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Tsubakimoto Chain Co.
(6371)
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Rating:74Outperform
Price Target:
¥2,857.00
▲(23.20% Upside)
Action:Reiterated
Date:08/04/26
The score is driven primarily by strong financial positioning (steady growth, solid margins, low leverage) and attractive valuation (low P/E and a ~3.1% dividend yield). Offsetting these positives are weaker recent cash-flow conversion/volatility and mixed near-term technical signals with the stock trading below key short-term moving averages.
Positive Factors
Conservative leverage
A debt-to-equity ratio near 0.18 signals a conservatively financed balance sheet, giving management flexibility to fund capex, sustain dividends, or absorb cyclical demand swings in industrial end markets without stressing liquidity or risking covenant pressure.
Negative Factors
Weak cash conversion
Free cash flow at about 41% of net income and a sharp TTM decline of ~25.9% point to volatile cash conversion. For a capital-intensive industrial manufacturer, weaker and inconsistent FCF can constrain capital allocation, slow paydown of liabilities, and limit discretionary investment.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative leverage
A debt-to-equity ratio near 0.18 signals a conservatively financed balance sheet, giving management flexibility to fund capex, sustain dividends, or absorb cyclical demand swings in industrial end markets without stressing liquidity or risking covenant pressure.
Read all positive factors
Tsubakimoto Chain Co. (6371) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥276.02B
Dividend Yield3.02%
Average Volume (3M)182.51K
Price to Earnings (P/E)9.0
Beta (1Y)1.02
Revenue Growth13.51%
EPS Growth48.95%
CountryJP
Employees12,228
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)294.04
Shares Outstanding106,213,280
10 Day Avg. Volume179,020
30 Day Avg. Volume182,506
Financial Highlights & Ratios
PEG Ratio0.20
Price to Book (P/B)0.78
Price to Sales (P/S)0.78
P/FCF Ratio14.32
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)194.3
Revenue Forecast (FY)¥293.30B
Tsubakimoto Chain Co. Business Overview & Revenue Model
Company Description
Tsubakimoto Chain Co. operates as a diversified manufacturer, specializing in power transmission components, a range of chains, automotive parts, and sophisticated materials handling systems. The company organizes its business into four primary di...
How the Company Makes Money
Tsubakimoto Chain makes money primarily by designing, manufacturing, and selling mechanical components and industrial systems used to transmit power, control motion, and move materials within customer operations. Key revenue streams include: (1) I...
Tsubakimoto Chain Co. Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
86
Very Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 315.61B | 295.88B | 279.19B | 266.81B | 251.57B | 215.88B |
| Gross Profit | 92.39B | 87.28B | 82.18B | 77.77B | 71.25B | 62.74B |
| EBITDA | 51.49B | 52.08B | 44.89B | 40.28B | 32.33B | 33.35B |
| Net Income | 29.57B | 29.71B | 22.12B | 18.55B | 13.74B | 14.54B |
Balance Sheet | ||||||
| Total Assets | 465.49B | 459.78B | 371.51B | 391.30B | 345.88B | 332.62B |
| Cash, Cash Equivalents and Short-Term Investments | 82.61B | 82.92B | 68.72B | 77.92B | 59.58B | 55.44B |
| Total Debt | 54.08B | 52.59B | 27.24B | 30.86B | 35.62B | 39.23B |
| Total Liabilities | 161.12B | 155.97B | 109.35B | 130.74B | 119.29B | 122.86B |
| Stockholders Equity | 296.40B | 296.36B | 259.81B | 258.40B | 224.40B | 207.76B |
Cash Flow | ||||||
| Free Cash Flow | 11.95B | 16.13B | 8.14B | 27.74B | 12.43B | 13.00B |
| Operating Cash Flow | 29.44B | 31.89B | 21.30B | 38.58B | 21.35B | 21.00B |
| Investing Cash Flow | -10.98B | -8.98B | -11.83B | -9.16B | -9.28B | -9.07B |
| Financing Cash Flow | -16.85B | -20.24B | -21.66B | -15.70B | -9.96B | -7.78B |
Tsubakimoto Chain Co. Technical Analysis
Positive
2319.00
Price Trends
2626.98
Positive
2554.02
Positive
2426.16
Positive
Market Momentum
18.84
Positive
49.36
Neutral
32.28
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6371, the sentiment is Positive. The current price of 2319 is below the 20-day moving average (MA) of 2658.20, below the 50-day MA of 2626.98, and below the 200-day MA of 2426.16, indicating a neutral trend. The MACD of 18.84 indicates Positive momentum. The RSI at 49.36 is Neutral, neither overbought nor oversold. The STOCH value of 32.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6371.
Tsubakimoto Chain Co. Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | ¥276.02B | 9.01 | 11.15% | 3.85% | 13.51% | 48.95% | |
74 Outperform | ¥120.70B | 15.31 | ― | 4.64% | 5.29% | 20.13% | |
66 Neutral | ¥6.59B | 3.47 | ― | 1.37% | -2.81% | 186.98% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
58 Neutral | ¥528.78B | 27.03 | 6.59% | 1.65% | -7.97% | 78.01% | |
58 Neutral | ¥772.27B | 19.26 | -22.79% | 3.14% | 1.98% | -48.28% | |
56 Neutral | ¥545.81B | 183.14 | 2.07% | 0.30% | 11.76% | -21.18% |
* Industrials Sector Average
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Tsubakimoto Chain Co. Corporate Events
Tsubakimoto Chain advances share buyback under board-approved program
Aug 3, 2026
Tsubakimoto Chain Co., a Japanese industrial chain and power transmission manufacturer listed on the Prime Market of the Tokyo Stock Exchange, continues to leverage its strong market position in automotive and industrial applications. The company ...
Tsubakimoto Chain Posts Strong Q1 Sales Growth, Keeps Dividend Outlook Steady
Jul 30, 2026
Tsubakimoto Chain Co. reported a strong rebound in consolidated results for the quarter ended June 30, 2026, with net sales up 30.2% year-on-year to ¥85.0 billion and operating profit jumping 57.4% to ¥5.2 billion, though profit attribut...
Tsubakimoto Chain Completes Restricted Stock Compensation Using Treasury Shares
Jul 24, 2026
Tsubakimoto Chain Co. has completed the payment procedures for a disposal of 36,189 treasury shares used as restricted stock compensation, following a Board resolution passed in late June 2026. The shares, priced at JPY 2,604 each for a total of a...
Tsubakimoto Chain Advances Share Buyback with ¥6.2 Billion Treasury Stock Purchase
Jul 1, 2026
Tsubakimoto Chain Co. has repurchased 2,399,000 shares of its common stock for a total of ¥6.2 billion, using the Tokyo Stock Exchange’s off-auction own share repurchase trading system ToSTNeT-3. The move is conducted under the authorit...
Tsubakimoto Chain to Use Treasury Shares for Long-Term Restricted Stock Compensation
Jun 26, 2026
Tsubakimoto Chain Co. will dispose of 36,189 treasury shares on July 24, 2026 under its restricted stock compensation plan, allocating shares to three internal directors and 18 executive officers at a disposal price of ¥2,604 per share, for a...
Tsubakimoto Chain Advances ¥10 Billion Share Buyback With ToSTNeT-3 Treasury Purchase
Jun 19, 2026
Tsubakimoto Chain Co. has repurchased 2,399,000 shares of its common stock, equivalent to about 2.3% of its outstanding shares excluding treasury stock, through an off-auction own share repurchase via ToSTNeT-3 on the Tokyo Stock Exchange, at a to...
Tsubakimoto Chain Sets Terms for ¥6.47 Billion Treasury Share Buyback
Jun 18, 2026
Tsubakimoto Chain Co. has set the specific terms for a previously approved share buyback, deciding to repurchase up to 2.5 million shares, or about 2.4% of its outstanding stock, via the Tokyo Stock Exchange’s ToSTNeT-3 system at the June 18...
Tsubakimoto Chain Launches ¥10 Billion Share Buyback to Boost Capital Efficiency
May 13, 2026
Tsubakimoto Chain Co. has authorized a share buyback program, resolving at its board meeting on May 13, 2026 to acquire up to 5 million shares, or about 4.8% of its outstanding stock, for a maximum of ¥10 billion. The repurchase, to be conduc...
Tsubakimoto Chain Lifts Earnings on Daido Kogyo Integration Despite Impairment Charges
May 13, 2026
Tsubakimoto Chain Co. reported extraordinary income and losses for the fiscal year ended March 31, 2026, driven primarily by its business integration with Daido Kogyo Co., Ltd., which became a consolidated subsidiary via a share exchange effective...
Tsubakimoto Chain Lifts Sales and Profit, Expands Group with Daido Kogyo
May 13, 2026
Tsubakimoto Chain reported a 6.0% rise in consolidated net sales to ¥295.9 billion for the year ended March 31, 2026, while operating and ordinary profit slipped, but profit attributable to owners of the parent jumped 34.3% to ¥29.7 bill...
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.