Tsubakimoto Chain Co. (6371) AI Stock Analysis

• Market Cap: ¥188.91B
• Dividend Yield: 5.22%
• Average Volume (3M): 192.56K
• Price to Earnings (P/E): 8.5
• Beta (1Y): 0.86
• Revenue Growth: 4.64%
• EPS Growth: 24.27%
• Country: JP
• Employees: 8,750
• Sector: Industrials
• Sector Strength: 87
• Industry: Industrial - Machinery
• EPS (TTM): 69.59
• Shares Outstanding: 106,213,280
• 10 Day Avg. Volume: 164,310
• 30 Day Avg. Volume: 192,560
• 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 ▲(11.94%Upside)

The stock score of 75 reflects strong financial performance, with consistent growth and stable margins, as the most significant factor. The technical analysis suggests neutral momentum, and the valuation indicates potential undervaluation with a high dividend yield, enhancing its attractiveness.

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
	EBIT
22.78B	21.26B	18.98B	17.84B	8.90B	16.15B
	EBITDA
35.16B	40.28B	32.74B	30.82B	21.86B	29.07B
	Net Income Common Stockholders
21.54B	18.55B	13.74B	14.54B	8.71B	11.58B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
62.98B	77.92B	59.58B	55.44B	48.06B	32.98B
	Total Assets
375.65B	391.30B	345.88B	332.62B	307.33B	294.10B
	Total Debt
27.77B	30.86B	35.62B	39.23B	42.20B	42.46B
	Net Debt
-30.62B	-46.46B	-21.29B	-9.88B	334.00M	13.45B
	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: Negative
• Last Price: 1809.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 1809 is below the 20-day moving average (MA) of 1813.95, above the 50-day MA of 1758.20, and below the 200-day MA of 1832.18, indicating a neutral trend. The MACD of 5.31 indicates Positive momentum. The RSI at 48.59 is Neutral, neither overbought nor oversold. The STOCH value of 33.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥216.87B	11.73	14.03%	2.43%	4.59%	64.99%
6371	75 Outperform	¥188.91B	8.46	8.48%	5.22%	4.64%	24.27%
6507	74 Outperform	¥245.52B	20.45		1.08%	16.07%	61.09%
5192	69 Neutral	¥94.60B	10.70		5.25%	7.73%	27.91%
6420	68 Neutral	¥125.68B	10.06		2.48%	12.12%	5.56%
6135	68 Neutral	$282.05B	19.02	6.35%	1.72%	3.93%	-8.48%
Sector *	66 Neutral	$4.47B	12.22	5.40%	3.65%	4.14%	-12.00%

Tsubakimoto Chain Co. Corporate Events

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.