THK Co Ltd (JP:6481)
:6481
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THK Co
(6481)
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Rating:56Neutral
Price Target:
¥7,720.00
▲(90.29% Upside)
Action:Reiterated
Date:05/14/26
The score is held down primarily by weak financial performance (recent large net losses and contracting revenue), partially offset by strong technical momentum (price above key moving averages and positive MACD). Valuation is mixed: an attractive dividend yield helps, but a relatively high P/E limits support.
Positive Factors
Market position & product mix
THK sells core linear-motion components and modular actuators into durable end markets (factory automation, machine tools, robotics, semiconductors). These products are integral to customers' capital equipment, creating structural demand and aftermarket replacement cycles that support steady long-term revenue potential.
Negative Factors
Large net losses & negative margins
The company shifted from profits to large net losses and a deeply negative net margin (~-29%), which erodes retained earnings and reduces reinvestment capacity. Persisting losses can force cost cuts, asset sales, or higher leverage, undermining long-term competitiveness in precision components markets.
Read all positive and negative factors
Positive Factors
Negative Factors
Market position & product mix
THK sells core linear-motion components and modular actuators into durable end markets (factory automation, machine tools, robotics, semiconductors). These products are integral to customers' capital equipment, creating structural demand and aftermarket replacement cycles that support steady long-term revenue potential.
Read all positive factors
THK Co (6481) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥809.80B
Dividend Yield6.16%
Average Volume (3M)771.40K
Price to Earnings (P/E)―
Beta (1Y)1.01
Revenue Growth1.98%
EPS Growth-48.28%
CountryJP
Employees13,268
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)127.17
Shares Outstanding119,099,800
10 Day Avg. Volume838,710
30 Day Avg. Volume771,403
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)1.73
Price to Sales (P/S)1.88
P/FCF Ratio18.98
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥7,500.00Price Target Upside84.87% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)247.11
Revenue Forecast (FY)¥284.19B
THK Co Business Overview & Revenue Model
Company Description
THK Co., Ltd. manufactures and supplies machine components in Japan, the Americas, Europe, China, and internationally. The company provides linear motion (LM) guides, ball screws, ball splines, LM guide actuators, cross roller rings and tables, el...
How the Company Makes Money
THK primarily makes money by designing, manufacturing, and selling motion-control products, with revenue largely driven by product sales to industrial OEMs and equipment builders. Key revenue streams include: (1) Linear motion products: Sales of L...
THK Co Earnings Call Summary
Earnings Call Date:Aug 07, 2024
(Q2-2024)
| % Change Since: |
Next Earnings Date:Aug 11, 2026
Earnings Call Sentiment Neutral
The earnings call presents a mixed outlook for THK. While there are notable achievements in areas like the Automotive and Transportation business's profitability and promising growth in the Industrial Machinery sector, as well as sustainability initiatives, the significant declines in sales revenue and operating income, combined with challenges in multiple regions, highlight the company's ongoing struggles.Positive Updates
Automotive and Transportation Business Profitability
The Automotive and Transportation business posted an increase in operating income due to efforts aimed at improving profitability, with positive contributions including a volume effect of JPY 0.2 billion, a variable cost ratio effect of JPY 1.2 billion, and an FX impact of JPY 0.5 billion.
Negative Updates
Decline in Consolidated Sales Revenue
Consolidated sales revenue declined 3.1% year-on-year to JPY 179.8 billion.
Read all updates
Q2-2024 Updates
Positive
Negative
Automotive and Transportation Business Profitability
The Automotive and Transportation business posted an increase in operating income due to efforts aimed at improving profitability, with positive contributions including a volume effect of JPY 0.2 billion, a variable cost ratio effect of JPY 1.2 billion, and an FX impact of JPY 0.5 billion.
Read all positive updates
Company Guidance
During the Q2 2024 earnings call, Takashi Teramachi, President and COO of THK, provided an overview of the company's financial performance for the first half of the fiscal year ending December 2024. Consolidated sales revenue declined by 3.1% year-on-year to JPY 179.8 billion, with operating income decreasing by 49% to JPY 8.3 billion. Despite these declines, both metrics exceeded initial targets due to a gradual demand recovery in the Industrial Machinery business and favorable foreign exchange effects. The Automotive and Transportation business saw an improvement in operating income, driven by profitability enhancement efforts, although it faced a JPY 0.8 billion increase in fixed costs and a JPY 0.6 billion decline from the absence of a previous onetime subsidy. Total assets increased by JPY 30.4 billion to JPY 586.7 billion. The company maintained its growth strategy pillars and outlined key initiatives, including a focus on raising ROE and ROIC, expanding the business domain, and reinforcing sustainability and ESG initiatives. THK plans to allocate capital for future growth investments, maintaining a dividend payout ratio of 30%, with potential share buybacks considered when capital is excess.THK Co Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
53
Neutral
Cash Flow
56
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 224.54B | 240.44B | 352.76B | 351.94B | 393.69B | 318.19B |
| Gross Profit | 74.89B | 70.50B | 77.87B | 77.98B | 101.78B | 76.54B |
| EBITDA | 48.06B | 40.45B | 41.13B | 44.48B | 67.13B | 47.51B |
| Net Income | -65.72B | -69.89B | 10.44B | 18.40B | 21.20B | 23.01B |
Balance Sheet | ||||||
| Total Assets | 480.62B | 472.99B | 567.42B | 556.35B | 560.30B | 516.09B |
| Cash, Cash Equivalents and Short-Term Investments | 93.49B | 110.01B | 138.29B | 156.49B | 163.84B | 151.43B |
| Total Debt | 140.00B | 123.20B | 105.58B | 118.53B | 131.07B | 112.32B |
| Total Liabilities | 227.91B | 207.24B | 177.62B | 193.45B | 223.02B | 201.79B |
| Stockholders Equity | 252.68B | 261.33B | 383.64B | 357.26B | 331.89B | 304.56B |
Cash Flow | ||||||
| Free Cash Flow | 21.76B | 23.85B | -1.15B | 12.29B | 8.15B | -3.60B |
| Operating Cash Flow | 38.97B | 42.75B | 28.41B | 39.33B | 37.56B | 15.64B |
| Investing Cash Flow | -24.72B | -19.80B | -34.22B | -27.09B | -33.32B | -19.13B |
| Financing Cash Flow | 1.50B | -42.05B | -22.65B | -24.27B | -409.00M | -12.72B |
THK Co Technical Analysis
Positive
4057.00
Price Trends
5848.54
Positive
5256.10
Positive
4619.22
Positive
Market Momentum
455.23
Positive
66.85
Neutral
59.40
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6481, the sentiment is Positive. The current price of 4057 is below the 20-day moving average (MA) of 6912.45, below the 50-day MA of 5848.54, and below the 200-day MA of 4619.22, indicating a bullish trend. The MACD of 455.23 indicates Positive momentum. The RSI at 66.85 is Neutral, neither overbought nor oversold. The STOCH value of 59.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6481.
THK Co Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | ¥282.95B | 9.30 | 8.91% | 3.85% | 5.98% | 39.06% | |
74 Outperform | ¥650.02B | 35.70 | 5.25% | 2.13% | -7.11% | 68.57% | |
72 Outperform | ¥451.00B | 32.18 | ― | 2.50% | 1.45% | 0.37% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | ¥373.73B | 27.40 | ― | 1.65% | 5.02% | 19.84% | |
56 Neutral | ¥809.80B | -12.83 | 1.88% | 6.16% | 1.98% | -48.28% | |
55 Neutral | ¥755.67B | 456.64 | 5.94% | 0.56% | 7.03% | -53.53% |
* Industrials Sector Average
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THK Co Corporate Events
THK Lifts 2026 Earnings Outlook on Strong Industrial Machinery Orders
May 11, 2026
THK Co., Ltd. has sharply raised its consolidated financial forecasts for the first half and full year 2026, citing stronger-than-expected orders in its industrial machinery business in Japan and overseas. The company now expects six-month consoli...
THK Posts Strong First-Quarter Rebound and Lifts Full-Year Outlook After Business Realignment
May 11, 2026
THK reported a sharp rebound in profitability for the three months ended March 31, 2026, with revenue from continuing operations rising to ¥69.0 billion and operating income jumping more than threefold, while profit attributable to owners sur...
THK Books ¥700 Million Charge for Voluntary Retirement Program as 81 Staff Opt In
Apr 28, 2026
THK has reported the outcome of its Next Career Support Program, a voluntary retirement initiative offered to eligible non-manufacturing employees of the company and domestic group firms, excluding those involved in manufacturing operations. The p...
THK Completes Treasury Share Disposal for Restricted Stock Compensation
Apr 17, 2026
THK Co., Ltd. has completed the disposal of 54,023 treasury shares as restricted stock compensation, following a board resolution in March 2026. The shares, priced at ¥4,795 each for a total value of ¥259,040,285, were allotted to six di...
THK to Grant Restricted Treasury Shares to Executives Under Equity Incentive Plan
Mar 23, 2026
THK Co., Ltd. has approved the disposal of 54,023 shares of its treasury stock as restricted stock compensation for six internal directors and 14 executive officers, with a disposal date set for April 17, 2026 and a total valuation of about ¥...
THK to Switch Long-Standing Auditor to KPMG AZSA for Fresh Global Perspective
Feb 19, 2026
THK Co., Ltd. has decided to replace its long-standing accounting auditor, Grant Thornton Taiyo LLC, with KPMG AZSA LLC, pending approval at its 56th general shareholders meeting scheduled for March 20, 2026. The change, following an engagement th...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.