Tokyo Automatic Machinery Works, Ltd. (6360) AI Stock Analysis

• Market Cap: ¥5.61B
• Dividend Yield: 6.61%
• Average Volume (3M): 1.83K
• Price to Earnings (P/E): 11.5
• Beta (1Y): 0.74
• Revenue Growth: -30.65%
• EPS Growth: -46.85%
• Country: JP
• Employees: 280
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 104.49
• Shares Outstanding: 1,452,000
• 10 Day Avg. Volume: 700
• 30 Day Avg. Volume: 1,830
• PEG Ratio: 0.45
• Price to Book (P/B): 0.54
• Price to Sales (P/S): 0.39
• P/FCF Ratio: 5.28
• 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: ¥4,695.00 ▲(37.28% Upside)
• Action: Reiterated Date: 11/28/25
• Date: Action: Reiterated 11/28/25

The stock of Tokyo Automatic Machinery Works, Ltd. scores well due to its strong financial performance and attractive valuation. The company's robust balance sheet and high dividend yield are significant positives. However, technical indicators suggest caution due to overbought conditions, which could lead to short-term volatility.

Positive Factors

Balance Sheet Strength

Conservative leverage and a high equity ratio provide durable financial flexibility. Low D/E (≈0.11) and solid ROE (12.9%) reduce refinancing and solvency risk, support capex, dividends and strategic investments through cycles, and help the company withstand demand downturns.

Sustainable Margins

Relatively high gross margins and improving net margins indicate enduring operational efficiency and pricing power in machinery manufacturing. Stable margins support reinvestment in product development and service capabilities, underpinning long-term profitability across cycles.

Improving Cash Generation

The rebound to positive operating cash flow and positive free cash flow demonstrates improving cash conversion. Strong FCF relative to earnings increases capacity to fund maintenance capex, service the business, pay dividends and pursue modest growth without needing high external financing.

Negative Factors

Recent Revenue Decline

A >40% revenue drop is a material structural risk that can shrink scale economics and reduce parts and service attach rates. If persistent, it limits margin sustainability and cash generation, forcing tougher choices on pricing, capacity and investment priorities over months.

Earnings Volatility

A near 70% EPS contraction signals volatile profitability and potential one-offs or weak demand. Sustained EPS weakness erodes retained earnings, constrains capital allocation, and reduces the firm's ability to consistently fund dividends or strategic initiatives absent operational recovery.

Business Concentration & Cyclicality

Heavy reliance on capital equipment sales makes revenue inherently cyclical and lumpy, tied to industrial capex cycles. While after-sales offers recurring income, it may not fully offset equipment volatility, complicating revenue predictability and planning for steady growth.

Tokyo Automatic Machinery Works, Ltd. Business Overview & Revenue Model

Company Description

Tokyo Automatic Machinery Works, Ltd. (6360) is a Japanese company specializing in the manufacturing of precision machinery and equipment primarily for the printing and packaging industries. Established in 1917, the company has developed a diverse portfolio of products including automatic printing machines, packaging systems, and related components. Tokyo Automatic Machinery Works is recognized for its innovative technologies and commitment to quality, serving a global customer base across various sectors.

How the Company Makes Money

The company generates revenue primarily through the sale of its machinery and equipment to businesses in the printing and packaging industries. Key revenue streams include the direct sales of automatic printing machines and packaging systems, as well as ongoing maintenance and support services for these products. Additionally, Tokyo Automatic Machinery Works may engage in partnerships with other firms to enhance its product offerings and expand its market reach, contributing to its overall earnings. The company's focus on innovation and adaptation to market demands also plays a crucial role in sustaining its revenue growth.

Tokyo Automatic Machinery Works, Ltd. Financial Statement Overview

Summary

Tokyo Automatic Machinery Works, Ltd. exhibits a strong financial position with stable profitability, robust equity, and improving cash flows. The company maintains healthy margins and a solid balance sheet. While cash flow volatility poses some risk, the overall outlook remains positive with strategic financial management.

Income Statement

The income statement shows strong gross and net profit margins, with a consistent revenue growth trajectory over the past years. Gross Profit Margin is around 28.7% in the latest year, and Net Profit Margin improved to 9.5% from the previous 8.3%. Revenue growth has been steady despite a slight decrease in 2025. EBIT and EBITDA margins have remained solid, indicating stable operational efficiency.

Balance Sheet

The balance sheet is robust with a low Debt-to-Equity Ratio of approximately 0.11, indicating conservative leverage. ROE is strong at 12.9%, reflecting effective shareholder equity utilization. The Equity Ratio stands at 59.5%, highlighting stability and a strong equity position relative to total assets.

Cash Flow

Cash flow analysis indicates improvement with positive free cash flow in recent years. Free Cash Flow to Net Income Ratio is favorable, reflecting efficient cash generation relative to earnings. However, Operating Cash Flow was negative in 2024, but has rebounded positively in 2025, showing improved cash operations.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	12.89B	13.46B	13.31B	8.82B	10.71B
Gross Profit	3.70B	3.32B	2.78B	2.04B	2.25B
EBITDA	1.84B	1.67B	1.29B	668.05M	894.04M
Net Income	1.22B	1.12B	799.73M	373.49M	545.08M
Balance Sheet
Total Assets	15.86B	16.63B	17.29B	13.97B	11.13B
Cash, Cash Equivalents and Short-Term Investments	3.68B	2.97B	4.65B	4.83B	1.90B
Total Debt	1.11B	1.06B	1.11B	1.16B	1.21B
Total Liabilities	6.42B	8.55B	10.61B	8.25B	5.62B
Stockholders Equity	9.44B	8.07B	6.68B	5.72B	5.52B
Cash Flow
Free Cash Flow	962.54M	-1.40B	-164.21M	3.00B	1.03B
Operating Cash Flow	1.01B	-1.37B	-91.12M	3.03B	1.07B
Investing Cash Flow	-109.92M	-86.55M	71.26M	26.77M	-88.91M
Financing Cash Flow	-186.23M	-236.15M	-157.94M	-125.72M	-327.25M

Tokyo Automatic Machinery Works, Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3420.00
• 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:6360, the sentiment is Positive. The current price of 3420 is below the 20-day moving average (MA) of 3994.50, below the 50-day MA of 3928.50, and above the 200-day MA of 3402.50, indicating a bullish trend. The MACD of 18.90 indicates Positive momentum. The RSI at 52.62 is Neutral, neither overbought nor oversold. The STOCH value of 50.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6360.

Tokyo Automatic Machinery Works, Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6267	81 Outperform	¥7.31B	8.91	―	2.80%	6.02%	7.39%
6360	79 Outperform	¥5.61B	11.52	―	6.61%	-30.65%	-46.85%
6336	76 Outperform	¥8.11B	7.92	―	2.63%	0.59%	53.87%
6334	68 Neutral	¥4.68B	27.25	―	1.22%	12.31%	138.05%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6494	62 Neutral	¥6.97B	29.25	―	―	9.59%	54.63%