TECNISCO LTD. (2962) AI Stock Analysis

• Market Cap: ¥10.87B
• Dividend Yield: N/A
• Average Volume (3M): 102.73K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.68
• Revenue Growth: -19.32%
• EPS Growth: -171.53%
• Country: JP
• Employees: 314
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): N/A
• Shares Outstanding: 9,193,374
• 10 Day Avg. Volume: 47,860
• 30 Day Avg. Volume: 102,733
• PEG Ratio: >-0.01
• Price to Book (P/B): 1.76
• Price to Sales (P/S): 0.85
• P/FCF Ratio: -6.76
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: ¥1,337.00 ▲(261.35% Upside)
• Action: Reiterated Date: 02/27/26
• Date: Action: Reiterated 02/27/26

The score is held down primarily by weak fundamentals (declining revenue, losses, negative cash flows, and high leverage). Strong technical momentum provides meaningful support, but valuation signals are unfavorable/limited due to negative earnings and no dividend yield data.

Positive Factors

Equity cushion on balance sheet

Maintaining a significant level of stockholders' equity provides a durable solvency buffer against ongoing losses. This equity cushion supports creditor confidence, allows time for operational restructuring, and preserves options for capital raises or M&A without immediate insolvency risk.

Established operating base (workforce)

A workforce of 314 implies an established manufacturing and operational capability. That scale supports continuity of production, institutional knowledge, and the ability to service industrial contracts—foundational assets for recovery and long-term revenue regeneration.

Listed on major exchange (access to capital)

A Tokyo Stock Exchange listing gives durable access to public capital markets and regulatory oversight, facilitating equity or debt raises and increasing investor reach. This structural advantage improves financing flexibility during multi‑quarter turnarounds.

Negative Factors

Revenue decline and negative margins

Sustained revenue decline and transition to negative gross/EBITDA/net margins indicate weakening demand or pricing power and operational stress. Over multiple quarters this erodes competitive position, reduces reinvestment capacity, and makes margin recovery harder without structural change.

Persistent negative operating & free cash flow

Negative operating and free cash flows over the latest period imply the core business fails to generate cash to fund operations or capex. Persisting cash deficits compress liquidity, increase reliance on external funding, and limit the firm's ability to invest or deleverage sustainably.

High and rising leverage

Rising debt-to-equity and a negative ROE increase financial risk and interest burdens. Elevated leverage reduces strategic flexibility, raises default probability in downturns, and can force asset disposals or dilutive financing—impairing long‑term recovery prospects.

TECNISCO LTD. Business Overview & Revenue Model

Company Description

TECNISCO LTD. (2962) is a technology-focused company that specializes in advanced industrial automation solutions and precision engineering services. Operating primarily in the manufacturing and technology sectors, TECNISCO LTD. delivers innovative products and services designed to enhance operational efficiency and productivity for its clients. The company offers a range of core products including automation systems, robotic solutions, and customized engineering services tailored to meet the specific needs of various industries.

How the Company Makes Money

TECNISCO LTD. generates revenue through multiple streams including the sale of industrial automation equipment, maintenance contracts, and consulting services. The company capitalizes on its expertise in precision engineering to offer tailored solutions, which allows it to charge premium prices for its specialized products. Additionally, TECNISCO LTD. has established significant partnerships with key players in the manufacturing sector, enabling it to expand its market reach and enhance its service offerings. Ongoing maintenance and support contracts provide a steady source of recurring revenue, while successful project completions and positive client relationships contribute to client retention and new business referrals.

TECNISCO LTD. Financial Statement Overview

Summary

Financial performance is weak: revenue declined (-8.82%), profitability turned negative (net loss with negative EBIT/EBITDA margins), and cash generation is strained with negative operating and free cash flows. Leverage is elevated (high and rising debt-to-equity) with negative ROE, increasing financial risk.

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

TECNISCO LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 370.00
• 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:2962, the sentiment is Positive. The current price of 370 is below the 20-day moving average (MA) of 845.55, below the 50-day MA of 593.54, and below the 200-day MA of 396.15, indicating a bullish trend. The MACD of 172.54 indicates Negative momentum. The RSI at 66.34 is Neutral, neither overbought nor oversold. The STOCH value of 33.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2962.

TECNISCO LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6497	80 Outperform	¥9.29B	9.73	―	2.92%	5.71%	169.04%
5644	72 Outperform	¥16.90B	7.44	―	2.87%	2.38%	-5.80%
6998	71 Outperform	¥10.97B	15.68	―	3.48%	0.24%	20.23%
5994	69 Neutral	¥7.57B	4.62	―	1.06%	6.41%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5852	54 Neutral	¥23.17B	10.25	―	4.33%	5.12%	―
2962	53 Neutral	¥10.87B	-4.05	―	―	-19.32%	-171.53%