TECNISCO LTD. (2962) AI Stock Analysis

• Market Cap: ¥3.22B
• Dividend Yield: N/A
• Average Volume (3M): 100.74K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.21
• Revenue Growth: -19.32%
• EPS Growth: -171.53%
• Country: JP
• Employees: 314
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): -9.83
• Shares Outstanding: 9,193,374
• 10 Day Avg. Volume: 54,540
• 30 Day Avg. Volume: 100,740
• 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): 9,715.27
• Revenue Forecast (FY): ¥1.24T

• Rating: 46 Neutral
• Price Target: ¥396.00 ▲(7.03% Upside)

The overall stock score is primarily impacted by TECNISCO LTD.'s poor financial performance, characterized by declining revenues, profitability, and cash flows. While technical indicators show some positive trends, the negative valuation metrics due to net losses further weigh down the score.

Positive Factors

Business Model Strength

The company's focus on industrial automation and precision engineering positions it well in sectors demanding efficiency and innovation.

Revenue Streams

Diverse revenue streams, including recurring maintenance contracts, provide stability and potential for growth despite market fluctuations.

Market Position

Strategic partnerships enhance market reach and service offerings, supporting long-term competitive positioning.

Negative Factors

Revenue Decline

Declining revenue impacts the company's ability to invest in growth and maintain competitive advantages, posing a risk to future performance.

High Leverage

Rising leverage increases financial risk and limits flexibility, potentially affecting the company's ability to navigate economic downturns.

Cash Flow Challenges

Inefficient cash generation relative to earnings can hinder the company's ability to fund operations and invest in growth opportunities.

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

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	3.36B	3.36B	4.68B	5.35B	5.48B	4.35B
Gross Profit	130.19M	130.45M	1.18B	1.95B	2.21B	1.57B
EBITDA	-2.59B	-2.46B	146.50M	886.62M	1.45B	851.85M
Net Income	-2.98B	-2.98B	-603.63M	222.34M	802.79M	277.33M
Balance Sheet
Total Assets	6.57B	6.57B	9.51B	8.27B	8.14B	6.57B
Cash, Cash Equivalents and Short-Term Investments	1.91B	1.91B	2.18B	845.48M	835.85M	612.99M
Total Debt	4.23B	4.23B	3.97B	3.21B	2.74B	2.97B
Total Liabilities	4.94B	4.94B	4.82B	4.53B	4.62B	4.14B
Stockholders Equity	1.62B	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: Positive
• Last Price: 370.00
• 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:2962, the sentiment is Positive. The current price of 370 is below the 20-day moving average (MA) of 370.85, below the 50-day MA of 398.36, and above the 200-day MA of 323.10, indicating a neutral trend. The MACD of -9.64 indicates Positive momentum. The RSI at 49.95 is Neutral, neither overbought nor oversold. The STOCH value of 30.65 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
5994	69 Neutral	¥8.33B	4.32	―	1.03%	6.41%	―
6138	68 Neutral	¥2.74B	7.62	―	2.70%	3.89%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6150	63 Neutral	¥2.76B	12.45	―	2.66%	-17.16%	-47.34%
5858	62 Neutral	¥3.45B	11.19	―	0.94%	15.18%	-10.95%
6433	54 Neutral	¥4.37B	-14.69	―	0.12%	-10.82%	-69.03%
2962	46 Neutral	¥3.22B	-1.26	―	―	-19.32%	-171.53%