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

• Market Cap: ¥5.46B
• Dividend Yield: 6.61%
• Average Volume (3M): 1.83K
• Price to Earnings (P/E): 8.8
• Beta (1Y): 0.72
• 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

Conservative balance sheet

Very low leverage and a high equity ratio provide durable financial flexibility. Conservative capital structure supports investment in R&D or service capabilities, cushions downturns, and reduces refinancing risk, enabling longer-term strategy execution and stability over months.

Healthy margins and profitability

Sustained gross and net margins indicate pricing power and operational efficiency in manufacturing and integration. Durable margins support free cash flow generation and margin resilience through cost control, helpful for funding service expansion and maintaining shareholder returns.

Recurring after-sales revenue

A mix of equipment sales plus recurring service, parts and maintenance contracts creates a steadier revenue base and customer lock-in. This recurring income smooths lumpy capital-equipment cycles and improves lifetime customer value and predictability of cash flows.

Negative Factors

Sharp recent top-line and EPS declines

Large year-over-year declines in revenue and EPS mark a meaningful setback to growth trajectory. Such pronounced drops can signal weaker demand, lost orders or execution issues, reducing reinvestment capacity and making multi-month recovery and planning more challenging.

Cash flow volatility

Intermittent negative operating cash flow demonstrates volatility in core cash generation. Even with a rebound, irregular OCF undermines reliable funding for capex, service expansion and shareholder returns, increasing execution risk over the medium term.

Dependence on capital-equipment cycles

High dependence on one-time equipment sales makes revenue lumpy and closely tied to customer capex cycles. Such cyclicality limits predictability, exposes results to industrial demand swings, and can constrain steady organic growth despite service revenues.

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

Company Description

Tokyo Automatic Machinery Works, Ltd. designs, develops, produces, and sells various types of packaging machines, tobacco machines, solid waste baling machines, and automatic laborsaving machines and systems in Japan and internationally. It offers confectionary and gift wrapping, vertical form-fill-seal machines, powder filling, tobacco, special item wrapping, and film overwrapping machines; overwrapping machines for paper products; baling systems; cartoners; cardboard caser; line systems; and vibrating conveyors. The company was formerly known as Shimane Manufacturing Co. and changed its name to Tokyo Automatic Machinery Works, Ltd. in 1949. The company was founded in 1908 and is headquartered in Tokyo, Japan.

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: Neutral
• Last Price: 3420.00
• 50DMA: Negative
• 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 Neutral. The current price of 3420 is below the 20-day moving average (MA) of 4000.25, below the 50-day MA of 3959.60, and below the 200-day MA of 3422.64, indicating a neutral trend. The MACD of -6.92 indicates Positive momentum. The RSI at 41.38 is Neutral, neither overbought nor oversold. The STOCH value of 22.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
6360	79 Outperform	¥5.46B	8.84	―	6.61%	-30.65%	-46.85%
6482	74 Outperform	¥23.89B	46.66	―	2.77%	-4.47%	-24.47%
6264	73 Outperform	¥46.67B	13.22	―	2.04%	140.12%	6842.82%
6440	65 Neutral	¥20.89B	10.67	―	―	-2.84%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6405	61 Neutral	¥15.30B	33.09	―	2.71%	-6.08%	-56.08%
6210	57 Neutral	¥13.68B	-6.97	―	5.43%	1.46%	89.88%