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THK Co Ltd (JP:6481)
:6481
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THK Co
(6481)
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Rating:63Neutral
Price Target:
¥4,704.00
▲(12.89% Upside)
THK Co's stock score is primarily driven by its stable financial performance and strong technical indicators. The high P/E ratio suggests overvaluation, but the attractive dividend yield offers some compensation. The absence of recent earnings call data and corporate events limits further insights.
THK Co (6481) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥466.79B
Dividend Yield6.11%
Average Volume (3M)771.40K
Price to Earnings (P/E)70.0
Beta (1Y)0.98
Revenue Growth0.85%
EPS Growth-46.23%
CountryJP
Employees13,268
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)29.97
Shares Outstanding119,099,800
10 Day Avg. Volume838,710
30 Day Avg. Volume771,403
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥3,899.25Price Target Upside-6.43% Downside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
THK Co Business Overview & Revenue Model
Company DescriptionTHK Co., Ltd. (6481) is a leading manufacturer and supplier of linear motion systems and components, based in Japan. Established in 1971, the company specializes in motion control technology, offering a wide range of products including linear guides, ball screws, actuators, and other related machinery components. THK serves various sectors such as automotive, semiconductor, medical equipment, and robotics, positioning itself as a key player in the global automation and manufacturing landscape.
How the Company Makes MoneyTHK Co. generates revenue primarily through the sale of its linear motion products, which are essential in various industrial applications. The company's revenue model is built on direct sales to manufacturers and businesses in need of precision motion solutions. Key revenue streams include the sale of linear guides, ball screws, and actuators, which are often sold as standard or customized solutions to meet specific client needs. Additionally, THK engages in providing maintenance and technical support services for its products, contributing to recurring revenue. The company has established significant partnerships with major industrial players, enhancing its market presence and driving sales through collaborations in product development and distribution.
THK Co Earnings Call Summary
Earnings Call Date:Aug 12, 2025
(Q2-2024)
| % Change Since: |
Next Earnings Date:Nov 11, 2025
Earnings Call Sentiment Neutral
The earnings call presents a mixed outlook for THK. While there are notable achievements in areas like the Automotive and Transportation business's profitability and promising growth in the Industrial Machinery sector, as well as sustainability initiatives, the significant declines in sales revenue and operating income, combined with challenges in multiple regions, highlight the company's ongoing struggles.Q2-2024 Updates
Positive Updates
Automotive and Transportation Business Profitability
The Automotive and Transportation business posted an increase in operating income due to efforts aimed at improving profitability, with positive contributions including a volume effect of JPY 0.2 billion, a variable cost ratio effect of JPY 1.2 billion, and an FX impact of JPY 0.5 billion.
Increased Sales in the Americas
Sales in the Americas increased due to the impact of the weaker yen and other factors.
Record Growth in Mobile Robots
SIGNAS, a next-generation transport robot, has been highly acclaimed and won the 2023 JSME Excellent Product Award.
Sustainability and ESG Initiatives
Efforts to become carbon neutral include the installation of new solar power generation equipment, switching to LED lighting, and introducing green electricity at production sites.
Promising Future Growth in Industrial Machinery
Anticipated progress on automation and robotization, and growth for semiconductor and EV-related CapEx are expected to drive future demand in the Industrial Machinery business.
Negative Updates
Decline in Consolidated Sales Revenue
Consolidated sales revenue declined 3.1% year-on-year to JPY 179.8 billion.
Decline in Consolidated Operating Income
Consolidated operating income was down 49% year-on-year to JPY 8.3 billion, affected by the decline in sales revenue and investments for future growth.
Decline in Sales Across Multiple Regions
Sales in Japan, Europe, China, and other Asian regions decreased year-on-year.
Increase in Fixed Costs
In the Industrial Machinery business, a drop in operating income was due to an increase of JPY 0.3 billion in fixed costs, while the Automotive and Transportation business faced an increase in fixed costs of JPY 0.8 billion.
Company Guidance
During the Q2 2024 earnings call, Takashi Teramachi, President and COO of THK, provided an overview of the company's financial performance for the first half of the fiscal year ending December 2024. Consolidated sales revenue declined by 3.1% year-on-year to JPY 179.8 billion, with operating income decreasing by 49% to JPY 8.3 billion. Despite these declines, both metrics exceeded initial targets due to a gradual demand recovery in the Industrial Machinery business and favorable foreign exchange effects. The Automotive and Transportation business saw an improvement in operating income, driven by profitability enhancement efforts, although it faced a JPY 0.8 billion increase in fixed costs and a JPY 0.6 billion decline from the absence of a previous onetime subsidy. Total assets increased by JPY 30.4 billion to JPY 586.7 billion. The company maintained its growth strategy pillars and outlined key initiatives, including a focus on raising ROE and ROIC, expanding the business domain, and reinforcing sustainability and ESG initiatives. THK plans to allocate capital for future growth investments, maintaining a dividend payout ratio of 30%, with potential share buybacks considered when capital is excess.THK Co Financial Statement Overview
Summary
THK Co demonstrates a stable financial foundation with strengths in cost management and a solid capital structure. However, challenges in revenue growth and cash flow efficiency highlight areas for strategic focus. Enhancing profitability and cash generation will be crucial for sustaining long-term growth and shareholder value.Income Statement
THK Co's income statement shows mixed performance. The TTM data indicates a decline in revenue growth rate, suggesting challenges in maintaining sales momentum. However, the company maintains a stable gross profit margin around 23%, indicating efficient cost management. The net profit margin has decreased slightly in the TTM period, reflecting pressure on profitability. EBIT and EBITDA margins have shown some resilience, but the overall trend suggests a need for strategic improvements to boost revenue and profitability.60
Neutral
Balance Sheet
THK Co's balance sheet reflects a stable financial position with a manageable debt-to-equity ratio around 0.34 in the TTM period, indicating prudent leverage management. The equity ratio remains healthy, suggesting a strong capital structure. However, the return on equity has decreased over time, pointing to potential inefficiencies in generating returns from equity investments. Overall, the balance sheet is solid, but there is room for enhancing shareholder returns.70
Positive
Cash Flow
The cash flow statement reveals significant volatility in free cash flow, with a notable improvement in the TTM period. However, the operating cash flow to net income ratio is relatively low, indicating challenges in converting earnings into cash. The free cash flow to net income ratio is also low, suggesting limited cash generation relative to profits. While there are positive signs of cash flow recovery, consistency and efficiency in cash generation remain areas for improvement.55
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 349.15B | 352.76B | 351.94B | 393.69B | 318.19B | 219.00B |
| Gross Profit | 81.34B | 81.78B | 81.63B | 105.29B | 79.75B | 46.43B |
| EBITDA | 41.93B | 41.27B | 47.82B | 56.33B | 48.70B | 9.16B |
| Net Income | 6.95B | 10.44B | 18.40B | 21.20B | 23.01B | -9.99B |
Balance Sheet | ||||||
| Total Assets | 515.51B | 567.42B | 556.35B | 560.30B | 516.09B | 460.17B |
| Cash, Cash Equivalents and Short-Term Investments | 101.53B | 140.29B | 156.49B | 163.84B | 151.43B | 158.85B |
| Total Debt | 108.00B | 96.51B | 118.53B | 120.88B | 112.32B | 113.39B |
| Total Liabilities | 188.60B | 177.62B | 193.45B | 223.02B | 201.80B | 185.03B |
| Stockholders Equity | 323.06B | 383.64B | 357.26B | 331.89B | 304.56B | 266.49B |
Cash Flow | ||||||
| Free Cash Flow | 6.24B | -1.15B | 12.29B | 8.15B | -3.60B | 7.39B |
| Operating Cash Flow | 30.20B | 28.41B | 39.33B | 37.56B | 15.64B | 25.40B |
| Investing Cash Flow | -25.70B | -34.22B | -27.09B | -30.08B | -19.13B | -18.41B |
| Financing Cash Flow | -49.52B | -22.65B | -24.27B | -3.65B | -12.72B | 3.98B |
THK Co Technical Analysis
Neutral
4167.00
Price Trends
4133.28
Negative
4043.66
Positive
3807.07
Positive
Market Momentum
13.71
Positive
43.30
Neutral
8.15
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6481, the sentiment is Neutral. The current price of 4167 is below the 20-day moving average (MA) of 4270.65, above the 50-day MA of 4133.28, and above the 200-day MA of 3807.07, indicating a neutral trend. The MACD of 13.71 indicates Positive momentum. The RSI at 43.30 is Neutral, neither overbought nor oversold. The STOCH value of 8.15 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6481.
THK Co Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | €724.49B | 38.70 | 10.57% | 0.81% | 9.43% | 21.15% | |
70 Outperform | $442.34B | 27.70 | 5.25% | 2.07% | -2.23% | 130.96% | |
70 Outperform | ¥431.72B | 30.66 | ― | 3.00% | 2.84% | -20.37% | |
64 Neutral | ¥513.04B | 151.45 | 0.59% | 3.03% | -2.67% | -85.21% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | ¥466.79B | 70.03 | 2.00% | 6.11% | 0.85% | -46.23% | |
55 Neutral | ¥280.41B | 74.40 | 4.73% | 0.69% | 4.38% | ― |
* Industrials Sector Average
JP:6481
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THK Co Corporate Events
THK Co. Completes Significant Treasury Stock Cancellation
Aug 28, 2025
THK CO., LTD. has completed the cancellation of 10,757,100 common shares, which constituted 8.28% of its issued shares before the cancellation. This move reduces the total number of shares outstanding from 129,856,903 to 119,099,803, potentially impacting shareholder value and market perception by increasing the value of remaining shares.
The most recent analyst rating on (JP:6481) stock is a Hold with a Yen4200.00 price target. To see the full list of analyst forecasts on THK Co stock, see the JP:6481 Stock Forecast page.
THK Co. Announces Cancellation of Treasury Stock
Aug 6, 2025
THK Co., Ltd. has announced the cancellation of 10,757,100 shares of its treasury stock, which constitutes 8.28% of its issued shares prior to cancellation. This strategic move, scheduled for August 27, 2025, will reduce the total number of issued shares to 119,099,803, potentially enhancing shareholder value and optimizing the company’s capital structure.
The most recent analyst rating on (JP:6481) stock is a Buy with a Yen3887.00 price target. To see the full list of analyst forecasts on THK Co stock, see the JP:6481 Stock Forecast page.
THK Co., Ltd. Reports Decline in First Half 2025 Financial Results
Aug 6, 2025
THK Co., Ltd. reported a decline in its financial performance for the first half of 2025, with revenue decreasing by 2.0% and profit attributable to owners of the parent dropping by 48.3% compared to the previous year. Despite the downturn, the company maintains its dividend policy with a projected increase in dividends for the year, reflecting a commitment to shareholder returns.
The most recent analyst rating on (JP:6481) stock is a Buy with a Yen3887.00 price target. To see the full list of analyst forecasts on THK Co stock, see the JP:6481 Stock Forecast page.
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.