Temairazu, Inc. (2477) AI Stock Analysis

• Market Cap: ¥18.47B
• Dividend Yield: 1.21%
• Average Volume (3M): 13.57K
• Price to Earnings (P/E): 17.0
• Beta (1Y): 0.54
• Revenue Growth: 8.09%
• EPS Growth: 8.53%
• Country: JP
• Employees: 31
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): 45.41
• Shares Outstanding: 6,480,961
• 10 Day Avg. Volume: 14,180
• 30 Day Avg. Volume: 13,570
• PEG Ratio: 1.87
• Price to Book (P/B): 2.95
• Price to Sales (P/S): 9.12
• P/FCF Ratio: 18.87
• 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): 179.1
• Revenue Forecast (FY): ¥2.36B

• Rating: 78 Outperform
• Price Target: ¥3,550.00 ▲(12.88% Upside)
• Action: Reiterated Date: 12/30/25
• Date: Action: Reiterated 12/30/25

The score is driven primarily by strong financial performance (high profitability, debt-free balance sheet, and strong cash conversion). Technical signals are neutral to slightly weak, and valuation appears reasonable but not a clear bargain, which moderates the overall score.

Positive Factors

Balance Sheet Strength

Temairazu's zero-debt balance sheet is a durable strength: it provides financial flexibility to fund product development, strategic partnerships, or temporary demand shocks without needing external financing. This reduces solvency risk and preserves optionality for long-term investments and M&A.

High and Sustainable Profitability

Consistently very high gross and operating margins indicate a scalable software business with pricing power and low incremental costs. Sustained net margins near the high 40s support reinvestment, dividend capacity and a durable economic moat versus lower-margin competitors in services-heavy segments.

Strong Cash Conversion

Operating cash flow well above net income and FCF closely tracking earnings show high-quality earnings and dependable internal funding. This cash profile supports organic growth initiatives, stable shareholder returns, and reduces reliance on external capital over multi-quarter horizons.

Negative Factors

Volatile Free Cash Flow Growth

Year-to-year swings in free cash flow suggest working-capital or timing variability that can complicate capital allocation. For a small, cash-funded company, this volatility reduces predictability of available investment budget, dividends, or buybacks over several quarters.

Uneven Historical Revenue Growth

While recent revenue growth improved, historical unevenness and occasional declines imply adoption or retention risks. Persistent variability limits long-term forecasting accuracy and could constrain scale benefits if the company cannot deliver steadier multi-period top-line expansion.

Concentrated Industry Exposure

Heavy concentration in hospitality and OTA connectivity makes results sensitive to travel cycles, regulatory shifts, or OTA platform changes. Structural shocks to lodging demand or channel economics could materially affect recurring revenue streams and client retention over several quarters.

Temairazu, Inc. Business Overview & Revenue Model

Company Description

Temairazu, Inc. develops and operates comparison and reservation sites. It operates Channel Manager TEMAIRAZU, a system for accommodating hotels that centrally manage multiple accommodation reservation sites; and hikaku.com, a comparison website. The company was formerly known as Hikaku.com Corporation and changed its name to Temairazu, Inc. in October 2017. Temairazu, Inc. was incorporated in 2003 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Temairazu, Inc. generates revenue primarily through subscription fees from its SaaS-based platform used by hotels and accommodation providers. The company charges its clients for utilizing the 'Temairazu' system, which helps manage and distribute hotel inventory across multiple online travel agencies and direct booking channels. This subscription model provides a steady income stream, as clients pay for access to the platform's features and continuous updates. Additionally, Temairazu may earn revenue from offering premium features, custom solutions, or professional services that cater to the specific needs of larger hotel chains or hospitality groups. Partnerships with major online travel agencies and technology integrations also play a role in expanding the company's reach and enhancing its service offerings.

Temairazu, Inc. Financial Statement Overview

Summary

High-quality fundamentals: consistently very strong margins and improving recent revenue growth. The balance sheet is exceptionally conservative with zero debt and steady asset/equity growth, while cash conversion is strong (operating cash flow consistently well above net income). Main risks are uneven historical growth and volatility in free cash flow growth year-to-year.

Income Statement

Temairazu shows consistently strong profitability with very high gross and operating margins across the period, and net margins holding near ~47–49%. Revenue growth is solid and improving in the most recent year (2025 annual: +15.1% vs. 2024: ~+11.9%), supporting a steady upward earnings trajectory. The main watch-out is that growth has been somewhat uneven historically (including a small revenue decline in 2021), though profitability remained resilient.

Balance Sheet

The balance sheet is exceptionally conservative: total debt is zero in every year provided, resulting in no leverage pressure and strong financial flexibility. Equity and total assets have grown steadily over time, and returns on equity remain healthy (roughly mid-teens to ~20% historically), indicating the company is generating solid profit relative to its capital base. A potential limitation is that with no debt, future returns may rely primarily on continued operating performance rather than balance-sheet optimization.

Cash Flow

Cash generation is strong and high-quality: operating cash flow is consistently well above net income (operating cash flow to net income ~2.1–2.5x), and free cash flow closely tracks net income (near ~1.0x), implying profits are converting cleanly into cash. Free cash flow growth is volatile year-to-year (notably a dip in 2024 and an extreme spike in 2025), which suggests variability in working capital/timing effects even though overall cash flow levels remain robust.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	1.90B	2.19B	2.02B	1.81B	1.63B	1.61B
Gross Profit	1.74B	1.94B	1.82B	1.66B	1.50B	1.49B
EBITDA	1.40B	1.62B	1.48B	1.33B	1.17B	1.15B
Net Income	922.15M	1.07B	976.46M	873.81M	782.58M	758.41M
Balance Sheet
Total Assets	6.53B	7.22B	6.98B	6.18B	5.38B	4.80B
Cash, Cash Equivalents and Short-Term Investments	6.12B	6.59B	6.57B	5.83B	5.05B	4.48B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	382.20M	449.67M	419.83M	397.11M	289.12M	316.63M
Stockholders Equity	6.15B	6.77B	6.56B	5.78B	5.09B	4.48B
Cash Flow
Free Cash Flow	2.95M	1.06B	943.24M	960.17M	730.59M	687.77M
Operating Cash Flow	2.95M	1.06B	949.47M	964.78M	730.59M	689.67M
Investing Cash Flow	0.00	0.00	-6.24M	-4.47M	1.26M	-1.90M
Financing Cash Flow	0.00	-1.03B	-204.05M	-181.56M	-168.61M	-175.03M

Temairazu, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3145.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2477, the sentiment is Negative. The current price of 3145 is above the 20-day moving average (MA) of 2920.45, above the 50-day MA of 3045.68, and above the 200-day MA of 3080.56, indicating a bearish trend. The MACD of -71.61 indicates Positive momentum. The RSI at 35.77 is Neutral, neither overbought nor oversold. The STOCH value of 42.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2477.

Temairazu, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7047	79 Outperform	¥32.28B	7.68	―	0.11%	31.33%	34.22%
2477	78 Outperform	¥18.47B	16.96	―	1.21%	8.09%	8.53%
3922	77 Outperform	¥31.24B	12.43	―	0.38%	18.02%	46.43%
6054	64 Neutral	¥3.89B	-147.16	―	―	-5.08%	-180.19%
5139	62 Neutral	¥19.22B	26.23	―	―	28.90%	29.06%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
5243	54 Neutral	¥42.24B	58.36	―	―	22.37%	655.34%

Temairazu, Inc. Corporate Events

Temairazu posts higher first-half profit and plans increased dividends

Temairazu, Inc. reported non-consolidated results for the six months ended December 31, 2025, showing net sales of ¥1,178 million, up 10.3% year on year, and operating profit of ¥834 million, up 6.5%, with net income rising 6.5% to ¥546 million. The company maintained a strong financial position with an equity ratio above 93%, though total assets and net assets edged down slightly from June 30, 2025.

Basic earnings per share increased to ¥88.26 from ¥79.20, and the company plans to raise interim and year-end dividends, targeting a total annual dividend of ¥40 per share for the year ending June 30, 2026, up from ¥38 in the prior year. For the full fiscal year, Temairazu forecasts continued, though more moderate, growth with net sales of ¥2,365 million and net income of ¥1,108 million, underscoring stable profitability and a shareholder-return policy supported by steady cash generation.

The most recent analyst rating on (JP:2477) stock is a Buy with a Yen3812.00 price target. To see the full list of analyst forecasts on Temairazu, Inc. stock, see the JP:2477 Stock Forecast page.