Tokai Senko K.K. (3577) AI Stock Analysis

• Market Cap: ¥2.92B
• Dividend Yield: 2.78%
• Average Volume (3M): 8.07K
• Price to Earnings (P/E): 9.1
• Beta (1Y): 0.34
• Revenue Growth: 8.57%
• EPS Growth: 140.21%
• Country: JP
• Employees: 777
• Sector: Consumer Cyclical
• Sector Strength: 70
• Industry: Apparel - Manufacturers
• EPS (TTM): 92.34
• Shares Outstanding: 3,614,252
• 10 Day Avg. Volume: 5,990
• 30 Day Avg. Volume: 8,073
• PEG Ratio: 0.24
• Price to Book (P/B): 0.43
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: N/A
• Number of Analyst Covering: 0

• Rating: 68 Neutral
• Price Target: ¥985.00 ▲(11.80%Upside)

The overall stock score of Tokai Senko K.K. is mainly driven by its solid financial performance and attractive valuation. The company's strong revenue growth and cash flow generation are significant strengths. However, short-term technical indicators suggest weak momentum, which slightly offsets the positives.

Tokai Senko K.K. Business Overview & Revenue Model

Company Description

Tokai Senko K.K. (3577) is a Japan-based company primarily engaged in the textile industry. The company specializes in the dyeing, processing, and sale of various textile products. Tokai Senko K.K. focuses on providing high-quality dyed and processed fabrics, catering to a diverse range of customers in the textile sector.

How the Company Makes Money

Tokai Senko K.K. generates revenue through the sale of dyed and processed textile products. The company earns money by offering its expertise in fabric dyeing and processing to manufacturers and retailers in the textile industry. Key revenue streams include contracts with apparel manufacturers, wholesalers, and retail brands requiring custom textile solutions. Additionally, the company's specialized services in textile processing allow it to maintain strong relationships with clients, ensuring a steady demand for its products. Tokai Senko K.K. may also engage in strategic partnerships or collaborations to enhance its market presence and expand its service offerings.

Tokai Senko K.K. Financial Statement Overview

Summary

Tokai Senko K.K. has shown positive revenue growth and efficient cost management. The company's balance sheet is strong, with a good equity position and manageable debt levels. However, liquidity issues and moderate profitability margins suggest areas for improvement.

Income Statement

Tokai Senko K.K. has demonstrated a positive revenue growth trajectory, with a TTM revenue improvement of approximately 4.12% compared to the previous annual period. The company's gross profit margin is solid at 14.49%, indicating good cost management. However, the net profit margin is moderate at 2.38%, suggesting room for improvement in profitability. The EBIT and EBITDA margins are 2.47% and 7.09% respectively, showing a steady operating efficiency.

Balance Sheet

The company maintains a healthy balance sheet with an equity ratio of 46.39%, indicating a strong equity position relative to total assets. The debt-to-equity ratio is modest at 0.36, reflecting manageable leverage levels. Return on equity is 4.71%, which shows a reasonable return on shareholder investments, although it could be enhanced for better performance.

Cash Flow

Cash flow statements reveal some areas of concern, primarily due to the absence of data for TTM figures. The previous annual report demonstrates a free cash flow growth rate of 402.45%, indicating strong cash generation capabilities. However, the operating cash flow to net income ratio was negative due to zero operating cash flow reported in the latest period, highlighting potential liquidity issues.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
13.76B	13.22B	13.06B	11.14B	10.62B	14.01B
	Gross Profit
1.99B	1.65B	1.54B	1.50B	1.37B	2.36B
	EBIT
340.29M	42.96M	51.86M	73.36M	-148.38M	617.73M
	EBITDA
975.75M	781.40M	623.25M	609.47M	397.93M	312.85M
	Net Income Common Stockholders
327.81M	129.81M	-100.91M	48.49M	-174.33M	-551.15M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.21B	2.68B	2.50B	2.32B	2.27B	2.47B
	Total Assets
15.02B	14.55B	13.94B	13.38B	12.91B	13.93B
	Total Debt
2.51B	2.52B	2.83B	2.65B	2.53B	2.43B
	Net Debt
-707.00M	-164.60M	332.71M	332.56M	255.88M	-46.59M
	Total Liabilities
6.77B	6.54B	6.62B	6.23B	6.05B	6.73B
	Stockholders Equity
6.97B	6.84B	6.23B	6.19B	6.05B	6.16B
Cash Flow		Free Cash Flow
0.00	304.80M	-100.86M	-181.54M	-158.43M	402.03M
	Operating Cash Flow
0.00	531.06M	189.36M	57.18M	319.79M	1.12B
	Investing Cash Flow
0.00	-19.98M	-99.13M	123.23M	-359.96M	-742.97M
	Financing Cash Flow
0.00	-439.78M	26.95M	-49.40M	-114.31M	10.94M

Tokai Senko K.K. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 881.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3577, the sentiment is Negative. The current price of 881 is below the 20-day moving average (MA) of 905.90, below the 50-day MA of 910.62, and above the 200-day MA of 820.40, indicating a neutral trend. The MACD of -7.96 indicates Positive momentum. The RSI at 35.21 is Neutral, neither overbought nor oversold. The STOCH value of 3.06 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3577.

Tokai Senko K.K. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3104	81 Outperform	¥58.13B	12.81		2.48%	18.84%	119.23%
3201	71 Outperform	¥93.12B	11.50		2.79%	5.77%	11.61%
3580	69 Neutral	¥30.65B	9.90		3.44%	8.60%	93.71%
3577	68 Neutral	¥2.92B	9.10		2.78%	8.57%	140.21%
3109	66 Neutral	¥11.90B	13.20		5.23%	1.05%	5.32%
Sector *	62 Neutral	$6.94B	11.29	2.95%	3.87%	2.70%	-24.49%