Tsubakimoto Chain Co. (6371) AI Stock Analysis

• Market Cap: ¥248.42B
• Dividend Yield: 3.85%
• Average Volume (3M): 182.51K
• Price to Earnings (P/E): 10.9
• Beta (1Y): 0.89
• Revenue Growth: 1.48%
• EPS Growth: 8.86%
• Country: JP
• Employees: 8,750
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 54.95
• Shares Outstanding: 106,213,280
• 10 Day Avg. Volume: 179,020
• 30 Day Avg. Volume: 182,506
• PEG Ratio: 0.35
• Price to Book (P/B): 0.74
• Price to Sales (P/S): 0.69
• P/FCF Ratio: 23.64
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: ¥2,651.00 ▲(14.32% Upside)

Tsubakimoto Chain Co. scores well due to its strong financial performance, characterized by consistent growth and low leverage. The valuation is attractive with a low P/E ratio and a high dividend yield. Technical indicators are mixed, with neutral momentum but potential buying signals from the stochastic indicator.

Positive Factors

Strong Balance Sheet / Low Leverage

Low financial leverage and a healthy equity base provide durable financial flexibility: capacity for cyclical downturns, room to fund capex or M&A from internal resources, and lower refinancing risk. This strengthens long-term solvency and strategic optionality over 2–6 months.

Stable Margins and Improving Profitability

Sustained gross margins alongside materially improved net margins indicate structural operational efficiency and pricing or cost advantages. Margin durability supports long-term cash generation, funds reinvestment, and resilience to input cost volatility across the business cycle.

Positive Free Cash Flow Trend

Consistent free cash flow growth and favorable conversion ratios enhance the firm's ability to fund dividends, maintenance capex, and selective growth investments without relying on external financing, improving shareholder optionality and long-term capital allocation stability.

Negative Factors

Declining Total Assets

A shrinking asset base can signal reduced production capacity, lower reinvestment, or asset sales that may constrain future revenue growth. If persistent, asset decline could weaken competitive position in capital-intensive machinery and materials-handling markets.

Drop in Operating Cash Flow (2025)

A recent drop in operating cash flow raises concerns about the sustainability of cash generation from core operations. If this trend continues, it could pressure free cash flow, limit reinvestment capacity, and force reliance on financing for working capital or strategic initiatives.

Volatile Investing and Financing Cash Flows

Material swings in investing and financing cash flows reduce predictability of capital deployment and may reflect intermittent large investments or financing reliance. Such volatility raises execution and funding risk for sustained expansion or continuous service of capital-intensive customers.

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 sale of its various chain products and systems, which include power transmission chains, conveyor chains, and specialized components for different industries. Key revenue streams come from both domestic and international sales, with a significant portion derived from long-term contracts with major industrial clients in sectors such as automotive and manufacturing. Additionally, the company benefits from partnerships with equipment manufacturers, allowing it to integrate its products into larger systems, thereby increasing its market reach. Tsubakimoto also invests in research and development to innovate and improve existing products, which helps maintain its competitive edge and drive further sales growth.

Tsubakimoto Chain Co. Financial Statement Overview

Summary

Tsubakimoto Chain Co. shows strong financial health with consistent revenue and profit growth, stable margins, and efficient cash generation. The company maintains a solid financial structure with low leverage, although asset management and cash flow fluctuations need attention.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	278.47B	279.19B	266.81B	251.57B	215.88B	193.40B
Gross Profit	83.19B	82.18B	77.77B	71.25B	62.74B	47.63B
EBITDA	44.39B	44.89B	40.28B	32.33B	33.35B	21.86B
Net Income	22.03B	22.12B	18.55B	13.74B	14.54B	8.71B
Balance Sheet
Total Assets	368.05B	371.51B	391.30B	345.88B	332.62B	307.33B
Cash, Cash Equivalents and Short-Term Investments	65.93B	68.72B	77.92B	59.58B	55.44B	48.06B
Total Debt	25.11B	27.99B	30.86B	35.62B	39.23B	42.20B
Total Liabilities	110.82B	109.34B	130.74B	119.30B	122.86B	119.84B
Stockholders Equity	255.03B	259.81B	258.40B	224.40B	207.75B	185.79B
Cash Flow
Free Cash Flow	11.02B	8.14B	27.74B	12.43B	13.00B	18.17B
Operating Cash Flow	23.27B	21.30B	38.58B	21.35B	21.00B	27.89B
Investing Cash Flow	-7.18B	-11.83B	-9.16B	-9.28B	-9.07B	-9.56B
Financing Cash Flow	-21.03B	-21.66B	-15.70B	-9.96B	-7.78B	-4.35B

Tsubakimoto Chain Co. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2319.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 2319 is below the 20-day moving average (MA) of 2388.65, above the 50-day MA of 2302.32, and above the 200-day MA of 2045.45, indicating a neutral trend. The MACD of 20.45 indicates Positive momentum. The RSI at 52.24 is Neutral, neither overbought nor oversold. The STOCH value of 34.18 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6420	80 Outperform	¥162.31B	12.25	―	1.94%	11.63%	3.32%
5192	78 Outperform	¥111.31B	16.61	―	4.64%	3.99%	-28.28%
6371	74 Outperform	¥248.42B	10.90	8.83%	3.85%	1.48%	8.86%
6507	74 Outperform	¥294.00B	23.79	―	1.01%	14.47%	30.85%
6508	71 Outperform	¥274.03B	12.35	14.28%	2.40%	8.03%	23.50%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6135	61 Neutral	¥275.28B	14.86	6.63%	0.91%	9.03%	10.76%

Tsubakimoto Chain Co. Corporate Events

Tsubakimoto Chain to Buy Fractional Shares Tied to Daido Kogyo Share Exchange

Tsubakimoto Chain Co. has resolved to purchase fractional shares arising from its share exchange reorganization that made Daido Kogyo Co., Ltd. a wholly owned subsidiary as of January 1, 2026. Under Japan’s Companies Act, the company will acquire 393 fractional shares of its own common stock allocated to former Daido Kogyo shareholders, paying cash based on the January 28, 2026 closing price on the Tokyo Stock Exchange, a procedural step that tidies up residual holdings from the transaction and helps complete the integration of Daido Kogyo into Tsubakimoto’s corporate structure.

The most recent analyst rating on (JP:6371) stock is a Buy with a Yen2670.00 price target. To see the full list of analyst forecasts on Tsubakimoto Chain Co. stock, see the JP:6371 Stock Forecast page.

Tsubakimoto Chain Co. Completes Treasury Stock Acquisition

Tsubakimoto Chain Co. has completed the acquisition of 162,700 shares of its own treasury stock, with a total purchase cost of 343,042,600 yen. This acquisition is part of a larger plan approved by the Board of Directors to repurchase up to 6,500,000 shares, aiming to enhance shareholder value and optimize capital structure.

The most recent analyst rating on (JP:6371) stock is a Buy with a Yen2340.00 price target. To see the full list of analyst forecasts on Tsubakimoto Chain Co. stock, see the JP:6371 Stock Forecast page.

Tsubakimoto Chain Co. Acquires Treasury Stock to Optimize Capital Structure

Tsubakimoto Chain Co. announced the acquisition of 177,300 shares of its treasury stock at a total cost of 381,126,500 yen, executed through market purchases on the Tokyo Stock Exchange between October 1 and October 31, 2025. This move is part of a broader strategy resolved by the Board of Directors to purchase up to 6,500,000 shares, with a maximum expenditure of 10 billion yen, aimed at optimizing the company’s capital structure and enhancing shareholder value.

The most recent analyst rating on (JP:6371) stock is a Buy with a Yen2340.00 price target. To see the full list of analyst forecasts on Tsubakimoto Chain Co. stock, see the JP:6371 Stock Forecast page.