Tsubakimoto Chain Co. (6371) AI Stock Analysis

• Market Cap: €217.98B
• Dividend Yield: 3.93%
• Average Volume (3M): 182.51K
• Price to Earnings (P/E): 9.6
• Beta (1Y): 0.79
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: ¥2,340.00 ▲(10.17% 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.

Tsubakimoto Chain Co. Business Overview & Revenue Model

Company Description

Tsubakimoto Chain Co. (6371) is a leading manufacturer specializing in power transmission and conveyor chain systems. Founded in Japan, the company operates across various sectors, including automotive, aerospace, and industrial machinery. Tsubakimoto offers a wide range of products, including roller chains, timing belts, and conveyor systems, catering to both domestic and international markets. The company is recognized for its innovation and quality in engineering solutions, serving a diverse clientele that relies on its components for efficient operation.

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. exhibits strong financial health with consistent revenue and profit growth, stable margins, and efficient cash generation. The financial structure is solid with low leverage, although attention should be paid to asset management and cash flow fluctuations.

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	278.06B	279.19B	266.81B	251.57B	215.88B	193.40B
Gross Profit	82.25B	82.18B	77.77B	71.25B	62.74B	47.63B
EBITDA	47.05B	44.89B	40.28B	32.33B	33.35B	21.86B
Net Income	20.24B	22.12B	18.55B	13.74B	14.54B	8.71B
Balance Sheet
Total Assets	360.30B	371.51B	391.30B	345.88B	332.62B	307.33B
Cash, Cash Equivalents and Short-Term Investments	66.38B	68.72B	77.92B	59.58B	55.44B	48.06B
Total Debt	25.14B	27.24B	30.86B	35.62B	39.23B	42.20B
Total Liabilities	107.16B	109.34B	130.74B	119.30B	122.86B	119.84B
Stockholders Equity	250.90B	259.81B	258.40B	224.40B	207.75B	185.79B
Cash Flow
Free Cash Flow	12.40B	8.14B	27.74B	12.43B	13.00B	18.17B
Operating Cash Flow	25.75B	21.30B	38.58B	21.35B	21.00B	27.89B
Investing Cash Flow	-12.07B	-11.83B	-9.16B	-9.28B	-9.07B	-9.56B
Financing Cash Flow	-22.19B	-21.66B	-15.70B	-9.96B	-7.78B	-4.35B

Tsubakimoto Chain Co. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2124.00
• 50DMA: Negative
• 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 Neutral. The current price of 2124 is below the 20-day moving average (MA) of 2162.90, below the 50-day MA of 2149.44, and above the 200-day MA of 1904.74, indicating a neutral trend. The MACD of -2.90 indicates Positive momentum. The RSI at 46.49 is Neutral, neither overbought nor oversold. The STOCH value of 40.88 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5192	78 Outperform	¥102.34B	15.64	―	4.86%	5.22%	-28.13%
6508	76 Outperform	€295.81B	16.06	14.28%	2.23%	8.03%	23.50%
6507	74 Outperform	¥297.39B	24.90	―	0.95%	14.47%	30.85%
6371	74 Outperform	€217.98B	9.57	8.83%	3.93%	1.48%	8.86%
6420	68 Neutral	¥152.62B	12.04	―	2.08%	13.93%	-1.88%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6135	61 Neutral	$274.07B	17.21	6.63%	0.88%	9.03%	10.77%

Tsubakimoto Chain Co. Corporate Events

Tsubakimoto Chain Co. Advances Treasury Stock Acquisition Plan

Tsubakimoto Chain Co. announced the acquisition of 262,900 shares of its treasury stock, amounting to 575,846,099 yen, as part of a broader initiative approved by its Board of Directors. This move is part of a larger plan to purchase up to 6,500,000 shares by the end of 2025, which could impact the company’s share value and market positioning.

The most recent analyst rating on (JP:6371) stock is a Buy with a Yen2681.00 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 1,140,400 shares of its treasury stock, amounting to approximately 2.49 billion yen, as part of a broader plan authorized by its Board of Directors. This strategic move, executed through market purchases on the Tokyo Stock Exchange, reflects the company’s ongoing efforts to manage its capital structure effectively, potentially enhancing shareholder value and signaling confidence in its financial health.

The most recent analyst rating on (JP:6371) stock is a Buy with a Yen2681.00 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. Announces Treasury Stock Acquisition

Tsubakimoto Chain Co. has announced the acquisition of 1,130,000 shares of its own common stock for a total cost of 2,210,884,294 yen, as part of a larger plan to purchase up to 6,500,000 shares. This move, resolved at the Board of Directors meeting on May 14, 2025, is aimed at optimizing capital structure and potentially enhancing shareholder value.

Tsubakimoto Chain Co. Reports Decline in Quarterly Profits Amid Market Challenges

Tsubakimoto Chain Co. reported a decline in its financial performance for the three months ending June 30, 2025, with net sales decreasing by 1.7% and profits showing significant drops compared to the previous year. Despite the downturn, the company maintains a strong capital adequacy ratio of 69.6%, indicating financial stability. The forecast for the fiscal year ending March 31, 2026, shows modest growth in net sales but anticipates a decrease in profits, reflecting ongoing challenges in the market.