TKP Corp (3479) AI Stock Analysis

• Market Cap: ¥79.14B
• Dividend Yield: N/A
• Average Volume (3M): 139.79K
• Price to Earnings (P/E): 11.5
• Beta (1Y): 0.51
• 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: 42,488,186
• 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): 144.73
• Revenue Forecast (FY): ¥131.84B

• Rating: 67 Neutral
• Price Target: ¥2,045.00 ▲(13.93% Upside)
• Action: Reiterated Date: 01/24/26
• Date: Action: Reiterated 01/24/26

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% revenue growth year-over-year signals durable demand recovery and strong top-line momentum in the venue rental business. Sustained revenue expansion supports scale benefits, better fixed-cost absorption, and stronger bargaining power with clients over the next 2–6 months.

High Gross and Operating Margins

A 36.3% gross margin and healthy EBIT/EBITDA indicate the core space-services model retains pricing power and operational efficiency. Durable margin strength in a service-led business suggests structural cost control and ability to convert revenue into operating profit over coming quarters.

Solid Cash Conversion Metrics

OCF/net income of 1.34 shows earnings are translating into cash, reflecting quality of core operations and receivables management. Strong cash conversion helps fund working capital and recurring operations even if growth requires cyclical financing, supporting near-term durability.

Negative Factors

Compressing Net Margin

Net profit margin collapsing from 19.1% to 6.4% indicates growing non-operating costs or elevated overhead that erodes shareholder returns. If persistent, this reduces reinvestment capacity and makes earnings more sensitive to revenue volatility and interest or expense shocks.

Elevated Leverage

A debt-to-equity ratio above 1 and declining equity ratio show material reliance on debt financing. High leverage increases interest expense risk, limits strategic flexibility for acquisitions or capex, and raises vulnerability to rate shifts or demand slowdowns over the medium term.

Negative Free Cash Flow

Negative FCF driven by heavy capex suggests the business is in a capital-intensive expansion phase. Persisting negative FCF can necessitate external financing, raise leverage further, and compress returns to equity holders if investments do not rapidly translate into sustained incremental cash generation.

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 makes money primarily by charging customers for the use of its managed venues (e.g., conference rooms and event spaces), typically on an hourly, half-day, or daily basis depending on the venue and usage pattern. Revenue is generated from (1) room/space rental fees paid by corporate clients and other organizations for meetings, trainings, seminars, and events, and (2) ancillary services that are sold alongside venue usage, such as event/meeting support and other add-on services tied to operating and running the space. Specific details on revenue mix by segment, pricing, major partnerships, or material customer concentration are null.

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	Feb 2025	Feb 2024	Feb 2023	Feb 2022	Feb 2021
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: Negative
• Last Price: 1795.00
• 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:3479, the sentiment is Negative. The current price of 1795 is below the 20-day moving average (MA) of 2032.05, below the 50-day MA of 2142.78, and below the 200-day MA of 1927.86, indicating a bearish trend. The MACD of -84.73 indicates Positive momentum. The RSI at 35.87 is Neutral, neither overbought nor oversold. The STOCH value of 62.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3479.

TKP Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8934	73 Outperform	¥131.33B	20.19	15.81%	2.93%	84.20%	137.87%
8818	71 Outperform	¥89.20B	14.58	―	2.19%	4.72%	47.55%
3479	67 Neutral	¥79.14B	11.54	―	―	127.32%	-22.79%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
9661	65 Neutral	¥53.93B	198.45	―	0.11%	―	―
8841	64 Neutral	¥79.46B	23.41	1.46%	1.18%	6.40%	230.12%
4487	55 Neutral	¥3.61B	16.48	―	―	27.19%	―