TETSUJIN Holdings.Inc. (2404) AI Stock Analysis

• Market Cap: ¥6.91B
• Dividend Yield: N/A
• Average Volume (3M): 8.36K
• Price to Earnings (P/E): 31.9
• Beta (1Y): 0.17
• Revenue Growth: 9.02%
• EPS Growth: 871.24%
• Country: JP
• Employees: 384
• Sector: Consumer Cyclical
• Sector Strength: 60
• Industry: Travel Lodging
• EPS (TTM): 16.26
• Shares Outstanding: 13,717,362
• 10 Day Avg. Volume: 12,620
• 30 Day Avg. Volume: 8,360
• PEG Ratio: -11.24
• Price to Book (P/B): 23.47
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 65.68
• 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

• Rating: 62 Neutral
• 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. Business Overview & Revenue Model

Company Description

TETSUJIN 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 Money

TETSUJIN 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

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	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	7.30B	7.07B	6.59B	5.88B	5.24B	5.53B
Gross Profit	1.03B	987.53M	845.75M	663.39M	748.48M	340.17M
EBITDA	161.27M	253.56M	303.17M	299.70M	-38.84M	-1.24B
Net Income	51.54M	4.02M	5.55M	32.34M	-281.61M	-1.58B
Balance Sheet
Total Assets	4.41B	4.33B	4.32B	4.50B	4.94B	5.79B
Cash, Cash Equivalents and Short-Term Investments	710.00M	738.61M	880.36M	951.37M	1.44B	1.85B
Total Debt	2.82B	2.65B	2.91B	3.09B	3.52B	4.00B
Total Liabilities	4.25B	4.10B	4.10B	4.28B	4.75B	5.30B
Stockholders Equity	163.00M	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: 522.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4691	73 Outperform	¥14.44B	7.17		1.67%	16.69%	141.13%
9720	68 Neutral	¥7.56B	21.27		0.39%	9.49%	-28.90%
Sector *	67 Neutral	¥253.34B	13.18	6.44%	2.78%	5.06%	-11.83%
2404	62 Neutral	¥6.91B	31.86		―	9.02%	871.24%
9723	60 Neutral	¥7.67B	10.49		0.47%	2.41%	-13.76%
9713	58 Neutral	¥13.53B	8.11		0.56%	21.75%	92.79%
9704	48 Neutral	¥14.98B	229.62	1.65%	―	12.51%	―