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

• Market Cap: ¥1.80B
• Dividend Yield: N/A
• Average Volume (3M): 347.57K
• Price to Earnings (P/E): 21.9
• Beta (1Y): 0.55
• Revenue Growth: 21.54%
• EPS Growth: N/A
• Country: JP
• Employees: 123
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 1.16
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: ¥258.00 ▼(-6.86% Downside)

The overall stock score reflects significant financial challenges, including revenue decline and cash flow issues. Technical indicators suggest weak market momentum, and the valuation is moderate without a dividend yield. These factors collectively contribute to a cautious outlook for Tokyo Koki Co. Ltd.

Positive Factors

Stable Gross Profit Margin

A stable gross profit margin indicates consistent pricing power and cost management, which are crucial for long-term profitability and competitiveness.

Manageable Debt Levels

Manageable debt levels provide financial flexibility and reduce the risk of financial distress, supporting sustainable operations and potential growth investments.

Historical Cash Generation Capability

Past positive cash flow generation indicates the company's potential to restore cash generation capabilities, essential for funding operations and growth initiatives.

Negative Factors

Revenue Decline

Declining revenue trends can hinder growth prospects and market position, necessitating strategic adjustments to regain sales momentum and competitiveness.

Volatile Profitability

Volatile profitability undermines financial predictability and can affect investor confidence, requiring improved cost controls and revenue stabilization strategies.

Negative Free Cash Flow

Negative free cash flow indicates challenges in funding operations and investments internally, potentially leading to increased reliance on external 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. primarily generates revenue through the sale of its precision measuring instruments and equipment. The company's revenue model is based on direct sales to manufacturers and industries that require accurate measurement tools for quality control and production processes. Key revenue streams include the sale of digital measuring devices, gauges, and custom inspection solutions. Additionally, the company may benefit from service agreements and maintenance contracts for its equipment, which provide ongoing revenue. Strategic partnerships with various industrial sectors also enhance Tokyo Koki's market reach and contribute to its earnings by expanding its customer base and enabling collaborative development of new products.

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	3.52B	3.48B	3.37B	3.05B	4.04B	3.87B
Gross Profit	1.24B	1.20B	1.21B	1.07B	1.28B	1.25B
EBITDA	53.42M	89.21M	252.33M	-632.67M	236.29M	376.58M
Net Income	45.48M	62.94M	91.11M	-702.35M	121.55M	293.00M
Balance Sheet
Total Assets	4.48B	3.77B	3.66B	3.45B	4.40B	4.47B
Cash, Cash Equivalents and Short-Term Investments	952.33M	494.58M	976.65M	693.23M	1.24B	990.90M
Total Debt	1.28B	842.03M	682.31M	636.85M	1.02B	901.21M
Total Liabilities	2.72B	2.15B	2.14B	2.03B	2.26B	2.43B
Stockholders Equity	1.64B	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: 277.00
• 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 277 is above the 20-day moving average (MA) of 251.95, above the 50-day MA of 269.32, and above the 200-day MA of 237.03, indicating a bullish trend. The MACD of -0.76 indicates Negative momentum. The RSI at 64.13 is Neutral, neither overbought nor oversold. The STOCH value of 93.40 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
6317	78 Outperform	¥16.45B	5.03	―	3.49%	-3.27%	572.42%
6396	72 Outperform	¥3.87B	7.83	―	1.46%	-6.39%	-3.86%
6336	72 Outperform	¥5.41B	6.04	―	2.98%	-5.79%	37.86%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6363	62 Neutral	¥49.35B	14.08	―	3.20%	6.35%	-34.20%
7719	55 Neutral	¥1.80B	21.93	―	―	21.54%	―
6347	50 Neutral	¥3.66B	-51.21	―	1.88%	-13.82%	81.18%