TOMOE ENGINEERING CO LTD (TOMOE KOGYO CO LTD) (6309) AI Stock Analysis

• Market Cap: ¥54.03B
• Dividend Yield: 3.47%
• Average Volume (3M): 113.10K
• Price to Earnings (P/E): 14.3
• Beta (1Y): 0.63
• Revenue Growth: 13.90%
• EPS Growth: 6.51%
• Country: JP
• Employees: 786
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 16.48
• Shares Outstanding: 29,949,600
• 10 Day Avg. Volume: 155,480
• 30 Day Avg. Volume: 113,096
• PEG Ratio: 1.89
• Price to Book (P/B): 1.11
• Price to Sales (P/S): 0.80
• P/FCF Ratio: -367.66
• 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: 79 Outperform
• Price Target: ¥2,048.00 ▲(16.50% Upside)

The score is driven primarily by strong financial strength (notably a debt-free balance sheet and improving profitability) and supportive technical momentum (price above key moving averages with positive MACD). Valuation adds a further tailwind via a moderate P/E and solid dividend yield, while cash-flow volatility and the recent dip into slightly negative free cash flow temper the overall rating.

Positive Factors

Balance Sheet Strength

A debt-free balance sheet enhances financial resilience, allowing the company to navigate economic cycles more effectively and invest in growth opportunities without the burden of interest obligations.

Revenue Growth

Consistent revenue growth indicates robust demand for the company's products and services, supporting long-term business expansion and market share gains.

New Medium-Term Plan

The new plan outlines strategic initiatives for growth and transformation, setting clear performance targets that can drive long-term value creation and address evolving market needs.

Negative Factors

Cash Flow Volatility

Volatile cash flow, including recent negative free cash flow, can strain financial flexibility and limit the company's ability to fund operations and growth initiatives consistently.

Net Margin Pressure

A decline in net margin suggests potential cost pressures or adverse sales mix, which could impact profitability if not addressed through cost management or pricing strategies.

Takeover Defense Policy

While protecting against hostile takeovers, the continuation of defense measures may deter potential beneficial partnerships or acquisitions, possibly limiting strategic flexibility.

TOMOE ENGINEERING CO LTD (TOMOE KOGYO CO LTD) Business Overview & Revenue Model

Company Description

Tomoe Engineering Co., Ltd. operates as a specialized chemical products trading firm in Japan and internationally. It operates through Chemical Products, and Machinery and Equipment divisions. The Machinery & Equipment Div. manufactures and sells solid bowl centrifuges for wastewater treatment, sludge treatment, food, animal feed, pharmaceuticals, chemistry, recycling, energy, steel making, biology, civil engineering, and architecture industries. The Chemical Products Div. imports and sales industrial chemicals, electronic materials, liqueurs, and other related products for packing/conveyance, adhesion, water sealing/waterproofing, industrial materials, painting, electronic materials/device, parts, coating, grinding, measurement, jigs/tools, and other applications. Tomoe Engineering Co., Ltd. was founded in 1941 and is headquartered in Tokyo, Japan.

How the Company Makes Money

TOMOE ENGINEERING CO LTD generates revenue primarily through the sale of its industrial machinery and chemical products. The company's key revenue streams include the manufacture and distribution of centrifuges and other separation equipment, which are used extensively in industries such as pharmaceuticals, food processing, and waste management. Additionally, TOMOE ENGINEERING CO LTD earns income from its chemical division, which produces and sells various chemical products and materials. The company benefits from strategic partnerships and a strong customer base across multiple industries, which helps sustain its financial performance. Furthermore, TOMOE ENGINEERING CO LTD may engage in service contracts for the maintenance and operation of its equipment, contributing to its revenue stream.

TOMOE ENGINEERING CO LTD (TOMOE KOGYO CO LTD) Financial Statement Overview

Summary

Tomoe Engineering exhibits strong financial health characterized by solid revenue growth, robust profitability margins, and a debt-free balance sheet. The company maintains a strong equity position and demonstrates effective cash flow management. Despite slight fluctuations in operating cash flow, the overall financial trajectory is positive, reinforcing its competitive position in the industrial machinery sector.

Income Statement

Tomoe Engineering has shown strong revenue growth at 5.02% over the past year, with consistent improvements in gross profit and net profit margins, indicating solid operational efficiency. The gross profit margin stands at 25.88% and the net profit margin at 6.94% for the most recent period. These healthy margins reflect robust cost management and profitability.

Balance Sheet

The company's balance sheet is exceptionally strong with a debt-free structure, enhancing financial stability. The equity ratio is high at 73.98%, demonstrating a solid capital structure and financial resilience. Return on Equity (ROE) is calculated at 9.19%, indicating effective use of equity to generate profits.

Cash Flow

Positive free cash flow growth signifies improving cash generation capabilities, although operating cash flow decreased slightly compared to the previous year. The operating cash flow to net income ratio is 0.93, indicating efficient cash flow management relative to earnings.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	58.72B	59.37B	52.12B	49.63B	45.59B	45.13B
Gross Profit	14.96B	14.99B	13.49B	12.54B	11.09B	10.12B
EBITDA	6.08B	5.86B	5.03B	4.42B	4.26B	3.37B
Net Income	4.17B	3.85B	3.62B	2.73B	2.66B	2.11B
Balance Sheet
Total Assets	54.47B	56.39B	53.19B	49.01B	45.74B	43.25B
Cash, Cash Equivalents and Short-Term Investments	10.73B	13.37B	14.93B	13.52B	10.73B	12.61B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	13.08B	13.65B	13.84B	12.17B	11.35B	11.41B
Stockholders Equity	41.39B	42.74B	39.35B	36.83B	34.39B	31.84B
Cash Flow
Free Cash Flow	0.00	-129.13M	2.82B	3.28B	-2.02B	1.13B
Operating Cash Flow	0.00	2.38B	3.36B	3.51B	-1.74B	2.14B
Investing Cash Flow	0.00	-2.47B	-629.88M	-99.01M	60.48M	-977.18M
Financing Cash Flow	0.00	-1.55B	-1.33B	-678.52M	-498.98M	-494.03M

TOMOE ENGINEERING CO LTD (TOMOE KOGYO CO LTD) Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1758.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6309, the sentiment is Positive. The current price of 1758 is below the 20-day moving average (MA) of 1762.90, above the 50-day MA of 1697.98, and above the 200-day MA of 1546.82, indicating a bullish trend. The MACD of 32.83 indicates Negative momentum. The RSI at 68.16 is Neutral, neither overbought nor oversold. The STOCH value of 79.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6309.

TOMOE ENGINEERING CO LTD (TOMOE KOGYO CO LTD) Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6309	79 Outperform	¥54.03B	14.29	―	3.47%	13.90%	6.51%
6237	76 Outperform	¥56.73B	12.48	―	2.79%	2.85%	3.17%
6333	72 Outperform	¥48.36B	11.02	―	3.95%	1.72%	101.76%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6363	62 Neutral	¥54.23B	15.47	―	3.09%	6.35%	-34.20%

TOMOE ENGINEERING CO LTD (TOMOE KOGYO CO LTD) Corporate Events

Tomoe Engineering to Extend Takeover Defense Policy Ahead of 2026 Shareholders Meeting

Tomoe Engineering’s board has resolved to continue its existing takeover defense measures against large-scale purchases of its shares, with minor modifications, subject to shareholder approval at the 96th Annual Shareholders Meeting in January 2026. The plan, unanimously endorsed by the board including outside directors, is designed to ensure that any party seeking to control the company’s financial and business policies must disclose sufficient information, undergo evaluation by the board, and allow shareholders ample time to consider the merits and risks of such a bid; the company emphasizes that ultimate decisions on takeover offers should rest with shareholders, and it will only take countermeasures against acquisitions deemed harmful to corporate value and the common interests of investors.

Tomoe Engineering to Maintain Takeover Defense Policy

TOMOE ENGINEERING CO., LTD. has resolved at its Board of Directors meeting to continue its existing takeover response policy governing large-scale purchases of the company’s shares. By maintaining this framework, the company signals an ongoing commitment to managing potential acquisition attempts in a structured manner, aiming to protect corporate value and the interests of its shareholders while reinforcing stability in its governance structure.

TOMOE ENGINEERING Completes Treasury Stock Repurchase

TOMOE ENGINEERING CO., LTD. has completed the repurchase of 168,600 shares of its common stock at a total cost of 289,223,100 yen, as part of a resolution by its Board of Directors. This move is part of a broader plan to repurchase up to 600,000 shares, reflecting the company’s strategic financial management and potential efforts to enhance shareholder value.

TOMOE ENGINEERING Unveils New Medium-Term Plan and Dividend Policy Revision

TOMOE ENGINEERING CO., LTD. has announced a new Medium-Term Business Plan titled ‘Create the New Future’ for the period from November 2025 to October 2028, focusing on transformation, growth, and addressing social issues. The plan includes performance targets of achieving ¥70,000 million in net sales and a 10.5% return on equity. Additionally, the company has revised its dividend policy to strengthen shareholder returns, aiming for a consolidated dividend payout ratio of 50% or more, effective from the fiscal year ending October 2026.

TOMOE ENGINEERING Announces Dividend Increase Amid Strategic Financial Plan

TOMOE ENGINEERING CO., LTD. has announced a dividend increase, raising the year-end dividend per share from 26 yen to 36 yen, reflecting a commitment to returning profits to shareholders. This decision aligns with the company’s new medium-term business plan, which aims to maintain a stable financial position while ensuring a minimum Dividend on Equity of 5% and a target payout ratio of 50% or more, indicating a strong focus on shareholder value and financial stability.

TOMOE ENGINEERING Announces Treasury Stock Repurchase

TOMOE ENGINEERING CO., LTD. has announced the repurchase of 374,600 shares of its common stock for a total of 610,723,100 yen, executed through market purchases on the Tokyo Stock Exchange. This move is part of a broader resolution by the Board of Directors to repurchase up to 600,000 shares, aiming to enhance shareholder value and optimize capital structure.

Tomoe Engineering Announces Dividend Increase Amid Strong Financial Performance

Tomoe Engineering Co., Ltd. has announced a significant increase in its year-end dividend per share from 63 yen to 82 yen, reflecting strong financial results for the fiscal year ending October 31, 2024. This decision aims to enhance shareholder returns and will be proposed at the upcoming Ordinary General Meeting of Shareholders. The annual dividend for the current fiscal year will total 145 yen per share, with a forecast of 146 yen per share for the next fiscal year, indicating a continued commitment to shareholder value.

Tomoe Engineering Announces Share Repurchase Plan

Tomoe Engineering Co., Ltd. has announced the details of its plan to repurchase up to 600,000 of its own shares, representing approximately 2% of its outstanding shares, with a maximum purchase price of 900 million yen. This strategic move, set to occur between October 15, 2025, and April 30, 2026, is part of a broader strategy to manage the company’s capital structure and potentially enhance shareholder value.

Tomoe Engineering Sets Selling Price for Secondary Share Offering

Tomoe Engineering Co., Ltd. announced the determination of the selling price for its secondary offering of shares, which was resolved by the Board of Directors. The offering includes a selling price of 1,603 yen per share, with a total selling price amounting to 2,866,965,500 yen. The share delivery date is set for October 14, 2025. This move is part of the company’s strategy to enhance its financial standing and market presence.