TKP Corp (3479) AI Stock Analysis

• Market Cap: ¥99.47B
• Dividend Yield: N/A
• Average Volume (3M): 139.79K
• Price to Earnings (P/E): 25.8
• Beta (1Y): 0.53
• Revenue Growth: 127.32%
• EPS Growth: -22.79%
• Country: JP
• Employees: 1,052
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 38.53
• Shares Outstanding: 42,475,086
• 10 Day Avg. Volume: 202,780
• 30 Day Avg. Volume: 139,790
• PEG Ratio: -0.36
• Price to Book (P/B): 1.59
• Price to Sales (P/S): 1.11
• P/FCF Ratio: -5.96
• 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: 67 Neutral
• Price Target: ¥2,376.00 ▲(32.37% Upside)

The score is driven primarily by solid financial performance with strong revenue growth but pressured net profitability, leverage risk, and negative free cash flow. Technicals are supportive due to a strong uptrend, though overbought momentum signals add caution. Valuation is somewhat demanding with a mid-to-high P/E and no dividend yield data.

Positive Factors

Strong Revenue Growth

Nearly 95% reported revenue growth indicates the company is rapidly expanding its sales base and market penetration. Durable top-line expansion supports scalable SG&A absorption and reinvestment for product and service development, improving long-term profit potential if margins stabilize.

Healthy Gross & Operating Margins

A 36.3% gross margin and resilient EBIT/EBITDA margins reflect operational efficiency and pricing power in core IT services. These structural margin cushions enable sustained reinvestment in R&D and client delivery capacity, helping absorb cyclical cost pressures over a multi-quarter horizon.

Recurring Revenue and Strategic Partnerships

Long-term service contracts and partnerships create recurring revenue and client stickiness, reducing revenue volatility. Structural contract-based income supports predictable cash inflows and upsell opportunities, enhancing resilience of core IT services across business cycles.

Negative Factors

Sharp Net Margin Decline

A steep drop in net margin suggests rising costs or financial expenses eroding profitability despite revenue growth. If this deterioration persists, it will undermine returns on incremental revenue and necessitate either structural cost cuts or margin recovery to preserve long-term shareholder value.

Elevated Leverage

Moderate-to-high leverage limits financial flexibility and increases interest exposure, constraining the firm's ability to fund growth organically or weather downturns. Over a 2-6 month horizon, leverage amplifies risk around cash flow shocks and could force conservative capital allocation.

Negative Free Cash Flow from High Capex

Negative free cash flow driven by elevated capex reduces internal funding for operations and strategic initiatives. If sustained, the firm may need external financing or to curtail investments, which can pressure long-term growth execution and shareholder returns despite operating cash conversion improvements.

TKP Corp Business Overview & Revenue Model

Company Description

TKP Corporation provides meeting rooms rental services in Japan and internationally. It also operates hotel banquet halls, business and compact hotels, ryokans, and restaurants. In addition, the company provides outsourcing, travel, party, and catering services; and produces and sells bento. Further, it offers video, audio, and lighting and TV meeting system rental services, as well as interpretation system and MC arrangement services; and call center and BPO services. The company was founded in 2005 and is headquartered in Tokyo, Japan. As of July 14, 2022, TKP Corporation operates as a subsidiary of RIVER FIELD co,.ltd.

How the Company Makes Money

TKP Corp generates revenue primarily through its IT service offerings, which include consulting, system development, and managed services. The company earns money by charging clients for project-based work, ongoing maintenance contracts, and subscription fees for cloud-based solutions. Additionally, TKP Corp has established strategic partnerships with major technology providers, which enhances its service capabilities and expands its client base. The company also benefits from recurring revenue streams through long-term contracts and service agreements, contributing to its financial stability and growth.

TKP Corp Financial Statement Overview

Summary

Strong revenue growth and healthy gross/EBIT/EBITDA margins support results, but net margin fell sharply (to 6.4% from 19.1%), leverage is moderate-to-high (debt-to-equity 1.23; equity ratio 34.1%), and free cash flow turned negative due to high capex.

Income Statement

TKP Corp's revenue has shown a significant growth trajectory over the years, with a notable increase from 2024 to 2025. The company achieved a substantial gross profit margin of 36.3% in 2025, indicating strong cost management. However, the net profit margin saw a decline to 6.4% in 2025 from 19.1% in 2024, reflecting increased costs or financial expenses. The EBIT and EBITDA margins were healthy, suggesting operational efficiency. Overall, the income statement reflects a company in a growth phase with improving revenue but facing challenges in maintaining net profitability.

Balance Sheet

The balance sheet indicates a robust equity base with a debt-to-equity ratio of 1.23 in 2025, suggesting a moderate level of leverage. The company's return on equity improved to 9.1% in 2025, showing better utilization of shareholder funds. However, the equity ratio decreased to 34.1%, indicating a reliance on debt financing. While the financial health is stable, the high leverage poses a potential risk if not managed carefully.

Cash Flow

Cash flow from operations showed improvement, reflecting better cash generation from core activities. However, the free cash flow turned negative in 2025 due to high capital expenditures, which could be a concern if it persists. The operating cash flow to net income ratio was 1.34, indicating good cash conversion. While the cash flow statement shows some positive trends, the negative free cash flow needs attention for long-term sustainability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	73.11B	59.21B	36.55B	50.50B	44.69B	43.14B
Gross Profit	27.20B	21.50B	13.89B	16.15B	12.07B	11.21B
EBITDA	7.65B	8.00B	5.96B	2.77B	2.57B	3.29B
Net Income	3.00B	3.79B	7.32B	-4.94B	-3.21B	-3.50B
Balance Sheet
Total Assets	130.23B	121.39B	79.33B	72.09B	111.28B	116.95B
Cash, Cash Equivalents and Short-Term Investments	20.30B	14.53B	32.07B	32.66B	13.93B	15.20B
Total Debt	63.31B	50.83B	32.99B	32.34B	55.77B	61.79B
Total Liabilities	87.02B	75.93B	39.44B	39.22B	71.53B	81.81B
Stockholders Equity	39.46B	41.45B	39.89B	32.87B	37.89B	33.29B
Cash Flow
Free Cash Flow	0.00	-11.05B	2.32B	3.54B	-4.40B	2.10B
Operating Cash Flow	0.00	5.09B	3.72B	4.85B	-2.89B	7.02B
Investing Cash Flow	0.00	-21.30B	-5.01B	36.96B	1.23B	1.14B
Financing Cash Flow	0.00	-1.34B	692.00M	-23.16B	292.00M	-2.19B

TKP Corp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1795.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3479, the sentiment is Positive. The current price of 1795 is below the 20-day moving average (MA) of 2044.85, below the 50-day MA of 1873.02, and below the 200-day MA of 1878.35, indicating a bullish trend. The MACD of 126.89 indicates Negative momentum. The RSI at 74.51 is Negative, neither overbought nor oversold. The STOCH value of 89.07 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3479.

TKP Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8877	79 Outperform	¥104.15B	10.95	―	3.08%	-6.27%	-11.07%
3465	77 Outperform	¥100.01B	8.47	―	2.93%	20.83%	57.13%
8934	73 Outperform	¥118.81B	6.34	17.98%	2.93%	84.20%	137.87%
9347	73 Outperform	¥103.07B	13.90	―	1.93%	11.54%	50.62%
8818	71 Outperform	¥89.48B	20.19	―	2.19%	4.72%	47.55%
3479	67 Neutral	¥99.47B	25.82	―	―	127.32%	-22.79%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%