Tsubakimoto Chain Co. (6371) AI Stock Analysis

• Market Cap: €188.39B
• Dividend Yield: 5.17%
• Average Volume (3M): 181.74K
• Price to Earnings (P/E): 8.4
• Beta (1Y): 0.86
• Revenue Growth: 4.64%
• EPS Growth: 24.45%
• Country: JP
• Employees: 8,750
• Sector: Industrials
• Sector Strength: 86
• Industry: Industrial - Machinery
• EPS (TTM): 69.59
• Shares Outstanding: 106,213,280
• 10 Day Avg. Volume: 200,530
• 30 Day Avg. Volume: 181,740
• PEG Ratio: 3.28
• Price to Book (P/B): 0.72
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 48.98
• 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

• Rating: 75 Outperform
• Price Target: ¥2,025.00 ▲(12.81%Upside)

Tsubakimoto Chain Co. benefits from strong financial performance and attractive valuation metrics, contributing positively to its overall score. The technical analysis presents a more neutral outlook, which tempers the score slightly. The absence of earnings call insights and corporate events means they do not alter the assessment.

Tsubakimoto Chain Co. Business Overview & Revenue Model

Company Description

Tsubakimoto Chain Co., listed under ticker 6371, is a leading Japanese manufacturer specializing in power transmission products and materials handling systems. The company is renowned for its high-quality chains, including roller chains, conveyor chains, and timing chains, which are used across various industries such as automotive, industrial machinery, and infrastructure. Tsubakimoto also produces motion control products and offers a comprehensive range of engineering solutions to enhance operational efficiency in industrial settings.

How the Company Makes Money

Tsubakimoto Chain Co. generates revenue primarily through the manufacture and sale of its power transmission and materials handling products. Its key revenue streams include the sale of chains, such as roller chains and conveyor chains, which are integral components in various industrial applications. The company also earns income from its motion control products and engineering solutions that improve productivity and operational efficiency for its clients. Tsubakimoto has established significant partnerships and maintains a strong global distribution network, which aids in expanding its market reach and sustaining its revenue growth. Additionally, its focus on innovation and quality helps in retaining a competitive edge in the industry.

Tsubakimoto Chain Co. Financial Statement Overview

Summary

Tsubakimoto Chain Co. exhibits strong financial health with solid revenue growth, profitability, and a robust capital structure. The company maintains low leverage and efficient operational performance. While cash flow metrics show stability, there is room for improvement in free cash flow growth.

Income Statement

Tsubakimoto Chain Co. has demonstrated solid revenue growth, with a notable increase from previous years. The Gross Profit Margin stands at 29.22% for TTM, reflecting efficient cost management. The Net Profit Margin improved to 7.79%, indicating enhanced profitability. EBIT and EBITDA margins are strong at 8.23% and 12.71% respectively, highlighting robust operational performance.

Balance Sheet

The company's balance sheet is strong, with a Debt-to-Equity Ratio of 0.11, indicating low leverage and financial stability. The Return on Equity is a healthy 8.39%, reflecting good profitability relative to shareholder equity. The Equity Ratio is impressive at 68.37%, demonstrating a solid capital structure predominantly funded by equity.

Cash Flow

Cash flow generation is stable, with a Free Cash Flow to Net Income Ratio of 0.17, suggesting adequate conversion of income to cash. The Operating Cash Flow to Net Income Ratio of 0.57 indicates reasonable cash flow coverage of net income. However, the Free Cash Flow Growth Rate shows a decline, which could be a potential area for improvement.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	276.62B	266.81B	251.57B	215.88B	193.40B	226.42B
Gross Profit	80.82B	75.39B	71.25B	62.74B	47.63B	60.27B
EBITDA	35.16B	40.28B	32.74B	30.82B	21.86B	29.07B
Net Income	21.54B	18.55B	13.74B	14.54B	8.71B	11.58B
Balance Sheet
Total Assets	375.65B	391.30B	345.88B	332.62B	307.33B	294.10B
Cash, Cash Equivalents and Short-Term Investments	62.98B	77.92B	59.58B	55.44B	48.06B	32.98B
Total Debt	27.77B	30.86B	35.62B	39.23B	42.20B	42.46B
Total Liabilities	116.56B	130.74B	119.30B	122.86B	119.84B	118.04B
Stockholders Equity	256.87B	258.40B	224.40B	207.75B	185.79B	174.36B
Cash Flow
Free Cash Flow	3.61B	27.74B	12.43B	13.00B	18.17B	5.61B
Operating Cash Flow	12.33B	38.58B	21.35B	21.00B	27.89B	20.27B
Investing Cash Flow	-8.92B	-9.16B	-9.28B	-9.07B	-9.56B	-14.24B
Financing Cash Flow	-21.35B	-15.70B	-9.96B	-7.78B	-4.35B	-10.38B

Tsubakimoto Chain Co. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1795.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6371, the sentiment is Neutral. The current price of 1795 is above the 20-day moving average (MA) of 1788.75, below the 50-day MA of 1797.58, and below the 200-day MA of 1823.62, indicating a neutral trend. The MACD of 0.43 indicates Negative momentum. The RSI at 50.79 is Neutral, neither overbought nor oversold. The STOCH value of 79.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6371.

Tsubakimoto Chain Co. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6508	76 Outperform	€239.10B	12.93	14.03%	2.20%	4.59%	64.99%
6371	75 Outperform	€188.39B	8.44	8.48%	5.17%	4.64%	24.45%
Sector *	71 Outperform	¥253.62B	13.00	8.49%	3.09%	6.31%	12.77%
5192	69 Neutral	¥92.81B	10.49		5.28%	7.73%	27.77%
6507	69 Neutral	¥261.31B	21.62		1.02%	16.07%	61.08%
6420	68 Neutral	¥128.62B	10.19		2.42%	12.12%	5.56%
6135	68 Neutral	$276.73B	18.66	6.35%	1.75%	3.93%	-8.46%

Tsubakimoto Chain Co. Corporate Events

Tsubakimoto Chain Co. Acquires Treasury Stock to Optimize Capital Structure

Tsubakimoto Chain Co. has announced the acquisition of 2,261,800 shares of its treasury stock at a total cost of 4,003,386,000 yen, as part of a resolution passed by its Board of Directors. This move is part of a broader strategy to purchase up to 6,500,000 shares, with a maximum expenditure of 10 billion yen, aimed at optimizing capital structure and potentially enhancing shareholder value.

Tsubakimoto Chain Co. Announces Disposal of Treasury Shares for Compensation Plan

Tsubakimoto Chain Co. has announced a plan to dispose of 47,597 treasury shares as part of a restricted stock compensation plan for its directors and executive officers. This initiative aims to align the interests of the company’s leadership with shareholders by providing long-term incentives, with a transfer restriction period set for 30 years. The move is expected to enhance corporate value and promote value sharing among stakeholders.

Tsubakimoto Chain Co. Completes Treasury Stock Purchase

Tsubakimoto Chain Co. announced the completion of a treasury stock purchase, acquiring 2,261,800 shares at a total cost of 4,003,386,000 yen through the Tokyo Stock Exchange’s off-auction trading system. This move is part of a broader strategy authorized by the Board of Directors to repurchase up to 6,500,000 shares, aiming to enhance shareholder value and optimize capital structure.

Tsubakimoto Chain Co. Announces Treasury Share Purchase Plan

Tsubakimoto Chain Co. has announced its decision to purchase up to 2.5 million of its own shares through the Tokyo Stock Exchange’s ToSTNeT-3 system at a set price, as part of a broader plan approved by its Board of Directors to acquire a maximum of 6.5 million shares by the end of 2025. This move is aimed at optimizing capital structure and potentially enhancing shareholder value, though the actual execution will depend on market conditions.

Tsubakimoto Chain Co. Revises Treasury Share Acquisition Plan

Tsubakimoto Chain Co. announced a revision to its previously disclosed plan regarding the acquisition of treasury shares. The correction involves a slight adjustment in the percentage of total outstanding shares to be acquired, now stated as 6.34% instead of 6.12%. This acquisition, valued at up to 10 billion yen, will take place through market purchases on the Tokyo Stock Exchange until December 30, 2025, potentially impacting the company’s stock value and shareholder equity.

Tsubakimoto Chain and Daido Kogyo Announce Business Integration

Tsubakimoto Chain Co. and Daido Kogyo Co., Ltd. have announced a business integration through a share exchange, with Tsubakimoto Chain becoming the parent company and Daido Kogyo a wholly-owned subsidiary. This integration aims to leverage synergies and enhance market positioning, with the share exchange scheduled for January 1, 2026, following necessary approvals. Daido Kogyo will delist from the Tokyo Stock Exchange in December 2025.

Tsubakimoto Chain Co. to Record Extraordinary Gain from Securities Sale

Tsubakimoto Chain Co. has announced its decision to sell a portion of its investment securities, expecting to record an extraordinary gain of approximately JPY 4.7 billion in the fiscal year ending March 2026. This move is part of the company’s strategy to manage capital costs and share prices more effectively, aligning with its previously announced management measures.

Tsubakimoto Chain Co. Announces Treasury Share Acquisition for Business Integration

Tsubakimoto Chain Co. announced its decision to acquire treasury shares as part of a business integration with Daido Kogyo Co., Ltd., effective January 1, 2026. This acquisition aims to facilitate a share exchange, making Tsubakimoto the parent company and Daido Kogyo a subsidiary, while also allowing for flexible capital policies in response to future business changes.