Union Tool Co. (6278) AI Stock Analysis

• Market Cap: ¥67.29B
• Dividend Yield: 2.69%
• Average Volume (3M): 58.96K
• Price to Earnings (P/E): 11.9
• Beta (1Y): 0.98
• Revenue Growth: 28.68%
• EPS Growth: 71.70%
• Country: JP
• Employees: 1,454
• Sector: Industrials
• Sector Strength: 91
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 92.15
• Shares Outstanding: 19,780,000
• 10 Day Avg. Volume: 83,970
• 30 Day Avg. Volume: 58,963
• PEG Ratio: 0.62
• Price to Book (P/B): 1.05
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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

Union Tool Co. is fundamentally strong with robust financial performance, characterized by significant revenue growth and healthy profit margins. The balance sheet is solid with no debt, and cash flow is positive, supporting future growth opportunities. However, the technical analysis indicates bearish momentum, with the stock trading below key moving averages, suggesting potential short-term weakness. Valuation is attractive, with a low P/E ratio and a decent dividend yield, making it appealing for value and income investors.

Union Tool Co. Business Overview & Revenue Model

Company Description

Union Tool Co. (6278) is a Japanese company that specializes in the manufacturing and distribution of high-precision cutting tools primarily for the automotive, aerospace, and electronics industries. The company is known for its technologically advanced products, including end mills, drills, and other cutting tools, which are designed to provide enhanced durability and precision. Union Tool Co. serves a global customer base, with operations extending across various international markets.

How the Company Makes Money

Union Tool Co. generates revenue through the sale of its high-precision cutting tools. These products are primarily sold to companies in the automotive, aerospace, and electronics industries, which require reliable and precise tools for manufacturing processes. The company's revenue streams include direct sales to manufacturers as well as through distributors and partners who facilitate the reach of their products in international markets. The company's earnings are also supported by its commitment to innovation and quality, which helps maintain its competitive position in the market and fosters long-term customer relationships.

Union Tool Co. Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
32.61B	25.34B	29.09B	28.17B	22.82B
	Gross Profit
13.13B	8.99B	11.56B	10.57B	7.30B
	EBIT
6.88B	3.78B	6.19B	5.43B	2.86B
	EBITDA
9.75B	6.76B	8.79B	8.08B	6.22B
	Net Income Common Stockholders
5.28B	3.08B	5.00B	3.80B	2.54B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
18.13B	20.07B	20.97B	17.58B	15.80B
	Total Assets
78.86B	70.61B	69.14B	64.53B	58.03B
	Total Debt
0.00	0.00	222.00M	313.00M	124.19M
	Net Debt
-17.98B	-19.38B	-20.75B	-16.98B	-15.52B
	Total Liabilities
5.73B	3.33B	5.51B	5.47B	4.07B
	Stockholders Equity
73.14B	67.28B	63.62B	59.06B	53.97B
Cash Flow		Free Cash Flow
3.18B	228.00M	4.18B	3.21B	3.50B
	Operating Cash Flow
7.28B	4.69B	6.71B	5.83B	5.07B
	Investing Cash Flow
-7.27B	-5.01B	-1.96B	-3.16B	684.09M
	Financing Cash Flow
-1.68B	-1.61B	-1.55B	-1.44B	-1.11B

Union Tool Co. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3895.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6278, the sentiment is Neutral. The current price of 3895 is above the 20-day moving average (MA) of 3660.25, above the 50-day MA of 3864.90, and below the 200-day MA of 5077.15, indicating a neutral trend. The MACD of 51.50 indicates Negative momentum. The RSI at 54.55 is Neutral, neither overbought nor oversold. The STOCH value of 44.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6278.

Union Tool Co. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6113	78 Outperform	$467.79B	14.96	6.10%	4.04%	0.28%	-10.20%
6479	73 Outperform	$830.31B	13.89	8.10%	2.10%	7.44%	-5.08%
7012	69 Neutral	$1.48T	16.86	12.94%	1.63%	15.31%	―
6278	69 Neutral	¥67.29B	11.85		2.69%	28.68%	71.70%
6473	68 Neutral	$364.92B	28.41	1.72%	4.21%	-0.38%	-65.61%
Sector *	64 Neutral	$4.43B	12.01	5.16%	249.23%	4.03%	-11.73%
6471	52 Neutral	¥301.92B	30.03		5.20%	-3.42%	-35.09%

Union Tool Co. Corporate Events

Union Tool Co. Considers Investment Unit Reduction to Boost Market Activity

Union Tool Co. has announced its consideration of reducing the investment unit of its stock to enhance stock market activity by improving liquidity and attracting a broader range of investors. This strategic move is part of the company’s efforts to adapt to market conditions and comply with Tokyo Stock Exchange regulations, potentially impacting shareholder composition and trading volumes.

Union Tool Co. Increases Year-End Dividend Amid Strong Performance

Union Tool Co. announced an increase in its year-end dividend to 60 yen per share, reflecting a significant rise from the previous fiscal year’s 42 yen. This decision, based on better-than-expected consolidated performance for the fiscal year ending December 2024, underscores the company’s commitment to balancing shareholder returns with growth investments and management stability.

Union Tool Co. Reports Strong Financial Growth in FY 2024

Union Tool Co. reported significant financial growth for the fiscal year ending December 2024, with net sales increasing by 28.7% to 32,606 million yen and operating profit soaring by 82.1% to 6,878 million yen compared to the previous year. This financial upturn highlights the company’s successful operational strategies and strengthens its position in the precision tools industry, offering promising implications for stakeholders.

Union Tool Co. Revises Year-end Dividend Forecast for FY 2024

Union Tool Co. has announced a revision to its dividend forecast for the fiscal year ending December 31, 2024. The company plans to increase the year-end dividend by 15 yen, resulting in a payout of 60 yen per share, up from the previously forecasted 45 yen. This adjustment will raise the total dividend for the fiscal year to 105 yen per share, which is a significant increase compared to the previous year’s total of 84 yen per share. The revision reflects a boost in stakeholder returns and will be proposed at the upcoming shareholders’ meeting in March 2025.