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TONE Co. Ltd.
(5967)
Select Model
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Rating:71Outperform
Price Target:
¥529.00
▲(9.98% Upside)
Action:Upgraded
Date:07/11/26
The score is driven primarily by solid financial performance, including strong profitability and a 2026 cash flow rebound, tempered by higher leverage and historical cash-flow volatility. Valuation is supportive with a low P/E and a moderate dividend yield. Technicals are mixed: constructive short-term trend but still below the 200-day moving average, keeping momentum from scoring higher.
Positive Factors
Profitability Improvement
Net margin improved meaningfully in 2026, indicating better pricing power or operational efficiency. Sustained higher margins strengthen the firm’s ability to fund capex, dividends and investments, and provide a durable buffer versus cyclical demand swings in industrial tooling.
Negative Factors
Rising Leverage
A pronounced jump in debt in 2026 reduces balance-sheet flexibility and raises refinancing and interest-rate exposure. Even with debt below equity, rapid leverage growth elevates solvency risk and can constrain capital allocation if earnings or cash flow weaken over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability Improvement
Net margin improved meaningfully in 2026, indicating better pricing power or operational efficiency. Sustained higher margins strengthen the firm’s ability to fund capex, dividends and investments, and provide a durable buffer versus cyclical demand swings in industrial tooling.
Read all positive factors
TONE Co. Ltd. (5967) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥10.67B
Dividend Yield2.86%
Average Volume (3M)19.88K
Price to Earnings (P/E)9.3
Beta (1Y)0.31
Revenue Growth3.53%
EPS Growth40.08%
CountryJP
Employees149
SectorGeneral
Sector StrengthN/A
IndustryManufacturing - Tools & Accessories
Share Statistics
EPS (TTM)48.93
Shares Outstanding23,426,000
10 Day Avg. Volume28,920
30 Day Avg. Volume19,880
Financial Highlights & Ratios
PEG Ratio0.23
Price to Book (P/B)0.77
Price to Sales (P/S)1.24
P/FCF Ratio4.46
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
TONE Co. Ltd. Business Overview & Revenue Model
Company Description
Tone Co., Ltd. is a prominent global entity that designs, manufactures, and distributes a comprehensive range of professional tools under its proprietary TONE brand. The company’s core offerings include advanced hand tools, robust power tools, and...
How the Company Makes Money
TONE Co., Ltd. makes money primarily by manufacturing and selling professional hand tools and related accessories. Revenue is generated through (1) sales of core hand-tool products (such as tightening/fastening tool categories and tool sets) to pr...
TONE Co. Ltd. Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
70
Positive
Cash Flow
66
Positive
| Breakdown | May 2025 | May 2024 | May 2023 | May 2022 | May 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 7.86B | 7.59B | 7.58B | 6.80B | 6.45B |
| Gross Profit | 3.27B | 2.96B | 3.13B | 3.03B | 2.74B |
| EBITDA | 1.51B | 1.16B | 1.25B | 1.34B | 1.11B |
| Net Income | 1.09B | 787.05M | 942.67M | 866.63M | 692.50M |
Balance Sheet | |||||
| Total Assets | 18.11B | 14.67B | 15.02B | 11.48B | 10.12B |
| Cash, Cash Equivalents and Short-Term Investments | 5.87B | 1.91B | 2.25B | 1.84B | 1.70B |
| Total Debt | 3.77B | 1.80B | 2.21B | 1.25M | 102.19M |
| Total Liabilities | 5.45B | 3.37B | 4.35B | 1.76B | 1.60B |
| Stockholders Equity | 12.66B | 11.30B | 10.67B | 9.73B | 8.51B |
Cash Flow | |||||
| Free Cash Flow | 2.19B | 239.64M | -1.20B | 150.75M | 79.62M |
| Operating Cash Flow | 2.26B | 629.23M | -760.04M | 382.33M | 770.39M |
| Investing Cash Flow | -724.32M | -352.75M | -549.50M | -238.06M | -1.35B |
| Financing Cash Flow | 1.61B | -607.33M | 1.70B | -13.40M | -112.24M |
TONE Co. Ltd. Technical Analysis
Negative
481.00
Price Trends
474.42
Negative
463.78
Negative
473.62
Negative
Market Momentum
-3.77
Positive
39.30
Neutral
8.26
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5967, the sentiment is Negative. The current price of 481 is above the 20-day moving average (MA) of 468.45, above the 50-day MA of 474.42, and above the 200-day MA of 473.62, indicating a bearish trend. The MACD of -3.77 indicates Positive momentum. The RSI at 39.30 is Neutral, neither overbought nor oversold. The STOCH value of 8.26 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5967.
TONE Co. Ltd. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | ¥6.56B | 8.32 | ― | 2.90% | -3.85% | 188.71% | |
75 Outperform | ¥20.17B | 11.55 | ― | 3.72% | 7.28% | 33.22% | |
72 Outperform | ¥1.41T | 15.98 | ― | 2.90% | 6.94% | 3.00% | |
71 Outperform | ¥10.67B | 9.30 | ― | 2.86% | 3.53% | 40.08% | |
62 Neutral | ¥4.50B | 72.17 | ― | 3.58% | 6.17% | ― | |
58 Neutral | ¥264.39B | 25.46 | ― | 1.10% | 39.69% | 58.96% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
JP:5967
TONE Co. Ltd.
455.00
-118.77
-20.70%
JP:5966
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Makita Corporation
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224.03
4.52%
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.