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

• Market Cap: ¥4.20B
• Dividend Yield: N/A
• Average Volume (3M): 347.57K
• Price to Earnings (P/E): 35.5
• Beta (1Y): 0.73
• 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: 7,147,791
• 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: 64 Neutral
• Price Target: ¥629.00 ▲(119.16% Upside)
• Action: Reiterated Date: 03/04/26
• Date: Action: Reiterated 03/04/26

Overall score reflects strong technical momentum and a clear uptrend, partially offset by weak underlying financial performance (revenue/profit volatility and negative recent free cash flow) and a high P/E valuation.

Positive Factors

Diverse end markets and recurring service revenue

Tokyo Koki serves multiple capital‑goods industries (automotive, aerospace, electronics) with both equipment sales and maintenance/calibration service contracts. This cross‑industry exposure and recurring service mix support steadier demand and repeatable revenue over multi‑quarter horizons.

Stable gross profit margin

A roughly 34% gross margin indicates durable product pricing power and manufacturing efficiency in precision instruments. Stable gross margins provide a structural buffer to absorb revenue volatility and support reinvestment or service scaling over the medium term.

Moderate financial leverage

Moderate leverage (D/E ~0.5) suggests the company is not overly reliant on debt financing and retains capacity to fund working capital or selective capex. This balance sheet positioning supports financial flexibility through industry cycles and potential investments in product development or service capabilities.

Negative Factors

Inconsistent revenue trends and recent declines

Periodic revenue declines and inconsistency undermine predictability for capacity planning and R&D investment. For a precision‑equipment maker, erratic order flows can lengthen recovery cycles, pressure fixed cost absorption, and constrain the company’s ability to scale operations sustainably over several quarters.

Recent negative free cash flow and conversion inefficiency

Recent negative free cash flow and weak operating cash conversion reduce internal funding for maintenance, capex, and product development. Over months this forces reliance on external financing or working capital adjustments, limiting strategic flexibility and increasing vulnerability to demand shocks.

Volatile profitability and weakening EBIT/EBITDA margins

Declining and variable operating margins point to rising cost pressures or lower factory/utilization efficiency. Persistent margin weakness impairs the company’s ability to invest in innovation, maintain service levels, and compete on product features over the medium term, risking structural erosion of competitiveness.

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

Financials are mixed: revenue has been inconsistent with recent declines, profitability has been volatile with weakening EBIT/EBITDA margins, and recent free cash flow has been negative. The balance sheet is relatively stable with moderate leverage (debt-to-equity ~0.5), but cash generation and operating efficiency remain key weaknesses.

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	Feb 2025	Feb 2024	Feb 2023	Feb 2022	Feb 2021
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: Positive
• Last Price: 287.00
• 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:7719, the sentiment is Positive. The current price of 287 is below the 20-day moving average (MA) of 428.90, below the 50-day MA of 358.32, and above the 200-day MA of 283.23, indicating a bullish trend. The MACD of 85.66 indicates Negative momentum. The RSI at 64.93 is Neutral, neither overbought nor oversold. The STOCH value of 82.20 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	¥5.18B	15.47	―	1.19%	-6.39%	-3.86%
6317	78 Outperform	¥17.04B	6.26	―	3.41%	-3.27%	572.42%
6336	76 Outperform	¥7.87B	7.68	―	2.63%	0.59%	53.87%
6363	70 Outperform	¥68.67B	14.58	―	3.09%	6.35%	-34.20%
7719	64 Neutral	¥4.20B	35.51	―	―	21.54%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6347	54 Neutral	¥3.68B	406.18	―	1.67%	-13.82%	81.18%