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Tsubakimoto Chain Co. (JP:6371)
:6371
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Tsubakimoto Chain Co. (6371) AI Stock Analysis

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JP:6371

Tsubakimoto Chain Co.

(Frankfurt:6371)

Rating:79Outperform
Price Target:
¥2,324.00
▲(14.20%Upside)
Tsubakimoto Chain Co. achieves a high overall stock score driven by its strong financial performance and attractive valuation metrics. While technical analysis indicates strong momentum, caution is advised due to overbought signals. The absence of earnings call data and corporate events means these factors do not influence the score.

Tsubakimoto Chain Co. (6371) vs. iShares MSCI Japan ETF (EWJ)

Tsubakimoto Chain Co. Business Overview & Revenue Model

Company DescriptionTsubakimoto Chain Co. (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 integral to various industrial applications. Tsubakimoto Chain Co. serves a broad range of sectors, including automotive, manufacturing, and logistics, providing innovative solutions that enhance efficiency and productivity.
How the Company Makes MoneyTsubakimoto Chain Co. generates revenue primarily through the sale of its power transmission products and materials handling systems. The company's key revenue streams include industrial chains, automotive parts, and systems solutions. Industrial chains are sold to various sectors, including manufacturing and logistics, where they are used in machinery and conveyor systems. In the automotive sector, Tsubakimoto supplies timing chain systems, which are critical components in vehicle engines. Additionally, the company earns revenue from its materials handling systems, which include sophisticated solutions like automated storage and retrieval systems designed to optimize warehouse operations. Tsubakimoto's earnings are bolstered by its strong global presence and strategic partnerships, allowing it to maintain a competitive edge in international markets.

Tsubakimoto Chain Co. Financial Statement Overview

Summary
Tsubakimoto Chain Co. demonstrates strong financial health with consistent revenue and profit growth, stable margins, and efficient cash generation. The low leverage and solid equity position further enhance its financial stability. However, the decline in total assets and fluctuations in cash flow warrant attention.
Income Statement
85
Very Positive
The company has demonstrated a robust revenue growth trajectory, with a consistent increase in total revenue from 2020 to 2025. The gross profit margin has been stable, reflecting strong operational efficiency. The net profit margin improved significantly, indicating enhanced profitability. The EBIT and EBITDA margins also reflect solid operational performance, contributing to the overall profitability.
Balance Sheet
80
Positive
Tsubakimoto Chain Co. maintains a strong equity position with a healthy stockholders' equity. The debt-to-equity ratio is low, indicating low financial leverage and reduced risk. The equity ratio suggests a stable financial structure. However, the decrease in total assets over time is a potential concern that needs monitoring.
Cash Flow
78
Positive
The company shows a positive trend in free cash flow growth, although there was a decline in operating cash flow in 2025. The operating cash flow to net income and free cash flow to net income ratios are favorable, demonstrating efficient cash generation relative to net income. The fluctuations in cash flow from investing and financing activities require close observation.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue279.19B266.81B251.57B215.88B193.40B
Gross Profit82.18B75.39B71.25B62.74B47.63B
EBITDA44.89B40.28B32.74B30.82B21.86B
Net Income22.12B18.55B13.74B14.54B8.71B
Balance Sheet
Total Assets371.51B391.30B345.88B332.62B307.33B
Cash, Cash Equivalents and Short-Term Investments68.72B77.92B59.58B55.44B48.06B
Total Debt27.24B30.86B35.62B39.23B42.20B
Total Liabilities109.34B130.74B119.30B122.86B119.84B
Stockholders Equity259.81B258.40B224.40B207.75B185.79B
Cash Flow
Free Cash Flow8.14B27.74B12.43B13.00B18.17B
Operating Cash Flow21.30B38.58B21.35B21.00B27.89B
Investing Cash Flow-11.83B-9.16B-9.28B-9.07B-9.56B
Financing Cash Flow-21.66B-15.70B-9.96B-7.78B-4.35B

Tsubakimoto Chain Co. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2035.00
Price Trends
50DMA
1822.92
Positive
100DMA
1808.44
Positive
200DMA
1827.85
Positive
Market Momentum
MACD
46.19
Negative
RSI
84.39
Negative
STOCH
92.74
Negative
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 2035 is above the 20-day moving average (MA) of 1853.45, above the 50-day MA of 1822.92, and above the 200-day MA of 1827.85, indicating a bullish trend. The MACD of 46.19 indicates Negative momentum. The RSI at 84.39 is Negative, neither overbought nor oversold. The STOCH value of 92.74 is Negative, 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

Overall Rating
UnderperformOutperform
Sector (71)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
¥98.19B11.10
5.06%7.73%27.77%
79
Outperform
¥213.57B9.578.48%3.93%4.64%24.45%
76
Outperform
€249.99B13.5214.03%1.69%4.59%64.99%
75
Outperform
¥262.72B21.73
1.02%16.07%61.08%
71
Outperform
¥268.02B13.928.47%2.88%6.35%13.11%
68
Neutral
¥132.62B10.51
2.35%12.12%5.56%
68
Neutral
$276.49B18.646.35%1.57%3.93%-8.46%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6371
Tsubakimoto Chain Co.
2,035.00
51.41
2.59%
JP:5192
Mitsuboshi Belting Ltd.
3,555.00
-630.04
-15.05%
JP:6420
FUKUSHIMA GALILEI CO., LTD.
3,150.00
-90.68
-2.80%
JP:6507
Sinfonia Technology Co., Ltd.
9,320.00
6,182.06
197.01%
JP:6508
Meidensha Corporation
5,510.00
2,201.38
66.53%
JP:6135
Makino Milling Machine Co
11,430.00
4,992.70
77.56%

Tsubakimoto Chain Co. Corporate Events

Tsubakimoto Chain Co. Completes Treasury Share Disposal for Compensation
Jul 25, 2025

Tsubakimoto Chain Co. has completed the payment procedures for the disposal of 47,597 treasury shares as restricted stock compensation. This move, resolved by the Board of Directors, involves allocating shares to company directors and executive officers, potentially impacting internal stakeholder alignment and compensation strategies.

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: Jul 25, 2025