Tsubaki Nakashima Co., Ltd (6464) AI Stock Analysis

• Market Cap: ¥14.69B
• Dividend Yield: 6.79%
• Average Volume (3M): 222.07K
• Price to Earnings (P/E): 17.7
• Beta (1Y): 1.15
• Revenue Growth: -11.60%
• EPS Growth: -255.37%
• Country: JP
• Employees: 2,776
• Sector: Industrials
• Sector Strength: 73
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): -10.61
• Shares Outstanding: 41,599,600
• 10 Day Avg. Volume: 224,240
• 30 Day Avg. Volume: 222,066
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥372.00
• Price Target Upside: 1.09% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 57 Neutral
• Price Target: ¥372.00 ▲(1.09% Upside)

The overall stock score reflects a mix of financial challenges and moderate technical strength. The company's high leverage and declining profitability weigh heavily on the score, while technical indicators provide some positive momentum. The attractive dividend yield partially offsets valuation concerns due to negative earnings.

Tsubaki Nakashima Co., Ltd Business Overview & Revenue Model

Company Description

Tsubaki Nakashima Co., Ltd (6464) is a global manufacturer specializing in the production and sale of precision balls and rollers, which are critical components in various industrial applications. The company operates in sectors including automotive, aerospace, and industrial machinery, providing high-quality products that contribute to the efficiency and performance of mechanical systems. With a strong emphasis on innovation and technology, Tsubaki Nakashima is recognized for its precision engineering and advanced manufacturing capabilities.

How the Company Makes Money

Tsubaki Nakashima Co., Ltd generates revenue primarily through the sale of its precision balls and rollers. These products are essential components in a wide range of applications such as bearings, linear motion devices, and other mechanical systems used across various industries including automotive, aerospace, and industrial machinery. The company benefits from long-term relationships and contracts with major manufacturers and suppliers in these sectors. Additionally, Tsubaki Nakashima invests in research and development to continuously enhance product quality and expand its product portfolio, which helps maintain its competitive edge and drive sales growth. The company's global manufacturing and distribution network also supports its ability to serve customers worldwide efficiently.

Tsubaki Nakashima Co., Ltd Financial Statement Overview

Summary

The company faces challenges with declining revenue and profitability, coupled with high leverage. Despite improved cash flow generation, operational inefficiencies and high debt levels pose risks to financial stability.

Income Statement

The income statement shows a declining trend in revenue with a negative revenue growth rate of -3.44% TTM. The company has struggled with profitability, reflected in a negative net profit margin of -0.74% TTM. Gross profit margin has decreased over time, indicating pressure on cost management. The EBIT margin is also negative, highlighting operational challenges.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.60 TTM, indicating significant leverage. Return on equity is negative, suggesting inefficiencies in generating returns for shareholders. The equity ratio is relatively stable, but the high leverage poses a risk to financial stability.

Cash Flow

Cash flow analysis shows a strong free cash flow growth rate of 145.49% TTM, indicating improved cash generation. However, the operating cash flow to net income ratio is low at 0.19, suggesting challenges in converting income into cash. The free cash flow to net income ratio is positive, reflecting some ability to generate cash relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	71.67B	75.92B	80.34B	79.04B	67.93B	52.02B
Gross Profit	9.83B	10.52B	13.16B	7.76B	13.61B	9.22B
EBITDA	4.29B	6.56B	4.58B	-4.81B	9.38B	6.76B
Net Income	-1.76B	912.00M	-1.29B	-9.09B	3.55B	1.88B
Balance Sheet
Total Assets	166.94B	174.72B	166.08B	159.89B	157.17B	130.47B
Cash, Cash Equivalents and Short-Term Investments	25.27B	23.06B	23.00B	24.12B	32.52B	14.99B
Total Debt	90.54B	92.65B	91.32B	89.14B	84.99B	68.54B
Total Liabilities	110.63B	113.21B	111.94B	109.76B	103.81B	85.75B
Stockholders Equity	56.28B	61.47B	54.11B	50.10B	53.34B	44.68B
Cash Flow
Free Cash Flow	4.33B	1.17B	-3.37B	-9.79B	3.87B	917.00M
Operating Cash Flow	6.67B	4.87B	1.41B	-4.14B	6.26B	2.22B
Investing Cash Flow	-2.42B	-3.80B	-4.89B	-3.50B	-2.28B	-1.27B
Financing Cash Flow	-1.27B	-1.91B	1.39B	-1.76B	12.95B	-2.75B

Tsubaki Nakashima Co., Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 368.00
• 50DMA: Positive
• 100DMA: Positive
• 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:6464, the sentiment is Positive. The current price of 368 is above the 20-day moving average (MA) of 355.60, above the 50-day MA of 349.72, and below the 200-day MA of 410.50, indicating a neutral trend. The MACD of 2.54 indicates Negative momentum. The RSI at 59.21 is Neutral, neither overbought nor oversold. The STOCH value of 69.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6464.

Tsubaki Nakashima Co., Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5957	80 Outperform	¥23.64B	11.29		3.05%	8.60%	9.08%
5659	77 Outperform	¥35.05B	12.70		4.91%	2.25%	0.39%
6157	70 Outperform	¥19.42B	14.84		3.86%	3.38%	-2.80%
6165	70 Neutral	¥12.52B	13.88		4.29%	7.19%	―
6480	65 Neutral	¥47.19B	22.91		2.93%	5.34%	79.88%
Sector *	64 Neutral	$10.73B	15.74	7.60%	2.01%	2.75%	-15.09%
6464	57 Neutral	¥14.69B	17.68		6.79%	-11.60%	-255.37%

Tsubaki Nakashima Co., Ltd Corporate Events

Tsubaki Nakashima Reports Decline in Financial Performance for H1 2025

Tsubaki Nakashima reported a significant decline in its financial performance for the first half of 2025, with sales and operating profit dropping by 10.5% and 63.5%, respectively, compared to the same period in 2024. The company also recorded a net loss for the period, reflecting challenges in its operational strategy and market conditions. Despite these setbacks, the company has maintained its forecast for the fiscal year ending December 31, 2025, indicating a cautious optimism about its future performance.

Tsubaki Nakashima Restructures Ball Screws Business Amid Quality Concerns

Tsubaki Nakashima Co., Ltd. announced a strategic restructuring involving the creation of a new subsidiary, TN Linear Motion Inc., to manage its ball screws and ball ways business. This move, part of a larger transaction with MINEBEA MITSUMI Inc., was initially postponed due to quality inspection issues but is now set to proceed with a new execution date of October 3, 2025, following a mutual agreement on addressing previous concerns.

Tsubaki Nakashima Announces Strategic Organizational and Leadership Changes

Tsubaki Nakashima Co., Ltd announced an organizational reform and leadership changes to strengthen its management and support future growth. The Roller Business Unit in Bosnia will merge with the West Business Unit to create synergies and improve market positioning. Leadership changes include new roles for key executives to enhance communication and operational excellence.

Tsubaki Nakashima Revises Q1 CAPEX Figures, Maintains Full-Year Outlook

Tsubaki Nakashima Co., Ltd. announced a correction to its FY2025 Q1 results presentation, specifically adjusting the reported capital expenditure figures from 11.0 to 4.1 billion yen. Despite the initial delays in Q1, the company expects to meet its full-year CAPEX plan, indicating a potential impact on its financial planning and stakeholder expectations.

Tsubaki Nakashima Announces Corrections to Q1 2025 Financial Results

Tsubaki Nakashima Co., Ltd. announced corrections to its consolidated financial results for the first quarter of 2025. The adjustments primarily affect the analysis of cash flow, with changes in net cash provided by operating activities and net cash used in investing activities. These corrections may impact stakeholders’ understanding of the company’s financial health and operational efficiency.