Tekken Corporation (1815) AI Stock Analysis

• Market Cap: ¥66.49B
• Dividend Yield: 2.73%
• Average Volume (3M): 40.82K
• Price to Earnings (P/E): 14.9
• Beta (1Y): 0.72
• Revenue Growth: -3.59%
• EPS Growth: 49.34%
• Country: JP
• Employees: 1,909
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 111.04
• Shares Outstanding: 14,973,956
• 10 Day Avg. Volume: 48,650
• 30 Day Avg. Volume: 40,820
• PEG Ratio: -0.74
• Price to Book (P/B): 0.50
• Price to Sales (P/S): 0.19
• P/FCF Ratio: -1.70
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: ¥4,473.00 ▲(0.29% Upside)

The overall stock score is driven by strong technical indicators and reasonable valuation metrics. However, financial performance is hindered by cash flow challenges and increasing leverage, which are significant risks that need addressing.

Positive Factors

Business Model Strength

Tekken's diversified revenue streams across semiconductors, electronics, and automation systems provide resilience against sector-specific downturns, supporting long-term stability.

Partnerships and Collaborations

Strategic partnerships enhance Tekken's product offerings and market reach, fostering innovation and competitive advantage in technology sectors.

Balance Sheet Health

A stable equity base indicates financial health, providing a buffer against economic fluctuations and supporting long-term investment in growth opportunities.

Negative Factors

Rising Debt Levels

Increased leverage can strain financial flexibility and increase risk, potentially impacting Tekken's ability to invest in growth and innovation.

Cash Flow Challenges

Negative cash flow highlights operational inefficiencies and may hinder Tekken's capacity to fund new projects or respond to market changes without external financing.

Profitability Pressures

Low EBIT margins suggest profitability challenges, limiting Tekken's ability to reinvest in business development and potentially affecting long-term competitive positioning.

Tekken Corporation Business Overview & Revenue Model

Company Description

Tekken Corporation (1815) is a leading multinational company specializing in the research, development, and manufacturing of advanced technology solutions, primarily in the sectors of electronics, telecommunications, and industrial automation. With a diverse portfolio that includes semiconductors, consumer electronics, and automation systems, Tekken Corporation is committed to innovation and sustainability, delivering high-quality products and services that meet the evolving needs of its global clientele.

How the Company Makes Money

Tekken Corporation generates revenue through multiple streams, primarily through the sale of its technologically advanced products, including semiconductors and consumer electronics. The company operates a B2B model, supplying its products to various sectors such as telecommunications, automotive, and manufacturing industries. Additionally, Tekken earns revenue through service contracts related to the installation and maintenance of its automation systems. Significant partnerships with major tech firms and collaborations with research institutions also contribute to its earnings, enabling Tekken to leverage joint ventures and shared technology initiatives that enhance product offerings and market reach.

Tekken Corporation Financial Statement Overview

Summary

Tekken Corporation shows moderate revenue growth and a stable balance sheet, but faces challenges with cash flow management and profitability. Increasing leverage and negative cash flows present potential risks.

Income Statement

Tekken Corporation shows moderate revenue growth with a 0.83% increase in the latest year. The gross profit margin is improving at 8.03%, and the net profit margin is stable at 1.85%. However, the EBIT margin remains low at 1.87%. Despite EBITDA margin improvements to 3.67%, profitability is pressured by fluctuating margins.

Balance Sheet

The balance sheet reflects a stable equity base with an equity ratio of 31.01%. However, the debt-to-equity ratio has increased to 0.80, indicating higher leverage. ROE is moderate at 4.91%, suggesting reasonable returns on equity despite rising debt levels.

Cash Flow

Cash flow analysis reveals negative operating cash flow, resulting in a negative free cash flow growth rate. The operating cash flow to net income ratio is unfavorable, highlighting cash flow challenges. Free cash flow to net income ratio is negative, indicating the need for improved cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	185.43B	185.11B	183.59B	160.74B	151.55B	182.02B
Gross Profit	16.27B	14.86B	11.93B	11.97B	15.11B	15.79B
EBITDA	5.76B	6.79B	7.55B	4.84B	7.32B	7.57B
Net Income	2.63B	3.43B	4.26B	2.36B	4.71B	4.39B
Balance Sheet
Total Assets	241.01B	225.10B	211.27B	183.40B	173.08B	185.24B
Cash, Cash Equivalents and Short-Term Investments	16.93B	16.53B	18.61B	17.19B	19.30B	17.95B
Total Debt	82.25B	55.93B	34.25B	30.03B	28.98B	30.18B
Total Liabilities	169.53B	154.98B	139.14B	117.85B	109.15B	122.19B
Stockholders Equity	71.15B	69.81B	71.83B	65.08B	63.47B	62.59B
Cash Flow
Free Cash Flow	0.00	-20.77B	-4.29B	-721.00M	5.12B	4.15B
Operating Cash Flow	0.00	-20.29B	3.97B	-219.00M	5.27B	4.23B
Investing Cash Flow	0.00	615.00M	-4.29B	-2.49B	-810.00M	-1.72B
Financing Cash Flow	0.00	17.93B	1.15B	580.00M	-3.43B	-3.71B

Tekken Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4460.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1815, the sentiment is Positive. The current price of 4460 is above the 20-day moving average (MA) of 4151.00, above the 50-day MA of 3900.80, and above the 200-day MA of 3179.19, indicating a bullish trend. The MACD of 132.06 indicates Negative momentum. The RSI at 73.96 is Negative, neither overbought nor oversold. The STOCH value of 93.31 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1815.

Tekken Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1899	79 Outperform	¥65.62B	11.11	―	2.56%	1.71%	14.20%
1967	73 Outperform	¥46.10B	10.52	―	2.19%	5.45%	86.27%
1815	69 Neutral	¥66.49B	14.93	―	2.73%	-3.59%	49.34%
1811	69 Neutral	¥56.94B	13.74	―	1.57%	11.01%	231.83%
1929	68 Neutral	¥52.84B	15.80	―	3.78%	11.81%	52.35%
1813	65 Neutral	¥40.37B	12.61	―	2.26%	12.93%	98.16%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Tekken Corporation Corporate Events

Tekken Corporation to Sell Investment Securities for Capital Efficiency

Tekken Corporation has announced its decision to sell a portion of its investment securities to reduce policy shareholdings and improve capital efficiency. The sale, expected to generate approximately 1.3 billion yen, will take place between November 14, 2025, and March 31, 2026, and its impact has already been reflected in the company’s earnings forecast for the fiscal year ending March 2026.