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Tokuden Co., Ltd.
(3437)
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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)
Market Cap
¥4.31B
Dividend Yield3.67%
Average Volume (3M)1.58K
Price to Earnings (P/E)9.9
Beta (1Y)0.46
Revenue Growth-0.31%
EPS Growth-12.36%
CountryJP
Employees268
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)277.01
Shares Outstanding1,602,000
10 Day Avg. Volume3,970
30 Day Avg. Volume1,576
Financial Highlights & Ratios
PEG Ratio-4.37
Price to Book (P/B)0.58
Price to Sales (P/S)0.41
P/FCF Ratio24.73
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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
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Tokuden Co., Ltd. Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
78
Positive
Cash Flow
56
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 10.84B | 10.92B | 10.54B | 9.59B | 9.70B | 8.62B |
| Gross Profit | 2.81B | 2.82B | 2.81B | 2.67B | 2.79B | 2.42B |
| EBITDA | 953.49M | 1.00B | 998.59M | 754.16M | 1.07B | 794.03M |
| Net Income | 438.24M | 457.02M | 467.39M | 379.60M | 696.51M | 486.02M |
Balance Sheet | ||||||
| Total Assets | 11.84B | 11.92B | 11.96B | 11.62B | 10.98B | 9.68B |
| Cash, Cash Equivalents and Short-Term Investments | 2.73B | 2.13B | 1.70B | 1.99B | 2.47B | 3.36B |
| Total Debt | 1.66B | 1.68B | 1.28B | 886.66M | 671.58M | 141.40M |
| Total Liabilities | 3.88B | 4.02B | 4.31B | 4.36B | 4.04B | 3.43B |
| Stockholders Equity | 7.90B | 7.84B | 7.60B | 7.20B | 6.89B | 6.21B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 182.83M | -444.46M | -576.07M | -1.50B | 780.75M |
| Operating Cash Flow | 0.00 | 534.57M | -107.98M | 308.61M | 85.07M | 862.15M |
| Investing Cash Flow | 0.00 | -358.76M | -429.80M | -894.94M | -944.43M | 118.88M |
| Financing Cash Flow | 0.00 | 240.97M | 250.01M | 101.49M | 473.26M | 8.58M |
Tokuden Co., Ltd. Technical Analysis
Negative
2737.00
Price Trends
2702.14
Positive
2809.62
Negative
2955.23
Negative
Market Momentum
6.91
Positive
48.84
Neutral
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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | ¥5.05B | 9.11 | ― | 2.78% | 5.01% | 107.04% | |
73 Outperform | ¥6.56B | 9.89 | ― | 6.61% | -9.72% | -26.73% | |
70 Outperform | ¥4.31B | 9.93 | ― | 3.06% | -0.31% | -12.36% | |
66 Neutral | ¥6.46B | 3.60 | ― | 1.37% | -2.81% | 186.98% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | ¥4.56B | 19.11 | ― | 1.64% | -8.26% | -0.57% | |
57 Neutral | ¥5.91B | 82.06 | ― | 2.10% | -7.90% | ― |
* Industrials Sector Average
JP:3437
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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.