Tsubakimoto Kogyo Co., Ltd. (8052) AI Stock Analysis

• Market Cap: ¥60.27B
• Dividend Yield: 3%
• Average Volume (3M): 28.48K
• Price to Earnings (P/E): 12.1
• Beta (1Y): 0.69
• Revenue Growth: 16.06%
• EPS Growth: 31.78%
• Country: JP
• Employees: 757
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Distribution
• EPS (TTM): 53.50
• Shares Outstanding: 19,493,908
• 10 Day Avg. Volume: 30,930
• 30 Day Avg. Volume: 28,476
• PEG Ratio: 0.45
• Price to Book (P/B): 0.88
• Price to Sales (P/S): 0.31
• P/FCF Ratio: 12.12
• 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: 73 Outperform
• Price Target: ¥3,490.00 ▲(31.15% Upside)
• Action: Reiterated Date: 11/01/25
• Date: Action: Reiterated 11/01/25

Tsubakimoto Kogyo Co., Ltd. shows strong financial performance with consistent revenue growth and a robust balance sheet. The stock's valuation is attractive with a low P/E ratio and a solid dividend yield. However, technical indicators suggest mixed momentum, which slightly tempers the overall score.

Positive Factors

Strong balance sheet

The company's low debt-to-equity and robust equity ratio provide durable financial flexibility, lowering default risk and enabling investment in automation, inventory or targeted M&A. This capital strength supports multi-cycle resilience and funds strategic initiatives without heavy reliance on external financing.

Consistent revenue growth

Steady top-line expansion over multiple years and a recent 4.58% increase indicate ongoing demand for machinery and integration services. Persistent revenue growth underpins durable customer relationships, predictable project pipelines and supports reinvestment into product solutions and service capabilities.

Diversified industrial business model

A mix of trading margins, system/solution projects and after-sales services creates multiple revenue streams and higher customer stickiness. This structure reduces single-product dependency, increases cross-sell opportunities and supports recurring service revenue, improving medium-term cash predictability.

Negative Factors

Margins below peers

Reported gross and net margins trail industry leaders, suggesting limited pricing power or cost structure disadvantages. Persistently lower margins reduce earnings leverage and the buffer against input cost inflation, constraining long-term profitability expansion unless operational efficiency improves.

Volatile free cash flow growth

While free cash flow relative to net income is strong at times, variability in FCF growth creates uncertainty for sustained capital deployment, dividends and service investment. Structural volatility in FCF can impede strategic planning and raises the need for stronger working capital controls.

Moderate cash conversion efficiency

Operating cash conversion is only moderate, implying earnings do not consistently convert to cash. For a distribution-heavy industrial business, this can reflect longer receivable or inventory cycles and reduces available internally generated funds for capex or growth without tightening working capital.

Tsubakimoto Kogyo Co., Ltd. Business Overview & Revenue Model

Company Description

Tsubakimoto Kogyo Co., Ltd. engages in the sale of machinery, equipment, parts, and accessories in Japan. It offers power transmission products, such as motion controllers, sensing/inspection/measurement equipment, motors and geared motors, linear servo devices, servo motors, actuators, chains and belts, couplings, reducers/accelerators, clutches and brakes, and peripheral equipment. The company also provides facilities and equipment for housing/materials/ceramics, food, paper/newspapers, chemicals/films, medicine/medical care, automobiles, tire/rubber factory systems, information systems, logistics, precision machinery and assembly systems, environment, aircraft, and trains and railway industries. In addition, it offers nonwoven fabrics, materials and moldings, engineered products, and other products; sensing products, including sensors, lighting, cameras/lens, image processing systems, and IoT/AI/other products. The company was formerly known as Tsubakimoto Shoten Co., Ltd. and changed its name to Tsubakimoto Kogyo Co., Ltd. in July 1943. Tsubakimoto Kogyo Co., Ltd. was founded in 1916 and is headquartered in Osaka, Japan.

How the Company Makes Money

Tsubakimoto Kogyo generates revenue through the sale of its core products, which include roller chains, timing belts, and other mechanical transmission components. The company's revenue model is primarily based on direct sales to manufacturers and industrial clients, as well as through a network of distributors. Key revenue streams include the production and sale of standard and custom-engineered products, maintenance and repair services, and aftermarket support. Additionally, Tsubakimoto has established partnerships with various industries and maintains a strong presence in international markets, which contribute significantly to its earnings by expanding its customer base and enhancing product distribution.

Tsubakimoto Kogyo Co., Ltd. Financial Statement Overview

Summary

Tsubakimoto Kogyo Co., Ltd. demonstrates solid financial health with consistent revenue growth and a strong balance sheet. While profitability and cash flow generation are stable, there is potential for improvement in margins and cash flow consistency to enhance financial performance further.

Income Statement

Tsubakimoto Kogyo Co., Ltd. has shown consistent revenue growth over the past few years, with a notable 4.58% increase in the most recent year. The company maintains stable gross and net profit margins, indicating effective cost management. However, the margins are slightly below industry leaders, suggesting room for improvement in profitability.

Balance Sheet

The company exhibits a strong balance sheet with a low debt-to-equity ratio, highlighting prudent financial management and low leverage risk. Return on equity is healthy, reflecting efficient use of shareholder funds. The equity ratio is robust, indicating a solid capital structure.

Cash Flow

Cash flow performance is mixed, with strong free cash flow to net income ratios, but fluctuating free cash flow growth rates. The operating cash flow to net income ratio suggests moderate efficiency in converting income into cash. The company should focus on stabilizing cash flow generation.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	130.31B	124.32B	113.50B	107.96B	96.89B	89.65B
Gross Profit	19.74B	18.80B	17.50B	16.35B	14.95B	13.41B
EBITDA	8.05B	7.21B	6.01B	5.61B	4.93B	4.18B
Net Income	5.33B	4.69B	4.00B	3.67B	3.18B	2.74B
Balance Sheet
Total Assets	96.66B	100.67B	94.76B	84.47B	76.77B	64.50B
Cash, Cash Equivalents and Short-Term Investments	29.20B	28.95B	26.86B	22.93B	17.60B	11.94B
Total Debt	251.00M	80.00M	59.00M	40.00M	66.00M	28.00M
Total Liabilities	52.51B	56.65B	54.38B	50.44B	46.01B	36.12B
Stockholders Equity	43.90B	43.74B	40.13B	33.80B	30.57B	28.18B
Cash Flow
Free Cash Flow	0.00	3.18B	4.51B	6.35B	6.46B	-3.62B
Operating Cash Flow	0.00	3.59B	5.01B	6.72B	6.57B	-3.41B
Investing Cash Flow	0.00	461.00M	-69.00M	-461.00M	-152.00M	-204.00M
Financing Cash Flow	0.00	-2.05B	-1.08B	-971.00M	-808.00M	-849.00M

Tsubakimoto Kogyo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2661.00
• 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:8052, the sentiment is Positive. The current price of 2661 is below the 20-day moving average (MA) of 2985.05, below the 50-day MA of 2932.62, and below the 200-day MA of 2678.50, indicating a bullish trend. The MACD of 48.83 indicates Negative momentum. The RSI at 67.88 is Neutral, neither overbought nor oversold. The STOCH value of 72.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8052.

Tsubakimoto Kogyo Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8061	79 Outperform	¥103.38B	16.20	―	3.38%	10.74%	-26.50%
3176	78 Outperform	¥54.06B	10.49	―	3.87%	2.66%	-11.41%
3153	75 Outperform	¥75.72B	14.52	―	1.22%	14.41%	85.93%
8052	73 Outperform	¥60.27B	12.05	―	3.00%	16.06%	31.78%
9932	71 Outperform	¥30.78B	15.45	―	3.84%	2.74%	4.90%
7128	66 Neutral	¥54.68B	29.50	―	3.24%	-2.85%	-56.68%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Tsubakimoto Kogyo Co., Ltd. Corporate Events

Tsubakimoto Kogyo Delivers Steady Nine-Month Profit Growth and Confirms Stable Dividend Plan

Tsubakimoto Kogyo reported solid growth for the nine months ended December 31, 2025, with net sales rising 7.3% year on year to ¥94.9 billion and profit attributable to owners of parent up 2.4% to ¥3.3 billion, while basic earnings per share increased to ¥179.41. The company strengthened its financial base as total assets expanded to ¥114.7 billion and equity grew to ¥48.0 billion, although the equity ratio edged down, and it maintained an annual dividend plan of ¥80 per share for the year ending March 31, 2026, signaling stable shareholder returns alongside a full-year forecast that calls for modest top-line growth and mid–single digit profit increases.

The most recent analyst rating on (JP:8052) stock is a Buy with a Yen3292.00 price target. To see the full list of analyst forecasts on Tsubakimoto Kogyo Co., Ltd. stock, see the JP:8052 Stock Forecast page.