tiprankstipranks
Trending News
More News >
Sintokogio,Ltd. (JP:6339)
:6339

Sintokogio,Ltd. (6339) AI Stock Analysis

Compare
0 Followers

Top Page

JP:6339

Sintokogio,Ltd.

(6339)

Select Model
Select Model
Select Model
Outperform 74 (OpenAI - 5.2)
Rating:74Outperform
Price Target:
¥1,354.00
▲(35.26% Upside)
Action:ReiteratedDate:10/23/25
The overall stock score of 74 reflects strong technical momentum and a solid valuation, balanced by financial performance challenges. The company's stable financial position and attractive dividend yield are significant strengths, while profitability and cash flow issues present risks that need addressing.
Positive Factors
Revenue Growth
Sintokogio's recent high revenue growth (25% reported and ~10% five‑year CAGR) indicates durable demand expansion and successful market penetration. Sustained top‑line growth supports reinvestment capacity, scale economies and resilience in multi‑quarter planning horizons.
Balance Sheet Strength
A moderate leverage profile (D/E ~0.43) and roughly 50% equity ratio provide financial flexibility. This stronger capital base reduces refinancing risk, supports dividend policy and gives room for targeted capex or M&A without immediate liquidity strain over the next several quarters.
Stable Gross Margin
A steady gross margin near 28% signals consistent product pricing and cost control at the production level. Stable gross profitability underpins long‑term operating leverage, allowing the company to absorb SG&A variability and prioritize margin recovery initiatives.
Negative Factors
Weak Cash Generation
A material drop in operating cash flow and recent negative free cash flow reduce internal funding for capex, dividends and debt repayment. Unless operating efficiency or working capital management improves, the company may need external financing or to curtail investments over coming quarters.
Profitability Decline
A sharp EPS decline and a significant drop in net income weaken return metrics and retained earnings. This diminishes reinvestment capacity and raises vulnerability to cost shocks, making multi‑period margin recovery and payout sustainability more challenging without operational improvements.
Rising Net Debt Concern
An uptick in net debt amid declining profitability increases leverage strain and potential financing cost exposure. Combined with margin pressure, higher net debt can limit strategic flexibility and elevate refinancing risk over a medium‑term horizon unless cash flow performance rebounds.

Sintokogio,Ltd. (6339) vs. iShares MSCI Japan ETF (EWJ)

Sintokogio,Ltd. Business Overview & Revenue Model

Company DescriptionSintokogio,Ltd., together with its subsidiaries, manufactures and sells foundry, surface treatment, environmental, material handling, and special equipment in Japan and internationally. The company offers foundry equipment, including green sand molding machines and condition systems, chemically bonded sand systems, V-process molding systems, aluminum casting products, core making machines, molten metal transfer and automatic pouring systems, after treatment equipment, shotblasting machines, environmental equipment, and casting equipment information management systems. It also provides surface treatment equipment comprising shot blasting, air blasting, shot peening, micro-blasting, barrel polishing, and precision brushing machines, as well as blasting abrasives, finishing media and compounds, and surface evaluation products. In addition, the company offers environmental equipment, such as dust collectors, exhaust gas purifiers, and wastewater treatment equipment. Further, it provides mechatronics products consisting of servo cylinders and controllers, servo press machines, precision composite presses, and vacuum press machines; and powder treatment equipment, including granulators, pneumatic conveyors, sieving systems, and kneaders. Additionally, the company offers electric property testers, semiconductor testers, bi-directional power systems, inspection systems for automotive parts, precision coordinate measuring products, and precision dimensional measuring machines; ceramic related products; and material handling equipment, such as scissor lifts, conveyor systems, and clean systems. It serves automotive, shipbuilding, aviation, rail, iron and steel, and die casting industries. The company was formerly known as Kubota Seisakusho, Ltd. and changed its name to Sintokogio,Ltd. in February 1960. Sintokogio,Ltd. was founded in 1934 and is headquartered in Nagoya, Japan.
How the Company Makes MoneySintokogio, Ltd. generates revenue through multiple streams, primarily by selling its industrial machinery and precision tools to manufacturers across various industries. The company's core revenue comes from direct sales of its products, which are designed to meet the specific needs of clients in sectors like automotive and electronics. Additionally, Sintokogio earns money through service contracts that include maintenance and support for its machinery, ensuring ongoing relationships with customers. The company may also engage in partnerships with other firms to develop innovative solutions, which can lead to joint ventures or licensing agreements, further enhancing its revenue potential. Furthermore, Sintokogio invests in research and development to create advanced technologies, which can result in new product offerings and expand its market reach.

Sintokogio,Ltd. Financial Statement Overview

Summary
Sintokogio, Ltd. shows strong revenue growth and a stable financial position, but faces challenges in profitability and cash flow generation. The moderate leverage and solid equity base provide a buffer against potential downturns, though recent earnings quality and cash flow issues need addressing.
Income Statement
72
Positive
Sintokogio, Ltd. has shown strong revenue growth with a compound annual growth rate of approximately 10.2% over the last five years. The gross profit margin has remained relatively stable, averaging around 28.4% in the last reported year. However, net income significantly decreased in the latest period, impacting the net profit margin adversely. The decline in EBIT margin from previous years indicates potential cost pressures or increased operational expenses.
Balance Sheet
68
Positive
The company's balance sheet demonstrates a solid equity base, with a debt-to-equity ratio of 0.43, indicating moderate leverage. Return on equity has decreased in the latest period due to lower net income. The equity ratio remains healthy at approximately 50.5%, suggesting financial stability. However, the increase in net debt raises concerns about future financing costs and liquidity management.
Cash Flow
65
Positive
Operating cash flow has declined significantly in the most recent year, leading to negative free cash flow. The operating cash flow to net income ratio highlights a disparity in earnings quality. Despite this, the company managed positive free cash flow in prior periods, indicating potential for future recovery if operational efficiency improves.
BreakdownTTMMar 2025Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue165.88B150.22B115.50B106.38B99.25B82.54B
Gross Profit46.59B42.71B33.33B28.63B27.50B25.23B
EBITDA9.54B12.69B15.53B12.17B7.40B5.14B
Net Income2.69B2.76B8.71B6.19B2.83B606.00M
Balance Sheet
Total Assets233.22B236.76B187.96B171.37B168.59B164.20B
Cash, Cash Equivalents and Short-Term Investments40.02B41.73B52.56B46.49B44.53B46.26B
Total Debt47.87B51.17B14.93B15.50B19.78B20.62B
Total Liabilities108.82B109.64B60.82B59.61B58.94B60.07B
Stockholders Equity117.08B119.62B120.57B105.78B104.09B98.92B
Cash Flow
Free Cash Flow0.00-3.45B2.41B1.86B1.15B4.58B
Operating Cash Flow0.002.35B5.94B5.49B4.09B8.09B
Investing Cash Flow0.00-30.33B-744.00M-1.62B-1.19B-1.80B
Financing Cash Flow0.0015.27B-3.02B-7.09B-2.75B-1.14B

Sintokogio,Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1001.00
Price Trends
50DMA
1138.12
Positive
100DMA
1085.82
Positive
200DMA
986.86
Positive
Market Momentum
MACD
14.11
Negative
RSI
62.94
Neutral
STOCH
64.63
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6339, the sentiment is Positive. The current price of 1001 is below the 20-day moving average (MA) of 1173.50, below the 50-day MA of 1138.12, and above the 200-day MA of 986.86, indicating a bullish trend. The MACD of 14.11 indicates Negative momentum. The RSI at 62.94 is Neutral, neither overbought nor oversold. The STOCH value of 64.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6339.

Sintokogio,Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
¥101.67B48.305.02%3.23%-10.00%-51.92%
76
Outperform
¥64.73B14.882.79%2.85%3.17%
75
Outperform
¥69.80B16.943.95%-1.67%-4.39%
74
Outperform
¥64.34B21.391.99%4.09%30.99%-65.52%
74
Outperform
¥64.51B12.892.54%2.00%39.80%
70
Outperform
¥69.83B14.833.09%6.35%-34.20%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6339
Sintokogio,Ltd.
1,209.00
349.21
40.62%
JP:6104
Shibaura Machine Co., Ltd.
4,620.00
1,118.53
31.94%
JP:6118
Aida Engineering,Ltd.
1,190.00
384.18
47.68%
JP:6237
Iwaki Co. Ltd.
2,955.00
555.36
23.14%
JP:6363
Torishima Pump Mfg.Co., Ltd.
2,660.00
514.77
24.00%
JP:6381
ANEST IWATA Corp.
1,754.00
557.36
46.58%

Sintokogio,Ltd. Corporate Events

Sintokogio Books ¥4 Billion Securities Gain, Lifts Sales Outlook but Cuts Profit Forecasts for FY2026
Feb 6, 2026

Sintokogio will record approximately ¥4.0 billion in extraordinary income in the fourth quarter of the fiscal year ending March 31, 2026 from the sale of part of its listed investment securities, as it advances a mid-term initiative to reduce cross-shareholdings, enhance capital efficiency, and reallocate proceeds toward growth investments and development costs. Reflecting this transaction and recent business trends, the company revised its full-year consolidated forecast, raising projected net sales from ¥160.0 billion to ¥180.0 billion on the back of yen depreciation, but sharply cutting operating profit and ordinary profit expectations due to weaker consumable sales in Europe and higher goodwill amortization at overseas subsidiaries, while keeping profit attributable to owners of parent unchanged as the gain on securities offsets operating headwinds, underscoring both currency-related pressures and the growing role of financial asset management in sustaining bottom-line performance.

The most recent analyst rating on (JP:6339) stock is a Buy with a Yen1309.00 price target. To see the full list of analyst forecasts on Sintokogio,Ltd. stock, see the JP:6339 Stock Forecast page.

Sintokogio Returns to Profit and Lifts Sales While Trimming Full-Year Earnings Outlook
Feb 6, 2026

Sintokogio reported a strong rebound in performance for the nine months ended December 31, 2025, with net sales rising 21.1% year on year to ¥128.4 billion and operating profit jumping 39.6% to ¥2.3 billion, while profit attributable to owners of parent returned to positive territory at ¥678 million and comprehensive income swung sharply into the black. The company’s financial position also improved, with total assets and net assets both increasing and the equity ratio edging up to 51.0%, it maintained its dividend policy with an interim payment of ¥22 per share and a full-year forecast of ¥44, and it revised its full-year earnings outlook, projecting continued sales growth to ¥180 billion but lower operating and ordinary profit versus the prior year, indicating a focus on stabilizing profitability amid changing market conditions.

The most recent analyst rating on (JP:6339) stock is a Buy with a Yen1309.00 price target. To see the full list of analyst forecasts on Sintokogio,Ltd. stock, see the JP:6339 Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 23, 2025