TETSUJIN Holdings.Inc. (2404) AI Stock Analysis

• Market Cap: ¥6.39B
• Dividend Yield: N/A
• Average Volume (3M): 16.41K
• Price to Earnings (P/E): 18.7
• Beta (1Y): 0.26
• Revenue Growth: 13.78%
• EPS Growth: 8241.99%
• Country: JP
• Employees: 384
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Travel Lodging
• EPS (TTM): 2.46
• Shares Outstanding: 13,817,362
• 10 Day Avg. Volume: 26,200
• 30 Day Avg. Volume: 16,410
• PEG Ratio: <0.01
• Price to Book (P/B): 10.80
• Price to Sales (P/S): 0.88
• P/FCF Ratio: 22.93
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: ¥563.00 ▲(17.54% Upside)

TETSUJIN Holdings Inc. has a moderate overall stock score driven by strong cash flow management and fair valuation. However, high leverage and low profitability margins pose significant risks. Technical indicators suggest neutral to bearish momentum, which could impact short-term performance.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market presence and potential for future expansion in the entertainment sector.

Cash Flow Management

Strong cash flow growth reflects effective management and provides financial flexibility for strategic investments and debt servicing.

EBITDA Margin Improvement

Improved EBITDA margins suggest operational efficiencies and a potential path to enhanced profitability over time.

Negative Factors

High Leverage

High leverage indicates financial risk, potentially limiting the company's ability to invest in growth or weather economic downturns.

Low Profitability Margins

Low profitability margins suggest challenges in converting revenue into profit, which could hinder long-term financial health.

Low Return on Equity

Low ROE indicates inefficient use of equity capital, which may affect investor confidence and limit growth potential.

TETSUJIN Holdings.Inc. Business Overview & Revenue Model

Company Description

TETSUJIN Holdings, Inc. operates karaoke stores in Japan. It offers karaoke distribution systems; mobile content, such as ringtones, lyrics, and deco-mail; android dictionary, a curation site that publishes articles for Android users; and content collaboration and in-store media products. The company also operates restaurants; and nail, eyelash extension, eyebrow, and head spa salons. In addition, it manages and operates real estate facilities. The company was formerly known as TETSUJIN Inc. and changed its name to TETSUJIN Holdings, Inc. in February 2024. TETSUJIN Holdings, Inc. was incorporated in 1999 and is headquartered in Tokyo, Japan.

How the Company Makes Money

TETSUJIN 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 revenue growth and improved EBIT and EBITDA margins. However, profitability margins remain low, and the balance sheet indicates high leverage with a debt-to-equity ratio of 11.83. Cash flow performance is strong, with significant free cash flow growth, indicating effective cash management.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	7.85B	8.04B	7.07B	6.59B	5.88B	5.24B
Gross Profit	1.18B	1.16B	987.53M	845.75M	663.39M	748.48M
EBITDA	536.54M	467.82M	253.56M	303.17M	299.70M	-38.84M
Net Income	321.76M	335.72M	4.02M	5.55M	32.34M	-281.61M
Balance Sheet
Total Assets	4.44B	4.55B	4.33B	4.32B	4.50B	4.94B
Cash, Cash Equivalents and Short-Term Investments	943.40M	979.17M	738.61M	880.36M	951.37M	1.44B
Total Debt	2.45B	2.32B	2.65B	2.91B	3.09B	3.52B
Total Liabilities	3.88B	3.89B	4.10B	4.10B	4.28B	4.75B
Stockholders Equity	559.91M	656.08M	223.53M	220.23M	220.85M	190.16M
Cash Flow
Free Cash Flow	0.00	309.06M	221.69M	78.69M	127.06M	-182.41M
Operating Cash Flow	0.00	681.65M	425.90M	217.42M	187.00M	-165.18M
Investing Cash Flow	0.00	-166.46M	-221.38M	-107.54M	-22.91M	228.46M
Financing Cash Flow	0.00	-274.64M	-346.08M	-182.01M	-616.72M	-473.91M

TETSUJIN Holdings.Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 479.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2404, the sentiment is Negative. The current price of 479 is above the 20-day moving average (MA) of 467.30, below the 50-day MA of 485.10, and below the 200-day MA of 501.63, indicating a neutral trend. The MACD of -0.19 indicates Negative momentum. The RSI at 49.09 is Neutral, neither overbought nor oversold. The STOCH value of 57.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2404.

TETSUJIN Holdings.Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4691	69 Neutral	¥16.72B	5.61	―	1.44%	19.31%	202.53%
9723	69 Neutral	¥7.53B	9.82	―	0.48%	4.02%	-9.38%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
9713	58 Neutral	¥13.59B	5.21	―	0.56%	35.22%	413.40%
2404	56 Neutral	¥6.39B	18.65	―	―	13.78%	8241.99%
9720	56 Neutral	¥7.55B	22.62	―	0.39%	10.52%	-31.01%
9704	55 Neutral	¥11.94B	8.17	32.34%	―	20.16%	1467.54%