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Union Tool Co.
(6278)
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Rating:64Neutral
Price Target:
¥15,376.00
▲(70.28% Upside)
Action:Reiterated
Date:08/06/26
The score is driven primarily by strong underlying fundamentals—high and consistent margins and a fortress balance sheet with zero debt—tempered by a sharp deterioration in 2025 free cash flow. Technical indicators are currently weak, and valuation is a meaningful headwind given the high P/E and low dividend yield.
Positive Factors
Strong and consistent profitability
Sustained gross and EBIT margins indicate pricing power, efficient operations, and a resilient earnings model. This profitability provides internal funding capacity and should remain supportive over the next several quarters if demand remains stable.
Negative Factors
Sharp deterioration in free cash flow
Near-breakeven free cash flow despite strong reported profits signals heavy reinvestment and/or working-capital drag. If persistent, weaker cash conversion could constrain shareholder returns and reduce the earnings quality investors can rely on.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong and consistent profitability
Sustained gross and EBIT margins indicate pricing power, efficient operations, and a resilient earnings model. This profitability provides internal funding capacity and should remain supportive over the next several quarters if demand remains stable.
Read all positive factors
Union Tool Co. (6278) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥257.57B
Dividend Yield1.09%
Average Volume (3M)308.49K
Price to Earnings (P/E)26.1
Beta (1Y)1.57
Revenue Growth39.69%
EPS Growth58.96%
CountryJP
Employees1,530
SectorIndustrials
Sector Strength72
IndustryManufacturing - Tools & Accessories
Share Statistics
EPS (TTM)516.41
Shares Outstanding19,780,000
10 Day Avg. Volume229,350
30 Day Avg. Volume308,493
Financial Highlights & Ratios
PEG Ratio1.54
Price to Book (P/B)1.84
Price to Sales (P/S)3.67
P/FCF Ratio1.94K
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)641.75
Revenue Forecast (FY)¥57.50B
Union Tool Co. Business Overview & Revenue Model
Company Description
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 fea...
Union Tool Co. Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
95
Very Positive
Cash Flow
62
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 48.97B | 40.16B | 32.61B | 25.34B | 29.09B | 28.17B |
| Gross Profit | 20.36B | 16.04B | 13.10B | 8.94B | 11.52B | 10.55B |
| EBITDA | 16.20B | 11.65B | 9.82B | 6.76B | 10.01B | 7.87B |
| Net Income | 9.22B | 6.11B | 5.28B | 3.08B | 5.00B | 3.80B |
Balance Sheet | ||||||
| Total Assets | 131.34B | 88.20B | 78.86B | 70.61B | 69.14B | 64.53B |
| Cash, Cash Equivalents and Short-Term Investments | 47.70B | 18.11B | 18.13B | 20.07B | 20.97B | 17.58B |
| Total Debt | 219.00M | 0.00 | 427.00M | 186.00M | 890.00M | 313.00M |
| Total Liabilities | 11.78B | 8.20B | 5.72B | 3.32B | 5.51B | 5.47B |
| Stockholders Equity | 119.56B | 80.00B | 73.14B | 67.28B | 63.63B | 59.06B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 76.00M | 3.18B | 228.00M | 4.18B | 3.21B |
| Operating Cash Flow | 0.00 | 7.51B | 7.28B | 4.69B | 6.71B | 5.83B |
| Investing Cash Flow | 0.00 | -6.80B | -7.27B | -5.01B | -1.96B | -3.16B |
| Financing Cash Flow | 0.00 | -2.26B | -1.68B | -1.61B | -1.55B | -1.44B |
Union Tool Co. Technical Analysis
Negative
9030.00
Price Trends
17663.99
Negative
18908.14
Negative
15010.31
Negative
Market Momentum
-1149.82
Positive
34.13
Neutral
10.43
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6278, the sentiment is Negative. The current price of 9030 is below the 20-day moving average (MA) of 15272.50, below the 50-day MA of 17663.99, and below the 200-day MA of 15010.31, indicating a bearish trend. The MACD of -1149.82 indicates Positive momentum. The RSI at 34.13 is Neutral, neither overbought nor oversold. The STOCH value of 10.43 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6278.
Union Tool Co. Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | ¥330.30B | 14.39 | 11.26% | 2.47% | 12.95% | 66.36% | |
75 Outperform | ¥20.42B | 11.74 | ― | 3.31% | 7.28% | 33.22% | |
70 Outperform | ¥235.86B | 12.25 | ― | 2.33% | 23.70% | 56.28% | |
64 Neutral | ¥257.57B | 26.10 | ― | 1.17% | 39.69% | 58.96% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | ¥129.15B | 17.85 | 3.95% | 2.30% | 3.28% | 58.68% | |
43 Neutral | ¥13.92B | -0.51 | ― | ― | -1.43% | -1450.24% |
* Industrials Sector Average
JP:6278
Union Tool Co.
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Union Tool Co. Corporate Events
Union Tool Delivers Strong Half-Year Profits and Hikes Dividend
Aug 6, 2026
Union Tool Co. reported a sharp improvement in its semi-annual results for the period ended June 2026, with net sales rising 48.3% year on year to ¥27.1 billion and operating profit jumping 81.4% to ¥7.6 billion. Ordinary profit more tha...
Union Tool Lifts Full-Year Outlook and Dividends on AI-Driven Demand Surge
Aug 6, 2026
Union Tool reported that first-half FY2026 results far outpaced its earlier guidance, with net sales, operating profit and profit attributable to owners of the parent all significantly above forecast, helped by robust overseas demand for server pa...
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.