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Union Tool Co. (JP:6278)
:6278
Japanese Market

Union Tool Co. (6278) Price & Analysis

1 Followers

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 Margins And Consistent ProfitabilitySustained gross margins near 40% and EBIT margins around 21–22% indicate durable pricing power and cost control in precision tooling. Such structural profitability supports reinvestment, R&D and steady operating profitability across cycles, reinforcing long-term cash earnings potential.
Exceptionally Conservative Balance SheetNear-zero debt and a rising equity base give the company flexibility to fund capex, weather downturns, and pursue selective investments without refinancing risk. This financial conservatism reduces solvency risk and preserves strategic optionality over multiple market cycles.
Strong 2025 Revenue And Operating Profit GrowthA meaningful revenue acceleration and outsized operating profit gain in 2025 reflect improving demand and operational leverage in core end markets. Durable top-line growth combined with margin expansion can fund investments and support longer-term earnings momentum if end-market strength persists.
Bears Say
Free Cash Flow Collapsed In 2025A near-zero free cash flow outcome in 2025, despite solid accounting earnings, signals a material disconnect between profits and distributable cash. If sustained, this undermines cash available for dividends, buybacks or debt reduction and increases sensitivity to working-capital swings.
Volatile Cash Conversion And Heavy ReinvestmentManagement’s increased reinvestment or rising working capital caused cash conversion volatility, curbing free cash flow even with healthy operating profit. This persistent reinvestment pattern can constrain shareholder distributions and raises execution risk on capital deployment.
Cyclicality And Recent Margin VolatilityThe business shows cyclical demand and margin sensitivity to mix and costs. Prior declines and a recent net margin dip highlight exposure to end-market swings (automotive, electronics). This structural cyclicality increases earnings volatility across economic cycles.

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 ¥3120.00 and its highest was ¥17530.00 in the past 12 months.
    What is Union Tool Co.’s market cap?
    Union Tool Co.’s market cap is ¥223.03B.
      When is Union Tool Co.’s upcoming earnings report date?
      Union Tool Co.’s upcoming earnings report date is May 08, 2026 which is in 36 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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