Techno Alpha Co., Ltd. (3089) AI Stock Analysis

• Market Cap: ¥2.16B
• Dividend Yield: 2.84%
• Average Volume (3M): 23.84K
• Price to Earnings (P/E): 4.6
• Beta (1Y): 0.44
• Revenue Growth: 18.27%
• EPS Growth: 243.66%
• Country: JP
• Employees: 83
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 150.47
• Shares Outstanding: 2,316,000
• 10 Day Avg. Volume: 33,780
• 30 Day Avg. Volume: 23,836
• PEG Ratio: 0.28
• Price to Book (P/B): 0.84
• Price to Sales (P/S): 0.41
• P/FCF Ratio: -4.01
• 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: 81 Outperform
• Price Target: ¥1,445.00 ▲(15.88% Upside)

Techno Alpha Co., Ltd. receives a strong overall score due to its attractive valuation and positive technical indicators. While financial performance is solid, addressing cash flow issues will be crucial for long-term growth. The absence of earnings call data and corporate events does not impact the score significantly.

Positive Factors

Revenue Growth

Techno Alpha's robust revenue growth reflects its successful market penetration and product demand, supporting long-term business expansion.

Market Position

The company's strategic position in essential sectors ensures steady revenue streams and enhances its competitive edge in the tech industry.

Balance Sheet Health

A strong balance sheet with low leverage provides financial stability and flexibility, enabling Techno Alpha to invest in growth opportunities.

Negative Factors

Cash Flow Issues

Challenges in converting income to cash may limit Techno Alpha's ability to fund operations and growth, posing a risk to financial health.

Profit Margin Volatility

Volatile profit margins could affect earnings stability, making it harder for Techno Alpha to predict and manage future profitability.

Equity Financing Reliance

Heavy reliance on equity financing may dilute shareholder value and limit financial maneuverability in leveraging debt for growth.

Techno Alpha Co., Ltd. Business Overview & Revenue Model

Company Description

Techno Alpha Co., Ltd. operates as a trading company in Japan and internationally. The company imports semiconductor manufacturing equipment, as well as supplies equipment, such as vacuum reflow equipment, plasma cleaners, etc. It also sells marine machinery and filtration products, including marine cranes, life boats, boat davits, vibrated membrane filters, and ceramic filters and other products; and markets solar cell analytical instruments and X-ray inspection systems. In addition, the company operates as a system integrator, as well as supplies software and hardware of measurement and inspection systems; and develops and produces biochemistry instruments, which include nanoLC pumps and DiNa Series products that are used in the proteomics field, as well as imports and exports various kinds of biochemistry devices. Further, it provides surface mount technology equipment/materials; printed electronic products; and LabVIEW solutions. Techno Alpha Co., Ltd. was founded in 1989 and is headquartered in Shinagawa, Japan.

How the Company Makes Money

Techno Alpha Co., Ltd. generates revenue through multiple streams including the sale of its electronic components and systems to manufacturers and businesses in various sectors. The company benefits from long-term contracts with key clients in the telecommunications and automotive industries, ensuring a steady income flow. Additionally, Techno Alpha engages in research and development partnerships with technology firms and academic institutions, which not only enhances its product offerings but also opens up new revenue opportunities through collaborative projects and grants. The growing demand for smart and connected devices further drives the company's sales, as it positions itself as a critical supplier in the fast-evolving tech landscape.

Techno Alpha Co., Ltd. Financial Statement Overview

Summary

Techno Alpha Co., Ltd. shows strong revenue growth and profitability with a stable financial foundation. The balance sheet is solid with modest leverage, but cash flow issues need addressing to ensure sustainable growth.

Income Statement

Techno Alpha Co., Ltd. demonstrated a robust financial performance with a consistent revenue growth trend. The gross profit margin for the latest year was approximately 28.97%, and the net profit margin was around 5.35%, reflecting stable profitability. However, the EBIT and EBITDA margins have shown some volatility over the years, with the latest EBIT margin at 6.97% and EBITDA margin at 8.69%. Despite these fluctuations, the company's capacity to generate profit from its operations remains solid.

Balance Sheet

The balance sheet of Techno Alpha Co., Ltd. indicates a sound financial position, with a debt-to-equity ratio of 0.26, suggesting modest leverage. The return on equity stands at 10.86%, indicating efficient use of shareholders' equity to generate profits. However, the equity ratio is at 64.85%, which indicates a strong reliance on equity financing. The overall stability is commendable, though there is room for improvement in debt management.

Cash Flow

Techno Alpha Co., Ltd.'s cash flow performance shows areas for concern. The operating cash flow to net income ratio is negative, demonstrating potential challenges in converting income into cash. Furthermore, the free cash flow to net income ratio is also negative, pointing to difficulties in generating free cash flow. These cash flow constraints could impact future investment and growth opportunities if not addressed.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.69B	3.97B	4.37B	4.27B	3.15B	2.33B
Gross Profit	1.10B	1.15B	1.11B	1.20B	905.94M	739.68M
EBITDA	309.93M	344.97M	264.04M	371.22M	203.72M	24.03M
Net Income	189.45M	212.42M	166.22M	229.23M	113.39M	-5.43M
Balance Sheet
Total Assets	3.05B	3.01B	2.97B	2.77B	2.59B	2.17B
Cash, Cash Equivalents and Short-Term Investments	693.52M	449.33M	657.58M	573.90M	527.81M	750.13M
Total Debt	451.80M	512.91M	303.72M	200.89M	402.07M	303.34M
Total Liabilities	1.08B	1.06B	1.17B	1.08B	1.07B	729.15M
Stockholders Equity	1.96B	1.96B	1.80B	1.69B	1.52B	1.44B
Cash Flow
Free Cash Flow	0.00	-408.14M	43.23M	196.87M	-342.35M	341.08M
Operating Cash Flow	0.00	-336.03M	79.87M	247.77M	-328.49M	350.31M
Investing Cash Flow	0.00	-20.47M	-39.70M	47.07M	51.68M	15.71M
Financing Cash Flow	0.00	147.53M	46.04M	-248.75M	54.49M	45.20M

Techno Alpha Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1247.00
• 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:3089, the sentiment is Neutral. The current price of 1247 is below the 20-day moving average (MA) of 1290.80, above the 50-day MA of 1233.64, and above the 200-day MA of 991.25, indicating a neutral trend. The MACD of 4.33 indicates Positive momentum. The RSI at 44.40 is Neutral, neither overbought nor oversold. The STOCH value of 44.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3089.

Techno Alpha Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3089	81 Outperform	¥2.16B	4.56	―	2.84%	18.27%	243.66%
6627	72 Outperform	¥50.76B	16.33	―	1.98%	3.60%	-17.45%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6656	49 Neutral	¥2.32B	-14.38	―	―	15.80%	43.81%
6613	46 Neutral	¥15.33B	―	―	―	18.18%	56.08%
6614	46 Neutral	¥3.32B	-68.31	―	2.07%	-2.80%	-129.64%
6616	45 Neutral	¥17.86B	-7.46	―	3.65%	-6.84%	50.71%