Tenox Corporation (1905) AI Stock Analysis

• Market Cap: ¥8.80B
• Dividend Yield: 4.09%
• Average Volume (3M): 10.72K
• Price to Earnings (P/E): 12.1
• Beta (1Y): 0.31
• Revenue Growth: -8.48%
• EPS Growth: 54.87%
• Country: JP
• Employees: 335
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 4.13
• Shares Outstanding: 7,347,680
• 10 Day Avg. Volume: 9,220
• 30 Day Avg. Volume: 10,720
• PEG Ratio: 0.11
• Price to Book (P/B): 0.56
• Price to Sales (P/S): 0.31
• P/FCF Ratio: 3.21
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ¥1,449.00 ▲(4.39% Upside)

Tenox Corporation's strong valuation metrics, including a low P/E ratio and high dividend yield, are the most significant factors supporting the stock score. While the financial performance is solid, challenges in revenue growth and profitability margins are concerns. Technical analysis indicates a neutral trend, with no strong momentum signals.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage provides financial stability and flexibility, allowing the company to invest in growth opportunities and withstand economic downturns.

Improving Cash Flow

Improved cash flow indicates better cash generation capabilities, enhancing the company's ability to fund operations, reduce debt, and invest in future growth.

Operational Efficiency

Improved operational efficiency through better EBIT and EBITDA margins enhances profitability, allowing the company to reinvest in its business and improve competitive positioning.

Negative Factors

Low Net Profit Margin

A low net profit margin indicates challenges in converting revenue into profit, which could limit the company's ability to generate returns for shareholders and invest in growth.

Inconsistent Revenue Growth

Inconsistent revenue growth poses a risk to long-term business expansion and market share, potentially affecting the company's ability to maintain competitive advantages.

Challenges in Profitability Margins

Struggles with profitability margins can hinder the company's financial performance, affecting its ability to reinvest in innovation and maintain competitive edge.

Tenox Corporation Business Overview & Revenue Model

Company Description

Tenox Corporation engages in the construction business in Japan. The company specializes in foundation works; and provides civil engineering and construction consulting services, etc. It also sells concrete piles and steel pipe piles; rents equipment; and offers contracting services for ground improvement work. Tenox Corporation was founded in 1970 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Tenox Corporation generates revenue primarily through the sale of its industrial machinery and components, which are tailored to meet the specific needs of its clients in various sectors. Key revenue streams include direct sales of machinery, recurring income from maintenance and support services, and long-term contracts for custom engineering projects. Additionally, Tenox has established significant partnerships with major corporations in the automotive and aerospace industries, allowing for bulk orders and strategic collaborations that enhance profitability. The company's focus on research and development also enables it to stay ahead of market trends, fostering innovation that leads to new product offerings and increased sales.

Tenox Corporation Financial Statement Overview

Summary

Tenox Corporation demonstrates a solid financial position with strengths in its balance sheet and improving cash flow. However, the income statement reveals challenges in revenue growth and profitability margins, which could impact future performance.

Income Statement

Tenox Corporation shows a mixed performance in its income statement. The company has maintained a stable gross profit margin around 15%, indicating efficient cost management. However, the net profit margin is relatively low at 3.16% for the latest year, reflecting challenges in converting revenue into profit. Revenue growth has been inconsistent, with a decline in the most recent year, which could be a concern for future growth prospects. The EBIT and EBITDA margins have shown improvement, suggesting better operational efficiency.

Balance Sheet

The balance sheet of Tenox Corporation is strong, with a low debt-to-equity ratio indicating minimal leverage and financial risk. The return on equity (ROE) has improved to 5.77%, reflecting better profitability relative to shareholder equity. The equity ratio remains healthy, suggesting a stable financial structure with a significant portion of assets financed by equity.

Cash Flow

Cash flow analysis reveals a significant improvement in free cash flow, which has turned positive after previous negative figures, indicating better cash generation capabilities. The operating cash flow to net income ratio is moderate, suggesting that the company is generating reasonable cash from its operations relative to its net income. However, the free cash flow to net income ratio is below 1, indicating that not all net income is translating into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	22.93B	23.72B	20.21B	18.32B	14.82B	15.91B
Gross Profit	4.10B	3.62B	2.83B	2.76B	2.36B	2.09B
EBITDA	2.16B	1.68B	1.08B	1.17B	997.88M	824.45M
Net Income	1.03B	749.32M	388.06M	482.82M	357.79M	173.28M
Balance Sheet
Total Assets	19.49B	21.07B	19.07B	18.77B	17.68B	18.16B
Cash, Cash Equivalents and Short-Term Investments	8.53B	10.23B	8.37B	9.55B	9.61B	8.34B
Total Debt	234.57M	173.46M	21.32M	31.05M	44.54M	241.77M
Total Liabilities	6.12B	7.78B	6.38B	6.30B	5.38B	5.95B
Stockholders Equity	13.08B	12.99B	12.39B	12.17B	12.01B	11.92B
Cash Flow
Free Cash Flow	0.00	2.28B	-632.08M	616.16M	1.61B	-441.98M
Operating Cash Flow	0.00	3.05B	142.55M	955.89M	1.80B	-6.20M
Investing Cash Flow	0.00	-792.76M	-947.02M	-622.78M	-107.64M	-638.03M
Financing Cash Flow	0.00	-301.84M	-309.61M	-404.49M	-514.38M	-257.61M

Tenox Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1388.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1905, the sentiment is Positive. The current price of 1388 is above the 20-day moving average (MA) of 1374.45, above the 50-day MA of 1332.28, and above the 200-day MA of 1233.15, indicating a bullish trend. The MACD of 21.15 indicates Positive momentum. The RSI at 61.29 is Neutral, neither overbought nor oversold. The STOCH value of 48.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1905.

Tenox Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1798	82 Outperform	¥14.71B	5.33	―	1.60%	22.31%	101.45%
1768	74 Outperform	¥10.08B	10.44	―	2.16%	24.11%	1644.12%
1905	72 Outperform	¥8.80B	12.13	―	4.09%	-8.48%	54.87%
1897	71 Outperform	¥6.51B	34.49	―	1.72%	-28.06%	-43.82%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1844	57 Neutral	¥9.70B	19.56	―	2.74%	4.36%	17.63%
1783	46 Neutral	¥10.20B	-42.58	―	―	7.00%	-182.47%

Tenox Corporation Corporate Events

Tenox Forms Strategic Capital and Business Alliance with Japan Home Shield to Advance Seismic-Resilient Housing Solutions

Tenox Corporation has entered into a capital and business alliance with Japan Home Shield Corporation (JHS), subscribing to new shares via a third-party allotment and acquiring additional shares from JHS’s largest shareholder, MCP5 Investment Limited Partnership, to deepen their strategic collaboration. Through this partnership, Tenox and JHS plan to jointly develop highly earthquake-resistant foundation construction methods for detached houses, build a proprietary large-scale ground data and analysis platform by combining Tenox’s 40,000 construction records with JHS’s 2.4 million ground investigations, and leverage each other’s customer bases to deliver advanced digital solutions and stronger seismic resilience offerings, aiming to enhance both companies’ corporate value and competitive positioning in Japan’s structurally challenged construction market.

The most recent analyst rating on (JP:1905) stock is a Buy with a Yen1449.00 price target. To see the full list of analyst forecasts on Tenox Corporation stock, see the JP:1905 Stock Forecast page.