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Tokuden Co., Ltd. (JP:3437)
:3437
Japanese Market
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Tokuden Co., Ltd. (3437) AI Stock Analysis

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JP:3437

Tokuden Co., Ltd.

(3437)

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Outperform 70 (OpenAI - 5.2)
Rating:70Outperform
Price Target:
¥3,025.00
▲(10.52% Upside)
Action:Upgraded
Date:08/17/26
The score is driven primarily by solid financial performance (fast recent revenue growth and manageable leverage), supported by attractive valuation (low P/E and healthy dividend yield). This is partially offset by weaker quality of cash generation (historically volatile free cash flow) and a mixed technical picture with the price still below longer-term moving averages.
Positive Factors
Revenue re-acceleration
Sustained double-digit top-line growth across 2025-26 signals durable demand recovery and stronger order flow. This expands the underlying earnings base, supports scale economics over the medium term, and provides runway to fund product support, R&D or selective capex without relying solely on external financing.
Negative Factors
Margin compression
Material decline in margins from 2023 levels suggests rising input costs, weaker pricing power, or structural mix shifts that reduce profitability. If cost pressures persist or pricing remains constrained, revenue gains may not translate into durable earnings growth, limiting return on capital and financial resiliency over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue re-acceleration
Sustained double-digit top-line growth across 2025-26 signals durable demand recovery and stronger order flow. This expands the underlying earnings base, supports scale economics over the medium term, and provides runway to fund product support, R&D or selective capex without relying solely on external financing.
Read all positive factors

Tokuden Co., Ltd. (3437) vs. iShares MSCI Japan ETF (EWJ)

Tokuden Co., Ltd. Business Overview & Revenue Model

Company Description
Tokuden Co., Ltd. manufactures and sells welding materials in Japan. The company offers flux-cored wires for submerged arc welding and MAG welding, arc welding electrodes for hard facing, wire rods for TIG and MIG welding, agglomerated and fused f...
How the Company Makes Money
null...

Tokuden Co., Ltd. Financial Statement Overview

Summary
Strong recent revenue acceleration (2025: +9.9%, 2026: +37.1%) supports the growth outlook and the balance sheet remains conservatively financed (equity ~¥7.8bn vs. debt ~¥1.7bn). Offsetting this, profitability has compressed from the 2023 peak (net margin ~7.2% to ~4.4% in 2025) and free cash flow has been volatile and often negative, indicating uneven cash conversion.
Income Statement
74
Positive
Balance Sheet
78
Positive
Cash Flow
56
Neutral
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue10.84B10.92B10.54B9.59B9.70B8.62B
Gross Profit2.81B2.82B2.81B2.67B2.79B2.42B
EBITDA953.49M1.00B998.59M754.16M1.07B794.03M
Net Income438.24M457.02M467.39M379.60M696.51M486.02M
Balance Sheet
Total Assets11.84B11.92B11.96B11.62B10.98B9.68B
Cash, Cash Equivalents and Short-Term Investments2.73B2.13B1.70B1.99B2.47B3.36B
Total Debt1.66B1.68B1.28B886.66M671.58M141.40M
Total Liabilities3.88B4.02B4.31B4.36B4.04B3.43B
Stockholders Equity7.90B7.84B7.60B7.20B6.89B6.21B
Cash Flow
Free Cash Flow0.00182.83M-444.46M-576.07M-1.50B780.75M
Operating Cash Flow0.00534.57M-107.98M308.61M85.07M862.15M
Investing Cash Flow0.00-358.76M-429.80M-894.94M-944.43M118.88M
Financing Cash Flow0.00240.97M250.01M101.49M473.26M8.58M

Tokuden Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price2737.00
Price Trends
50DMA
2702.14
Positive
100DMA
2809.62
Negative
200DMA
2955.23
Negative
Market Momentum
MACD
6.91
Positive
RSI
48.84
Neutral
STOCH
28.18
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3437, the sentiment is Negative. The current price of 2737 is above the 20-day moving average (MA) of 2734.50, above the 50-day MA of 2702.14, and below the 200-day MA of 2955.23, indicating a neutral trend. The MACD of 6.91 indicates Positive momentum. The RSI at 48.84 is Neutral, neither overbought nor oversold. The STOCH value of 28.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3437.

Tokuden Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
¥5.05B9.112.78%5.01%107.04%
73
Outperform
¥6.56B9.896.61%-9.72%-26.73%
70
Outperform
¥4.31B9.933.06%-0.31%-12.36%
66
Neutral
¥6.46B3.601.37%-2.81%186.98%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
63
Neutral
¥4.56B19.111.64%-8.26%-0.57%
57
Neutral
¥5.91B82.062.10%-7.90%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3437
Tokuden Co., Ltd.
2,750.00
43.74
1.62%
JP:2795
Nippon Primex Inc.
964.00
101.34
11.75%
JP:6155
Takamatsu Machinery Co., Ltd.
541.00
53.33
10.94%
JP:6360
Tokyo Automatic Machinery Works, Ltd.
4,650.00
1,471.50
46.30%
JP:6408
Ogura Clutch Co., Ltd.
4,380.00
516.68
13.37%
JP:7021
Nitchitsu Co., Ltd.
2,204.00
266.27
13.74%

Tokuden Co., Ltd. Corporate Events

Tokuden Posts Softer Q1 Earnings but Maintains Solid Balance Sheet
Aug 7, 2026
Tokuden Co., Ltd. reported a slight year-on-year decline in performance for the first quarter of the fiscal year ending March 2027, with net sales slipping 2.7% to ¥2,647 million and operating profit down 12.5% to ¥156 million. Ordinary ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 17, 2026