THK Co (6481) AI Stock Analysis

• Market Cap: $466.79B
• Dividend Yield: 6.54%
• Average Volume (3M): 771.40K
• Price to Earnings (P/E): 70.0
• Beta (1Y): 0.98
• Revenue Growth: 1.98%
• EPS Growth: -48.28%
• Country: JP
• Employees: 13,268
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 13.66
• Shares Outstanding: 119,099,800
• 10 Day Avg. Volume: 838,710
• 30 Day Avg. Volume: 771,403
• PEG Ratio: -1.00
• Price to Book (P/B): 1.18
• Price to Sales (P/S): 1.28
• P/FCF Ratio: -391.91
• Enterprise Value/Market Cap: 0.95
• Enterprise Value/Revenue: 1.27
• Enterprise Value/Gross Profit: 5.44
• Enterprise Value/Ebitda: 10.55
• 1Y Price Target: $3,659.11
• Price Target Upside: -4.83% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: ¥3,873.00 ▲(0.73% Upside)

THK Co's overall stock score reflects a combination of stable financial performance and bearish technical indicators. The high P/E ratio suggests potential overvaluation, but the attractive dividend yield offers some compensation. The lack of earnings call data and corporate events limits additional insights. Strategic improvements in revenue growth and cash flow efficiency are needed to enhance the stock's appeal.

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, electric actuators and linear motor actuators, cam followers, roller followers, linear bushes, slide packs, slide rails, cross roller guides, linear ball slides, LM and flat rollers, spline nuts, LM strokes, screw nuts, change nuts, precision linear packs, link balls, rod ends, spherical plain bearings, lubrication accessories, and seismic isolation products. Its products are used in various applications, including machine tools, general industrial machinery, precision instruments, semiconductor and LCD manufacturing equipment, industrial robots, electronic devices, and transport systems, as well as in construction, aerospace, medical and assistive, and other manufacturing industries. The company was incorporated in 1946 and is headquartered in Tokyo, Japan.

How the Company Makes Money

THK Co. generates revenue primarily through the sale of its linear motion products, which are essential in various industrial applications. The company's revenue model is built on direct sales to manufacturers and businesses in need of precision motion solutions. Key revenue streams include the sale of linear guides, ball screws, and actuators, which are often sold as standard or customized solutions to meet specific client needs. Additionally, THK engages in providing maintenance and technical support services for its products, contributing to recurring revenue. The company has established significant partnerships with major industrial players, enhancing its market presence and driving sales through collaborations in product development and distribution.

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	44.85B	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: Negative
• Last Price: 3845.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6481, the sentiment is Negative. The current price of 3845 is below the 20-day moving average (MA) of 4049.00, below the 50-day MA of 4124.20, and above the 200-day MA of 3835.30, indicating a neutral trend. The MACD of -98.89 indicates Positive momentum. The RSI at 36.46 is Neutral, neither overbought nor oversold. The STOCH value of 17.36 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6481.

THK Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6406	70 Outperform	¥431.72B	30.66	―	2.98%	0.32%	-15.41%
5631	66 Neutral	€724.49B	38.70	11.66%	0.93%	10.11%	41.98%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6302	59 Neutral	$513.04B	151.45	0.59%	3.10%	-2.67%	-85.21%
6268	57 Neutral	$442.34B	27.70	5.25%	2.44%	-2.23%	130.96%
6324	54 Neutral	$280.41B	74.40	5.62%	0.73%	6.22%	―
6481	53 Neutral	$466.79B	70.03	1.88%	6.54%	1.98%	-48.28%

THK Co Corporate Events

THK Co. Reports Revenue Growth Amid Profit Decline

THK Co., Ltd., headquartered in Tokyo, Japan, is a leading company in the industrial machinery sector, specializing in linear motion systems and components for various industries, including automotive and renewable energy.

THK Co. Revises 2025 Financial Forecasts Amid Weaker Orders

THK Co., Ltd. has revised its financial forecasts for the year ending December 31, 2025, due to weaker-than-expected orders in the industrial machinery business across Japan and Europe. The company anticipates lower consolidated revenue and profit margins, impacted by U.S. tariffs and structural reforms. However, non-consolidated ordinary and net income are expected to exceed initial forecasts due to increased dividend income from subsidiaries.

The most recent analyst rating on (JP:6481) stock is a Hold with a Yen4704.00 price target. To see the full list of analyst forecasts on THK Co stock, see the JP:6481 Stock Forecast page.

THK Co. Reports Mixed Financial Results Amid Revenue Growth

THK Co., Ltd. reported a slight increase in revenue for the nine months ending September 30, 2025, but experienced significant declines in operating income and profit compared to the previous year. The company’s financial position showed a decrease in total assets and equity, and it adjusted its profit forecasts for the year. Despite these challenges, THK maintained its dividend policy, projecting a total dividend of 246 yen per share for the year, reflecting its commitment to shareholders.

The most recent analyst rating on (JP:6481) stock is a Hold with a Yen4704.00 price target. To see the full list of analyst forecasts on THK Co stock, see the JP:6481 Stock Forecast page.

THK Co. Completes Significant Treasury Stock Cancellation

THK CO., LTD. has completed the cancellation of 10,757,100 common shares, which constituted 8.28% of its issued shares before the cancellation. This move reduces the total number of shares outstanding from 129,856,903 to 119,099,803, potentially impacting shareholder value and market perception by increasing the value of remaining shares.

The most recent analyst rating on (JP:6481) stock is a Hold with a Yen4200.00 price target. To see the full list of analyst forecasts on THK Co stock, see the JP:6481 Stock Forecast page.