TECNISCO LTD. (2962) AI Stock Analysis

• Market Cap: ¥2.42B
• Dividend Yield: N/A
• Average Volume (3M): 9.04K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.88
• Revenue Growth: -28.21%
• EPS Growth: -396.64%
• Country: JP
• Employees: 314
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): -223.79
• Shares Outstanding: 9,174,714
• 10 Day Avg. Volume: 9,800
• 30 Day Avg. Volume: 9,036
• 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: ¥260.00
• Price Target Upside: -1.14% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1

• Rating: 38 Underperform
• Price Target: ¥260.00 ▼(-1.14% Downside)

TECNISCO LTD. is currently facing significant financial and operational challenges, as reflected in its poor financial performance and valuation metrics. The technical indicators suggest a bearish trend, with the stock trading below key moving averages and approaching oversold conditions. The lack of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Business Model Strength

TECNISCO's focus on high-precision microfabrication services positions it well in the growing semiconductor industry, offering specialized solutions that meet high-quality standards, which can drive long-term demand.

Diverse Revenue Streams

The company's diverse revenue streams from components and services in the electronics and semiconductor sectors provide resilience against market fluctuations and support sustained earnings potential.

Industry Expertise

TECNISCO's expertise in advanced manufacturing techniques enhances its competitive edge, enabling it to cater to sectors requiring precise micro-components, thus maintaining a strong market position.

Negative Factors

Declining Revenue

The decline in revenue and profitability indicates operational challenges that could hinder growth and affect the company's ability to invest in future innovations, impacting long-term competitiveness.

High Leverage

High leverage increases financial risk and can limit the company's flexibility to navigate economic downturns or invest in growth opportunities, potentially affecting long-term stability.

Negative Cash Flows

Negative cash flows highlight inefficiencies in cash generation, which can strain resources needed for operational and strategic initiatives, affecting the company's ability to sustain operations over time.

TECNISCO LTD. Business Overview & Revenue Model

Company Description

TECNISCO LTD. is a Japanese company specializing in high-precision processing of materials for the electronics and semiconductor industries. The company focuses on providing microfabrication services and products, including semiconductor components, electronic devices, and optical components. Its core expertise lies in technologies such as photolithography, precision dicing, and bonding, catering to sectors requiring high-quality and precise micro-components.

How the Company Makes Money

TECNISCO LTD. generates revenue primarily through its microfabrication services and products. The company serves a diverse clientele in the semiconductor and electronics industries by providing custom solutions and components that meet specific precision and quality standards. Revenue streams include the sale of semiconductor components and electronic devices, as well as specialized processing services that leverage TECNISCO's advanced manufacturing techniques. Partnerships with major electronics manufacturers and ongoing innovation in microfabrication technologies are significant factors contributing to the company's earnings.

TECNISCO LTD. Financial Statement Overview

Summary

TECNISCO LTD. is facing significant financial challenges, with declining revenues, profitability, and cash flows. The company is highly leveraged, which poses additional risks. Immediate strategic actions are needed to stabilize operations and improve financial health.

Income Statement

TECNISCO LTD. has experienced a significant decline in revenue and profitability over the past year. The company reported a negative revenue growth rate of -8.82% and a substantial net loss, leading to a negative net profit margin. The EBIT and EBITDA margins have also turned negative, indicating operational challenges. The gross profit margin has decreased, reflecting pressure on cost management.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio, which has increased over the past year, indicating rising leverage and potential financial risk. The return on equity has turned negative due to the net loss, and the equity ratio has decreased, suggesting a weakened financial position. However, the company still maintains a significant level of stockholders' equity.

Cash Flow

Cash flow analysis reveals a concerning trend, with negative operating and free cash flows. The free cash flow growth rate is negative, and the operating cash flow to net income ratio is unfavorable, indicating cash flow challenges. The free cash flow to net income ratio is also negative, highlighting inefficiencies in cash generation relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.69B	3.36B	4.68B	5.35B	5.48B	4.35B
Gross Profit	581.25M	130.45M	1.18B	1.95B	2.21B	1.57B
EBITDA	-714.15M	-2.46B	146.50M	886.62M	1.45B	851.85M
Net Income	-1.35B	-2.98B	-603.63M	222.34M	802.79M	277.33M
Balance Sheet
Total Assets	7.22B	6.57B	9.51B	8.27B	8.14B	6.57B
Cash, Cash Equivalents and Short-Term Investments	862.58M	1.91B	2.18B	845.48M	835.85M	612.99M
Total Debt	2.76B	4.23B	3.97B	3.21B	2.74B	2.97B
Total Liabilities	3.58B	4.94B	4.82B	4.53B	4.62B	4.14B
Stockholders Equity	3.64B	1.62B	4.69B	3.74B	3.52B	2.43B
Cash Flow
Free Cash Flow	0.00	-423.05M	-817.94M	-293.52M	268.08M	441.17M
Operating Cash Flow	0.00	-256.77M	-386.64M	361.15M	1.04B	837.11M
Investing Cash Flow	0.00	-184.58M	-434.59M	-792.78M	-634.37M	-337.65M
Financing Cash Flow	0.00	226.27M	2.09B	416.07M	-247.85M	-380.79M

TECNISCO LTD. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 263.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2962, the sentiment is Negative. The current price of 263 is below the 20-day moving average (MA) of 277.65, below the 50-day MA of 289.88, and below the 200-day MA of 312.36, indicating a bearish trend. The MACD of -6.86 indicates Positive momentum. The RSI at 25.54 is Positive, neither overbought nor oversold. The STOCH value of 16.27 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2962.

TECNISCO LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5858	80 Outperform	¥3.60B	7.57		0.87%	23.97%	120.19%
6138	72 Outperform	¥3.28B	8.69		2.26%	8.06%	―
6150	72 Outperform	¥2.75B	9.50		2.67%	-10.50%	-31.23%
Sector *	63 Neutral	$10.84B	15.52	7.44%	2.00%	2.86%	-14.57%
5994	63 Neutral	¥5.49B	31.79		1.60%	1.07%	―
6433	54 Neutral	¥2.90B	―		0.21%	-5.80%	2.65%
2962	38 Underperform	¥2.42B	―		―	-28.21%	-396.64%