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

• Market Cap: ¥1.97B
• Dividend Yield: 2.49%
• Average Volume (3M): 23.84K
• Price to Earnings (P/E): 5.4
• Beta (1Y): 0.42
• 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: 0.06
• Price to Book (P/B): 0.96
• Price to Sales (P/S): 0.49
• 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: 75 Outperform
• Price Target: ¥1,351.00 ▼(-4.05% Downside)
• Action: Reiterated Date: 03/17/26
• Date: Action: Reiterated 03/17/26

The score is driven primarily by improving fundamentals and a strong balance sheet, supported by a very attractive valuation (low P/E and solid yield). Offsetting this is weak current technical momentum and a history of volatile cash flows, which increases cycle risk.

Positive Factors

Margin expansion and profitability rebound

Margin expansion to gross ~33.9%, operating ~13.4% and net ~9.1% in FY2025 demonstrates materially stronger earnings power. Sustained higher margins improve cash generation, fund reinvestment and dividends, and provide a structural buffer vs semiconductor demand swings over coming quarters.

Conservative balance sheet and improving ROE

A low debt-to-equity (~0.13) and ROE around 17.8% indicate conservative financing and more efficient capital use. This financial flexibility reduces refinancing risk, supports discretionary investment or dividends, and strengthens the company's ability to withstand cyclical downturns in the semiconductor cycle.

Improving cash generation and FCF conversion

Strong FY2025 operating cash flow (~607M) and FCF (~551M) with FCF roughly 0.91x net income shows improved cash conversion. Reliable free cash flow supports capital expenditures, R&D and shareholder returns while lowering dependence on external funding through semiconductor cycles.

Negative Factors

Historic cash-flow volatility

Despite FY2025 strength, prior negative operating and free cash flow in FY2024 and FY2021 indicate uneven cash generation. Such volatility raises liquidity and forecasting risk, forcing higher precautionary buffers or short-term financing needs when demand softens.

Cyclical revenue and demand sensitivity

The firm operates in a cyclical semiconductor market: revenue swung from decline to +22.7% growth in FY2025. Demand cyclicality can rapidly reverse margin and cash-flow gains, complicate capacity planning, and increase execution and forecasting risk across multiple quarters.

Inconsistent debt trajectory

Although leverage is low, year-to-year variability in total debt suggests episodic borrowing. This pattern raises refinancing and interest-rate exposure in downcycles and underscores the need for disciplined working-capital and funding policies to preserve liquidity.

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.

Techno Alpha Co., Ltd. Financial Statement Overview

Summary

Strong FY2025 profitability rebound and margin expansion, plus a conservatively financed balance sheet (low leverage and improving ROE). The main drag is cash-flow volatility, including prior periods of negative operating/free cash flow, which raises cycle and liquidity sensitivity.

Income Statement

Profitability and growth have improved meaningfully. Revenue re-accelerated to +22.7% in FY2025 after a decline in FY2024, and margins expanded sharply (gross margin ~33.9%, operating margin ~13.4%, net margin ~9.1% in FY2025 versus much lower levels in prior years). Earnings have also recovered from losses in FY2020 to solid profitability in FY2025. The main weakness is cyclicality/volatility in the top line and profit profile (e.g., FY2024 revenue contraction and earlier weaker margins), which is typical for semiconductors but still increases forecast risk.

Balance Sheet

The balance sheet looks conservatively financed. Leverage is low with debt-to-equity around 0.13 in FY2025 (down from ~0.26 in FY2024), and equity has steadily grown alongside assets. Returns on equity have improved to ~17.8% in FY2025, indicating stronger profitability on the capital base. A watch item is that total debt has moved around year-to-year (not a straight-line decline), so discipline on funding and working capital will matter through cycles.

Cash Flow

Cash generation is mixed but improving. FY2025 shows strong positive operating cash flow (~607M) and free cash flow (~551M), with free cash flow running close to net income (~0.91x), which supports earnings quality. However, cash flow has been volatile, including negative operating and free cash flow in FY2024 and FY2021, which suggests working-capital swings and/or capex timing can materially impact liquidity in weaker periods.

Breakdown	Nov 2025	Nov 2024	Nov 2023	Nov 2022	Nov 2021
Income Statement
Total Revenue	4.52B	3.97B	4.37B	4.27B	3.15B
Gross Profit	1.53B	1.15B	1.09B	1.18B	889.39M
EBITDA	614.37M	306.36M	222.07M	350.91M	149.47M
Net Income	412.65M	212.42M	166.22M	229.23M	113.39M
Balance Sheet
Total Assets	3.34B	3.02B	2.98B	2.78B	2.59B
Cash, Cash Equivalents and Short-Term Investments	725.12M	449.33M	657.58M	573.90M	527.81M
Total Debt	302.17M	512.91M	303.72M	200.89M	402.07M
Total Liabilities	1.02B	1.07B	1.18B	1.09B	1.07B
Stockholders Equity	2.31B	1.96B	1.80B	1.69B	1.52B
Cash Flow
Free Cash Flow	550.68M	-392.57M	66.52M	200.28M	-341.65M
Operating Cash Flow	606.59M	-336.03M	79.87M	247.77M	-328.49M
Investing Cash Flow	-60.96M	-20.47M	-39.70M	47.07M	51.68M
Financing Cash Flow	-272.51M	147.53M	46.04M	-248.75M	54.49M

Techno Alpha Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1408.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 1408 is above the 20-day moving average (MA) of 1187.70, above the 50-day MA of 1244.70, and above the 200-day MA of 1135.92, indicating a bearish trend. The MACD of -31.65 indicates Positive momentum. The RSI at 39.80 is Neutral, neither overbought nor oversold. The STOCH value of 55.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
8150	83 Outperform	¥12.34B	12.00	11.46%	4.65%	20.51%	66.82%
7087	78 Outperform	¥8.61B	5.75	―	3.07%	8.75%	-27.34%
3089	75 Outperform	¥1.97B	5.36	―	2.49%	18.27%	243.66%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6769	56 Neutral	¥9.56B	-25.29	―	1.86%	-7.54%	―
6656	54 Neutral	¥2.37B	32.49	―	―	-36.20%	-1972.83%
6614	53 Neutral	¥3.56B	-16.93	―	2.25%	-2.80%	-129.64%