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THK Co.

THKLF
42
Industrial - Machinery · Industrials
Price
$44.63
+0.00 (+0.00%)
Market Cap
$5.00B
Exchange
Other OTC
Winston Score
42
Winston is serious
Mixed quality — meaningful strengths and weaknesses.
Data as of Aug 9, 2026 · filings through Mar 31, 2026

Share count falling — buybacks

10.6% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 126.4M (2021) → 113.0M (2025)

THK Co., Ltd. is a Japanese industrial company that makes precision motion components — most importantly, a product called the Linear Motion Guide, which helps machines move smoothly in a straight line. Its customers include manufacturers of factory robots, machine tools, semiconductor equipment, and medical devices. THK invented the Linear Motion Guide in 1971 and remains one of the world's leading producers of this technology.

The company earns revenue by selling these mechanical components directly to equipment makers and factories around the world. THK operates primarily in Japan but has a significant global footprint across Asia, Europe, and North America, with annual revenues roughly in the range of several hundred billion yen. Its moat comes from deep engineering expertise, long customer relationships, and the precision standards required in its end markets. The key growth driver is rising demand for factory automation and robotics, though the business is sensitive to slowdowns in capital spending by manufacturers, which can quickly reduce orders.

Winston Score History

Score breakdown

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Quality

Gross Margin
33.1%
Modest — 33.1% gross margin
Operating Margin
12.1%
Healthy — 12.1% operating margin
ROCE
2.1%
Weak — 2.1% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY
-36.1%
Shrinking sales (-36.1% YoY)
EPS YoY
-909.9%
Earnings shrinking (-909.9% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

EPS Consistency
2/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion
N/A
Data not available
FCF Margin
9.7%
Modest free cash flow (9.7%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity
0.55
Conservative — low debt load (0.55)
Interest Cover
8.16x
Comfortably covers interest (8.2x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)
56.6x
Expensive — P/E 56.6

P/E over 35. The market is pricing in heavy, sustained growth.

P/E vs Forward
+56.4
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (56.6 → 0.1)

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Dividends

Dividend Yield
3.52%
Moderate income — 3.52% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend Growth
+124.5%
Dividend growing fast (124.5% YoY)

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