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TONE Co. Ltd. (JP:5967)
:5967
Japanese Market

TONE Co. Ltd. (5967) AI Stock Analysis

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JP

TONE Co. Ltd.

(5967)

Rating:71Outperform
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. (5967) vs. iShares MSCI Japan ETF (EWJ)

TONE Co. Ltd. Business Overview & Revenue Model

Company DescriptionTONE 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 MoneyTONE 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
82
Very Positive
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
88
Very Positive
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
65
Positive
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
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
7.78B7.58B6.80B6.45B6.12B5.95B
Gross Profit
3.23B3.13B3.03B2.74B2.65B2.40B
EBIT
1.23B1.12B1.22B985.94M1.15B906.25M
EBITDA
1.48B1.25B1.39B1.20B1.30B1.02B
Net Income Common Stockholders
1.10B942.67M866.63M692.50M841.95M628.93M
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.40B2.25B1.84B1.70B2.37B896.85M
Total Assets
14.14B14.87B11.35B9.97B9.47B8.04B
Total Debt
2.00B2.21B1.25M102.19M103.12M42.56M
Net Debt
609.00M-40.20M-1.84B-1.60B-2.27B-854.29M
Total Liabilities
3.34B4.20B1.62B1.46B1.43B1.37B
Stockholders Equity
10.80B10.67B9.73B8.51B8.04B6.67B
Cash FlowFree Cash Flow
0.00-1.20B150.75M79.62M997.96M623.39M
Operating Cash Flow
0.00-760.04M382.33M770.39M1.05B852.41M
Investing Cash Flow
0.00-549.50M-238.06M-1.35B-49.08M-262.34M
Financing Cash Flow
0.001.70B-13.40M-112.24M471.87M-600.54M

TONE Co. Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price483.00
Price Trends
50DMA
499.64
Negative
100DMA
500.91
Negative
200DMA
549.29
Negative
Market Momentum
MACD
-5.38
Positive
RSI
38.78
Neutral
STOCH
8.33
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

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
¥6.18B9.45
3.15%6.58%29.17%
75
Outperform
¥2.04B14.44
2.89%0.89%6.55%
74
Outperform
¥19.38B11.64
4.30%11.71%54.61%
73
Outperform
¥21.16B10.63
3.40%7.59%12.32%
71
Outperform
¥11.28B10.08
4.24%10.47%48.78%
66
Neutral
$4.51B12.295.40%3.67%4.15%-12.21%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5967
TONE Co. Ltd.
485.00
-54.16
-10.05%
JP:5945
Tenryu Saw Manufacturing Co., Ltd.
1,904.00
92.73
5.12%
JP:5952
Amatei Incorporated
173.00
34.78
25.16%
JP:5957
Nitto Seiko Co., Ltd.
577.00
17.74
3.17%
JP:5966
Kyoto Tool Co., Ltd.
2,541.00
-124.65
-4.68%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.