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

• Market Cap: ¥55.41B
• Dividend Yield: 3.47%
• Average Volume (3M): 113.10K
• Price to Earnings (P/E): 12.8
• Beta (1Y): 0.80
• Revenue Growth: 13.90%
• EPS Growth: 6.51%
• Country: JP
• Employees: 786
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 37.61
• 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: ¥2,352.00 ▲(33.79% Upside)
• Action: Reiterated Date: 12/30/25
• Date: Action: Reiterated 12/30/25

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

Debt-free balance sheet

A zero-debt balance sheet materially lowers financial risk and improves resilience through downturns, giving management flexibility to fund capex, service growth, and maintain payouts from operating cash. Over 2–6 months this durability supports credit stability and optionality for investments or M&A.

Consistent revenue growth

Multi-year top-line expansion, including double-digit recent growth, signals structural demand for equipment and engineering services. Durable revenue trends reduce execution risk, support scale economics, and underpin recurring after-sales/services revenue that stabilizes cash flows across capital-expenditure cycles.

Stable gross and operating margins

Consistent mid-20% gross margins and roughly 9% operating margin indicate reliable pricing power and cost control in core equipment and service lines. These margin levels provide a structural earnings cushion to absorb input-cost swings while supporting reinvestment and steady profitability over the medium term.

Negative Factors

Cash-flow volatility / recent negative FCF

Intermittent operating cash-flow and a recent shift to slightly negative free cash flow reflect working-capital swings or elevated investment, weakening the link between reported profits and cash. Persisting volatility could constrain funding for capex, dividends, or strategic initiatives without altering capital structure.

Recent net-margin erosion

A decline in net margin suggests emerging cost pressure or adverse mix effects that can erode durable profitability. If structural (higher input costs or less profitable product mix), margin pressure may persist and reduce cash generation, requiring management actions to restore efficiency and long-term margin sustainability.

Conservative capital structure limits return upside

While conservatism reduces risk, an unlevered balance sheet can constrain return-on-equity uplift when attractive growth opportunities arise. Over the medium term this may cap shareholder returns unless management selectively deploys excess capital into higher-return projects, buybacks, or calibrated leverage.

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

The company primarily makes money by (1) selling industrial machinery/equipment and related components, and (2) providing engineering and service revenue tied to those products (e.g., installation, commissioning, maintenance, repairs, and parts supply). Revenue is typically recognized through a mix of one-time project or equipment sales (often linked to customer capital expenditure cycles) and recurring after-sales/service income driven by the installed base of equipment. Specific breakdowns by segment, key customer industries, named major products, contract structure, geographic mix, and significant partnerships are null.

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

Summary

Overall fundamentals are healthy: steady revenue growth and improved profitability with gross margin stability. The balance sheet is exceptionally strong with no debt and rising equity/assets, but cash-flow quality is a key weakness due to volatility and a recent shift to slightly negative free cash flow.

Income Statement

Revenue has grown steadily over the past several years (including strong growth in the latest year), and profitability has improved versus earlier periods with operating margin around ~9% and net margin in the mid-single digits. Gross margin has been fairly stable in the mid‑20% range, supporting consistent earnings generation. Main weakness is that net margin eased slightly in the most recent year versus the prior year, suggesting some cost pressure or mix headwinds despite higher sales.

Balance Sheet

The balance sheet is very conservative with no debt reported across the period, which materially lowers financial risk and improves resilience through cycles. Equity and total assets have trended upward, and returns on equity are solid and relatively consistent (roughly high‑single digits to ~9%). The main trade-off is that a zero-debt structure can limit return enhancement in strong demand environments, but overall balance-sheet strength is a clear positive.

Cash Flow

Cash generation is mixed. Operating cash flow is positive in most years but shows volatility, including a negative year (2022) and a weaker latest year versus the prior year. Free cash flow was strong in 2023–2024 but turned slightly negative in the latest year, indicating higher investment, working-capital drag, or timing effects. Overall, earnings quality looks less consistent from a cash perspective than from reported profits.

Breakdown	Oct 2025	Oct 2024	Oct 2023	Oct 2022	Oct 2021
Income Statement
Total Revenue	59.37B	52.12B	49.63B	45.59B	45.13B
Gross Profit	14.82B	13.33B	12.40B	10.88B	9.96B
EBITDA	5.73B	5.06B	4.44B	3.68B	3.22B
Net Income	3.85B	3.62B	2.73B	2.66B	2.11B
Balance Sheet
Total Assets	56.39B	53.19B	49.01B	45.74B	43.25B
Cash, Cash Equivalents and Short-Term Investments	13.37B	14.93B	13.52B	10.73B	12.61B
Total Debt	0.00	0.00	0.00	0.00	0.00
Total Liabilities	13.65B	13.84B	12.17B	11.35B	11.41B
Stockholders Equity	42.74B	39.35B	36.83B	34.39B	31.84B
Cash Flow
Free Cash Flow	-129.13M	2.86B	3.36B	-1.98B	1.14B
Operating Cash Flow	2.38B	3.36B	3.51B	-1.74B	2.14B
Investing Cash Flow	-2.47B	-629.88M	-99.01M	60.48M	-977.18M
Financing Cash Flow	-1.55B	-1.33B	-678.52M	-498.98M	-494.03M

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

• Technical Analysis Sentiment: Negative
• Last Price: 1758.00
• 50DMA: Negative
• 100DMA: Positive
• 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:6309, the sentiment is Negative. The current price of 1758 is below the 20-day moving average (MA) of 2056.65, below the 50-day MA of 2010.44, and above the 200-day MA of 1705.18, indicating a neutral trend. The MACD of -35.66 indicates Positive momentum. The RSI at 38.59 is Neutral, neither overbought nor oversold. The STOCH value of 17.43 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥55.41B	12.82	―	3.47%	13.90%	6.51%
6517	78 Outperform	¥72.32B	9.50	―	2.63%	-6.00%	-13.74%
6237	76 Outperform	¥55.05B	10.64	―	2.79%	2.85%	3.17%
6381	75 Outperform	¥65.23B	13.24	―	3.95%	-1.67%	-4.39%
6376	70 Outperform	¥141.76B	7.70	8.17%	2.04%	1.48%	58.59%
6363	70 Outperform	¥69.96B	4.09	―	3.09%	6.35%	-34.20%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

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

Tomoe Engineering Posts Softer Q1 Profits but Keeps Dividend and Full-Year Outlook Intact

Tomoe Engineering reported consolidated net sales of ¥15.3 billion for the three months ended January 31, 2026, a 1.6% year-on-year increase, while operating profit, ordinary profit, and profit attributable to owners of parent declined 6.8%, 6.5%, and 10.3%, respectively, reflecting margin pressure despite modest top-line growth. Total assets slipped to ¥54.4 billion and equity remained high with a 77.6% equity-to-asset ratio, while basic earnings per share fell to ¥37.61 following a prior share split and a sharp rise in treasury shares, underscoring a more conservative earnings profile in the short term for shareholders.

The company maintained its dividend policy, forecasting an annual dividend of ¥72.00 per share for the fiscal year ending October 31, 2026, unchanged from the prior guidance when adjusted for the 1-for-3 share split. For the full fiscal year, Tomoe projects net sales of ¥63.2 billion and profit attributable to owners of parent of ¥4.2 billion, implying mid‑single to high‑single‑digit growth and signaling management’s confidence that profitability will recover over the remainder of the year despite the weaker first-quarter earnings, a stance that may reassure income-focused and long‑term investors.

The most recent analyst rating on (JP:6309) stock is a Buy with a Yen2274.00 price target. To see the full list of analyst forecasts on TOMOE ENGINEERING CO LTD (TOMOE KOGYO CO LTD) stock, see the JP:6309 Stock Forecast page.

Tomoe Engineering Boosts Capital at Vietnamese Unit to Drive Centrifuge Business

Tomoe Engineering Co., Ltd. has approved a capital increase for its wholly owned Vietnamese subsidiary, Tomoe Trading Vietnam Co., Ltd., raising its capital by USD 340,000 and making it a specified subsidiary as its capital will exceed 10% of the parent’s stated capital. The funds will strengthen the subsidiary’s sales structure and support capital investment to expand the machinery and equipment business in Vietnam, particularly centrifuges, as part of Tomoe’s medium-term plan to grow overseas operations, with the company expecting only a minimal impact on consolidated results for the fiscal year ending October 2026.

The most recent analyst rating on (JP:6309) stock is a Buy with a Yen2462.00 price target. To see the full list of analyst forecasts on TOMOE ENGINEERING CO LTD (TOMOE KOGYO CO LTD) stock, see the JP:6309 Stock Forecast page.

Tomoe Engineering Extends Takeover Defense Policy and Strengthens Independent Oversight

Tomoe Engineering Co., Ltd. has secured shareholder approval at its 96th Annual General Meeting to continue its Policy for Responding to Large-Scale Purchases of the Company’s Shares, a takeover response policy designed to address potential large-scale acquisitions and protect corporate value and the common interests of shareholders. In conjunction with this, the company has appointed three outside directors—Kenji Yahiro, Rei Sugihara, and Takako Ochi—as members of the Independent Committee established under the policy, reinforcing independent oversight and governance around any prospective takeover attempts and signaling a continued emphasis on shareholder protection and long-term value enhancement.

The most recent analyst rating on (JP:6309) stock is a Buy with a Yen2230.00 price target. To see the full list of analyst forecasts on TOMOE ENGINEERING CO LTD (TOMOE KOGYO CO LTD) stock, see the JP:6309 Stock Forecast page.

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.