TECHNOFLEX CORPORATION (3449) AI Stock Analysis

• Market Cap: ¥46.36B
• Dividend Yield: 2.4%
• Average Volume (3M): 79.97K
• Price to Earnings (P/E): 14.9
• Beta (1Y): 0.43
• Revenue Growth: 14.37%
• EPS Growth: 93.86%
• Country: JP
• Employees: 819
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 41.64
• Shares Outstanding: 21,360,000
• 10 Day Avg. Volume: 125,390
• 30 Day Avg. Volume: 79,970
• PEG Ratio: 0.09
• Price to Book (P/B): 1.56
• Price to Sales (P/S): 1.54
• P/FCF Ratio: 9.49
• 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): 144.6
• Revenue Forecast (FY): ¥26.00B

• Rating: 73 Outperform
• Price Target: ¥2,565.00 ▲(57.94% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is driven primarily by improving financial performance and a healthy balance sheet, tempered by historically inconsistent free cash flow. Technicals are supportive with a clear uptrend and positive momentum, while valuation appears reasonable with a solid dividend yield.

Positive Factors

Revenue & Profitability Improvement

Recent acceleration in revenue and materially higher EBIT and net income in 2025 indicate the business is regaining operating leverage. Sustained top-line growth coupled with improved operating results supports durable profit improvement if demand holds, enabling reinvestment and stronger internal funding for growth.

Balance-Sheet Resilience

Moderate leverage and expanding equity provide structural financial flexibility; the decline in total debt into 2025 and continued asset growth improve shock absorption. A constructive balance-sheet profile supports capital spending, M&A optionality, and credibility with suppliers and lenders over the medium term.

Stronger Operating Cash Generation in 2025

A sharp surge in operating cash flow and positive free cash flow in 2025 materially improves liquidity and the company’s ability to fund capex, dividends, and debt reduction from internal sources. If sustained, this marks a structural improvement in earnings quality and financial self-sufficiency.

Negative Factors

Inconsistent Free Cash Flow

Multi-year negative free cash flow prior to 2025 signals inconsistent cash conversion of earnings, likely from heavy investment or working-capital swings. Persisting inconsistency would limit debt reduction and shareholder returns, and raises vulnerability to earnings shocks if cash buffers are relied upon sporadically.

Margin Cyclicality

Historic margin swings imply the business is sensitive to cost and demand cycles typical in metal fabrication. Structural margin volatility makes long-term profit forecasts less reliable and could force margin compression in downturns, constraining free cash flow and strategic investment during weaker periods.

Step-up in Leverage (2024 Peak)

The increase in leverage peaked in 2024 and, while reduced in 2025, represents a structural risk: higher leverage limits flexibility, raises refinancing and interest exposure, and can exacerbate downside in cyclical slowdowns, reducing the company's ability to fund opportunistic investments or weather demand weakness.

TECHNOFLEX CORPORATION Business Overview & Revenue Model

Company Description

Technoflex Corporation provides flexible metal hoses, expansion joints, and multi-layer pipes. The company also offers flexible hoses, formed bellows, vacuum components, and fluoroplastic hoses. Its products are used for various applications, such as construction pipes, city water pipes, semiconductors, iron manufacturing, shipbuilding, city gas, LP gas, electricity, thermal power, nuclear power, and general plants. The company was incorporated in 2001 and is headquartered in Tokyo, japan.

How the Company Makes Money

TECHNOFLEX CORPORATION generates revenue primarily through the sale of its flexible packaging products to a diverse range of industries. The company operates on a business-to-business model, supplying its products to manufacturers and retailers who require packaging solutions for their products. Key revenue streams include direct sales of packaging materials, custom packaging solutions tailored to client specifications, and long-term contracts with major industry players. Additionally, TECHNOFLEX benefits from strategic partnerships with suppliers and distributors, which enhance its market reach and operational efficiency. The company's emphasis on innovation allows it to command premium pricing for its advanced packaging solutions, contributing significantly to its profitability.

TECHNOFLEX CORPORATION Financial Statement Overview

Summary

Income statement and balance sheet are solid (improving 2025 profitability; manageable leverage and growing equity), but cash-flow quality is a key drag due to several years of negative free cash flow (2021–2024) despite earnings, even with a strong rebound in 2025.

Income Statement

Revenue has accelerated recently, with 2025 revenue up ~7% after modest growth in 2024 and a dip in 2023. Profitability has improved meaningfully versus 2023–2024 (EBIT and net income are both sharply higher in 2025), indicating stronger operating leverage. Offsetting this, margins were notably stronger in 2021–2022 than in 2023–2024, suggesting the business can be cyclical and sensitive to cost or demand swings.

Balance Sheet

Leverage looks manageable: debt-to-equity has remained moderate (roughly ~0.14–0.34 across 2020–2024), and equity has grown over time, supporting balance-sheet resilience. Total debt rose into 2024 and then declined in 2025, while assets and equity continued to expand—overall a constructive trend. The main watch item is the step-up in leverage versus 2020–2022 levels (peaking in 2024), which could pressure flexibility if profitability softens again.

Cash Flow

Operating cash flow improved materially in 2024 and surged further in 2025, which is a clear positive for earnings quality and liquidity. However, free cash flow was negative for multiple years (2021–2024) despite positive earnings, implying heavier investment or working-capital drag and less cash available for debt reduction or shareholder returns. The sharp rebound to strong positive free cash flow in 2025 is encouraging, but consistency remains the key risk based on the multi-year pattern.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	24.29B	26.03B	22.04B	21.24B	22.17B	19.63B
Gross Profit	7.69B	8.90B	6.65B	5.78B	7.23B	6.96B
EBITDA	4.05B	5.12B	3.01B	2.52B	3.76B	3.56B
Net Income	2.02B	3.12B	1.31B	966.36M	2.41B	1.72B
Balance Sheet
Total Assets	36.71B	39.00B	35.89B	32.45B	33.05B	28.99B
Cash, Cash Equivalents and Short-Term Investments	7.39B	8.45B	5.11B	4.02B	6.99B	5.41B
Total Debt	7.81B	6.68B	8.02B	5.60B	5.46B	2.91B
Total Liabilities	12.99B	13.31B	12.53B	10.01B	10.46B	8.52B
Stockholders Equity	23.72B	25.69B	23.36B	22.44B	22.27B	20.19B
Cash Flow
Free Cash Flow	0.00	4.21B	-511.76M	-995.82M	-162.08M	-42.62M
Operating Cash Flow	0.00	5.22B	2.85B	1.92B	1.80B	1.06B
Investing Cash Flow	0.00	-193.75M	-3.37B	-2.90B	-2.02B	-1.08B
Financing Cash Flow	0.00	-2.33B	1.44B	-1.31B	1.77B	-499.02M

TECHNOFLEX CORPORATION Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1624.00
• 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:3449, the sentiment is Positive. The current price of 1624 is below the 20-day moving average (MA) of 2293.05, below the 50-day MA of 2255.59, and below the 200-day MA of 1696.99, indicating a bullish trend. The MACD of 73.12 indicates Negative momentum. The RSI at 61.20 is Neutral, neither overbought nor oversold. The STOCH value of 79.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3449.

TECHNOFLEX CORPORATION Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1787	80 Outperform	¥15.72B	17.10	―	4.93%	3.19%	1.83%
3449	73 Outperform	¥46.36B	14.91	―	2.40%	14.37%	93.86%
5644	72 Outperform	¥16.90B	7.44	―	2.87%	2.38%	-5.80%
5994	69 Neutral	¥7.74B	4.62	―	1.06%	6.41%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5852	54 Neutral	¥23.85B	10.25	―	4.33%	5.12%	―
2962	53 Neutral	¥11.37B	-4.24	―	―	-19.32%	-171.53%