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Tsubakimoto Chain Co. (JP:6371)
:6371

Tsubakimoto Chain Co. (6371) AI Stock Analysis

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JP

Tsubakimoto Chain Co.

(Frankfurt:6371)

Rating:75Outperform
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. (6371) vs. iShares MSCI Japan ETF (EWJ)

Tsubakimoto Chain Co. Business Overview & Revenue Model

Company DescriptionTsubakimoto 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 MoneyTsubakimoto 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
85
Very Positive
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
78
Positive
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
70
Positive
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.
BreakdownTTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income Statement
Total Revenue276.62B266.81B251.57B215.88B193.40B226.42B
Gross Profit80.82B75.39B71.25B62.74B47.63B60.27B
EBITDA35.16B40.28B32.74B30.82B21.86B29.07B
Net Income21.54B18.55B13.74B14.54B8.71B11.58B
Balance Sheet
Total Assets375.65B391.30B345.88B332.62B307.33B294.10B
Cash, Cash Equivalents and Short-Term Investments62.98B77.92B59.58B55.44B48.06B32.98B
Total Debt27.77B30.86B35.62B39.23B42.20B42.46B
Total Liabilities116.56B130.74B119.30B122.86B119.84B118.04B
Stockholders Equity256.87B258.40B224.40B207.75B185.79B174.36B
Cash Flow
Free Cash Flow3.61B27.74B12.43B13.00B18.17B5.61B
Operating Cash Flow12.33B38.58B21.35B21.00B27.89B20.27B
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 Price1795.00
Price Trends
50DMA
1797.58
Negative
100DMA
1801.69
Negative
200DMA
1823.62
Negative
Market Momentum
MACD
0.43
Negative
RSI
50.79
Neutral
STOCH
79.43
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

Overall Rating
UnderperformOutperform
Sector (71)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
€239.10B12.9314.03%2.20%4.59%64.99%
75
Outperform
€188.39B8.448.48%5.17%4.64%24.45%
71
Outperform
¥253.62B13.008.49%3.09%6.31%12.77%
69
Neutral
¥92.81B10.49
5.28%7.73%27.77%
69
Neutral
¥261.31B21.62
1.02%16.07%61.08%
68
Neutral
¥128.62B10.19
2.42%12.12%5.56%
68
Neutral
$276.73B18.666.35%1.75%3.93%-8.46%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6371
Tsubakimoto Chain Co.
1,795.00
-239.78
-11.78%
JP:5192
Mitsuboshi Belting Ltd.
3,360.00
-955.78
-22.15%
JP:6420
FUKUSHIMA GALILEI CO., LTD.
3,080.00
-155.72
-4.81%
JP:6507
Sinfonia Technology Co., Ltd.
9,270.00
5,723.19
161.36%
JP:6508
Meidensha Corporation
5,130.00
1,664.99
48.05%
JP:6135
Makino Milling Machine Co
11,440.00
4,728.77
70.46%

Tsubakimoto Chain Co. Corporate Events

Tsubakimoto Chain Co. Acquires Treasury Stock to Optimize Capital Structure
Jul 1, 2025

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
Jun 27, 2025

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
Jun 20, 2025

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
Jun 19, 2025

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
Jun 18, 2025

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
May 14, 2025

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
May 14, 2025

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
May 14, 2025

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.

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.Date of analysis: Jun 28, 2025