TSUKISHIMA HOLDINGS CO. LTD. (6332) AI Stock Analysis

• Market Cap: ¥132.14B
• Dividend Yield: 3.2%
• Average Volume (3M): 532.00K
• Price to Earnings (P/E): 7.7
• Beta (1Y): 0.89
• Revenue Growth: 2.46%
• EPS Growth: 533.70%
• Country: JP
• Employees: 3,517
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Pollution & Treatment Controls
• EPS (TTM): 53.52
• Shares Outstanding: 40,125,800
• 10 Day Avg. Volume: 447,920
• 30 Day Avg. Volume: 532,000
• PEG Ratio: 0.07
• Price to Book (P/B): 0.79
• Price to Sales (P/S): 0.53
• P/FCF Ratio: 4.16
• 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): 311.25
• Revenue Forecast (FY): ¥148.00B

• Rating: 80 Outperform
• Price Target: ¥4,002.00 ▲(41.76% Upside)
• Action: Reiterated Date: 12/09/25
• Date: Action: Reiterated 12/09/25

TSUKISHIMA HOLDINGS CO. LTD. receives a strong overall score driven by its solid financial performance and attractive valuation. The company's robust revenue growth, improved profitability, and low debt levels contribute significantly to its financial strength. While technical indicators show strong momentum, caution is advised due to overbought signals. The stock's low P/E ratio and high dividend yield further enhance its appeal.

Positive Factors

Revenue growth and margin improvement

Revenue grew 12.1% year-over-year while gross and net margins improved, reflecting durable demand for plant and wastewater solutions and better cost control. Sustained top-line growth plus rising margins supports longer-term earnings power and ability to fund reinvestment and service obligations.

Low leverage and strong capital structure

A Debt-to-Equity of 0.23 and ~48% equity ratio indicate low financial leverage and a resilient balance sheet. This structural strength reduces refinancing risk, preserves capacity for project-backed financing, and provides flexibility to pursue capex or M&A without stressing liquidity over the medium term.

Positive free cash flow and strong cash conversion

A return to ¥17.71B FCF and an operating cash flow to net income ratio of 2.77 demonstrates effective conversion of profit into cash. Reliable cash generation supports dividends, maintenance capex and working capital for project delivery, underpinning sustainable operations and financial flexibility.

Negative Factors

Historical cash flow volatility

Management has improved cash generation, but historic swings in cash flow highlight project timing and working-capital sensitivity inherent in plant/equipment businesses. Continued variability could constrain discretionary spending and make funding large projects or smoothing dividends more challenging if volatility recurs.

Modest net profitability

Although net margin improved, a 4.8% net margin remains modest for an engineering/solutions provider. Low net profitability leaves limited buffers against cost inflation or contract overruns, reducing retained earnings available for reinvestment and making returns more sensitive to margin pressure in tougher market cycles.

ROE still limited

ROE rising to 7.2% shows progress but remains moderate, indicating the company generates limited equity returns relative to capital employed. For investors and management, sustaining higher ROE will require persistently better margins, capital efficiency, or faster profitable growth to deliver stronger long-term shareholder returns.

TSUKISHIMA HOLDINGS CO. LTD. Business Overview & Revenue Model

Company Description

Tsukishima Kikai Co., Ltd. provides systems and plant facilities for the industry, water, and wastewater facilities in Japan and internationally. The company offers plants, including incinerators for sewage treatment plants, as well as dehydrators, dryers, and other equipment; services, such as operation and maintenance of water purification and sewage treatment facilities; repairing services for machinery and equipment; and intermediate treatment of general and industrial waste from daily life and industrial activities, as well as engages in the waste power generation using waste heat, and solar power generation. It also provides equipment and plants for exhaust gas treatment, and the manufacture of materials for lithium-ion secondary batteries; industrial dryers; and acid recovery systems to recover and enable the reuse of waste acid from factories. In addition, the company supplies parts and chemicals; treatment facilities for waste liquid and waste generated by industrial activities; and replacement parts and other supplies for plants, equipment, incineration facilities, and other equipment. The company was formerly known as Tokyo Tsukishima Kikai Seisakusho and changed its name to Tsukishima Kikai Co., Ltd. in May 1917. Tsukishima Kikai Co., Ltd. was founded in 1905 and is headquartered in Tokyo, Japan.

How the Company Makes Money

TSUKISHIMA HOLDINGS generates revenue through multiple key streams, primarily from the sale of its industrial machinery and environmental systems. The company earns money by providing specialized equipment and solutions that cater to different industries, including water treatment, chemical processing, and food production. Revenue is bolstered by long-term contracts and service agreements that ensure ongoing maintenance and support for its products. Additionally, partnerships with other firms and collaborations on projects enhance its market reach and facilitate access to larger contracts, contributing to its overall financial performance.

TSUKISHIMA HOLDINGS CO. LTD. Financial Statement Overview

Summary

TSUKISHIMA HOLDINGS CO. LTD. demonstrates strong financial performance with significant revenue growth, improved profitability, and a robust balance sheet. The company has effectively managed costs, resulting in enhanced margins and low debt levels. Despite past cash flow volatility, recent improvements indicate better cash management, positioning the company well for future growth.

Income Statement

TSUKISHIMA HOLDINGS CO. LTD. shows strong revenue growth with a 12.1% increase from 2024 to 2025, alongside improving profitability metrics. The Gross Profit Margin remains stable around 19.8% in 2025, with a notable increase in Net Profit Margin to 4.8% from 2.2% in 2024. The EBIT and EBITDA margins have also improved, indicating efficient cost management. Overall, the company demonstrates solid financial performance and growth trajectory.

Balance Sheet

The company maintains a healthy balance sheet with a Debt-to-Equity Ratio of 0.23 in 2025, reflecting low financial leverage. The Equity Ratio stands at 48.4%, suggesting a strong capital structure. Return on Equity has improved significantly to 7.2% in 2025 from 3.1% in 2024, indicating enhanced profitability for shareholders. These metrics show a stable financial position with low risk of financial distress.

Cash Flow

TSUKISHIMA HOLDINGS CO. LTD. exhibits robust cash flow management, with a remarkable turnaround in Free Cash Flow from negative values in previous years to a positive ¥17.71 billion in 2025. The Operating Cash Flow to Net Income Ratio is strong at 2.77, demonstrating effective conversion of income to cash. However, past volatility in cash flows suggests a need for maintaining consistent cash generation.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	139.95B	139.24B	124.20B	97.78B	93.08B	90.55B
Gross Profit	29.29B	27.55B	25.81B	19.79B	20.40B	20.57B
EBITDA	18.54B	15.83B	11.13B	8.77B	14.29B	5.97B
Net Income	8.92B	6.67B	2.67B	4.21B	8.17B	958.00M
Balance Sheet
Total Assets	183.63B	192.25B	208.01B	146.46B	153.57B	144.12B
Cash, Cash Equivalents and Short-Term Investments	44.36B	30.56B	30.04B	23.26B	29.06B	34.13B
Total Debt	18.21B	21.65B	38.14B	19.09B	27.76B	27.60B
Total Liabilities	73.89B	80.19B	102.48B	63.78B	72.63B	72.33B
Stockholders Equity	92.63B	93.06B	87.35B	81.18B	79.50B	70.47B
Cash Flow
Free Cash Flow	0.00	17.71B	-8.37B	5.82B	-14.04B	5.86B
Operating Cash Flow	0.00	18.46B	-5.63B	8.23B	812.00M	10.08B
Investing Cash Flow	0.00	1.43B	-2.77B	-2.82B	-5.37B	-4.45B
Financing Cash Flow	0.00	-20.47B	7.44B	-11.56B	-628.00M	7.32B

TSUKISHIMA HOLDINGS CO. LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2823.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6332, the sentiment is Positive. The current price of 2823 is below the 20-day moving average (MA) of 3307.75, below the 50-day MA of 3098.74, and above the 200-day MA of 2656.39, indicating a bullish trend. The MACD of 95.63 indicates Positive momentum. The RSI at 56.49 is Neutral, neither overbought nor oversold. The STOCH value of 74.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6332.

TSUKISHIMA HOLDINGS CO. LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6332	80 Outperform	¥132.14B	7.69	―	3.20%	2.46%	533.70%
6331	79 Outperform	¥81.67B	12.08	16.37%	2.79%	31.48%	16.11%
9551	76 Outperform	¥141.91B	16.97	12.54%	1.84%	13.86%	51.05%
6013	69 Neutral	¥236.45B	19.80	9.02%	3.11%	1.25%	-3.97%
6489	68 Neutral	¥37.39B	11.25	―	2.74%	0.18%	-18.93%
7004	66 Neutral	¥171.06B	16.41	―	2.41%	2.47%	1.47%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

TSUKISHIMA HOLDINGS CO. LTD. Corporate Events

TSUKISHIMA HOLDINGS Delivers Profit Surge and Confirms Higher Dividend Plan

TSUKISHIMA HOLDINGS reported strong consolidated results for the nine months ended 31 December 2025, with net sales rising 9.3% year on year to ¥94.7 billion and operating profit jumping 54.2% to ¥4.6 billion, while profit attributable to owners of parent surged more than sixfold to ¥13.7 billion, driving basic earnings per share up to ¥331.89. The company maintained a solid financial base with total assets of ¥188.1 billion and an equity ratio of 49.2%, confirmed its full-year forecast calling for modest sales and profit growth but a sharp increase in bottom-line earnings, and kept its dividend outlook unchanged, planning a total annual dividend of ¥82 per share for the year ending March 31, 2026, which underscores a continued focus on shareholder returns amid portfolio adjustments including the addition and removal of consolidated subsidiaries.

The most recent analyst rating on (JP:6332) stock is a Buy with a Yen3473.00 price target. To see the full list of analyst forecasts on TSUKISHIMA HOLDINGS CO. LTD. stock, see the JP:6332 Stock Forecast page.