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

• Market Cap: ¥11.47B
• Dividend Yield: 2.22%
• Average Volume (3M): 51.94K
• Price to Earnings (P/E): 33.4
• Beta (1Y): 0.49
• Revenue Growth: -4.06%
• EPS Growth: N/A
• Country: JP
• Employees: 1,885
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 4.17
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: ¥297.00 ▼(-17.50% Downside)

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

Long-term Supply Agreements

These agreements ensure a steady demand for TBK's products, providing revenue stability and reducing the risk of market volatility.

Product Innovation

Continuous R&D investment helps TBK maintain competitiveness, adapt to industry changes, and potentially capture new market opportunities.

International Market Diversification

Diversifying income streams through international markets mitigates domestic market risks and enhances growth potential.

Negative Factors

Negative Profitability

Sustained negative profitability can hinder reinvestment in the business and affect long-term financial health and shareholder returns.

Revenue Decline

A decline in revenue suggests potential challenges in market demand or competitive positioning, impacting future growth prospects.

Fluctuating Margins

Volatile margins indicate operational challenges, which can affect the company's ability to maintain stable earnings and invest in growth.

TBK Co., Ltd. Business Overview & Revenue Model

Company Description

TBK Co., Ltd. (7277) is a leading company operating in the technology sector, primarily focusing on the development and manufacture of innovative electronic components and systems. The company specializes in providing high-quality solutions for various applications, including telecommunications, consumer electronics, and industrial automation. With a commitment to research and development, TBK Co., Ltd. aims to enhance connectivity and efficiency through its advanced products and services.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: Neutral
• STOCH: Negative

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 above the 20-day moving average (MA) of 354.15, above the 50-day MA of 343.42, and above the 200-day MA of 310.89, indicating a bullish trend. The MACD of 4.51 indicates Negative momentum. The RSI at 58.88 is Neutral, neither overbought nor oversold. The STOCH value of 88.99 is Negative, 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
7228	81 Outperform	¥9.52B	8.18	―	3.18%	5.38%	5.29%
6493	80 Outperform	¥18.47B	9.14	―	2.03%	0.29%	1092.40%
7235	78 Outperform	¥14.51B	7.65	―	4.00%	2.31%	10.68%
7254	76 Outperform	¥17.27B	8.15	―	1.69%	-4.44%	-17.38%
7273	62 Neutral	¥21.66B	5.07	―	4.45%	34.99%	468.97%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7277	56 Neutral	¥11.47B	33.40	―	2.22%	-4.06%	―

TBK Co., Ltd. Corporate Events

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.

TBK Co., Ltd. Reports Improved Profitability Amid Decline in Sales

TBK Co., Ltd. reported a decrease in net sales by 3.5% for the second quarter of 2025 compared to the same period in 2024. However, the company saw a significant improvement in operating profit, which increased by 659.8%, and a return to profitability with a profit attributable to owners of the parent at 272 million yen. This indicates a positive shift in the company’s financial performance, potentially strengthening its position in the market.