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Union Tool Co. (6278) AI Stock Analysis
Union Tool Co.
(TSE/TYO:6278)
The score is primarily supported by strong operating profitability and a fortress balance sheet with minimal leverage. Offsetting these strengths are weak 2025 free-cash-flow conversion (near breakeven) and a relatively expensive valuation (P/E ~31.7 with a sub-1% dividend yield). Technicals are moderately constructive but show signs of being extended near term.
Union Tool Co. (6278) vs. iShares MSCI Japan ETF (EWJ)
- Market Cap
- JPY 239.25B
- Dividend Yield
- 1.18%
- Average Volume (3M)
- 257.14K
- Price to Earnings (P/E)
- 23.8
- Beta (1Y)
- 1.73
- Revenue Growth
- 39.69%
- EPS Growth
- 58.96%
- Country
- Japan
- Employees
- 1,530
- Sector
- Industrials
- Sector Strength
- 63
- Industry
- Manufacturing - Tools & Accessories
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 featur...
Union Tool Co. Financial Statement Overview
Summary
Strong profitability (gross margin ~40%, EBIT margin ~21–22% in 2024–2025) and an exceptionally conservative balance sheet with near-zero leverage and debt falling to zero in 2025 support a high score. The key offset is cash-flow quality: free cash flow collapsed to near breakeven in 2025 (~¥0.08B, ~1% of net income), indicating weaker cash conversion despite solid earnings.
Income Statement
86Very PositiveBalance Sheet
95Very PositiveCash Flow
62Positive| 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 | 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 | 76.00M | 3.18B | 228.00M | 4.18B | 3.21B |
| Operating Cash Flow | 0 | 7.51B | 7.28B | 4.69B | 6.71B | 5.83B |
| Investing Cash Flow | 0 | -6.80B | -7.27B | -5.01B | -1.96B | -3.16B |
| Financing Cash Flow | 0 | -2.26B | -1.68B | -1.61B | -1.55B | -1.44B |
Union Tool Co. Technical Analysis
Price Trends
Market Momentum
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 12280.00 is below the 20-day moving average (MA) of 14357.00, below the 50-day MA of 14145.20, and below the 200-day MA of 16052.36, indicating a bearish trend. The MACD of -625.21 indicates Positive momentum. The RSI at 38.11 is Neutral, neither overbought nor oversold. The STOCH value of 46.37 is Neutral, 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
Overall Rating
JP:615775Outperform
JP:610172Outperform- JP:627872Outperform
JP:613670Outperform
JP:647464Neutral
JP:646438Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| JP:6157 | 75Outperform | JPY 19.59B | 11.24 | ― | 3.82% | 7.28% | 33.22% |
| JP:6101 | 72Outperform | JPY 195.24B | 10.47 | ― | 2.55% | 23.70% | 56.28% |
| JP:6278 | 72Outperform | JPY 239.25B | 23.78 | ― | 1.18% | 39.69% | 58.96% |
| JP:6136 | 70Outperform | JPY 324.83B | 11.11 | 13.79% | 2.82% | 20.29% | 99.83% |
| 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:6464 | 38Underperform | JPY 11.69B | -0.43 | ― | ― | -1.43% | -1450.24% |
* Industrials Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| JP:6278 | Union Tool Co. | 12280.00 | 4162.06 | 51.27% | |
| JP:6136 | OSG Corp | 3508.00 | 1353.02 | 62.79% | |
| JP:6474 | Nachi-Fujikoshi Corp. | 5360.00 | 1507.77 | 39.14% | |
| JP:6101 | Tsugami Corp. | 4310.00 | 1636.89 | 61.24% | |
| JP:6157 | NS Tool Co., Ltd. | 785.00 | 45.94 | 6.22% | |
| JP:6464 | Tsubaki Nakashima Co., Ltd | 288.00 | -104.00 | -26.53% |
Union Tool Co. Corporate Events
Union Tool Launches Major Factory Expansion in Niigata
Union Tool Co. has approved the construction of its Mitsuke No. 4 Factory in Shinko-cho, Mitsuke-shi, Niigata Prefecture, adding a two-story, 6,600-square-meter building on the site where its existing Mitsuke facilities are located. The project is in...
Union Tool Delivers Strong Half-Year Profits and Hikes Dividend
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 than d...
Union Tool Lifts Full-Year Outlook and Dividends on AI-Driven Demand Surge
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 packa...
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 03, 2026