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

• Market Cap: ¥4.65B
• Dividend Yield: N/A
• Average Volume (3M): 347.57K
• Price to Earnings (P/E): 22.1
• Beta (1Y): 0.56
• 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: 7,159,791
• 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: 69 Neutral
• Price Target: ¥712.00 ▲(148.08% Upside)
• Action: Reiterated Date: 03/13/26
• Date: Action: Reiterated 03/13/26

The score is driven primarily by strong technical momentum and trend strength, offset by only moderate financial performance—especially weak recent free cash flow—and a mid-to-higher P/E with no dividend yield provided.

Positive Factors

Revenue Growth

A reported ~35.7% revenue growth indicates the company can drive top-line expansion, supporting medium-term capacity utilization and investment. Durable revenue expansion can enable scale benefits, helping fund R&D and production upgrades if the company sustains this growth trajectory.

Gross Margin Stability

A roughly 34% gross margin shows the core manufacturing business retains pricing power or cost control at the production level. Stable gross margins support long-term operating profitability provided SG&A and overhead are managed, cushioning against cyclical revenue swings.

Moderate Leverage

A debt-to-equity near 0.5 indicates moderate leverage that preserves financial flexibility. This balance allows the company to fund capital expenditures or working capital without excessive interest burden, helping sustain operations and strategic investments over the medium term.

Negative Factors

Negative Free Cash Flow

Recent negative free cash flow signals weak cash generation and poor conversion of reported earnings into spendable cash. Persisting FCF deficits constrain reinvestment, debt reduction, and shareholder returns, and increase reliance on external financing to support operations and growth.

Inconsistent Revenue Trends

Volatile and recently declining revenues undermine predictability of earnings and capital planning. For an industrial machinery firm, inconsistent orders suggest exposure to cyclical end markets or execution issues, increasing risk to margins, utilization, and multi-quarter planning.

Volatile Profitability & Weak Margins

Fluctuating net profitability and recent weakness in EBIT/EBITDA margins point to operational and cost pressures beyond gross margin. This reduces sustained internal cash generation and weakens the firm's capacity to absorb shocks or fund long-term initiatives without structural improvements.

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

null

Tokyo Koki Co. Ltd. Financial Statement Overview

Summary

Mixed fundamentals: revenue has been inconsistent with recent declines and profitability has been volatile, while leverage remains moderate (debt-to-equity ~0.5). The biggest weakness is cash generation, with negative free cash flow in recent years and weak conversion of earnings 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	3.79B	3.68B	3.45B	4.40B	4.46B
Cash, Cash Equivalents and Short-Term Investments	1.19B	494.58M	976.65M	693.23M	1.24B	990.90M
Total Debt	1.41B	842.03M	682.31M	636.85M	1.02B	901.21M
Total Liabilities	2.88B	2.16B	2.16B	2.03B	2.26B	2.44B
Stockholders Equity	1.62B	1.62B	1.52B	1.42B	2.14B	2.02B
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 678.00, below the 50-day MA of 465.30, and below the 200-day MA of 313.17, indicating a neutral trend. The MACD of 80.87 indicates Positive momentum. The RSI at 52.48 is Neutral, neither overbought nor oversold. The STOCH value of 13.89 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
6104	81 Outperform	¥83.95B	136.93	5.02%	3.23%	-10.00%	-51.92%
6381	75 Outperform	¥65.23B	13.24	―	3.95%	-1.67%	-4.39%
6384	73 Outperform	¥11.52B	27.33	―	4.76%	41.13%	535.42%
6277	72 Outperform	¥87.30B	137.67	―	2.16%	-8.71%	-17.77%
6363	70 Outperform	¥69.96B	4.09	―	3.09%	6.35%	-34.20%
7719	69 Neutral	¥4.65B	22.13	―	―	21.54%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%