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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
Strong Profitability MarginsSustained gross margins near 40% and EBIT margins above 20% indicate durable product-level pricing power and operational efficiency. Over a multi-quarter horizon these margins support resilience through cycles, enable reinvestment in tooling R&D, and underpin sustainable cash generation when conversion normalizes.
Exceptionally Conservative Balance SheetEffectively debt-free financials give the company long-term flexibility to fund capex, R&D, or weather sector downturns without refinancing risk. This conservatism lowers solvency risk and preserves strategic optionality for acquisitions or targeted leverage if management opts to enhance returns.
Diversified Industrial End‑markets And Technical ReputationServing multiple industrial sectors and specializing in precision carbide and PCB tools provides durable demand breadth. A reputation for technical innovation and high-quality products supports repeat B2B sales, distributor relationships, and export resilience across varying regional manufacturing cycles.
Bears Say
Poor Free Cash Flow Conversion In 2025A collapse of FCF to near zero despite positive earnings signals working-capital strain or heavy reinvestment that materially reduces distributable cash. If persistent, this limits shareholder returns, constrains buybacks/dividends, and reduces buffer for capex or strategic investments over the next several quarters.
Revenue And Margin CyclicalityHistorical swings in sales and margins show exposure to cyclical end markets and mix shifts. Such volatility complicates multi-period planning, may force countercyclical pricing or fixed-cost absorption, and raises the probability of earnings and cash surprises during industry slowdowns.
Very Low Leverage Limits ROE UpsideExtremely conservative capital structure reduces financial risk but also caps return on equity. With ROE in mid-to-high single digits, shareholder returns could lag more efficiently levered peers absent higher organic margin expansion or opportunistic capital redeployment to uplift ROE over the medium term.

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 ¥4525.00 and its highest was ¥24100.00 in the past 12 months.
    What is Union Tool Co.’s market cap?
    Union Tool Co.’s market cap is ¥403.56B.
      When is Union Tool Co.’s upcoming earnings report date?
      Union Tool Co.’s upcoming earnings report date is Aug 11, 2026 which is in 67 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, beating the consensus estimate of N/A by ¥163.78.
          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 1.17%. 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, beating 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. produces and sells cutting tools, linear motion products, and metal machining equipment in Japan and internationally. It offers printed circuit board (PCB) drills/routers; PCB tools-related equipment, such as MDP drill pointers, ring setting machines, non-contact drill diameter/measuring machines, and spindle run out measuring machines; carbide end mills; measuring instruments; rolling dies, forging tools, and coating rods; sensor products, including medical portable electrocardiograph, wearable heart rate sensors, analysis tools, and watching products. The company was formerly known as Union Chemical Research Co., Ltd. and changed its name to Union Tool Co. in 1971. Union Tool Co. was founded in 1955 and is headquartered in Tokyo, Japan.

                    Union Tool Co. (6278) Earnings & Revenues

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