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Union Tool Co. (JP:6278)
:6278
Japanese Market
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Union Tool Co. (6278) Price & Analysis

1 Followers

6278 Stock Chart & Stats

¥9030.00
¥85.00(1.74%)
At close: 4:00 PM EST
¥9030.00
¥85.00(1.74%)

Bulls Say, Bears Say

Bulls Say
High And Stable Profitability MarginsSustained gross margins near 40% and EBIT margins ~21–22% indicate durable pricing power and manufacturing efficiency. These margins create structural profit resilience, funding reinvestment and supporting consistent cash generation across cycles, strengthening long-term competitiveness.
Exceptionally Conservative, Debt-free Balance SheetNear-zero debt and rising equity provide significant financial flexibility and downside protection. A debt-free balance sheet enables discretionary capital allocation—capex, M&A or dividends—without refinancing risk, improving the firm's ability to navigate downturns over the medium term.
Consistent Operating Cash GenerationOperating cash flow that consistently exceeds net income signals earnings quality and internal funding capability. Reliable OCF supports reinvestment and working-capital needs, reducing reliance on external financing and helping sustain growth initiatives over multiple quarters.
Bears Say
Free Cash Flow Collapsed In 2025A near-zero free cash flow outcome in 2025—just ~1% of net income—signals heavy reinvestment or working-capital strain. If persistent, low FCF constrains shareholder returns, raises funding needs for growth, and increases sensitivity to cyclical downturns and capex timing over the medium term.
Revenue And Margin CyclicalityObserved revenue declines and margin compression in prior years highlight end-market cyclicality for tooling. Such volatility complicates forecasting and capital allocation, forcing management to maintain buffers and potentially defer investment or returns during downturns, raising medium-term execution risk.
Low ROE Upside Due To Minimal LeverageAn extremely conservative capital structure reduces financial leverage benefits and can cap return on equity compared with peers using moderate debt. Over time, unless excess equity is deployed into higher-return projects or the capital mix is adjusted, shareholder returns may lag more efficiently geared competitors.

Union Tool Co. News

6278 FAQ

What was Union Tool Co.’s price range in the past 12 months?
Union Tool Co. lowest stock price was ¥5650.00 and its highest was ¥27150.00 in the past 12 months.
    What is Union Tool Co.’s market cap?
    Union Tool Co.’s market cap is ¥298.01B.
      When is Union Tool Co.’s upcoming earnings report date?
      Union Tool Co.’s upcoming earnings report date is Aug 06, 2026 which is in 16 days.
        How were Union Tool Co.’s earnings last quarter?
        Union Tool Co. released its earnings results on May 13, 2026. The company reported ¥163.78 earnings per share for the quarter, missing the consensus estimate of N/A by N/A.
          Is Union Tool Co. overvalued?
          According to Wall Street analysts Union Tool Co.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium
            Does Union Tool Co. pay dividends?
            Union Tool Co. pays a Semiannually dividend of ¥65 which represents an annual dividend yield of 0.78%. See more information on Union Tool Co. dividends here
              What is Union Tool Co.’s EPS estimate?
              Union Tool Co.’s EPS estimate for its next earnings report is not yet available.
              How many shares outstanding does Union Tool Co. have?
              Union Tool Co. has 19,780,000 shares outstanding.
                What happened to Union Tool Co.’s price movement after its last earnings report?
                Union Tool Co. reported an EPS of ¥163.78 in its last earnings report, missing expectations of N/A. Following the earnings report the stock price went down -1.608%.
                  Which hedge fund is a major shareholder of Union Tool Co.?
                  Currently, no hedge funds are holding shares in JP:6278
                  What is the TipRanks Smart Score and how is it calculated?
                  Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

                    Company Description

                    Union Tool Co.

                    Union Tool Co. manufactures and distributes a diverse range of cutting implements, linear motion systems, and machinery for metal processing, catering to both the Japanese domestic market and international clients. Their extensive product line features drills and routers specifically designed for printed circuit boards (PCBs), alongside specialized PCB tooling equipment such as MDP drill pointers, ring setting devices, non-contact drill diameter and measuring instruments, and spindle run-out measurement systems. The company also provides carbide end mills, precision measuring apparatus, rolling dies, forging implements, and coating rods. Additionally, Union Tool Co. develops sensor technologies, including portable medical electrocardiographs, wearable heart rate monitors, analytical software, and various monitoring devices. Originally founded in 1955 as Union Chemical Research Co., Ltd., the firm officially became Union Tool Co. in 1971, and its corporate headquarters are located in Tokyo, Japan.

                    Union Tool Co. (6278) Earnings & Revenues

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