Tsugami Corp. (6101) AI Stock Analysis

Tsugami Corp.

(TSE/TYO:6101)

Select Model

Rating:73Outperform

Price Target:JPY 4,806.00▲(10.99% Upside)

Action:upgraded

Date:10/21/26

The score is driven primarily by strong financial performance (higher margins, low leverage, solid free cash flow) and a supportive valuation (P/E ~11.3 with a ~2.1% yield). These positives are partially offset by weak technicals, with the price below major moving averages and bearish momentum despite oversold readings.

Positive Factors

Improved profitability and revenueProfitability has strengthened materially while revenue has rebounded, indicating better operating performance and renewed demand for Tsugami’s precision equipment. Higher margins can support internal investment, resilience, and shareholder returns over the next several quarters if the improvement persists.

Negative Factors

Cyclical revenue profileThe uneven revenue history indicates exposure to industrial investment cycles, making demand and earnings less predictable than the latest rebound alone suggests. A weaker manufacturing environment could therefore interrupt growth, reduce capacity utilization, and pressure profitability over the medium term.

Tsugami Corp. (6101) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 199.33B
Dividend Yield: 2.55%
Average Volume (3M): 389.76K
Price to Earnings (P/E): 10.5
Beta (1Y): 1.61
Revenue Growth: 23.70%
EPS Growth: 56.28%
Country: Japan
Employees: 3,515
Sector: Industrials
Sector Strength: 63
Industry: Industrial - Machinery

Tsugami Corp. Business Overview & Revenue Model

Company Description

Tsugami Corporation, established in 1937 and headquartered in Tokyo, Japan, is a prominent manufacturer and distributor of high-precision machine tools. Its extensive product range includes diverse CNC precision automatic lathes, such as independent...

Tsugami Corp. Financial Statement Overview

Summary

Strong overall fundamentals: profitability has improved materially (TTM gross margin ~37%, net margin ~13%) with sales up ~8.7% TTM, and the balance sheet is conservative with low leverage (debt-to-equity ~0.11) and higher ROE (~23%). Main risks are cyclicality in revenue and the chance recent margin/return expansion is peak-cycle, alongside some variability in cash conversion (operating cash flow-to-net income ~0.70) and slightly negative TTM FCF growth (~-1.4%).

Income Statement

86Very Positive

Balance Sheet

88Very Positive

Cash Flow

78Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	140.36B	129.14B	107.41B	83.93B	94.96B	93.17B
Gross Profit	52.87B	47.97B	36.35B	23.67B	26.76B	28.18B
EBITDA	42.91B	38.86B	26.26B	16.21B	19.19B	21.00B
Net Income	19.06B	16.75B	10.90B	5.38B	7.70B	9.49B
Balance Sheet
Total Assets	164.40B	154.06B	127.31B	117.71B	112.36B	103.76B
Cash, Cash Equivalents and Short-Term Investments	44.90B	42.18B	27.81B	30.64B	25.81B	18.87B
Total Debt	9.25B	9.17B	11.89B	17.20B	18.04B	13.59B
Total Liabilities	47.34B	47.58B	43.19B	45.35B	47.44B	45.92B
Stockholders Equity	87.14B	80.10B	62.90B	56.60B	50.95B	45.58B
Cash Flow
Free Cash Flow	26.14B	26.51B	6.83B	9.46B	7.11B	3.36B
Operating Cash Flow	27.74B	28.60B	8.86B	11.88B	8.30B	6.30B
Investing Cash Flow	-6.46B	-7.53B	-3.33B	-3.19B	-1.28B	-3.01B
Financing Cash Flow	-11.20B	-10.48B	-7.45B	-6.11B	-379.00M	-3.51B

Tsugami Corp. Technical Analysis

Technical Analysis SentimentNegative

Last Price4330.00

Price Trends

50DMA5127.20Negative

100DMA5996.35Negative

200DMA5037.80Negative

Market Momentum

MACD-263.52Positive

RSI33.16Neutral

STOCH33.85Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6101, the sentiment is Negative. The current price of 4330.00 is below the 20-day moving average (MA) of 5080.25, below the 50-day MA of 5127.20, and below the 200-day MA of 5037.80, indicating a bearish trend. The MACD of -263.52 indicates Positive momentum. The RSI at 33.16 is Neutral, neither overbought nor oversold. The STOCH value of 33.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6101.

Tsugami Corp. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

JP:6101 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:9962	76Outperform	JPY 1.05T	20.31	13.63%	1.75%	24.26%	64.65%
JP:6101	73Outperform	JPY 195.24B	10.47	―	2.55%	23.70%	56.28%
JP:6136	70Outperform	JPY 324.83B	11.11	13.79%	2.82%	20.29%	99.83%
JP:6278	70Outperform	JPY 239.25B	23.78	―	1.18%	39.69%	58.96%
JP:6474	64Neutral	JPY 127.48B	14.24	4.67%	1.87%	8.26%	102.64%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
JP:6141	52Neutral	JPY 427.08B	40.26	4.06%	3.84%	19.84%	-58.57%

* Industrials Sector Average

Performance Comparison

JP:6101 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:6101	Tsugami Corp.	4310.00	1644.70	61.71%
JP:6141	DMG MORI CO	2736.00	178.11	6.96%
JP:9962	Misumi Group	3925.00	1671.64	74.18%
JP:6136	OSG Corp	3508.00	1366.98	63.85%
JP:6474	Nachi-Fujikoshi Corp.	5360.00	1463.89	37.57%
JP:6278	Union Tool Co.	12280.00	4003.86	48.38%

Tsugami Corp. Corporate Events

Tsugami to Cancel 1.5 Million Treasury Shares, Tightening Share Base

Oct 20, 2026

Tsugami Corporation’s board has approved the cancellation of 1,500,000 shares of its common stock, representing 3.13% of the company’s issued shares, as part of a capital management initiative. The cancellation, scheduled for October 27,...

Tsugami Lifts Interim Forecasts and Dividend on Strong First-Half Performance

Oct 20, 2026

Tsugami Corporation has raised its consolidated forecast for the six months ended September 30, 2026, citing stronger-than-expected performance across its global operations despite market uncertainty. The company now expects revenue of ¥81.2 bil...

Tsugami Keeps Powder Dry on Newly Authorized Share Buyback

Oct 2, 2026

Tsugami Corporation has reported the status of its authorized share buyback program, approved by the board on September 11, 2026 under Article 459 of the Companies Act, which allows the firm to repurchase up to 300 thousand shares, or 0.65% of outsta...

Tsugami Reports Large Dividends from Chinese Subsidiary with No Impact on Consolidated Earnings

Sep 11, 2026

Tsugami Corporation disclosed that it has received substantial surplus dividends from its consolidated subsidiary, Precision Tsugami (China) Corporation Limited, covering the fiscal year ended March 31, 2026 and the fiscal year ending March 31, 2027....

Tsugami Launches New Share Buyback After Near-Maximum Completion of Previous Program

Sep 11, 2026

Tsugami Corporation has completed a previously authorized share buyback program, purchasing 276,000 common shares, or 92% of the approved maximum, for about 1.494 billion yen on the Tokyo Stock Exchange. The company stated that the acquisition level...

Tsugami Nears Completion of ¥1.5 Billion Share Buyback Program

Sep 2, 2026

Tsugami Corporation has reported progress on its ongoing share buyback program authorized by its board in May 2026, under which the company is permitted to repurchase up to 300,000 shares for a maximum of ¥1.5 billion through November 11, 2026....

Tsugami Leaves July Buyback Idle, Keeps ¥1.5 Billion Authorization Intact

Aug 4, 2026

Tsugami Corporation has an authorized share buyback program approved by its board on May 13, 2026, allowing the purchase of up to 300 thousand shares, or 0.65% of outstanding stock excluding treasury shares, for a maximum of ¥1.5 billion via mar...

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: Oct 21, 2026

Tsugami Corp. AI Stock Analysis