Sintokogio,Ltd. (6339) AI Stock Analysis

• Market Cap: ¥62.79B
• Dividend Yield: 4.09%
• Average Volume (3M): 91.63K
• Price to Earnings (P/E): 21.4
• Beta (1Y): 0.83
• Revenue Growth: 30.99%
• EPS Growth: -65.52%
• Country: JP
• Employees: 3,963
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 11.52
• Shares Outstanding: 54,580,930
• 10 Day Avg. Volume: 93,340
• 30 Day Avg. Volume: 91,626
• PEG Ratio: -0.23
• Price to Book (P/B): 0.36
• Price to Sales (P/S): 0.29
• P/FCF Ratio: -12.65
• 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: 74 Outperform
• Price Target: ¥1,322.00 ▲(32.07% Upside)
• Action: Reiterated Date: 10/23/25
• Date: Action: Reiterated 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 trend

Recent double-digit revenue growth and a roughly 10% five-year CAGR indicate persistent demand and successful market penetration. This durable top-line expansion supports long-term reinvestment in product development and capacity, underpinning sustainable growth even if margins need operational fixes.

Solid equity base & moderate leverage

A debt-to-equity of 0.43 and roughly 50% equity ratio provide financial flexibility versus peers. This capital structure cushions cyclicality, enables targeted capital expenditures or opportunistic M&A, and reduces refinancing strain, supporting the firm's ability to execute strategic initiatives over the medium term.

Stable gross profit margins

A consistent gross margin near 28% suggests durable product-level economics and pricing power in core machinery businesses. Stable gross margins give management room to absorb cost inflation and focus on improving operating efficiency, preserving long-term profitability as revenue scales.

Negative Factors

Declining operating cash flow

A recent drop in operating cash flow and emergence of negative free cash flow signal weaker cash generation versus earnings. This undermines self-funded investment and dividend sustainability, increasing reliance on external financing and constraining strategic flexibility over the next several quarters.

Material earnings deterioration

A >50% drop in EPS and a significant decline in net income point to pressure on bottom-line profitability. Sustained earnings weakness can erode return metrics, limit internal funding for growth, and magnify the impact of fixed costs, making medium-term margin recovery harder without corrective action.

Rising net debt concerns

An increase in net debt despite moderate leverage heightens interest and liquidity risk, especially if cash generation remains weak. Higher debt servicing needs could divert cash from capex and R&D, elevate refinancing risk if rates rise, and pressure credit metrics over the coming 2–6 months.

Sintokogio,Ltd. Business Overview & Revenue Model

Company Description

Sintokogio,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 Money

Sintokogio, 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

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

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

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.

Breakdown	TTM	Mar 2025	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	165.88B	150.22B	115.50B	106.38B	99.25B	82.54B
Gross Profit	46.59B	42.71B	33.33B	28.63B	27.50B	25.23B
EBITDA	9.54B	12.69B	15.53B	12.17B	7.40B	5.14B
Net Income	2.69B	2.76B	8.71B	6.19B	2.83B	606.00M
Balance Sheet
Total Assets	233.22B	236.76B	187.96B	171.37B	168.59B	164.20B
Cash, Cash Equivalents and Short-Term Investments	40.02B	41.73B	52.56B	46.49B	44.53B	46.26B
Total Debt	47.87B	51.17B	14.93B	15.50B	19.78B	20.62B
Total Liabilities	108.82B	109.64B	60.82B	59.61B	58.94B	60.07B
Stockholders Equity	117.08B	119.62B	120.57B	105.78B	104.09B	98.92B
Cash Flow
Free Cash Flow	0.00	-3.45B	2.41B	1.86B	1.15B	4.58B
Operating Cash Flow	0.00	2.35B	5.94B	5.49B	4.09B	8.09B
Investing Cash Flow	0.00	-30.33B	-744.00M	-1.62B	-1.19B	-1.80B
Financing Cash Flow	0.00	15.27B	-3.02B	-7.09B	-2.75B	-1.14B

Sintokogio,Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1001.00
• 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:6339, the sentiment is Positive. The current price of 1001 is below the 20-day moving average (MA) of 1176.10, below the 50-day MA of 1140.64, and above the 200-day MA of 988.57, indicating a bullish trend. The MACD of 13.16 indicates Positive momentum. The RSI at 54.01 is Neutral, neither overbought nor oversold. The STOCH value of 63.38 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6104	81 Outperform	¥99.47B	48.30	5.02%	3.23%	-10.00%	-51.92%
6237	76 Outperform	¥62.19B	14.88	―	2.79%	2.85%	3.17%
6381	75 Outperform	¥68.69B	16.94	―	3.95%	-1.67%	-4.39%
6339	74 Outperform	¥62.79B	21.39	1.99%	4.09%	30.99%	-65.52%
6118	74 Outperform	¥64.67B	12.89	―	2.54%	2.00%	39.80%
6363	70 Outperform	¥70.88B	14.83	―	3.09%	6.35%	-34.20%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Sintokogio,Ltd. Corporate Events

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

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

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.