Tokyo Koki Co. Ltd. (7719) AI Stock Analysis

• Market Cap: ¥2.10B
• Dividend Yield: N/A
• Average Volume (3M): 377.77K
• Price to Earnings (P/E): 46.3
• Beta (1Y): 0.26
• Revenue Growth: 5.81%
• EPS Growth: -67.86%
• Country: JP
• Employees: 123
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 1.16
• Shares Outstanding: 7,133,791
• 10 Day Avg. Volume: 751,910
• 30 Day Avg. Volume: 377,773
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥335.00
• Price Target Upside: 13.95% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 60 Neutral
• Price Target: ¥335.00 ▲(13.95% Upside)

The overall stock score reflects significant financial challenges and a high valuation, which are partially offset by strong technical momentum. The company's financial performance is the most significant factor, highlighting the need for operational improvements. Technical analysis provides a positive outlook, but the high P/E ratio suggests caution.

Tokyo Koki Co. Ltd. Business Overview & Revenue Model

Company Description

Tokyo Koki Co. Ltd. engages in the manufacturing and selling of various testing machines and measuring instruments in Japan. The company offers static tension, compression, bending, and fatigue tests for various materials; and structural testing machines, performance testing machines, and contract testing services. It also manufactures and sells locking nuts and springs, special springs, bolts, and other fastening materials; provides technological engineering products for safe lifestyle, as well as maintenance services for metal material testing machines, measuring instruments, hydraulic equipment, etc.; and sale of construction materials. Tokyo Koki Co. Ltd. was founded in 1923 and is headquartered in Sagamihara, Japan.

How the Company Makes Money

Tokyo Koki Co. Ltd. primarily generates revenue through the sale of its precision measuring instruments and equipment. The company's revenue model is based on direct sales to manufacturers and industries that require accurate measurement tools for quality control and production processes. Key revenue streams include the sale of digital measuring devices, gauges, and custom inspection solutions. Additionally, the company may benefit from service agreements and maintenance contracts for its equipment, which provide ongoing revenue. Strategic partnerships with various industrial sectors also enhance Tokyo Koki's market reach and contribute to its earnings by expanding its customer base and enabling collaborative development of new products.

Tokyo Koki Co. Ltd. Financial Statement Overview

Summary

The company faces financial challenges with declining revenue and volatile profitability. Despite a stable balance sheet with manageable debt levels, cash flow generation is a significant concern, requiring improvements in operational efficiency and cash management.

Income Statement

The company has shown inconsistent revenue trends, with significant decreases in the recent years. The gross profit margin remained relatively stable around 34%, but the net profit margin has been volatile due to fluctuations in net income. EBIT and EBITDA margins have suffered in recent periods, indicating operational challenges.

Balance Sheet

The balance sheet indicates moderate leverage with a debt-to-equity ratio around 0.5. However, the equity ratio has slightly decreased over time, suggesting increased liabilities. The return on equity is inconsistent, primarily due to varying net income results, posing potential risks to financial stability.

Cash Flow

Cash flow statements reveal a troubling trend with negative free cash flow in the most recent years. The operating cash flow to net income ratio indicates inefficiencies in converting income to cash. However, historical free cash flow was positive, suggesting past capability to generate cash, which needs to be restored.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.48B	3.48B	3.37B	3.05B	4.04B	3.87B
Gross Profit	1.20B	1.20B	1.21B	1.07B	1.28B	1.28B
EBITDA	77.93M	89.21M	252.33M	-632.67M	236.29M	434.56M
Net Income	63.16M	62.94M	91.11M	-702.35M	121.55M	293.00M
Balance Sheet
Total Assets	3.77B	3.77B	3.66B	3.45B	4.40B	4.47B
Cash, Cash Equivalents and Short-Term Investments	494.58M	494.58M	976.65M	693.23M	1.24B	990.90M
Total Debt	842.03M	842.03M	682.31M	636.85M	1.02B	901.21M
Total Liabilities	2.15B	2.15B	2.14B	2.03B	2.26B	2.43B
Stockholders Equity	1.62B	1.62B	1.52B	1.42B	2.14B	2.04B
Cash Flow
Free Cash Flow	0.00	-640.24M	193.67M	-162.41M	66.89M	168.58M
Operating Cash Flow	0.00	-594.29M	219.59M	-160.24M	217.31M	207.46M
Investing Cash Flow	0.00	-47.51M	186.39M	-51.82M	-92.97M	-98.23M
Financing Cash Flow	0.00	159.72M	35.43M	-383.14M	98.70M	-129.19M

Tokyo Koki Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 294.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7719, the sentiment is Positive. The current price of 294 is above the 20-day moving average (MA) of 281.90, above the 50-day MA of 258.50, and above the 200-day MA of 219.19, indicating a bullish trend. The MACD of 12.39 indicates Negative momentum. The RSI at 57.25 is Neutral, neither overbought nor oversold. The STOCH value of 34.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7719.

Tokyo Koki Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6336	74 Outperform	¥5.55B	6.20	8.09%	2.94%	-5.79%	37.86%
6396	73 Outperform	¥3.70B	7.49	11.82%	1.49%	-4.62%	21.46%
6317	71 Outperform	¥15.91B	5.44	2.99%	3.53%	-6.23%	405.48%
6363	66 Neutral	¥55.55B	22.76	7.26%	2.88%	9.31%	-62.88%
7719	60 Neutral	¥2.10B	46.32	―	―	5.81%	-67.86%
6347	50 Neutral	¥2.37B	-33.96	―	2.42%	-33.32%	79.79%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%