Tsugami Corp. (6101) AI Stock Analysis

• Market Cap: ¥146.01B
• Dividend Yield: 2.18%
• Average Volume (3M): 214.44K
• Price to Earnings (P/E): 11.1
• Beta (1Y): 1.00
• Revenue Growth: 25.95%
• EPS Growth: 66.92%
• Country: JP
• Employees: 3,063
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 63.28
• Shares Outstanding: 48,000,000
• 10 Day Avg. Volume: 252,650
• 30 Day Avg. Volume: 214,436
• PEG Ratio: 0.07
• Price to Book (P/B): 1.36
• Price to Sales (P/S): 0.80
• P/FCF Ratio: 12.55
• 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: 79 Outperform
• Price Target: ¥3,069.00 ▼(-1.63% Downside)

Tsugami Corp. demonstrates strong financial performance with robust profitability and cash flow generation, contributing significantly to its overall score. The technical analysis indicates bullish momentum, although caution is advised due to potential overbought conditions. The attractive valuation further supports the stock's appeal.

Positive Factors

Revenue Growth

Steady revenue growth reflects strong demand for Tsugami's precision machinery, supporting long-term business expansion and market position.

Cash Generation

Strong cash generation enhances financial flexibility, allowing Tsugami to invest in growth opportunities and withstand market fluctuations.

Profitability

High profitability margins indicate effective cost management and operational efficiency, strengthening Tsugami's competitive edge.

Negative Factors

Asset Utilization

Suboptimal asset utilization may limit Tsugami's ability to maximize returns on its investments, potentially affecting long-term growth.

Equity Ratio

While healthy, a higher equity ratio could enhance financial stability, reducing reliance on external financing and improving resilience.

Leverage

Although low leverage is generally positive, it may limit Tsugami's ability to capitalize on growth opportunities through strategic borrowing.

Tsugami Corp. Business Overview & Revenue Model

Company Description

Tsugami Corp. (6101) is a Japanese company specializing in precision machinery and machine tools, particularly in the manufacturing of high-precision CNC (Computer Numerical Control) lathes and related equipment. The company serves various sectors, including automotive, aerospace, and electronics, offering products that enhance manufacturing efficiency and precision. Tsugami's core product lines include ultra-precision lathes, multi-tasking machines, and other advanced manufacturing solutions designed to meet the demanding requirements of modern industrial applications.

How the Company Makes Money

Tsugami Corp. generates revenue primarily through the sale of its precision machinery and machine tools, which are sold to manufacturers in various industries. The company’s revenue model is based on direct sales of its products, as well as ongoing maintenance and service contracts that provide additional income over time. Key revenue streams include the sale of CNC lathes and multi-tasking machines, spare parts, and after-sales services. Additionally, Tsugami benefits from strategic partnerships and collaborations with other technology firms and manufacturers, enhancing its product offerings and market reach. The growing demand for automation and precision manufacturing in industries such as automotive and electronics further contributes to its earnings, as clients seek advanced solutions to improve production efficiency.

Tsugami Corp. Financial Statement Overview

Summary

Tsugami Corp. presents a strong financial profile with consistent revenue and profit growth, efficient operational management, and robust cash flow generation. The company's low leverage and effective use of equity enhance its financial stability, positioning it well for future growth in the manufacturing sector.

Income Statement

Tsugami Corp. demonstrates strong revenue growth with a 5.64% increase in TTM, supported by healthy gross and net profit margins of 33.85% and 10.15%, respectively. The EBIT and EBITDA margins are robust at 22.06% and 24.12%, indicating efficient operational management. The consistent improvement in profitability metrics over the years highlights a positive trajectory in financial performance.

Balance Sheet

The company maintains a solid balance sheet with a low debt-to-equity ratio of 0.18, reflecting prudent financial leverage. The return on equity is strong at 17.77%, showcasing effective use of shareholder funds. However, the equity ratio is moderate, suggesting room for improvement in asset financing through equity.

Cash Flow

Tsugami Corp. exhibits impressive free cash flow growth of 74.35% in TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio is healthy, supporting the company's ability to convert profits into cash. The free cash flow to net income ratio of 0.77 further underscores efficient cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	117.67B	107.41B	83.93B	94.96B	93.17B	61.66B
Gross Profit	41.43B	36.35B	23.67B	26.76B	28.18B	17.20B
EBITDA	31.29B	26.27B	16.21B	19.19B	20.83B	11.26B
Net Income	13.23B	10.90B	5.38B	7.70B	9.49B	4.92B
Balance Sheet
Total Assets	130.12B	127.31B	117.71B	112.36B	103.76B	79.28B
Cash, Cash Equivalents and Short-Term Investments	31.66B	27.73B	30.64B	25.81B	18.87B	17.24B
Total Debt	11.07B	11.52B	17.20B	17.70B	13.59B	9.58B
Total Liabilities	39.40B	43.19B	45.35B	47.44B	45.92B	32.44B
Stockholders Equity	68.04B	62.90B	56.60B	50.95B	45.58B	38.23B
Cash Flow
Free Cash Flow	16.33B	6.83B	9.41B	7.08B	3.25B	4.24B
Operating Cash Flow	18.33B	8.86B	11.88B	8.30B	6.30B	6.78B
Investing Cash Flow	-5.51B	-3.33B	-2.60B	-1.28B	-3.01B	1.43B
Financing Cash Flow	-8.89B	-7.45B	-6.69B	-379.00M	-3.51B	-2.78B

Tsugami Corp. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3120.00
• 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:6101, the sentiment is Positive. The current price of 3120 is above the 20-day moving average (MA) of 2812.10, above the 50-day MA of 2685.28, and above the 200-day MA of 2093.22, indicating a bullish trend. The MACD of 111.99 indicates Negative momentum. The RSI at 68.20 is Neutral, neither overbought nor oversold. The STOCH value of 77.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6101.

Tsugami Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6101	79 Outperform	¥146.01B	11.11	―	2.18%	25.95%	66.92%
6136	79 Outperform	¥217.93B	14.89	7.86%	2.48%	0.57%	4.54%
6278	76 Outperform	¥154.62B	24.25	―	1.12%	29.51%	48.81%
6474	74 Outperform	¥102.87B	23.28	2.64%	2.31%	-4.11%	46.76%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6141	63 Neutral	¥380.14B	13.52	5.32%	3.73%	-9.34%	164.21%
7726	63 Neutral	¥6.25B	74.50	―	1.82%	-6.69%	-80.28%

Tsugami Corp. Corporate Events

Tsugami Corporation Acquires Treasury Shares to Strengthen Market Position

Tsugami Corporation announced the acquisition of 173,900 treasury shares valued at approximately 467 million yen, as part of a resolution passed by its Board of Directors. This strategic move, executed on the Tokyo Stock Exchange, reflects the company’s ongoing assessment of financial conditions and stock price trends, potentially impacting its market positioning and shareholder value.

Tsugami Corporation Announces Leadership Change to Enhance Growth

Tsugami Corporation announced a change in its leadership, with Shoichiro Haga retiring from his role as Representative Director to become Executive Director (CFO) at Precision Tsugami (China) Corporation Limited. This change, effective November 13, 2025, aims to strengthen the company’s management structure and enhance corporate value, reducing the number of Representative Directors from three to two.

Tsugami Corporation Completes Treasury Share Acquisition and Plans Further Purchases

Tsugami Corporation has completed the acquisition of treasury shares as per its board resolution from July 2025, acquiring 151,600 shares, which is 30.32% of the maximum authorized amount. The company aims to implement flexible capital policy measures in response to future management environment changes, with plans to acquire up to 500,000 shares by May 2026.

Tsugami Corporation Announces Increased Dividend Payout

Tsugami Corporation announced a resolution to distribute dividends from surplus, with a record date of September 30, 2025. The dividend per share is set at ¥36.00, marking an increase from the previous year’s ¥27.00, reflecting the company’s strong financial performance and commitment to returning value to shareholders.

Tsugami Corp. Revises Financial and Dividend Forecasts Upward

Tsugami Corporation has revised its financial forecasts for the fiscal year ending March 31, 2026, reflecting a positive outlook with increased revenue and profit expectations. The company has also announced an upward revision of its dividend forecast, indicating a commitment to providing stable returns to shareholders while maintaining a strong financial position.

Tsugami Corp. Reports Strong Financial Growth in H1 2025

Tsugami Corporation reported a strong financial performance for the six months ending September 30, 2025, with a notable increase in revenue and profit compared to the previous year. The company’s revenue grew by 20.6% to 60,054 million yen, and profit before tax increased by 51.5% to 14,935 million yen, reflecting robust operational efficiency and market demand. The company also announced an increase in dividends, indicating confidence in sustained growth and shareholder value.

Tsugami Corporation Updates on Treasury Share Acquisition

Tsugami Corporation announced the status of its treasury share acquisition, which was resolved by the Board of Directors in July 2025. Despite the authorization to acquire up to 500,000 shares, the company acquired 151,600 shares by October 31, 2025, at a total value of 329,462,500 yen, reflecting strategic financial management and market considerations.

Tsugami Corporation Revises Financial and Dividend Forecasts Upward

Tsugami Corporation has revised its financial forecasts for the six months ended September 30, 2025, showing significant improvements in revenue and profits compared to previous estimates. The company attributes this positive change to its steady business promotion across various locations despite market uncertainties. Additionally, Tsugami has increased its interim dividend forecast, reflecting improved profitability and a commitment to providing stable returns to shareholders.

Tsugami Corporation Updates on Treasury Share Acquisition Status

Tsugami Corporation announced the status of its treasury share acquisition, revealing that no shares were acquired during the specified period from September 1 to September 30, 2025. Despite the lack of acquisitions in September, the company had previously acquired 151,600 shares by the end of the month, reflecting a strategic approach to managing its shares in line with financial conditions and stock price trends.