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Union Tool Co. (JP:6278)
:6278
Japanese Market
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Union Tool Co. (6278) Price & Analysis

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6278 Stock Chart & Stats

¥9030.00
¥85.00(1.74%)
At close: 4:00 PM EST
¥9030.00
¥85.00(1.74%)

Bulls Say, Bears Say

Bulls Say
High And Stable ProfitabilitySustained high gross and EBIT margins (~40% and ~21–22%) indicate durable product pricing power and operational efficiency in precision tooling. Over 2–6 months this supports cash generation potential and resilience to moderate demand swings, underpinning long-term margin sustainability.
Exceptionally Conservative Balance SheetNear-zero leverage and steadily rising equity provide financial flexibility and low solvency risk. This conservative capital structure supports investment capacity and resilience through cyclical downturns, preserving optionality for capex or strategic moves without refinancing pressure.
Specialized B2B Product Mix With Recurring DemandFocused portfolio of carbide cutting and PCB-related tools serving automotive, electronics and aerospace creates durable industrial demand and repeat consumable sales. This business-to-business mix supports steady revenue streams and customer stickiness tied to manufacturing processes.
Bears Say
Sharp Deterioration In Free Cash Flow (2025)A collapse in free cash flow to near breakeven in 2025, despite reported earnings, signals weaker cash conversion from operations. Persisting working-capital drag or heavy reinvestment can constrain dividends, buybacks or debt reduction and raise financing risk over the medium term.
Cyclicality And Recent Margin VolatilityHistorical revenue and margin swings (notably 2023 decline and compression) highlight exposure to manufacturing cycles. If industrial end-markets soften, revenue and margins could revert quickly, making earnings and investment planning more uncertain across cycles.
Very Low Leverage Limits ROE UpsideExtremely conservative capital structure reduces financial risk but also constrains return-on-equity expansion. Without calibrated leverage or more aggressive capital deployment, shareholder returns may lag peers that judiciously use debt to boost capital efficiency over the medium term.

Union Tool Co. News

6278 FAQ

What was Union Tool Co.’s price range in the past 12 months?
Union Tool Co. lowest stock price was ¥3400.00 and its highest was ¥17940.00 in the past 12 months.
    What is Union Tool Co.’s market cap?
    Union Tool Co.’s market cap is ¥285.57B.
      When is Union Tool Co.’s upcoming earnings report date?
      Union Tool Co.’s upcoming earnings report date is May 13, 2026 which is in 20 days.
        How were Union Tool Co.’s earnings last quarter?
        Union Tool Co. released its earnings results on Feb 12, 2026. The company reported ¥84.41 earnings per share for the quarter, beating the consensus estimate of N/A by ¥84.41.
          Is Union Tool Co. overvalued?
          According to Wall Street analysts Union Tool Co.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium
            Does Union Tool Co. pay dividends?
            Union Tool Co. pays a Semiannually dividend of ¥65 which represents an annual dividend yield of 1.17%. See more information on Union Tool Co. dividends here
              What is Union Tool Co.’s EPS estimate?
              Union Tool Co.’s EPS estimate for its next earnings report is not yet available.
              How many shares outstanding does Union Tool Co. have?
              Union Tool Co. has 19,780,000 shares outstanding.
                What happened to Union Tool Co.’s price movement after its last earnings report?
                Union Tool Co. reported an EPS of ¥84.41 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went up 1.058%.
                  Which hedge fund is a major shareholder of Union Tool Co.?
                  Currently, no hedge funds are holding shares in JP:6278
                  What is the TipRanks Smart Score and how is it calculated?
                  Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

                    Company Description

                    Union Tool Co.

                    Union Tool Co. produces and sells cutting tools, linear motion products, and metal machining equipment in Japan and internationally. It offers printed circuit board (PCB) drills/routers; PCB tools-related equipment, such as MDP drill pointers, ring setting machines, non-contact drill diameter/measuring machines, and spindle run out measuring machines; carbide end mills; measuring instruments; rolling dies, forging tools, and coating rods; sensor products, including medical portable electrocardiograph, wearable heart rate sensors, analysis tools, and watching products. The company was formerly known as Union Chemical Research Co., Ltd. and changed its name to Union Tool Co. in 1971. Union Tool Co. was founded in 1955 and is headquartered in Tokyo, Japan.

                    Union Tool Co. (6278) Earnings & Revenues

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