Tsubakimoto Chain Co. (6371) AI Stock Analysis

• Market Cap: €189.33B
• Dividend Yield: 4.53%
• Average Volume (3M): 203.63K
• Price to Earnings (P/E): 8.5
• Beta (1Y): 0.87
• Revenue Growth: 4.18%
• EPS Growth: 51.04%
• Country: JP
• Employees: 8,750
• Sector: Industrials
• Sector Strength: 92
• Industry: Industrial - Machinery
• EPS (TTM): 69.59
• Shares Outstanding: 106,213,280
• 10 Day Avg. Volume: 268,490
• 30 Day Avg. Volume: 203,633
• 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: 68 Neutral
• Price Target: ―

Tsubakimoto Chain Co.'s strong financial performance and attractive valuation are key strengths, providing a solid foundation for long-term growth. However, the current bearish technical indicators suggest caution in the short term. The low P/E ratio and high dividend yield make the stock appealing, but potential investors should be mindful of the ongoing downward market momentum.

Tsubakimoto Chain Co. Business Overview & Revenue Model

Company Description

Tsubakimoto Chain Co. manufactures and sells materials handling systems, automotive parts, chains, and power transmission units and components. The company operates through Chain Operations, Motion Control Operations, Mobility Operations, and Materials Handling Operations segments. Its power transmission products include drive, conveyor, and top chains; and hose and cable carrier systems, reducers, high speed lifters, linear actuators, sprockets/pin gear drives, timing belts and pulleys, locking devices, shaft couplings, clutches, electrical controllers, and mechanical protectors. The company's mobility products comprise timing chains, Enedrive chains, power drive chains, and cam clutches. Its materials handling systems include sorting and conveyance system for distribution industry, life science support equipment, newspaper handling systems, automatic material handling systems for car manufacturing factory, bulk handling systems, and metalworking chips handling and coolant processing systems, and other equipment and systems. The company also provides V2X bi-directional electric vehicle (EV) charging systems and monitoring systems. Its products are used in machine tool, automobile, LCD, semiconductor, steel, food, distribution, life sciences, medical equipment, and other industries. The company has operations in Japan, the Americas, Europe, China, South Korea, Asia and Oceania, and Taiwan. Tsubakimoto Chain Co. was founded in 1917 and is headquartered in Osaka, Japan.

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: 1804.00
• 50DMA: Positive
• 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 Negative. The current price of 1804 is above the 20-day moving average (MA) of 1791.10, above the 50-day MA of 1784.83, and below the 200-day MA of 1839.31, indicating a neutral trend. The MACD of 21.54 indicates Negative momentum. The RSI at 52.55 is Neutral, neither overbought nor oversold. The STOCH value of 33.89 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
6371	68 Neutral	€189.33B	8.48	8.48%	4.53%	4.18%	51.04%
Sector *	64 Neutral	$4.39B	11.81	5.20%	249.38%	3.96%	-12.36%
MKMLF		$1.68B	14.95	6.35%	1.98%	―	―
MW7		€1.17B	10.28	14.03%	3.02%	―	―
5192	71 Outperform	¥97.50B	11.02		5.26%	8.19%	55.61%
6420	68 Neutral	¥127.99B	9.99		2.43%	12.12%	5.56%
6507	58 Neutral	¥195.06B	16.14		1.74%	6.63%	51.10%

Tsubakimoto Chain Co. Corporate Events

Tsubakimoto Chain Co. Releases Sponsored Research Report Amid Challenging Market Conditions

Tsubakimoto Chain Co. has released a sponsored research report to enhance communication with shareholders and investors, aiming to provide a clearer understanding of its business model, industry trends, and long-term strategies. Amid challenging external conditions, including high global interest rates and inflation, the company maintains a strong balance sheet and cash generation capacity. It is working towards meeting its Mid-term Management Plan targets, with a focus on improving profitability, shareholder returns, and sustainability efforts. The company is poised to re-accelerate its performance in 2025, backed by successful project acquisitions and product pricing strategies.

Tsubakimoto Chain Co. Increases Earnings Forecast Amid Favorable Market Conditions

Tsubakimoto Chain Co. has revised its full-term consolidated results forecast for the fiscal year ending March 31, 2025, due to favorable conditions such as a weaker-than-expected yen and increased sales in its Mobility Business. The company anticipates higher net sales and income figures compared to previous forecasts, reflecting a positive outlook for its operations and market positioning, which may reassure stakeholders about its growth trajectory.

Tsubakimoto Chain Co. Reports Strong Financial Performance and Announces Stock Split

Tsubakimoto Chain Co. reported its consolidated financial results for the nine months ending December 31, 2024, showing a significant increase in profit attributable to owners of the parent by 25% compared to the previous year. The company also announced a stock split, which will affect the calculation of dividends and earnings per share, reflecting its strategic efforts to enhance shareholder value.

Tsubakimoto Chain Co. Reports Growth in Nine-Month Financial Results and Revises Forecast

Tsubakimoto Chain Co. reported its consolidated financial results for the nine months ended December 31, 2024, showing a year-on-year increase in net sales by 5%, operating profit by 10.5%, and profit attributable to owners of the parent by 25%. The company has also revised its financial forecast for the fiscal year ending March 31, 2025, with expectations of continued growth in net sales and profits. Additionally, a stock split was implemented on October 1, 2024, affecting earnings per share calculations.