TETSUJIN Holdings.Inc. (2404) AI Stock Analysis

• Market Cap: ¥6.78B
• Dividend Yield: N/A
• Average Volume (3M): 16.41K
• Price to Earnings (P/E): 20.0
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: ¥487.00 ▲(2.96% Upside)

The score is primarily driven by improving operating performance and cash flow in FY2025, tempered by still-high leverage that increases downside sensitivity. Technical indicators are broadly neutral with slightly soft momentum, and valuation appears moderate with no dividend yield data to provide additional support.

Positive Factors

Revenue Growth

The significant revenue growth in FY2025 indicates a strong recovery in demand for TETSUJIN's services, suggesting a robust market position and potential for sustained growth.

Cash Flow Improvement

Improved cash flow generation enhances financial stability and provides flexibility for reinvestment or debt reduction, supporting long-term business health.

Profitability Turnaround

The turnaround in profitability reflects effective cost management and operational improvements, which can lead to more sustainable earnings in the future.

Negative Factors

High Leverage

High leverage limits financial flexibility and increases vulnerability to economic downturns, potentially impacting long-term operational stability.

Thin Margins

Thin margins indicate limited pricing power and potential vulnerability to cost increases, which could pressure profitability in a competitive market.

Volatile Earnings Profile

Earnings volatility can create uncertainty in financial planning and investor confidence, posing challenges for long-term strategic initiatives.

TETSUJIN Holdings.Inc. Business Overview & Revenue Model

Company Description

TETSUJIN 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 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: Positive
• Last Price: 473.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 473 is below the 20-day moving average (MA) of 486.70, below the 50-day MA of 475.80, and below the 200-day MA of 506.00, indicating a neutral trend. The MACD of 7.41 indicates Negative momentum. The RSI at 63.45 is Neutral, neither overbought nor oversold. The STOCH value of 89.81 is Negative, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4691	69 Neutral	¥17.48B	5.86	―	1.47%	19.31%	202.53%
9723	69 Neutral	¥7.49B	9.78	―	0.48%	4.02%	-9.38%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
9713	58 Neutral	¥13.95B	5.35	―	0.55%	35.22%	413.40%
9720	56 Neutral	¥7.10B	21.28	―	0.39%	10.52%	-31.01%
2404	55 Neutral	¥6.78B	19.99	―	―	13.78%	8241.99%
9704	55 Neutral	¥13.46B	9.21	32.34%	―	20.16%	1467.54%