Tsugami Corp. (6101) AI Stock Analysis

• Market Cap: ¥162.86B
• Dividend Yield: 2.33%
• Average Volume (3M): 214.44K
• Price to Earnings (P/E): 7.0
• 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: ¥4,450.00 ▲(54.89% Upside)
• Action: Reiterated Date: 03/12/26
• Date: Action: Reiterated 03/12/26

The score is driven primarily by strong financial performance (improving margins, conservative leverage, solid ROE and free-cash-flow generation) and a very attractive valuation (low P/E). Technicals are supportive with a positive longer-term trend and neutral momentum, while cyclicality and cash-flow variability remain the key offsetting risks.

Positive Factors

Improving margins

Sustained gross and net margin improvement reflects stronger pricing, product mix and operating leverage in precision machine tools. Higher margins support durable cash generation, allow reinvestment in R&D/capex and create a buffer against cyclicality, improving long‑term profitability.

Conservative leverage

A low debt-to-equity ratio and improving capitalization increase financial resilience through downturns common to capital‑goods industries. Conservative leverage supports flexibility for targeted capex, M&A or shareholder returns without forcing distress sales of assets during slow cycles.

Strong cash generation

High FCF and near‑one‑to‑one conversion of earnings into cash indicate durable ability to fund maintenance capex, aftermarket support and shareholder returns. Consistent cash conversion strengthens balance sheet and reduces dependency on external financing over multi‑quarter horizons.

Negative Factors

Cyclicality risk

Revenue and order flows depend on end‑market capital spending (automotive, electronics), exposing results to multi‑quarter cyclicality. This structural demand sensitivity increases forecasting uncertainty, can compress utilization and margins, and may force capex or pricing tradeoffs during downturns.

Cash conversion variability

Working‑capital swings and investment timing can decouple cash from reported profits. In a capital‑intensive machine‑tool business, order timing and receivables/inventory dynamics can produce quarter‑to‑quarter FCF volatility, stressing liquidity or forcing short‑term financing in weak phases.

Residual debt sensitivity

Although leverage ratios are low, absolute debt levels create exposure if revenues fall materially. Interest and principal schedules can limit flexibility in downturns, making the firm more sensitive to prolonged demand weakness despite conservative relative leverage metrics.

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 makes money primarily by selling precision machine tools. Its core revenue stream is the shipment of CNC machine tools—especially Swiss-type automatic lathes and related turning/machining centers—priced per unit or per system configuration, often influenced by specifications, automation options, and tooling/fixturing requirements. In addition to machine sales, the company typically generates recurring revenue from after-sales activities tied to its installed base, including maintenance and repair services, replacement parts/consumables, and other customer support offerings associated with operating and maintaining CNC equipment. Earnings are also affected by demand cycles in end markets (e.g., automotive and electronics), capital spending trends among manufacturers, product mix (higher-spec machines and automation can carry different margins), and the company’s ability to serve customers through sales/service networks and production footprint. Significant partnerships or specific customer arrangements: null.

Tsugami Corp. Financial Statement Overview

Summary

Fundamentals are above-average: TTM revenue grew 7.6% with improved profitability (gross margin ~36%, net margin ~11.9%), conservative leverage (debt-to-equity ~0.16) and strong ROE (~20.5%). Free cash flow is strong (¥22.3B; ~92% of net income), but historical cyclicality and cash-flow variability lower the score slightly.

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	33.85B	24.27B	13.94B	17.75B	19.77B	10.41B
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	27.81B	30.64B	25.81B	18.87B	17.24B
Total Debt	11.78B	11.89B	17.20B	18.04B	13.59B	9.91B
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	9.46B	7.11B	3.36B	4.47B
Operating Cash Flow	24.36B	8.86B	11.88B	8.30B	6.30B	6.78B
Investing Cash Flow	-7.19B	-3.33B	-3.19B	-1.28B	-3.01B	1.40B
Financing Cash Flow	-9.19B	-7.45B	-6.11B	-379.00M	-3.51B	-2.75B

Tsugami Corp. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2873.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Negative. The current price of 2873 is below the 20-day moving average (MA) of 3772.00, below the 50-day MA of 3500.12, and above the 200-day MA of 2635.00, indicating a neutral trend. The MACD of -0.78 indicates Positive momentum. The RSI at 44.76 is Neutral, neither overbought nor oversold. The STOCH value of 49.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥162.86B	7.03	―	2.33%	25.95%	66.92%
6278	76 Outperform	¥256.03B	24.11	―	1.17%	29.51%	48.81%
9962	75 Outperform	¥745.59B	18.30	9.10%	1.63%	6.28%	2.62%
6136	72 Outperform	¥235.48B	13.29	7.86%	2.55%	0.57%	4.54%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6474	62 Neutral	¥111.43B	17.03	2.64%	2.30%	-4.11%	46.76%
6141	57 Neutral	¥355.05B	15.50	11.46%	3.77%	-9.34%	164.21%

Tsugami Corp. Corporate Events

Tsugami Halts February Buybacks but Leaves Room in Ongoing Share Repurchase Plan

Tsugami Corporation reported that during the February 1–28, 2026 window of its ongoing share repurchase program, it did not acquire any additional treasury shares on the Tokyo Stock Exchange. The buyback framework, approved by the board in November 2025, authorizes purchases of up to 500,000 shares or ¥1.3 billion through May 12, 2026, as management weighs financial conditions and stock price trends.

Under this authorization, Tsugami has so far repurchased 243,500 shares for about ¥655 million, bringing treasury stock holdings to 1.312 million shares, or 2.73% of issued shares, as of February 28, 2026. The pause in purchases during February suggests a flexible approach to capital allocation, with room remaining under the current mandate to adjust future buybacks in response to market developments and shareholder return priorities.

The most recent analyst rating on (JP:6101) stock is a Buy with a Yen4602.00 price target. To see the full list of analyst forecasts on Tsugami Corp. stock, see the JP:6101 Stock Forecast page.

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.