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TETSUJIN Holdings.Inc. (JP:2404)
:2404
Japanese Market
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TETSUJIN Holdings.Inc. (2404) AI Stock Analysis

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JP:2404

TETSUJIN Holdings.Inc.

(2404)

Rating:60Neutral
Price Target:
¥602.00
▲(10.46%Upside)
TETSUJIN Holdings Inc. scores moderately due to strong cash flow performance and positive market momentum. However, high financial leverage and overbought technical indicators present potential risks. Valuation is neutral with a relatively high P/E ratio and no dividend yield.

TETSUJIN Holdings.Inc. (2404) vs. iShares MSCI Japan ETF (EWJ)

TETSUJIN Holdings.Inc. Business Overview & Revenue Model

Company DescriptionTETSUJIN Holdings, Inc. (2404) is a diversified entertainment services company based in Japan. The company operates primarily in the leisure and amusement sectors, with a strong presence in karaoke entertainment and related services. TETSUJIN Holdings is known for its karaoke chain, providing customers with a comprehensive entertainment experience that combines music, food, and social interaction.
How the Company Makes MoneyTETSUJIN Holdings, Inc. generates revenue primarily through its karaoke entertainment facilities spread across Japan. The company makes money by charging customers for time spent in private karaoke rooms, offering a range of pricing plans based on duration and room type. Additionally, TETSUJIN Holdings enhances its revenue through the sale of food and beverages in its karaoke establishments, which are often a significant part of the customer experience. The company may also derive income from related entertainment services and collaborations with other businesses in the leisure sector, although specific partnerships and their financial impact are not detailed.

TETSUJIN Holdings.Inc. Financial Statement Overview

Summary
TETSUJIN Holdings Inc. shows moderate improvement in its income statement, with promising revenue growth but low profitability margins and high financial leverage. Strong cash flow performance demonstrates effective cash management.
Income Statement
58
Neutral
TETSUJIN Holdings Inc. shows moderate improvement in its income statement. The gross profit margin stands at 13.96% and the net profit margin at 0.06%. The revenue growth rate is 7.23%. EBIT and EBITDA margins improved to 0.98% and 3.59%, respectively, signaling a recovery from previous losses. However, margins remain relatively low, indicating room for improvement in profitability.
Balance Sheet
45
Neutral
The balance sheet reveals a high debt-to-equity ratio of 11.83, indicating significant leverage and potential financial risk. Return on equity is low at 1.80%, while the equity ratio is a mere 5.17%, suggesting limited financial stability and a heavy reliance on debt financing.
Cash Flow
72
Positive
Cash flow analysis shows a strong performance with a free cash flow growth rate of 181.76% year-over-year. The operating cash flow to net income ratio is 105.94, and the free cash flow to net income ratio is 55.16, both indicating effective cash management despite low net income.
BreakdownSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income Statement
Total Revenue7.07B6.59B5.88B5.24B5.53B
Gross Profit987.53M845.75M663.39M748.48M340.17M
EBITDA253.56M303.17M299.70M-38.84M-1.24B
Net Income4.02M5.55M32.34M-281.61M-1.58B
Balance Sheet
Total Assets4.33B4.32B4.50B4.94B5.79B
Cash, Cash Equivalents and Short-Term Investments738.61M880.36M951.37M1.44B1.85B
Total Debt2.65B2.91B3.09B3.52B4.00B
Total Liabilities4.10B4.10B4.28B4.75B5.30B
Stockholders Equity223.53M220.23M220.85M190.16M484.85M
Cash Flow
Free Cash Flow221.69M78.69M127.06M-182.41M-1.05B
Operating Cash Flow425.90M217.42M187.00M-165.18M-746.59M
Investing Cash Flow-221.38M-107.54M-22.91M228.46M-445.43M
Financing Cash Flow-346.08M-182.01M-616.72M-473.91M1.71B

TETSUJIN Holdings.Inc. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price545.00
Price Trends
50DMA
506.64
Positive
100DMA
484.66
Positive
200DMA
454.75
Positive
Market Momentum
MACD
16.65
Negative
RSI
59.99
Neutral
STOCH
46.38
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2404, the sentiment is Positive. The current price of 545 is above the 20-day moving average (MA) of 538.05, above the 50-day MA of 506.64, and above the 200-day MA of 454.75, indicating a bullish trend. The MACD of 16.65 indicates Negative momentum. The RSI at 59.99 is Neutral, neither overbought nor oversold. The STOCH value of 46.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2404.

TETSUJIN Holdings.Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
¥15.12B7.50
1.59%16.69%141.13%
67
Neutral
¥265.88B13.586.45%2.57%5.21%-11.92%
61
Neutral
¥13.90B8.33
0.55%21.75%92.79%
60
Neutral
¥7.31B22.65
11.57%
60
Neutral
¥7.53B10.29
0.48%2.41%-13.76%
59
Neutral
¥7.51B26.20
0.39%9.47%-57.17%
49
Neutral
¥15.49B233.451.65%12.51%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:2404
TETSUJIN Holdings.Inc.
553.00
50.00
9.94%
JP:4691
Washington Hotel Corp.
1,254.00
495.64
65.36%
JP:9713
Royal Hotel, Ltd.
910.00
-112.80
-11.03%
JP:9720
HOTEL NEWGRAND CO., LTD.
6,360.00
891.58
16.30%
JP:9723
Kyoto Hotel, Ltd.
629.00
-157.77
-20.05%
JP:9704
AGORA Hospitality Group Co., Ltd.
61.00
14.00
29.79%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 16, 2025