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Japanese maker of micro drills and precision cutting tools used to drill holes in printed circuit boards.
Japanese maker of micro drills and precision cutting tools used to drill holes in printed circuit boards.
Drill bits wear out and are reground and replaced, so sales recur with the number of holes its customers drill; each AI server or advanced board needs more and finer holes, raising use per board. Most customers are PCB makers in Asia, served through local subsidiaries.
In one line: A niche, PCB-drill-focused Kennametal.
Moat: narrow (process know-how, customer qualification). Leading share in ultra-fine PCB drill bits, a precision niche with high switching costs.
Headquarters: Amagasaki, Japan · Founded: 1927 · Employees: 1,530
Size Union Tool (6278.T) is a Japan Industrials company (Industrial Machinery) with a market value of $1.20B, the 658th largest of 1,379 Japan companies the cockpit tracks. Shares closed at ¥9,750 on 6 Nov 2026.
Performance Over six months the shares fell 41.4%, against -24.2% for the median peer and +1.8% for the Japan market (cap-weighted) — 6th lowest of 21 in its peer set.
Growth Revenue grew 39.7% over the last twelve months (peer median +3.5%); the operating margin is 24.6% (peer median 2.7%).
Valuation It trades at 14.8× forward earnings against a peer median of 38.8× (6th cheapest of 14).
Price implies For today's price to make sense, revenue must grow about 22% a year for seven years (Req g). Recent delivered growth is +12%, so the hurdle is +10 pp: the price needs faster growth than the company has been delivering — of companies that just grew 25–50% a year, 93.8% slowed down over the next four years.
Capital Return on invested capital runs 4.1 points below its cost of capital (15.7% WACC).
Next results Next results expected around 11 Nov 2026 (exchange calendar; dates can move).
| TTM | FY2025 | FY2024 | FY2023 | FY2022 | |
|---|---|---|---|---|---|
| Revenue | ¥49.0B | ¥40.2B | ¥32.6B | ¥25.3B | ¥29.1B |
| Revenue growth | — | +23% | +29% | -13% | — |
| Gross profit | ¥20.4B | ¥16.0B | ¥13.1B | ¥8.94B | ¥11.5B |
| EBITDA | ¥15.8B | ¥12.0B | ¥9.73B | ¥6.44B | ¥8.78B |
| Net income | ¥9.22B | ¥6.11B | ¥5.28B | ¥3.08B | ¥5.00B |
| Free cash flow | n/a | ¥76.0M | ¥3.18B | ¥228M | ¥4.18B |
| Capital expenditure | n/a | ¥7.43B | ¥4.10B | ¥4.46B | ¥2.52B |
| Total debt | ¥219M | ¥451M | ¥427M | ¥326M | ¥222M |
The default views of Competitor Analysis ▸ Charts, drawn from the same data. Open them in the cockpit to change the axes, pin companies and read every value.
| Company | Market cap | 6M return | Revenue growth | Op. margin | Forward P/E | Req g |
|---|---|---|---|---|---|---|
| Union Tool 6278.T | $1.20B | -41% | +40% | 25% | 14.8× | 22.0% |
| OSG 6136.T | $1.88B | -2% | +20% | 18% | 11.4× | 1.7% |
| Mitsubishi Materials 5711.T | $3.21B | -24% | +7% | 5% | 3.7× | n/a |
Peer set: Industry: the same industry and sector in any market, nearest in size. This is the same default set the interactive Competitor Analysis opens with.
| Measure | 6278.T | Peer median | Rank in peer set |
|---|---|---|---|
| 1-month return | -42.9% | -9.2% | 2nd lowest of 21 |
| 6-month return | -41.4% | -24.2% | 6th lowest of 21 |
| Distance from 52-week high | -64.1% | -46.0% | 6th lowest of 21 |
| Revenue growth (TTM) | +39.7% | +3.5% | 4th highest of 21 |
| Operating margin | 24.6% | 2.7% | 2nd highest of 21 |
| Forward P/E | 14.8× | 38.8× | 6th cheapest of 14 |
| Growth the price implies (Req g, 7 yrs) | 22.0% | 16.3% | 5th most demanding of 10 |
| Growth delivered (Del g) | +12.0% | +10.5% | 4th highest of 10 |
| Hurdle (Req g minus delivered) | +10.0 pp | +4.7 pp | 4th most demanding of 10 |
| ROIC minus cost of capital | -4.1 pp | -6.2 pp | 9th highest of 21 |
| EV / EBITDA | 9.0× | 15.3× | 3rd cheapest of 7 |
| Net debt / EBITDA | -3.0× | 0.6× | 2nd least indebted of 8 |
| Company | Market | Market cap | 6M return | Revenue growth | Op. margin | Forward P/E | Req g | Delivered g |
|---|---|---|---|---|---|---|---|---|
| Union Tool 6278.T | Japan | $1.20B | -41% | +40% | 25% | 14.8× | 22.0% | +12.0% |
| Eugene Technology 084370.KS | South Korea | $1.21B | -43% | +2% | 15% | 12.3× | 16.3% | +11.6% |
| Shuangliang Eco-Energy Systems 600481.SS | China | $1.21B | -36% | -29% | -29% | n/a | n/a | n/a |
| Ariston ARIS.MI | Italy | $1.20B | -17% | +5% | 6% | 8.8× | 0.1% | +10.5% |
| Tennant TNC | United States | $1.22B | -18% | 0% | 4% | 13.8× | n/a | n/a |
| SVG 300331.SZ | China | $1.19B | -42% | +6% | 2% | n/a | 46.0% | +8.1% |
| Guangdong Anda Automation Solutions 688125.SS | China | $1.19B | -55% | +56% | 2% | 41.0× | n/a | n/a |
| Hefei Metalforming Intelligent Manufacturing 603011.SS | China | $1.22B | -18% | -15% | -11% | 307.4× | n/a | n/a |
| Seikoh Giken 6834.T | Japan | $1.23B | +17% | +55% | 28% | 18.9× | 24.6% | +15.2% |
| EFORT Intelligent Robot 688165.SS | China | $1.18B | -18% | +12% | -48% | n/a | n/a | n/a |
| Shenzhen iN-Cube Automation 301312.SZ | China | $1.18B | -43% | +18% | 6% | 78.2× | n/a | n/a |
| Suzhou Gyz Electronic Technology 688260.SS | China | $1.17B | +96% | +56% | -13% | n/a | n/a | n/a |
| Guangdong Lyric Robot Automation 688499.SS | China | $1.17B | -15% | +37% | 1% | 51.7× | n/a | n/a |
| HUYNDAI MOVEX 319400.KS | South Korea | $1.24B | -51% | +2% | 3% | n/a | n/a | n/a |
| Aotecar New Energy Technology 002239.SZ | China | $1.25B | -17% | -7% | 3% | n/a | 11.9% | +17.1% |
| Jiangsu Bide Science & Technology 605298.SS | China | $1.16B | -30% | -4% | 15% | n/a | 40.4% | +10.1% |
| Durr DUE.DE | Germany | $1.25B | -24% | +2% | 4% | 9.1× | -3.3% | +4.6% |
| Shanghai Step Electric 002527.SZ | China | $1.16B | -21% | 0% | -2% | 78.3× | n/a | n/a |
| Shenzhen Xinyichang Technology 688383.SS | China | $1.16B | -25% | +34% | -9% | 56.3× | n/a | n/a |
| KSB KSB.NS | India | $1.16B | -30% | +8% | 10% | 38.8× | 35.3% | +17.5% |
| YAPP Automotive Systems 603013.SS | China | $1.16B | -25% | -1% | 7% | 12.0× | -9.1% | +0.7% |