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

• Market Cap: ¥5.25B
• Dividend Yield: N/A
• Average Volume (3M): 347.57K
• Price to Earnings (P/E): 44.4
• 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: 61 Neutral
• Price Target: ¥775.00 ▲(170.03% Upside)
• Action: Reiterated Date: 03/03/26
• Date: Action: Reiterated 03/03/26

The score is held back primarily by weakening financial performance—declining revenue, volatile margins, and recent negative free cash flow—despite a relatively manageable leverage profile. Technicals are strong but look overextended, and valuation is a key headwind due to the high P/E with no dividend yield data to support the price.

Positive Factors

Niche Precision Instruments

Tokyo Koki’s specialization in precision measurement and its customer mix across automotive, aerospace and electronics create high technical barriers to entry. That niche focus supports long-term customer relationships, recurring service contracts and diversified demand resilience.

Stable Gross Margin

A gross profit margin near 34% demonstrates persistent product-level profitability and pricing power in core instruments. Margin stability helps absorb input cost swings and supports sustainable operating economics even if top-line growth is uneven.

Moderate Leverage

A debt-to-equity ratio around 0.5 indicates moderate leverage, giving management flexibility to fund capex and R&D without excessive interest strain. This balance sheet posture supports investment in product development and resilience over industry cycles.

Negative Factors

Negative Free Cash Flow

Recent negative free cash flow and weak conversion of net income into operating cash constrains internal funding for capex, R&D and working capital. Prolonged negative FCF forces reliance on external financing, limiting strategic flexibility and raising funding risk.

Revenue & Profit Volatility

Inconsistent revenue and significant recent declines, coupled with volatile net profit margin, reduce predictability of earnings and cash generation. That variability hampers long-term planning, weakens operating leverage and increases execution risk for growth investments.

Declining Equity Ratio & ROE Inconsistency

A slightly falling equity ratio and inconsistent ROE suggest rising liabilities and uneven profitability. Over time this can constrain borrowing capacity, increase refinancing risk during downturns, and reduce the firm's ability to absorb shocks in cyclical end markets.

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: revenue has declined and profitability has been volatile, while the balance sheet shows only moderate leverage (debt-to-equity around 0.5). The biggest weakness is cash generation, with negative free cash flow in the most recent years and weak conversion of net income into operating cash flow.

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: Negative
• 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 415.50, below the 50-day MA of 351.96, and above the 200-day MA of 281.49, indicating a bullish trend. The MACD of 86.87 indicates Negative momentum. The RSI at 90.34 is Negative, neither overbought nor oversold. The STOCH value of 87.24 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	¥5.01B	14.96	―	1.19%	-6.39%	-3.86%
6317	78 Outperform	¥17.34B	6.57	―	3.41%	-3.27%	572.42%
6336	76 Outperform	¥7.85B	7.92	―	2.63%	0.59%	53.87%
6363	70 Outperform	¥70.88B	14.83	―	3.09%	6.35%	-34.20%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7719	61 Neutral	¥5.25B	44.39	―	―	21.54%	―
6347	54 Neutral	¥4.00B	429.94	―	1.67%	-13.82%	81.18%