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

• Market Cap: ¥56.94B
• Dividend Yield: 2.37%
• Average Volume (3M): 54.64K
• Price to Earnings (P/E): 10.3
• Beta (1Y): 0.80
• Revenue Growth: 16.43%
• EPS Growth: 52.00%
• Country: JP
• Employees: 757
• Sector: Industrials
• Sector Strength: 71
• Industry: Industrial - Distribution
• EPS (TTM): 65.65
• Shares Outstanding: 19,493,908
• 10 Day Avg. Volume: 88,400
• 30 Day Avg. Volume: 54,640
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥3,338.00
• Price Target Upside: 13.08% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 80 Outperform
• Price Target: ¥3,338.00 ▲(13.08% Upside)

Tsubakimoto Kogyo Co., Ltd. scores well due to its strong technical indicators and attractive valuation, suggesting potential undervaluation and positive market sentiment. The company's solid financial performance further supports the stock's appeal, although there is room for improvement in profitability margins and cash flow consistency.

Positive Factors

Revenue Growth

Tsubakimoto's consistent revenue growth reflects its strong market position and effective sales strategy, supporting long-term business expansion.

Balance Sheet Strength

A robust balance sheet with low leverage ensures financial stability and flexibility, enabling the company to invest in growth opportunities.

International Market Presence

Tsubakimoto's international market presence diversifies revenue streams and reduces dependency on domestic markets, enhancing resilience.

Negative Factors

Profitability Margins

Lower profitability margins compared to peers may limit competitive advantage and affect long-term earnings potential if not addressed.

Cash Flow Consistency

Inconsistent cash flow generation could impact the company's ability to fund operations and growth initiatives sustainably.

Margin Improvement Potential

While stable, the need for margin improvement indicates potential inefficiencies that could hinder long-term profitability if not optimized.

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

Company Description

Tsubakimoto Kogyo Co., Ltd. (8052) is a leading Japanese manufacturing company that specializes in power transmission and motion control systems. Established in 1917, the company operates primarily in the industrial machinery sector, providing a wide range of products including chains, belts, and other mechanical components. Tsubakimoto serves various industries such as automotive, food processing, and logistics, focusing on high-quality engineering solutions that enhance operational efficiency and reliability.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	124.32B	124.32B	113.50B	107.96B	96.89B	89.65B
Gross Profit	18.95B	18.80B	17.25B	16.35B	14.95B	13.41B
EBITDA	7.21B	7.21B	6.01B	5.61B	4.93B	4.18B
Net Income	4.69B	4.69B	4.00B	3.67B	3.18B	2.74B
Balance Sheet
Total Assets	100.67B	100.67B	94.76B	84.47B	76.77B	64.50B
Cash, Cash Equivalents and Short-Term Investments	28.95B	28.95B	26.86B	22.93B	17.60B	11.94B
Total Debt	80.00M	80.00M	59.00M	40.00M	66.00M	28.00M
Total Liabilities	56.65B	56.65B	54.38B	50.44B	46.01B	36.12B
Stockholders Equity	43.74B	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: 2952.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 2952 is above the 20-day moving average (MA) of 2864.95, above the 50-day MA of 2676.40, and above the 200-day MA of 2230.59, indicating a bullish trend. The MACD of 87.01 indicates Positive momentum. The RSI at 67.59 is Neutral, neither overbought nor oversold. The STOCH value of 68.45 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
8052	80 Outperform	¥56.94B	10.28		2.37%	16.43%	52.00%
3176	80 Outperform	¥47.06B	9.35		3.65%	3.94%	-13.24%
9932	76 Outperform	¥40.40B	19.76		2.38%	6.18%	4.74%
8061	75 Outperform	¥67.98B	12.19		3.71%	12.01%	-23.10%
3153	74 Outperform	¥49.15B	11.43		1.56%	7.34%	60.45%
7128	71 Outperform	¥56.28B	20.57		3.20%	-2.41%	-43.98%
Sector *	63 Neutral	$10.70B	15.26	7.37%	2.02%	2.87%	-14.59%

Tsubakimoto Kogyo Co., Ltd. Corporate Events

Tsubakimoto Kogyo Expands Shareholder Benefit Program

Tsubakimoto Kogyo Co., Ltd. announced an expansion of its shareholder benefit program to enhance investment appeal and promote longer-term shareholder engagement. The revised program offers increased benefits based on the length of shareholding and amount of shares held, aiming to incentivize more individuals to invest and hold shares with the company.