TSUDAKOMA Corp. (6217) AI Stock Analysis

• Market Cap: ¥2.93B
• Dividend Yield: N/A
• Average Volume (3M): 114.11K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.90
• Revenue Growth: -5.76%
• EPS Growth: -120.95%
• Country: JP
• Employees: 1,111
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 45.80
• Shares Outstanding: 6,807,555
• 10 Day Avg. Volume: 325,460
• 30 Day Avg. Volume: 114,106
• PEG Ratio: 0.05
• Price to Book (P/B): 0.77
• Price to Sales (P/S): 0.06
• P/FCF Ratio: 3.54
• 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: 57 Neutral
• Price Target: ¥475.00 ▲(37.68% Upside)
• Action: Reiterated Date: 02/27/26
• Date: Action: Reiterated 02/27/26

The score is held back primarily by weak financial quality (inconsistent revenue, return to a small loss in 2025, and high leverage), partially offset by improved cash flow. Technicals are the main positive, with the stock trading above key moving averages and healthy (not overheated) momentum. Valuation is a secondary drag because the negative P/E reflects ongoing profitability issues and no dividend yield is available.

Positive Factors

Aftermarket and service revenue

A built-in aftermarket and service revenue stream (spare parts, maintenance, retrofits) creates recurring cash flow independent of new-machine cycles. Over 2–6 months this supports revenue visibility, drives higher lifetime customer value, and cushions capital expenditure cyclicality.

Improved cash generation

The shift to positive operating and free cash flow in 2024–2025 signals better working-capital discipline and real cash conversion. Durable cash generation enhances the firm's ability to service debt, fund incremental capex or parts/services investments, and slowly deleverage if maintained.

Revenue resilience and stable gross margins

Despite uneven growth, revenue has shown cycle resilience and gross margin stabilization in the mid-teens. This structural stability in core manufacturing economics and steady demand for textile equipment provides a predictable base for aftermarket sales and incremental margin improvement initiatives.

Negative Factors

Elevated leverage

High leverage (multi‑x equity) materially constrains financial flexibility, raising interest exposure and reducing headroom for investment or cyclical downturns. Over the medium term, leverage limits strategic options and heightens downside risk if cash generation slips.

Inconsistent revenue and fragile profitability

Inconsistent top‑line performance and a return to a small net loss in 2025 indicate fragile earnings power. Without sustained revenue growth, the company may struggle to convert improved cash flow into durable profits needed to rebuild equity and reduce leverage over the next several quarters.

Thin margins and volatile returns

Thin gross and operating margins leave little buffer against input-cost inflation or weaker demand. Volatile ROE and periodic losses mean limited capacity to self-fund growth or delever quickly, keeping strategic investments and balance-sheet repair dependent on sustained margin improvement.

TSUDAKOMA Corp. Business Overview & Revenue Model

Company Description

Tsudakoma Corp. produces and sells textile machinery and machine tool attachments worldwide. Its textile machinery comprises air jet looms, water jet looms, and preparatory machines; and parts include conversion kits for air jet looms and water jet looms. The company's machine tool attachments include NC rotary tables, machine vises, and manual tables. It also offers composite machinery, including prepreg slitters, automated fiber layup machines, auto-layup machines, multi-axial auto layup systems, auto edge welding machines, profile molding machines, carbon fiber rapier looms, and drape forming systems; and cast iron parts for textile machinery, industrial machinery, and machine tool attachments. The company was formerly known as TSUDAKOMA Industrial Co., Ltd. and changed its name to Tsudakoma Corp. in 1982. Tsudakoma Corp. was founded in 1909 and is headquartered in Kanazawa, Japan.

How the Company Makes Money

TSUDAKOMA makes money primarily by selling industrial machinery—especially textile machinery (e.g., weaving looms) and related equipment—to textile manufacturers and factories. Revenue is generated at the point of equipment sale (new machines and system installations) and is typically supplemented by ongoing aftermarket income from spare parts, consumables (where applicable), maintenance, repairs, and technical service for the installed base. The company may also earn revenue from upgrades, retrofits, and productivity/automation-related add-ons that extend the life or improve the performance of customer equipment. Information on any significant partnerships, customer concentration, or segment-level revenue split is null.

TSUDAKOMA Corp. Financial Statement Overview

Summary

Financials reflect an ongoing turnaround but still fragile quality: revenue has been inconsistent (down in 2024 and slightly lower again in 2025), profitability improved sharply from 2020–2022 but slipped back to a small net loss with slightly negative operating profit in 2025. Cash flow improved with positive operating/free cash flow in 2024–2025, but leverage remains elevated (debt still above ~4x equity), limiting flexibility.

Income Statement

Revenue has been relatively resilient over the cycle, but growth has been inconsistent (down in 2024 and modestly lower again in 2025). Profitability has improved materially from deep losses in 2020–2022 to near break-even in 2025, yet earnings remain fragile: 2024 posted a modest profit, while 2025 slipped back to a small net loss and operating profit turned slightly negative. Gross margin has stabilized in the mid-teens, but overall margins remain thin, leaving results sensitive to cost pressure and demand volatility.

Balance Sheet

Leverage is elevated for the business profile, with debt running at roughly 4–7x equity over the past several years and still above 4x in 2025, which constrains financial flexibility. Equity is relatively low versus the asset base, and returns on equity have been volatile and often negative (including 2025), reflecting uneven profitability. While assets are sizable, the balance sheet looks geared and would likely be pressured in a downturn or if margins weaken further.

Cash Flow

Cash generation has improved meaningfully: operating and free cash flow were negative through 2023 but turned positive in 2024 and remained positive in 2025. Free cash flow is healthy relative to reported earnings in 2024–2025 (helped by the 2025 net loss), suggesting better cash discipline and/or working-capital benefits. However, cash flow remains small relative to the debt load, implying limited capacity for rapid deleveraging without sustained profitability improvement.

Breakdown	Nov 2025	Nov 2024	Nov 2023	Nov 2022	Nov 2021
Income Statement
Total Revenue	35.45B	36.45B	39.28B	31.19B	27.80B
Gross Profit	5.79B	5.93B	4.93B	3.25B	1.92B
EBITDA	798.00M	1.74B	144.00M	-1.03B	-2.88B
Net Income	-261.00M	488.00M	-1.25B	-2.56B	-4.49B
Balance Sheet
Total Assets	29.36B	30.25B	31.33B	33.58B	32.33B
Cash, Cash Equivalents and Short-Term Investments	3.47B	2.94B	2.57B	3.52B	5.00B
Total Debt	12.13B	12.45B	13.42B	13.30B	12.87B
Total Liabilities	26.37B	27.40B	29.22B	30.41B	27.07B
Stockholders Equity	2.85B	2.72B	1.99B	3.05B	5.14B
Cash Flow
Free Cash Flow	616.00M	587.00M	-1.53B	-2.45B	-3.81B
Operating Cash Flow	987.00M	801.00M	-1.28B	-1.88B	-2.90B
Investing Cash Flow	-127.00M	530.00M	314.00M	-60.00M	-626.00M
Financing Cash Flow	-335.00M	-968.00M	124.00M	352.00M	1.52B

TSUDAKOMA Corp. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 345.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6217, the sentiment is Negative. The current price of 345 is below the 20-day moving average (MA) of 549.15, below the 50-day MA of 543.28, and below the 200-day MA of 418.30, indicating a neutral trend. The MACD of -14.94 indicates Positive momentum. The RSI at 36.87 is Neutral, neither overbought nor oversold. The STOCH value of 1.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6217.

TSUDAKOMA Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6145	67 Neutral	¥38.83B	11.36	―	2.09%	20.20%	37.72%
6203	65 Neutral	¥18.13B	8.12	―	1.73%	26.09%	―
6440	65 Neutral	¥18.69B	10.67	―	―	-2.84%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6405	61 Neutral	¥12.86B	33.09	―	2.71%	-6.08%	-56.08%
6217	57 Neutral	¥2.93B	-8.35	―	―	-5.76%	-120.95%
6210	47 Neutral	¥13.35B	-6.97	―	5.43%	1.46%	89.88%