Tokyo Koki Co. Ltd. (7719) AI Stock Analysis

• Market Cap: ¥2.17B
• Dividend Yield: N/A
• Average Volume (3M): 347.57K
• Price to Earnings (P/E): 18.4
• Beta (1Y): 0.65
• Revenue Growth: 21.54%
• EPS Growth: N/A
• Country: JP
• Employees: 123
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 3.08
• Shares Outstanding: 7,133,791
• 10 Day Avg. Volume: 155,940
• 30 Day Avg. Volume: 347,566
• PEG Ratio: -0.65
• Price to Book (P/B): 0.77
• Price to Sales (P/S): 0.36
• P/FCF Ratio: -1.96
• 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: 63 Neutral
• Price Target: ¥325.00 ▲(13.24% Upside)

The score is driven primarily by moderate financial performance—especially weak recent free cash flow and uneven profitability—partly offset by strong technical uptrend signals. Valuation is a headwind due to the relatively high P/E and lack of dividend yield data.

Positive Factors

Specialized product portfolio

Tokyo Koki's focus on coordinate and optical measuring systems for automotive, aerospace and electronics creates durable demand tied to quality control. Serving capital-equipment and inspection needs supports long-term customer relationships and aftermarket service revenue, anchoring steady structural demand.

Stable gross margins

A persistently ~34% gross margin indicates sustainable product-level economics and some pricing power. Even if volumes fluctuate, stable gross margins help protect gross profitability, enabling the firm to recover operating profitability faster when demand normalizes and supporting long-term margin resilience.

Moderate leverage

A roughly 0.5 debt/equity ratio suggests manageable financial leverage, giving the company flexibility to fund working capital or targeted investments without overextending. Moderate leverage can support growth capex while preserving borrowing capacity across manufacturing cycles.

Negative Factors

Negative free cash flow

Recent negative free cash flow signals weak cash conversion and limits internal funding for capex, R&D, or service expansion. Over the medium term, persistent cash deficits may force external financing, constrain strategic investments, and increase vulnerability to demand downturns.

Revenue volatility and declines

Uneven and declining top-line trends undermine forecasting and scale benefits in precision equipment manufacturing. Revenue volatility strains fixed-cost absorption, reduces operating leverage, and complicates long-term planning for production capacity, R&D timing, and customer support investments.

Volatile profitability / inconsistent ROE

Fluctuating net margins and inconsistent ROE reflect unstable bottom-line performance, limiting predictability of shareholder returns. Over months, this variability hinders reinvestment planning and raises the risk that profitability shocks will impair balance-sheet metrics and access to favorable financing.

Tokyo Koki Co. Ltd. Business Overview & Revenue Model

Company Description

Tokyo Koki Co. Ltd. engages in the manufacturing and selling of various testing machines and measuring instruments in Japan. The company offers static tension, compression, bending, and fatigue tests for various materials; and structural testing machines, performance testing machines, and contract testing services. It also manufactures and sells locking nuts and springs, special springs, bolts, and other fastening materials; provides technological engineering products for safe lifestyle, as well as maintenance services for metal material testing machines, measuring instruments, hydraulic equipment, etc.; and sale of construction materials. Tokyo Koki Co. Ltd. was founded in 1923 and is headquartered in Sagamihara, Japan.

How the Company Makes Money

Tokyo Koki Co. Ltd. generates revenue through the sale of its precision measurement instruments and systems. The company's primary revenue streams include direct sales of measuring equipment to manufacturers in sectors such as automotive, aerospace, and electronics, as well as service contracts for maintenance and calibration of their devices. Additionally, the company may engage in partnerships with other technological firms to co-develop products or integrate systems, which can provide additional revenue opportunities. The demand for precision measurement solutions, driven by the increasing need for quality control in manufacturing processes, significantly contributes to the company's earnings.

Tokyo Koki Co. Ltd. Financial Statement Overview

Summary

Mixed fundamentals: income statement shows declining revenue and volatile profitability (62), balance sheet is moderately leveraged and generally stable but with inconsistent ROE (68), while cash flow is the main weakness with recent negative free cash flow and weak cash conversion (54).

Income Statement

The company has shown inconsistent revenue trends, with significant decreases in the recent years. The gross profit margin remained relatively stable around 34%, but the net profit margin has been volatile due to fluctuations in net income. EBIT and EBITDA margins have suffered in recent periods, indicating operational challenges.

Balance Sheet

The balance sheet indicates moderate leverage with a debt-to-equity ratio around 0.5. However, the equity ratio has slightly decreased over time, suggesting increased liabilities. The return on equity is inconsistent, primarily due to varying net income results, posing potential risks to financial stability.

Cash Flow

Cash flow statements reveal a troubling trend with negative free cash flow in the most recent years. The operating cash flow to net income ratio indicates inefficiencies in converting income to cash. However, historical free cash flow was positive, suggesting past capability to generate cash, which needs to be restored.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.83B	3.48B	3.37B	3.05B	4.04B	3.87B
Gross Profit	1.33B	1.20B	1.21B	1.07B	1.28B	1.25B
EBITDA	87.61M	89.21M	252.33M	-632.67M	236.29M	376.58M
Net Income	82.73M	62.94M	91.11M	-702.35M	121.55M	293.00M
Balance Sheet
Total Assets	4.59B	3.77B	3.66B	3.45B	4.40B	4.47B
Cash, Cash Equivalents and Short-Term Investments	1.19B	494.58M	976.65M	693.23M	1.24B	990.90M
Total Debt	1.40B	842.03M	682.31M	636.85M	1.02B	901.21M
Total Liabilities	2.88B	2.15B	2.14B	2.03B	2.26B	2.43B
Stockholders Equity	1.61B	1.62B	1.52B	1.42B	2.14B	2.04B
Cash Flow
Free Cash Flow	0.00	-640.24M	193.67M	-162.41M	66.89M	168.58M
Operating Cash Flow	0.00	-594.29M	219.59M	-160.24M	217.31M	207.46M
Investing Cash Flow	0.00	-47.51M	186.39M	-51.82M	-92.97M	-98.23M
Financing Cash Flow	0.00	159.72M	35.43M	-383.14M	98.70M	-129.19M

Tokyo Koki Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 287.00
• 50DMA: Positive
• 100DMA: Positive
• 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:7719, the sentiment is Neutral. The current price of 287 is below the 20-day moving average (MA) of 321.85, below the 50-day MA of 295.42, and above the 200-day MA of 262.16, indicating a neutral trend. The MACD of 4.48 indicates Positive momentum. The RSI at 47.43 is Neutral, neither overbought nor oversold. The STOCH value of 7.78 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7719.

Tokyo Koki Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6396	79 Outperform	¥4.64B	10.94	―	1.19%	-6.39%	-3.86%
6317	78 Outperform	¥16.54B	5.05	―	3.41%	-3.27%	572.42%
6336	72 Outperform	¥6.02B	5.87	―	2.63%	0.59%	53.87%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7719	63 Neutral	¥2.17B	18.42	―	―	21.54%	―
6363	62 Neutral	¥56.75B	16.19	―	3.09%	6.35%	-34.20%
6347	54 Neutral	¥3.54B	-116.22	―	1.67%	-13.82%	81.18%