Tsugami Corp. (6101) AI Stock Analysis

• Market Cap: ¥184.85B
• Dividend Yield: 2.33%
• Average Volume (3M): 214.44K
• Price to Earnings (P/E): 12.3
• Beta (1Y): 1.10
• Revenue Growth: 25.95%
• EPS Growth: 66.92%
• Country: JP
• Employees: 3,063
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 103.05
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 83 Outperform
• Price Target: ¥4,602.00 ▲(60.18% Upside)
• Action: Reiterated Date: 02/01/26
• Date: Action: Reiterated 02/01/26

The score is driven primarily by strong financial performance (improving margins, conservative leverage, solid cash generation) and supported by an attractive valuation (low P/E with a moderate dividend). Technicals add a further tailwind with a clear uptrend and constructive momentum, partially tempered by historical cyclicality and cash-flow variability.

Positive Factors

High profitability & margins

Sustained high gross and EBIT margins alongside a ~20.5% ROE indicate durable pricing power, efficient production and favorable product mix in precision tooling. These structural margins support long-term free cash generation and reinvestment capacity, strengthening operational resilience.

Conservative leverage

Low debt-to-equity (~0.16) provides balance-sheet flexibility to withstand demand cycles, fund capex or R&D, and maintain shareholder returns without stressing liquidity. This conservative capitalization reduces long-term default risk and preserves strategic optionality through downturns.

Strong cash generation

High, improving FCF (¥22.3B; ~92% of net income) shows earnings largely convert to cash, enabling durable funding for maintenance capex, service expansion and dividends. Combined with recurring after‑sales revenues, this underpins long-term cash resilience despite periodic order swings.

Negative Factors

Cyclicality & volatility

The precision machine-tool market is cyclical; historical revenue ups and downs (including a FY2024 decline) create forecasting risk. Order timing and capex freezes at customers can quickly swing results, making multi‑period revenue predictability and capacity planning more challenging.

Cash flow variability risk

Despite strong TTM FCF, notable period-to-period swings (weaker FY2025 cash vs earnings) suggest working-capital or investment timing can erode liquidity. This variability can constrain consistent funding of dividends, buybacks, or unexpected capex without drawing on balance-sheet buffers.

End-market concentration sensitivity

Revenue depends heavily on capital spending in automotive and electronics; structural or cyclical slowdowns in these sectors directly reduce machine orders. This end-market concentration amplifies exposure to industry-specific shocks and lengthens recovery times after downturns.

Tsugami Corp. Business Overview & Revenue Model

Company Description

Tsugami Corporation, together with its subsidiaries, manufactures and sells precision machine tools in Japan. The company offers CNC precision automatic lathes, including independent opposed gang tool type, opposed gang tool type, gang-tool slede and turret, and chuck work products; and CNC lathes. It also offers precision turning center products; precision machining center products comprising vertical and horizontal machining centers; precision grinding machines, such as CNC cylindrical grinding machines; and rolling machines. In addition, the company installs and repairs machine tools; inspects and maintains buildings and facilities of factories; and operates as a non-life insurance agency, as well as undertakes various business activities, such as research on individual companies and other services. It also operates in China, Thailand, South Korea, Singapore, the Philippines, India, the United States, Switzerland, Germany, France, Italy, and Mexico. The company serves various industries, including electronics, information and telecommunications, and automobile industries. The company was formerly known as Tsugami Mfg., Co., Ltd. and changed its name to Tsugami Corporation in November 1970. Tsugami Corporation was founded in 1937 and is headquartered in Tokyo, Japan.

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

Fundamentals are above-average: TTM revenue grew 7.6% with improved profitability (gross margin ~36%, EBIT margin ~26.5%, net margin ~11.9%) and strong ROE (~20.5%). Balance sheet leverage is conservative (debt-to-equity ~0.16). Key offsets are business cyclicality and year-to-year cash flow variability (FY2025 cash flow weaker vs earnings).

Income Statement

TTM (Trailing-Twelve-Months) results show solid momentum with revenue up 7.6% and strong profitability (gross margin ~36%, EBIT margin ~26.5%, net margin ~11.9%). Margins and earnings have improved versus the last annual period (FY2025: ~33.8% gross margin, ~10.1% net margin), indicating better operating leverage and pricing/product mix. The key weakness is cyclicality/volatility in the historical revenue path (e.g., a revenue decline in FY2024), which can be typical for manufacturing but still elevates forecast risk.

Balance Sheet

Leverage looks conservative, with low debt relative to equity in TTM (debt-to-equity ~0.16) and a clear improvement from prior years when leverage was higher (~0.29–0.35). Profitability on shareholder capital is strong (TTM return on equity ~20.5%), supporting balance-sheet strength through retained earnings. A watch item is that total debt is still meaningful in absolute terms, so results would remain somewhat sensitive if industry conditions weaken, but overall capitalization appears healthy.

Cash Flow

Cash generation is a clear positive: TTM free cash flow is strong (¥22.3B) and up sharply (+36.8%), and free cash flow runs at ~92% of net income, suggesting earnings are translating well into cash. The main weakness is variability across periods—FY2025 showed notably lower operating and free cash flow versus earnings (and negative free cash flow growth), implying working-capital or investment swings that can pressure near-term cash conversion even when profits are solid.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	126.66B	107.41B	83.93B	94.96B	93.17B	61.66B
Gross Profit	45.55B	36.35B	23.67B	26.76B	28.18B	17.20B
EBITDA	35.97B	26.27B	16.21B	19.19B	20.83B	11.26B
Net Income	15.05B	10.90B	5.38B	7.70B	9.49B	4.92B
Balance Sheet
Total Assets	144.65B	127.31B	117.71B	112.36B	103.76B	79.28B
Cash, Cash Equivalents and Short-Term Investments	39.64B	27.73B	30.64B	25.81B	18.87B	17.24B
Total Debt	11.92B	11.52B	17.20B	17.70B	13.59B	9.58B
Total Liabilities	46.68B	43.19B	45.35B	47.44B	45.92B	32.44B
Stockholders Equity	74.08B	62.90B	56.60B	50.95B	45.58B	38.23B
Cash Flow
Free Cash Flow	22.34B	6.83B	9.41B	7.08B	3.25B	4.24B
Operating Cash Flow	24.36B	8.86B	11.88B	8.30B	6.30B	6.78B
Investing Cash Flow	-7.19B	-3.33B	-2.60B	-1.28B	-3.01B	1.43B
Financing Cash Flow	-9.19B	-7.45B	-6.69B	-379.00M	-3.51B	-2.78B

Tsugami Corp. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2873.00
• 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 2873 is below the 20-day moving average (MA) of 3687.25, below the 50-day MA of 3272.54, and above the 200-day MA of 2505.05, indicating a bullish trend. The MACD of 213.10 indicates Negative momentum. The RSI at 68.84 is Neutral, neither overbought nor oversold. The STOCH value of 70.22 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	83 Outperform	¥184.85B	12.31	―	2.33%	25.95%	66.92%
6136	72 Outperform	¥270.99B	17.00	7.86%	2.55%	0.57%	4.54%
6278	70 Outperform	¥272.09B	44.51	―	1.17%	29.51%	48.81%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7726	63 Neutral	¥5.88B	-750.55	―	2.05%	-6.69%	-80.28%
6474	62 Neutral	¥127.72B	23.00	2.64%	2.30%	-4.11%	46.76%
6141	57 Neutral	¥438.99B	19.90	5.32%	3.77%	-9.34%	164.21%

Tsugami Corp. Corporate Events

Tsugami Reports No Treasury Share Purchases in January Under Ongoing Buyback Program

Tsugami Corporation reported that it did not acquire any treasury shares in January 2026 under its ongoing share buyback program authorized by the Board on November 13, 2025. Despite the lack of purchases in January, the company has cumulatively bought back 243,500 shares for approximately ¥655.4 million under the current authorization, bringing its treasury stock holdings to 1.311 million shares, or 2.73% of total issued shares, a move that reflects continued capital management efforts and may support shareholder value by tightening the share float over time.

The most recent analyst rating on (JP:6101) stock is a Buy with a Yen3820.00 price target. To see the full list of analyst forecasts on Tsugami Corp. stock, see the JP:6101 Stock Forecast page.

Tsugami Delivers Strong Profit Growth and Raises Payouts on Solid Nine-Month Results

Tsugami Corporation reported strong results for the nine months ended December 31, 2025, with revenue rising 25.7% year on year to ¥94.1 billion and operating profit surging 62.8% to ¥25.6 billion, while profit attributable to owners of the parent climbed 53.4% to ¥11.9 billion. The company’s financial position also improved, with total assets increasing to ¥144.7 billion and equity attributable to owners of the parent reaching ¥74.1 billion, pushing its equity ratio slightly higher and supporting a higher dividend trajectory, as it maintains a full-year dividend forecast of ¥72 per share and projects continued earnings growth for the fiscal year ending March 31, 2026.

The most recent analyst rating on (JP:6101) stock is a Buy with a Yen3790.00 price target. To see the full list of analyst forecasts on Tsugami Corp. stock, see the JP:6101 Stock Forecast page.

Tsugami Updates Progress on Ongoing Share Buyback Program

Tsugami Corporation has reported the status of its ongoing share buyback program authorized by its board on November 13, 2025, under which it is repurchasing its own common stock on the Tokyo Stock Exchange. Between December 1 and December 31, 2025, the company acquired 69,600 shares for a total of ¥188.4 million, bringing cumulative repurchases under the current authorization to 243,500 shares worth ¥655.4 million as of December 31, 2025. This remains within the approved ceiling of up to 500,000 shares or ¥1.3 billion to be bought back by May 12, 2026, and results in treasury stock holdings of 1.311 million shares, or 2.73% of the 48 million shares issued, reflecting an ongoing capital policy that may support shareholder value and signal management’s confidence in the company’s financial position and share price.

The most recent analyst rating on (JP:6101) stock is a Buy with a Yen3069.00 price target. To see the full list of analyst forecasts on Tsugami Corp. stock, see the JP:6101 Stock Forecast page.

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.

The most recent analyst rating on (JP:6101) stock is a Buy with a Yen3069.00 price target. To see the full list of analyst forecasts on Tsugami Corp. stock, see the JP:6101 Stock Forecast page.