TBK Co., Ltd. (7277) AI Stock Analysis

• Market Cap: ¥13.02B
• Dividend Yield: 2.23%
• Average Volume (3M): 51.94K
• Price to Earnings (P/E): 16.5
• Beta (1Y): 0.46
• Revenue Growth: -4.06%
• EPS Growth: N/A
• Country: JP
• Employees: 1,885
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 10.86
• Shares Outstanding: 32,694,134
• 10 Day Avg. Volume: 25,480
• 30 Day Avg. Volume: 51,936
• PEG Ratio: 0.02
• Price to Book (P/B): 0.30
• Price to Sales (P/S): 0.16
• P/FCF Ratio: 5.70
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: ¥422.00 ▲(17.22% Upside)
• Action: Reiterated Date: 09/06/25
• Date: Action: Reiterated 09/06/25

The overall stock score of 56 reflects a mixed outlook. The most significant factor is the company's financial performance, which shows stability in cash flow but struggles with profitability. Technical analysis indicates positive momentum, but the stock may be overbought. Valuation is a concern due to the negative P/E ratio, though the dividend yield offers some compensation.

Positive Factors

Operating cash flow & FCF improvement

Sustained positive operating cash flow and a shift to positive free cash flow in 2025 indicate improved cash generation ability. This durable cash conversion supports working capital, capex and supplier relationships, reducing reliance on external financing during automotive cycles and enabling steady operations.

Moderate balance sheet stability

A healthy equity ratio and only a mild rise in leverage suggest the company retains financial flexibility to fund production and meet OEM supply commitments. This stability helps sustain long-term supplier relationships and capital spending despite cyclical demand in the auto parts sector.

OEM-focused auto components supplier

A focused business model supplying engineered brake and functional components to OEMs and tier suppliers creates durable, contract-driven revenue streams tied to vehicle production and replacement markets. This entrenched market position supports repeat orders and technical collaboration over time.

Negative Factors

Negative net income & margin volatility

Persistent negative net income and volatile margins undermine long-term profitability resilience. That weakens retained earnings, limits reinvestment capacity and could constrain pricing power with OEMs, making it harder to fund long‑term improvements or withstand cyclical industry downturns.

Recent revenue decline

A downturn in revenues in 2025 and an indicated negative revenue growth rate suggest weakening demand or loss of volumes. Sustained declines reduce economies of scale, pressure margins and can erode OEM contracts, posing a structural risk to long-term earnings recovery.

Negative ROE and slight leverage rise

Negative ROE signals that capital is not generating sufficient returns and may reflect recurring losses. Combined with a modest rise in leverage, this constrains financial flexibility for strategic investments or product development and raises vulnerability if automotive demand weakens.

TBK Co., Ltd. Business Overview & Revenue Model

Company Description

TBK Co., Ltd. develops, produces, and sells brakes, oil pumps, and engine components in Japan. The company offers brakes, including drum and disc brakes; regeneration-type and electromagnetic retarders; and asbestos-free brake linings and pads. It also offers water pumps for construction, agricultural equipment, marine applications, and commercial vehicles; oil pumps; electric water and oil pumps; engine units, such as cylinder head, crankcase, and camshafts; bearing housings; and engine assist systems. TBK Co., Ltd. was incorporated in 1948 and is headquartered in Tokyo, Japan.

How the Company Makes Money

TBK Co., Ltd. generates revenue through multiple streams, primarily from the sale of electronic components and systems to businesses in various industries. The company capitalizes on its expertise in technology by offering tailored solutions that meet the specific needs of its clients. Key revenue streams include direct sales of products, long-term contracts with major corporations, and partnerships with other technology firms for joint development projects. Additionally, TBK Co., Ltd. benefits from recurring revenue through maintenance and support services for its systems, ensuring a steady income flow. Strategic collaborations with industry leaders also enhance its market reach and drive growth.

TBK Co., Ltd. Financial Statement Overview

Summary

The company's financial performance is mixed, with challenges in profitability as indicated by negative net income and fluctuating margins. However, the balance sheet shows moderate stability, and cash flow improvements suggest better cash management. Overall, the financial performance is average, with significant room for improvement in profitability.

Income Statement

The company's income statement shows a mixed performance with fluctuating revenue and inconsistent profitability. Although there was a revenue increase from 2022 to 2024, 2025 saw a revenue decrease. Gross profit margin improved in 2025, but the net profit margin was negative, indicating losses. The EBIT and EBITDA margins also reveal volatility, reflecting operational challenges.

Balance Sheet

The balance sheet demonstrates moderate stability. The debt-to-equity ratio has been relatively stable but increased slightly, indicating a mild rise in leverage. The equity ratio is healthy, suggesting a decent level of financial stability. However, the return on equity has been negative in recent years, which is a concern.

Cash Flow

Cash flow analysis shows some positive trends, with operating cash flow generally positive, indicating good cash generation from operations. The free cash flow improved significantly in 2025, turning positive after being negative in previous years. The ratios of cash flow to net income indicate better cash management, although net income has been negative.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	54.25B	54.41B	56.66B	53.52B	51.19B	43.96B
Gross Profit	5.94B	5.79B	5.98B	4.37B	5.37B	5.00B
EBITDA	3.57B	2.52B	4.68B	2.85B	3.90B	3.56B
Net Income	-877.00M	-1.20B	332.00M	-2.06B	783.00M	-191.00M
Balance Sheet
Total Assets	52.34B	53.13B	56.54B	52.18B	50.48B	49.20B
Cash, Cash Equivalents and Short-Term Investments	5.68B	4.14B	4.27B	3.94B	4.23B	4.17B
Total Debt	7.30B	7.95B	9.49B	9.07B	7.55B	8.70B
Total Liabilities	23.54B	24.01B	27.18B	24.65B	22.00B	22.86B
Stockholders Equity	27.93B	28.25B	28.61B	26.91B	27.99B	25.92B
Cash Flow
Free Cash Flow	0.00	1.49B	-321.00M	-1.43B	1.80B	3.17B
Operating Cash Flow	0.00	3.89B	3.16B	2.54B	4.29B	5.57B
Investing Cash Flow	0.00	-2.32B	-2.52B	-3.85B	-2.34B	-2.44B
Financing Cash Flow	0.00	-1.89B	-372.00M	958.00M	-1.84B	-1.87B

TBK Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 360.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7277, the sentiment is Positive. The current price of 360 is below the 20-day moving average (MA) of 390.70, below the 50-day MA of 377.66, and above the 200-day MA of 332.73, indicating a bullish trend. The MACD of 10.54 indicates Negative momentum. The RSI at 71.55 is Negative, neither overbought nor oversold. The STOCH value of 71.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7277.

TBK Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7235	78 Outperform	¥17.30B	8.81	―	4.02%	2.31%	10.68%
7254	76 Outperform	¥17.91B	6.83	―	1.67%	-4.44%	-17.38%
7228	74 Outperform	¥9.14B	8.07	―	3.19%	5.38%	5.29%
6493	70 Outperform	¥21.73B	9.61	―	2.02%	0.29%	1092.40%
7273	62 Neutral	¥20.84B	4.87	―	4.58%	34.99%	468.97%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7277	56 Neutral	¥13.02B	16.51	―	2.23%	-4.06%	―

TBK Co., Ltd. Corporate Events

TBK Co., Ltd. Swings Back to Profit Despite Lower Sales in Q3 FY2025

TBK Co., Ltd. reported consolidated net sales of ¥39.38 billion for the quarter ended December 2025, a 3.3% year-on-year decline, but operating profit surged to ¥938 million, up 276.2%, and ordinary profit swung to ¥1.04 billion from a loss a year earlier. Profit attributable to owners of the parent recovered to ¥587 million from a ¥1.33 billion loss, comprehensive income rose sharply to ¥2.86 billion, and the balance sheet strengthened with total assets increasing to ¥56.83 billion, net assets to ¥32.59 billion, and the capital adequacy ratio improving to 55.6%, while the company maintained a ¥4 per share second-quarter dividend, signaling improved earnings quality and financial stability despite modest top-line contraction.

Basic earnings per share improved to ¥20.44 from a loss of ¥46.71 per share, highlighting a substantial turnaround in shareholder profitability relative to the prior-year period. The rise in owner’s equity to ¥31.59 billion and continued dividend payments suggest management’s confidence in the company’s financial health and its ability to reward shareholders even as revenue growth remains under pressure.

The most recent analyst rating on (JP:7277) stock is a Hold with a Yen394.00 price target. To see the full list of analyst forecasts on TBK Co., Ltd. stock, see the JP:7277 Stock Forecast page.

TBK Co., Ltd. Completes Share Issuance, Welcomes New Major Shareholder

TBK Co., Ltd. has completed the issuance of new shares through a third-party allotment to Brakes India Private Limited, resulting in Brakes India becoming the largest major shareholder. This strategic move increases TBK’s capital stock and strengthens its financial position, potentially enhancing its market competitiveness.

The most recent analyst rating on (JP:7277) stock is a Hold with a Yen297.00 price target. To see the full list of analyst forecasts on TBK Co., Ltd. stock, see the JP:7277 Stock Forecast page.

TBK Co., Ltd. Forms Strategic Alliance with Brakes India Private Limited

TBK Co., Ltd. has entered into a Business and Capital Alliance with Brakes India Private Limited (BIPL), which includes issuing new shares to BIPL through a third-party allotment. This alliance aims to enhance TBK’s corporate value by leveraging synergies with BIPL, a major Indian brake manufacturer, to develop competitive products amid industry transformation. The collaboration will focus on purchasing, manufacturing, and technical licensing, allowing both companies to complement each other’s technological strengths and provide high-value products in the growing electrification and automation markets.

The most recent analyst rating on (JP:7277) stock is a Hold with a Yen297.00 price target. To see the full list of analyst forecasts on TBK Co., Ltd. stock, see the JP:7277 Stock Forecast page.