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

• Market Cap: ¥6.08B
• Dividend Yield: 1.88%
• Average Volume (3M): 5.21K
• Price to Earnings (P/E): 11.9
• Beta (1Y): 0.53
• Revenue Growth: 5.28%
• EPS Growth: -13.61%
• Country: JP
• Employees: 217
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Distribution
• EPS (TTM): 13.04
• Shares Outstanding: 6,158,000
• 10 Day Avg. Volume: 1,730
• 30 Day Avg. Volume: 5,210
• 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: ¥1,268.00
• Price Target Upside: 8.38% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 66 Neutral
• Price Target: ¥1,268.00 ▲(8.38% Upside)

Tomita Co., Ltd.'s overall stock score is driven by robust financial performance and attractive valuation. The company's strong balance sheet, low leverage, and improved cash flow management are significant strengths. However, the technical analysis indicates bearish momentum, which is a notable risk factor. Despite the technical downside, the stock's low P/E ratio and reasonable dividend yield offer potential value to investors.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage and high equity ratio provides financial stability and reduces risk, supporting long-term growth.

Revenue Growth

Consistent revenue growth indicates a stable market position and effective business strategy, ensuring sustained demand for its products.

Improved Cash Flow

Improved cash flow management enhances operational efficiency, providing the company with more flexibility for investments and debt management.

Negative Factors

Modest Profit Margins

Modest profit margins may limit the company's ability to reinvest in growth opportunities and withstand economic downturns, impacting long-term profitability.

Earnings Decline

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

Low Operational Margins

Low operational margins indicate limited efficiency in cost management, which could hinder the company's ability to expand and invest in new opportunities.

Tomita Co., Ltd. Business Overview & Revenue Model

Company Description

Tomita Co., Ltd. is a Japan-based company primarily engaged in the import and sale of industrial machinery. The company operates in various sectors, including machine tools, industrial machinery, and construction equipment, providing a wide range of products that cater to different industrial needs. Tomita Co., Ltd. is known for its strong emphasis on high-quality products and excellent customer service, which has established it as a reliable partner in the machinery industry.

How the Company Makes Money

Tomita Co., Ltd. generates revenue primarily through the sale of industrial machinery and equipment. The company's key revenue streams include importing machinery from international manufacturers and distributing these products within Japan. Tomita Co., Ltd. may also offer after-sales services, such as maintenance and repair, which contribute to its earnings. Sales are bolstered by partnerships with leading global machinery manufacturers, enabling Tomita Co., Ltd. to offer a comprehensive product lineup meeting diverse customer requirements. The company’s earnings are supported by its extensive distribution network and strong relationships with industrial clients, ensuring consistent demand for its products.

Tomita Co., Ltd. Financial Statement Overview

Summary

Tomita Co., Ltd. exhibits stable financial performance with consistent revenue growth and strong balance sheet fundamentals. The income statement reflects steady profitability, albeit with modest margins. The balance sheet shows 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	21.68B	21.68B	21.31B	20.20B	19.40B	17.32B
Gross Profit	4.13B	4.13B	3.78B	3.59B	3.16B	2.71B
EBITDA	870.56M	1.05B	945.85M	773.14M	788.02M	552.17M
Net Income	628.68M	629.56M	561.24M	462.84M	489.27M	317.12M
Balance Sheet
Total Assets	18.64B	18.64B	18.46B	18.17B	16.26B	15.85B
Cash, Cash Equivalents and Short-Term Investments	6.12B	6.12B	6.23B	7.08B	5.82B	5.31B
Total Debt	165.08M	165.08M	228.71M	322.87M	236.91M	317.23M
Total Liabilities	6.44B	6.44B	6.56B	7.21B	6.04B	6.20B
Stockholders Equity	11.90B	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: Negative
• Last Price: 1170.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Negative. The current price of 1170 is above the 20-day moving average (MA) of 1164.30, below the 50-day MA of 1185.10, and below the 200-day MA of 1313.19, indicating a neutral trend. The MACD of -3.23 indicates Negative momentum. The RSI at 47.16 is Neutral, neither overbought nor oversold. The STOCH value of 68.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:8147.

Tomita Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8077	75 Outperform	¥6.73B	6.55		2.22%	4.59%	39.58%
8089	73 Outperform	¥22.91B	7.23		3.36%	10.01%	47.35%
7417	73 Outperform	¥17.47B	8.24		3.96%	-1.64%	6.18%
9986	69 Neutral	¥14.09B	19.60		4.06%	-7.01%	-30.15%
8147	66 Neutral	¥6.08B	11.87		1.88%	5.28%	-13.61%
Sector *	65 Neutral	$2.70B	14.70	12.10%	3.45%	2.94%	43.39%
7624	59 Neutral	¥7.67B	20.89		2.88%	0.66%	41.70%