TECNISCO LTD. (2962) AI Stock Analysis

• Market Cap: ¥8.96B
• Dividend Yield: N/A
• Average Volume (3M): 102.73K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.71
• 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: ¥990.00 ▲(167.57% 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 capital buffer

Despite recent losses, the balance-sheet summary notes a significant level of stockholders' equity. That equity cushion provides a durable capital buffer to absorb near-term losses, support working capital, and gives management time to implement restructuring or turnaround measures without immediate insolvency risk.

Manufacturing industry position

TECNISCO operates in metal fabrication, a structural industrial segment with steady replacement and capital goods demand. An established presence in this sector supports recurring orders, long-term supplier/customer relationships, and the potential for demand recovery when industrial capex cycles normalize over months.

Operational scale (workforce)

A headcount of 314 indicates retained operational scale and in-house manufacturing capabilities. Maintaining skilled staff and factory capacity reduces ramp-up time for demand rebounds, supports continuity of customer contracts, and aids execution of cost or productivity initiatives during a multi-month recovery.

Negative Factors

Declining revenue & negative margins

Revenue contraction of ~-8.8% combined with negative EBIT/EBITDA and net losses is a durable operational concern. Continued top-line shrinkage and margin erosion reduce reinvestment capacity, hurt competitiveness, and make multi-quarter recoveries harder without structural fixes to pricing, costs, or product mix.

Negative operating & free cash flow

Persistent negative operating and free cash flows materially weaken the company's ability to fund operations, capex, and debt service from internal sources. Over several months this forces external financing, asset sales, or restructuring, increasing dilution or distress risk while limiting strategic options.

Elevated and rising leverage

Rising debt-to-equity and elevated leverage amplify financial risk, especially with negative earnings and cash flows. Higher fixed interest obligations reduce flexibility for investment or restructuring and raise solvency risk if cash generation does not materially improve within the next few quarters.

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

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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: Neutral
• Last Price: 370.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2962, the sentiment is Neutral. The current price of 370 is below the 20-day moving average (MA) of 1053.35, below the 50-day MA of 780.54, and below the 200-day MA of 450.61, indicating a neutral trend. The MACD of 61.18 indicates Positive momentum. The RSI at 50.29 is Neutral, neither overbought nor oversold. The STOCH value of 16.72 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	¥10.35B	8.32	―	2.92%	5.71%	169.04%
6998	78 Outperform	¥11.45B	7.66	―	3.48%	0.24%	20.23%
5644	72 Outperform	¥15.72B	4.33	―	2.87%	2.38%	-5.80%
5994	69 Neutral	¥6.70B	-102.51	―	1.06%	6.41%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5852	54 Neutral	¥21.07B	3.53	―	4.33%	5.12%	―
2962	53 Neutral	¥8.96B	-73.23	―	―	-19.32%	-171.53%