THK Co (6481) AI Stock Analysis

• Market Cap: $450.03B
• Dividend Yield: 6.25%
• Average Volume (3M): 739.42K
• Price to Earnings (P/E): 67.6
• Beta (1Y): 0.98
• Revenue Growth: 0.85%
• EPS Growth: -46.23%
• Country: JP
• Employees: 13,268
• Sector: Industrials
• Sector Strength: 73
• Industry: Industrial - Machinery
• EPS (TTM): 29.97
• Shares Outstanding: 119,099,800
• 10 Day Avg. Volume: 676,930
• 30 Day Avg. Volume: 739,423
• 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: 0.98
• Enterprise Value/Revenue: 1.27
• Enterprise Value/Gross Profit: 5.44
• Enterprise Value/Ebitda: 10.55
• 1Y Price Target: $4,212.85
• Price Target Upside: 4.67% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 56 Neutral
• Price Target: ¥4,168.00 ▲(3.55% Upside)

THK Co's overall stock score is driven by a stable financial foundation and a high dividend yield, which are offset by challenges in revenue growth, cash flow efficiency, and a high P/E ratio indicating potential overvaluation. Technical indicators suggest weak momentum, contributing to a cautious outlook.

THK Co Business Overview & Revenue Model

Company Description

THK Co., Ltd. is a leading Japanese company that specializes in the manufacture and sale of mechanical components, primarily focusing on linear motion systems. The company operates in sectors including industrial machinery, automotive, electronics, and robotics. THK's core products include linear motion guides, ball screws, actuators, and other precision components that are essential for enhancing the performance and efficiency of various industrial applications.

How the Company Makes Money

THK Co. generates revenue primarily through the sale of its high-precision mechanical components, such as linear motion guides and ball screws, to a diverse range of industries including industrial machinery, automotive, electronics, and robotics. The company's key revenue streams include direct sales to manufacturers and distributors, as well as through strategic partnerships with other companies that integrate THK's components into their systems. Additionally, THK may engage in service agreements and maintenance contracts that provide recurring revenue. The company benefits from a strong global distribution network, allowing it to cater to customers worldwide, and it continuously invests in research and development to innovate and expand its product offerings, further driving sales and revenue growth.

THK Co Financial Statement Overview

Summary

THK Co demonstrates a stable financial foundation with strengths in cost management and a solid capital structure. However, challenges in revenue growth and cash flow efficiency highlight areas for strategic focus. Enhancing profitability and cash generation will be crucial for sustaining long-term growth and shareholder value.

Income Statement

THK Co's income statement shows mixed performance. The TTM data indicates a decline in revenue growth rate, suggesting challenges in maintaining sales momentum. However, the company maintains a stable gross profit margin around 23%, indicating efficient cost management. The net profit margin has decreased slightly in the TTM period, reflecting pressure on profitability. EBIT and EBITDA margins have shown some resilience, but the overall trend suggests a need for strategic improvements to boost revenue and profitability.

Balance Sheet

THK Co's balance sheet reflects a stable financial position with a manageable debt-to-equity ratio around 0.34 in the TTM period, indicating prudent leverage management. The equity ratio remains healthy, suggesting a strong capital structure. However, the return on equity has decreased over time, pointing to potential inefficiencies in generating returns from equity investments. Overall, the balance sheet is solid, but there is room for enhancing shareholder returns.

Cash Flow

The cash flow statement reveals significant volatility in free cash flow, with a notable improvement in the TTM period. However, the operating cash flow to net income ratio is relatively low, indicating challenges in converting earnings into cash. The free cash flow to net income ratio is also low, suggesting limited cash generation relative to profits. While there are positive signs of cash flow recovery, consistency and efficiency in cash generation remain areas for improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	349.15B	352.76B	351.94B	393.69B	318.19B	219.00B
Gross Profit	81.34B	81.78B	81.63B	105.29B	79.75B	46.43B
EBITDA	41.93B	41.27B	47.82B	56.33B	48.70B	9.16B
Net Income	6.95B	10.44B	18.40B	21.20B	23.01B	-9.99B
Balance Sheet
Total Assets	515.51B	567.42B	556.35B	560.30B	516.09B	460.17B
Cash, Cash Equivalents and Short-Term Investments	101.53B	140.29B	156.49B	163.84B	151.43B	158.85B
Total Debt	108.00B	96.51B	118.53B	120.88B	112.32B	113.39B
Total Liabilities	188.60B	177.62B	193.45B	223.02B	201.80B	185.03B
Stockholders Equity	323.06B	383.64B	357.26B	331.89B	304.56B	266.49B
Cash Flow
Free Cash Flow	6.24B	-1.15B	12.29B	8.15B	-3.60B	7.39B
Operating Cash Flow	30.20B	28.41B	39.33B	37.56B	15.64B	25.40B
Investing Cash Flow	-25.70B	-34.22B	-27.09B	-30.08B	-19.13B	-18.41B
Financing Cash Flow	-49.52B	-22.65B	-24.27B	-3.65B	-12.72B	3.98B

THK Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4025.00
• 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:6481, the sentiment is Positive. The current price of 4025 is below the 20-day moving average (MA) of 4031.05, above the 50-day MA of 4013.24, and above the 200-day MA of 3657.85, indicating a neutral trend. The MACD of -8.77 indicates Positive momentum. The RSI at 49.27 is Neutral, neither overbought nor oversold. The STOCH value of 62.24 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	64 Neutral	$10.73B	15.74	7.63%	2.01%	2.75%	-15.09%
6481	56 Neutral	$450.03B	67.65	2.00%	6.25%	0.85%	-46.23%
HSYDF	―	$1.59B	62.52	4.73%	0.86%	―	―
J9R	―	€3.78B	32.56	10.57%	―	―	―
NCTKF	―	$2.62B	22.90	4.68%	4.96%	―	―
SOHVF	―	$2.81B	1,101.46	-0.47%	4.91%	―	―
6406	66 Neutral	¥428.53B	30.43		2.92%	2.84%	-20.37%

THK Co Corporate Events

THK Co. Revises Dividend Projection to Enhance Shareholder Returns

THK Co., Ltd. has revised its dividend projection for the year ending December 31, 2025, to ¥246.00 per share, split evenly between interim and year-end dividends. This decision aligns with their management policy aimed at achieving an ROE of over 10% and reflects their commitment to improving capital efficiency and returning profits to shareholders.

THK Co., Ltd. Reports First Quarter 2025 Financial Results and Updates Dividend Projection

THK Co., Ltd. reported a slight decrease in revenue for the first quarter of 2025, with significant declines in operating income and profits compared to the previous year. The company’s financial position showed a reduction in total assets and equity, and it announced a revised dividend projection for the year.