TONE Co. Ltd. (5967) AI Stock Analysis

• Market Cap: ¥14.05B
• Dividend Yield: 1.7%
• Average Volume (3M): 43.07K
• Price to Earnings (P/E): 16.7
• Beta (1Y): 0.26
• Revenue Growth: 0.17%
• EPS Growth: -16.55%
• Country: JP
• Employees: 155
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 13.46
• Shares Outstanding: 23,426,000
• 10 Day Avg. Volume: 10,090
• 30 Day Avg. Volume: 43,070
• 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: ¥641.00
• Price Target Upside: 6.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 70 Outperform
• Price Target: ¥641.00 ▲(6.48% Upside)

The stock score is primarily driven by strong technical indicators and a stable financial position. While the valuation is fair, the company's challenges in revenue growth and cash flow stability slightly impact the overall score.

TONE Co. Ltd. Business Overview & Revenue Model

Company Description

TONE Co. Ltd. (5967) is a Japanese company specializing in the development and manufacturing of telecommunications equipment, particularly focusing on mobile communications and related services. The company operates primarily in the telecommunications sector, offering a range of products including mobile phones, communication devices, and accessories. TONE Co. Ltd. is also known for its innovative solutions aimed at enhancing user connectivity and digital communication experiences.

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

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.80B	7.59B	7.58B	6.80B	6.45B	6.12B
Gross Profit	3.23B	2.96B	3.13B	3.03B	2.74B	2.65B
EBITDA	1.48B	1.27B	1.47B	1.39B	1.20B	1.30B
Net Income	1.03B	787.05M	942.67M	866.63M	692.50M	841.95M
Balance Sheet
Total Assets	14.03B	14.53B	14.87B	11.35B	9.97B	9.47B
Cash, Cash Equivalents and Short-Term Investments	1.40B	1.91B	2.25B	1.84B	1.70B	2.37B
Total Debt	2.01B	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	10.95B	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: Positive
• Last Price: 602.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5967, the sentiment is Positive. The current price of 602 is above the 20-day moving average (MA) of 584.65, above the 50-day MA of 526.46, and above the 200-day MA of 507.63, indicating a bullish trend. The MACD of 22.58 indicates Positive momentum. The RSI at 69.30 is Neutral, neither overbought nor oversold. The STOCH value of 91.36 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	80 Outperform	¥24.15B	11.54	6.43%	2.98%	8.60%	9.08%
5966	80 Outperform	¥6.01B	11.02	―	2.43%	7.33%	-8.26%
5952	77 Outperform	¥2.15B	13.88	9.56%	2.73%	1.63%	18.55%
5945	74 Outperform	¥21.88B	13.55	―	3.82%	4.22%	6.68%
5967	70 Outperform	¥14.05B	16.75	―	1.70%	0.17%	-16.55%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%