TETSUJIN Holdings.Inc. (2404) AI Stock Analysis

• Market Cap: ¥7.19B
• Dividend Yield: N/A
• Average Volume (3M): 46.61K
• Price to Earnings (P/E): 22.2
• Beta (1Y): 0.27
• Revenue Growth: 11.57%
• EPS Growth: N/A
• Country: JP
• Employees: 384
• Sector: Consumer Cyclical
• Sector Strength: 81
• Industry: Travel Lodging
• EPS (TTM): 6.78
• Shares Outstanding: 13,817,362
• 10 Day Avg. Volume: 57,570
• 30 Day Avg. Volume: 46,606
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥684.00
• Price Target Upside: 26.43% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 64 Neutral
• Price Target: ¥684.00 ▲(26.43% Upside)

TETSUJIN Holdings Inc. scores a 64, driven primarily by strong technical analysis indicators, despite being in overbought territory. Financial performance shows improvement, particularly in cash flow management, but is offset by high leverage and low profitability margins. Valuation is moderate, with a P/E ratio indicating fair pricing relative to peers, but the lack of a dividend yield may deter income investors.

Positive Factors

Revenue Growth

The consistent revenue growth rate of 7.23% indicates a solid demand for TETSUJIN's entertainment services, suggesting a stable market position and potential for future expansion.

Cash Flow Management

Strong cash flow management, with a 181.76% growth in free cash flow, enhances financial flexibility and supports strategic investments and debt servicing.

EBIT and EBITDA Margins

Improved EBIT and EBITDA margins indicate operational efficiencies and a recovering financial performance, which can lead to better profitability in the long term.

Negative Factors

High Leverage

The high debt-to-equity ratio of 11.83 suggests significant leverage, posing financial risks and potentially limiting the company's ability to invest in growth opportunities.

Low Profitability Margins

The low net profit margin of 0.06% indicates challenges in converting revenue into profit, which could affect long-term sustainability and shareholder returns.

Limited Financial Stability

A low equity ratio of 5.17% suggests limited financial stability and a heavy reliance on debt, increasing vulnerability to economic downturns and interest rate hikes.

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 a revenue growth rate of 7.23% and improved EBIT and EBITDA margins. However, profitability margins remain low, and the balance sheet reveals high leverage with a debt-to-equity ratio of 11.83, indicating financial risk. Cash flow performance is strong, with a free cash flow growth rate of 181.76% year-over-year, 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 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.61B	7.07B	6.59B	5.88B	5.24B	5.53B
Gross Profit	1.15B	987.53M	845.75M	663.39M	748.48M	340.17M
EBITDA	443.36M	253.56M	303.17M	299.70M	-38.84M	-1.24B
Net Income	214.52M	4.02M	5.55M	32.34M	-281.61M	-1.58B
Balance Sheet
Total Assets	4.60B	4.33B	4.32B	4.50B	4.94B	5.79B
Cash, Cash Equivalents and Short-Term Investments	892.85M	738.61M	880.36M	951.37M	1.44B	1.85B
Total Debt	2.76B	2.65B	2.91B	3.09B	3.52B	4.00B
Total Liabilities	4.16B	4.10B	4.10B	4.28B	4.75B	5.30B
Stockholders Equity	437.02M	223.53M	220.23M	220.85M	190.16M	484.85M
Cash Flow
Free Cash Flow	0.00	221.69M	78.69M	127.06M	-182.41M	-1.05B
Operating Cash Flow	0.00	425.90M	217.42M	187.00M	-165.18M	-746.59M
Investing Cash Flow	0.00	-221.38M	-107.54M	-22.91M	228.46M	-445.43M
Financing Cash Flow	0.00	-346.08M	-182.01M	-616.72M	-473.91M	1.71B

TETSUJIN Holdings.Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 541.00
• 50DMA: Negative
• 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:2404, the sentiment is Positive. The current price of 541 is below the 20-day moving average (MA) of 565.80, below the 50-day MA of 562.66, and above the 200-day MA of 477.83, indicating a neutral trend. The MACD of -9.47 indicates Positive momentum. The RSI at 45.60 is Neutral, neither overbought nor oversold. The STOCH value of 52.85 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2404	64 Neutral	¥7.19B	22.20		―	11.57%	―
Sector *	61 Neutral	$17.83B	12.89	-1.60%	3.03%	1.39%	-14.45%
3R8	―	€97.19M	62.03	6.59%	―	―	―
4691	72 Outperform	¥18.77B	7.03		1.28%	20.01%	290.10%
9723	72 Outperform	¥7.70B	9.34		0.47%	3.63%	-7.07%
9713	61 Neutral	¥16.53B	6.97		0.47%	28.56%	213.63%
9720	57 Neutral	¥8.62B	30.07		0.34%	9.47%	-57.17%