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TETSUJIN Holdings.Inc. (JP:2404)
:2404
Japanese Market

TETSUJIN Holdings.Inc. (2404) AI Stock Analysis

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JP

TETSUJIN Holdings.Inc.

(2404)

Rating:62Neutral
Price Target:
¥533.00
▲(2.11%Upside)
TETSUJIN Holdings Inc. receives a moderate score based on strong technical momentum and promising revenue growth. However, the stock is weighed down by high leverage, low profitability, and an overvalued P/E ratio. The absence of dividend yield further impacts its valuation appeal.

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

TETSUJIN Holdings.Inc. Business Overview & Revenue Model

Company DescriptionTETSUJIN Holdings Inc. (2404) is a Japanese company that operates in the entertainment and leisure sector. The company is primarily involved in managing karaoke facilities, which are a popular form of social entertainment in Japan and other parts of Asia. In addition to karaoke, TETSUJIN Holdings offers various related services and experiences designed to enhance customer enjoyment and engagement.
How the Company Makes MoneyTETSUJIN Holdings Inc. generates revenue through a multi-faceted business model centered on its karaoke operations. The primary revenue stream comes from the fees customers pay for renting karaoke rooms, which can vary based on factors like time of day, duration of use, and room size. Additionally, the company earns income by providing food and beverage services to patrons while they use the karaoke facilities. Other revenue channels include membership programs, special event hosting, and partnerships with entertainment companies for promotions or exclusive content. These partnerships can provide additional revenue through licensing deals or co-promotions that attract more customers to the karaoke venues.

TETSUJIN Holdings.Inc. Financial Statement Overview

Summary
TETSUJIN Holdings Inc. shows a moderate financial recovery, especially in cash flow management, with a high free cash flow growth rate and strong cash flow ratios. However, the company faces challenges with low profitability margins and high leverage, as indicated by a high debt-to-equity ratio and low equity ratio.
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.
BreakdownTTMSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income Statement
Total Revenue7.30B7.07B6.59B5.88B5.24B5.53B
Gross Profit1.03B987.53M845.75M663.39M748.48M340.17M
EBITDA161.27M253.56M303.17M299.70M-38.84M-1.24B
Net Income51.54M4.02M5.55M32.34M-281.61M-1.58B
Balance Sheet
Total Assets4.41B4.33B4.32B4.50B4.94B5.79B
Cash, Cash Equivalents and Short-Term Investments710.00M738.61M880.36M951.37M1.44B1.85B
Total Debt2.82B2.65B2.91B3.09B3.52B4.00B
Total Liabilities4.25B4.10B4.10B4.28B4.75B5.30B
Stockholders Equity163.00M223.53M220.23M220.85M190.16M484.85M
Cash Flow
Free Cash Flow0.00221.69M78.69M127.06M-182.41M-1.05B
Operating Cash Flow0.00425.90M217.42M187.00M-165.18M-746.59M
Investing Cash Flow0.00-221.38M-107.54M-22.91M228.46M-445.43M
Financing Cash Flow0.00-346.08M-182.01M-616.72M-473.91M1.71B

TETSUJIN Holdings.Inc. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price522.00
Price Trends
50DMA
489.86
Positive
100DMA
467.82
Positive
200DMA
446.50
Positive
Market Momentum
MACD
9.70
Negative
RSI
65.93
Neutral
STOCH
79.27
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 522 is above the 20-day moving average (MA) of 493.20, above the 50-day MA of 489.86, and above the 200-day MA of 446.50, indicating a bullish trend. The MACD of 9.70 indicates Negative momentum. The RSI at 65.93 is Neutral, neither overbought nor oversold. The STOCH value of 79.27 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
73
Outperform
¥14.44B7.17
1.67%16.69%141.13%
68
Neutral
¥7.56B21.27
0.39%9.49%-28.90%
67
Neutral
¥253.34B13.186.44%2.78%5.06%-11.83%
62
Neutral
¥6.91B31.86
9.02%871.24%
60
Neutral
¥7.67B10.49
0.47%2.41%-13.76%
58
Neutral
¥13.53B8.11
0.56%21.75%92.79%
48
Neutral
¥14.98B229.621.65%12.51%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:2404
TETSUJIN Holdings.Inc.
518.00
39.00
8.14%
JP:4691
Washington Hotel Corp.
1,195.00
428.77
55.96%
JP:9713
Royal Hotel, Ltd.
885.00
-136.81
-13.39%
JP:9720
HOTEL NEWGRAND CO., LTD.
6,420.00
1,031.27
19.14%
JP:9723
Kyoto Hotel, Ltd.
634.00
-171.69
-21.31%
JP:9704
AGORA Hospitality Group Co., Ltd.
60.00
7.00
13.21%
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: Jun 28, 2025