Tomita Co., Ltd. (8147) AI Stock Analysis

• Market Cap: ¥6.76B
• Dividend Yield: 1.69%
• Average Volume (3M): 2.78K
• Price to Earnings (P/E): 9.7
• Beta (1Y): 0.52
• Revenue Growth: 11.54%
• EPS Growth: 33.71%
• Country: JP
• Employees: 217
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Distribution
• EPS (TTM): 49.93
• Shares Outstanding: 6,158,000
• 10 Day Avg. Volume: 3,380
• 30 Day Avg. Volume: 2,780
• PEG Ratio: 0.91
• Price to Book (P/B): 0.59
• Price to Sales (P/S): 0.32
• P/FCF Ratio: 25.45
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: ¥1,488.00 ▲(14.11% Upside)

Tomita Co., Ltd. demonstrates a strong financial foundation with robust balance sheet metrics and improving cash flows. The technical analysis indicates bullish momentum, although caution is advised due to overbought signals. The stock's valuation is attractive, with a low P/E ratio and a reasonable dividend yield, enhancing its investment appeal.

Positive Factors

Revenue Growth

Consistent revenue growth over the past five years suggests a stable market position and effective business strategies, enhancing long-term prospects.

Balance Sheet Strength

A strong balance sheet with low leverage and high equity ratio underscores financial stability, providing resilience against economic fluctuations.

Cash Flow Improvement

Improved cash management and operational efficiency enhance the company's ability to fund growth initiatives and maintain financial health.

Negative Factors

Modest Profit Margins

Modest profit margins may limit the company's ability to reinvest in growth and weather competitive pressures, affecting long-term profitability.

Earnings Decline

A decline in earnings per share suggests challenges in maintaining profitability, which could impact investor confidence and future growth potential.

Modest Operational Profitability

Modest operational profitability may hinder the company's ability to expand and compete effectively, affecting long-term growth and market position.

Tomita Co., Ltd. Business Overview & Revenue Model

Company Description

Tomita Co., Ltd. distributes machine tool products in Japan and internationally. The company provides general-purpose and CNC lathes; milling, drilling, broaching, boring, gun drilling, electrical discharge, additive manufacturing, cutting, laser processing, sheet metal, forming, injection molding, and other machines; machining centers; grinders; gear processing machines, including cutting, finishing, honing, shaving, and hobbing; and CNC routers and light metal/plastic/wood processing machines. It also offers pneumatic and hydraulic equipment; cutting tools and abrasives; power transmission products; electronic components; measuring equipment; metal working related devices; dust collectors and washing machines; coolant units; material handling equipment; heat treatment and environmental equipment; welding equipment; molding machine related equipment; and other products, as well as electric equipment, tools, conduction equipment, drives, and other instruments. In addition, the company provides automation, retrofit, and customized devices/machines; robots/loaders/conveyors; CAD/CAM systems; and production management systems/software products, as well as imports machinery and tools. Tomita Co., Ltd. was founded in 1911 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Tomita Co., Ltd. generates revenue primarily through the wholesale distribution of its core product lines, which include industrial chemicals, electronic components, and other consumer goods. The company's revenue model is based on purchasing products from manufacturers and selling them at a markup to retailers and other businesses. Key revenue streams include sales from industrial chemicals used in manufacturing processes and electronic components that cater to the growing technology sector. Additionally, Tomita Co., Ltd. may benefit from strategic partnerships with manufacturers, which can provide exclusive distribution rights or bulk purchasing discounts, enhancing its profit margins. The company's ability to adapt to market trends and maintain strong supplier relationships also plays a significant role in sustaining its earnings.

Tomita Co., Ltd. Financial Statement Overview

Summary

Tomita Co., Ltd. exhibits a stable financial performance with steady revenue growth and strong balance sheet fundamentals. The income statement reflects consistent profitability, although margins remain modest. The balance sheet showcases low leverage and strong equity, indicating financial stability. Cash flow improvements are notable, despite previous challenges, highlighting better cash management.

Income Statement

Tomita Co., Ltd. demonstrates a solid income statement performance with a consistent increase in total revenue over the past five years. The gross profit margin for the latest year stands at 19.06%, indicating effective cost management. The net profit margin is 2.90%, which, while modest, shows steady improvement over the periods. Notably, revenue growth has been positive, with a 1.70% increase from the previous year, suggesting a stable market position. EBIT and EBITDA margins are at 3.56% and 4.84%, respectively, indicating healthy operational profitability.

Balance Sheet

The balance sheet of Tomita Co., Ltd. is robust, marked by a strong equity position. The debt-to-equity ratio is low at 0.01, indicating minimal leverage and financial risk. The return on equity (ROE) is 5.29%, reflecting moderate efficiency in generating returns for shareholders. The equity ratio is high at 63.81%, underscoring financial stability and a strong asset base supported by shareholder equity. Overall, the balance sheet reflects financial prudence and low-risk exposure.

Cash Flow

Tomita Co., Ltd.'s cash flow statement shows a positive turnaround in free cash flow from the previous negative position, indicating improved cash management. The operating cash flow to net income ratio is 0.56, suggesting a reasonable conversion of net income into cash. The free cash flow to net income ratio is 0.44, which signifies effective cash generation relative to earnings. Despite prior negative cash flows, recent improvements highlight enhanced operational efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	22.11B	21.68B	21.31B	20.20B	19.40B	17.32B
Gross Profit	4.15B	4.13B	3.78B	3.59B	3.16B	2.71B
EBITDA	710.66M	1.05B	945.85M	773.14M	788.02M	552.17M
Net Income	510.79M	629.56M	561.24M	462.84M	489.27M	317.12M
Balance Sheet
Total Assets	17.85B	18.64B	18.46B	18.17B	16.26B	15.85B
Cash, Cash Equivalents and Short-Term Investments	6.70B	6.12B	6.23B	7.08B	5.82B	5.31B
Total Debt	152.59M	165.08M	228.71M	322.87M	236.91M	317.23M
Total Liabilities	5.82B	6.44B	6.56B	7.21B	6.04B	6.20B
Stockholders Equity	11.74B	11.90B	11.59B	10.70B	9.99B	9.40B
Cash Flow
Free Cash Flow	0.00	276.29M	-852.62M	901.00M	424.16M	595.48M
Operating Cash Flow	0.00	354.00M	-772.80M	932.17M	467.19M	614.25M
Investing Cash Flow	0.00	-605.64M	-676.11M	68.85M	12.98M	9.78M
Financing Cash Flow	0.00	-247.89M	-191.28M	-5.52M	-145.75M	-164.61M

Tomita Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1304.00
• 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:8147, the sentiment is Positive. The current price of 1304 is above the 20-day moving average (MA) of 1287.10, above the 50-day MA of 1240.80, and above the 200-day MA of 1242.94, indicating a bullish trend. The MACD of 17.84 indicates Positive momentum. The RSI at 54.77 is Neutral, neither overbought nor oversold. The STOCH value of 33.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8147.

Tomita Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7417	77 Outperform	¥18.51B	9.52	―	3.81%	-4.72%	-10.50%
8147	76 Outperform	¥6.76B	9.68	―	1.69%	11.54%	33.71%
9986	69 Neutral	¥14.30B	18.60	―	4.00%	-1.00%	-14.87%
8077	64 Neutral	¥5.82B	5.89	―	2.55%	0.57%	8.60%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
8089	63 Neutral	¥22.76B	6.61	―	3.55%	12.31%	90.88%
7624	59 Neutral	¥7.89B	24.41	―	2.78%	1.08%	82.69%