): 1.05
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 67.66
• 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

• Rating: 71 Outperform
• Price Target: ¥561.00 ▲(16.15%Upside)

The stock of TONE Co. Ltd. receives a score of 71, driven primarily by its strong financial performance in terms of revenue and profit margins, and a stable balance sheet. However, the concerns regarding cash flow generation and moderate technical indicators slightly offset these strengths. Valuation metrics suggest the stock is fairly valued, providing a balanced investment opportunity.

TONE Co. Ltd. Business Overview & Revenue Model

Company Description

TONE Co. Ltd. (5967) is a manufacturing company based in Japan, primarily engaged in the production and distribution of industrial tools and equipment. The company specializes in providing high-quality hand tools, hydraulic tools, and other related products to various industries, including construction, automotive, and manufacturing sectors.

How the Company Makes Money

TONE Co. Ltd. generates revenue through the sale of its diverse range of industrial tools and equipment. The company's primary revenue streams include direct sales to businesses in the construction, automotive, and manufacturing industries, as well as through partnerships with distributors and retailers. TONE Co. Ltd. leverages its established brand reputation and quality of its products to maintain a steady customer base. Additionally, the company may benefit from strategic partnerships and collaborations that enhance its market reach and distribution capabilities.

TONE Co. Ltd. Financial Statement Overview

Summary

TONE Co. Ltd. showcases strong revenue growth and healthy profit margins with a robust balance sheet, but faces challenges in cash flow generation, highlighting the need for improved operational efficiency.

Income Statement

TONE Co. Ltd. has demonstrated strong revenue growth with a 11.44% increase from the previous year. The gross profit margin is robust at 41.37%, and the net profit margin is healthy at 12.44%. The company maintains a solid EBIT margin of 14.84% and an EBITDA margin of 19.35%, indicating efficient cost management. However, the decline in EBIT from the previous year highlights a need for attention in operational cost control.

Balance Sheet

The company exhibits a strong equity position with an equity ratio of 71.74%. The debt-to-equity ratio is low at 0.21, indicating prudent financial leverage. The return on equity (ROE) is commendable at 8.83%, suggesting effective utilization of equity capital. The balance sheet reflects financial stability with a substantial stockholders' equity base.

Cash Flow

While the free cash flow has decreased significantly from the previous year, the operating cash flow to net income ratio is currently negative due to a decrease in operating cash flow. This highlights potential issues in generating cash from operations. The free cash flow to net income ratio is also negative, pointing to challenges in maintaining positive cash flow amidst capital expenditures.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
7.78B	7.58B	6.80B	6.45B	6.12B	5.95B
	Gross Profit
3.23B	3.13B	3.03B	2.74B	2.65B	2.40B
	EBIT
1.23B	1.12B	1.22B	985.94M	1.15B	906.25M
	EBITDA
1.48B	1.25B	1.39B	1.20B	1.30B	1.02B
	Net Income Common Stockholders
1.10B	942.67M	866.63M	692.50M	841.95M	628.93M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.40B	2.25B	1.84B	1.70B	2.37B	896.85M
	Total Assets
14.14B	14.87B	11.35B	9.97B	9.47B	8.04B
	Total Debt
2.00B	2.21B	1.25M	102.19M	103.12M	42.56M
	Net Debt
609.00M	-40.20M	-1.84B	-1.60B	-2.27B	-854.29M
	Total Liabilities
3.34B	4.20B	1.62B	1.46B	1.43B	1.37B
	Stockholders Equity
10.80B	10.67B	9.73B	8.51B	8.04B	6.67B
Cash Flow		Free Cash Flow
0.00	-1.20B	150.75M	79.62M	997.96M	623.39M
	Operating Cash Flow
0.00	-760.04M	382.33M	770.39M	1.05B	852.41M
	Investing Cash Flow
0.00	-549.50M	-238.06M	-1.35B	-49.08M	-262.34M
	Financing Cash Flow
0.00	1.70B	-13.40M	-112.24M	471.87M	-600.54M

TONE Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 483.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• 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 483 is below the 20-day moving average (MA) of 501.97, below the 50-day MA of 499.64, and below the 200-day MA of 549.29, indicating a bearish trend. The MACD of -5.38 indicates Positive momentum. The RSI at 38.78 is Neutral, neither overbought nor oversold. The STOCH value of 8.33 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
5966	80 Outperform	¥6.18B	9.45		3.15%	6.58%	29.17%
5952	75 Outperform	¥2.04B	14.44		2.89%	0.89%	6.55%
5945	74 Outperform	¥19.38B	11.64		4.30%	11.71%	54.61%
5957	73 Outperform	¥21.16B	10.63		3.40%	7.59%	12.32%
5967	71 Outperform	¥11.28B	10.08		4.24%	10.47%	48.78%
Sector *	66 Neutral	$4.51B	12.29	5.40%	3.67%	4.15%	-12.21%