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

• Market Cap: ¥2.40B
• Dividend Yield: N/A
• Average Volume (3M): 347.57K
• Price to Earnings (P/E): 29.2
• Beta (1Y): 0.72
• Revenue Growth: 21.54%
• EPS Growth: N/A
• Country: JP
• Employees: 123
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): -4.29
• 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: ¥348.00 ▲(21.25% 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

Diverse end-market exposure

Serving automotive, aerospace and electronics provides durable demand driven by quality control and precision needs. Multi-industry exposure reduces single-sector cyclicality, supporting steadier equipment and service sales as manufacturers sustain investments in measurement accuracy.

Stable gross margin profile

A consistently ~34% gross margin indicates structural pricing power or cost control in core products. Stable manufacturing margins support reinvestment in R&D and product development, enabling sustained competitiveness in precision instruments over the medium term.

Moderate leverage on the balance sheet

Debt-to-equity near 0.5 suggests manageable leverage that can finance capex or product development without excessive financial strain. Moderate gearing preserves financial flexibility to fund long-term product cycles and service infrastructure.

Negative Factors

Recent negative free cash flow

Recent negative free cash flow signals weaker cash generation versus reported earnings and can erode ability to fund capex, maintenance, and R&D internally. Persistent FCF deficits would force reliance on external financing, increasing long-term financial risk.

Inconsistent and declining revenue trends

Irregular and recently declining revenues undermine forecasting, R&D prioritization and capacity planning. Structural weakness in top-line growth can compress operating leverage, reduce scale benefits, and impede sustained investment in next-generation measurement technologies.

Volatile profitability and ROE

Variable net income and inconsistent ROE indicate earnings volatility and weak conversion of assets into returns. This hampers long-term capital allocation, investor confidence and the firm's ability to consistently fund strategic programs without destabilizing financial metrics.

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

Tokyo Koki Co. Ltd. faces financial challenges characterized by revenue decline and volatile profitability. Despite a stable balance sheet with manageable debt levels, the company struggles with cash flow generation. Improvements in operational efficiency and cash management are essential for future growth and stability.

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: Positive
• Last Price: 287.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 288.45, above the 50-day MA of 273.88, and above the 200-day MA of 252.39, indicating a bullish trend. The MACD of 14.77 indicates Negative momentum. The RSI at 63.59 is Neutral, neither overbought nor oversold. The STOCH value of 61.65 is Neutral, 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	¥4.82B	11.34	―	1.19%	-6.39%	-3.86%
6317	78 Outperform	¥16.68B	5.10	―	3.41%	-3.27%	572.42%
6336	72 Outperform	¥6.29B	6.14	―	2.63%	0.59%	53.87%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7719	63 Neutral	¥2.40B	29.24	―	―	21.54%	―
6363	62 Neutral	¥54.23B	15.47	―	3.09%	6.35%	-34.20%
6347	54 Neutral	¥3.27B	-107.23	―	1.67%	-13.82%	81.18%