Tenpo Innovation CO.,LTD. (3484) AI Stock Analysis

• Market Cap: ¥22.85B
• Dividend Yield: 2.47%
• Average Volume (3M): 10.02K
• Price to Earnings (P/E): 17.1
• Beta (1Y): 0.45
• Revenue Growth: 15.04%
• EPS Growth: 68.39%
• Country: JP
• Employees: 113
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 19.35
• Shares Outstanding: 17,674,400
• 10 Day Avg. Volume: 4,250
• 30 Day Avg. Volume: 10,016
• PEG Ratio: 0.29
• Price to Book (P/B): 4.02
• Price to Sales (P/S): 0.97
• P/FCF Ratio: 15.92
• 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: ¥1,455.00 ▲(21.76% Upside)

Tenpo Innovation CO.,LTD. achieves a solid overall stock score driven by its strong financial performance and reasonable valuation. The company's consistent revenue growth, robust profitability, and efficient cash flow generation are significant strengths. While technical analysis presents mixed signals, the stock's valuation remains attractive, supported by a reasonable P/E ratio and a solid dividend yield.

Positive Factors

Consistent revenue growth

Sustained 16.8% top-line growth indicates expanding market share and demand for the firm's services. Over 2-6 months this supports durable cash generation, economies of scale and reinvestment capacity, enabling continued product/service development and competitive positioning.

Strong cash flow conversion

Near one-to-one conversion of earnings into operating and free cash flow reflects high cash quality and operational efficiency. This durable strength supports debt servicing, capex and shareholder returns while reducing refinancing risk amid cyclical industry fluctuations.

Improved leverage and high ROE

A rising equity ratio, reduced leverage and a 25.65% ROE show management is improving capital structure while generating strong returns. These durable improvements lower financial risk and increase flexibility to fund growth, acquisitions, or shareholder distributions.

Negative Factors

Relatively high liabilities

A material liabilities-to-assets ratio leaves the firm exposed to adverse cycles or rising rates; even with improving leverage, persistent high liabilities can constrain strategic investment, increase refinancing needs, and limit shock absorption over the medium term.

Modest net profit margin

A net margin near 6% provides a limited cushion against cost increases or pricing pressure. Over several months this modest profitability could restrict retained earnings for reinvestment, making the business more sensitive to competitive or macroeconomic headwinds.

Limited scale / small workforce

A relatively small headcount suggests limited operational scale and geographic reach versus larger peers. Over the medium term this can hinder capacity to execute large projects, diversify revenue streams, and absorb personnel turnover, raising execution and growth risk.

Tenpo Innovation CO.,LTD. Business Overview & Revenue Model

Company Description

Tenpo Innovation Co., Ltd. engages in leasing store properties for restaurants primarily in Tokyo, Japan. The company leases store properties rented from real estate owners to store entrants. It also sells real estate properties. The company was formerly known as Tenpo Renovation Co., Ltd. and changed its name to Tenpo Innovation Co., Ltd. in May 2013. Tenpo Innovation Co., Ltd. was founded in 2005 and is headquartered in Tokyo, Japan. Tenpo Innovation Co., Ltd. is a subsidiary of Crops Corporation.

How the Company Makes Money

Tenpo Innovation generates revenue through a diversified model that includes software licensing fees, subscription-based services, and professional consulting services. Key revenue streams comprise the sale of proprietary software solutions to enterprises, recurring subscription fees from cloud-based applications, and additional revenue from technical support and maintenance services. The company has established strategic partnerships with major technology providers, which enhance its service offerings and expand its market reach. Additionally, Tenpo Innovation benefits from increasing demand for digital transformation services, positioning it favorably in the competitive landscape.

Tenpo Innovation CO.,LTD. Financial Statement Overview

Summary

Tenpo Innovation CO.,LTD. exhibits strong financial performance with consistent revenue growth, robust profitability, and efficient cash flow generation. The company has improved its leverage position and showcases a high return on equity, reflecting effective use of shareholder funds. While liabilities remain high, the company's strategic focus on debt reduction and cash flow efficiency positions it well for sustained growth and stability.

Income Statement

Tenpo Innovation CO.,LTD. demonstrates robust revenue growth, with a 16.8% increase from 2024 to 2025. The company maintains solid profitability, evidenced by a high gross profit margin of 19.43% and a net profit margin of 6.18% for 2025. Furthermore, the EBIT and EBITDA margins also reflect strong operational efficiency. Consistent revenue growth and improving margins highlight the company's strong position within the industry.

Balance Sheet

The balance sheet reflects a healthy equity position, with an equity ratio of 25.64% as of 2025. The debt-to-equity ratio has significantly improved due to reduced total debt, indicating effective leverage management. The return on equity (ROE) of 25.65% underscores the company's ability to generate profit from shareholders' investments. Despite the strengths, the relatively high total liabilities to assets ratio suggests some risk, but the positive trajectory in equity and debt management mitigates this concern.

Cash Flow

Tenpo Innovation CO.,LTD. showcases robust cash flow performance, with a substantial increase in free cash flow from 2024 to 2025. The operating cash flow to net income ratio of 0.99 indicates efficient cash generation from operations. Moreover, the free cash flow to net income ratio of 0.99 highlights the company's ability to convert earnings into cash effectively. This strong cash flow performance supports the company's future investment and debt servicing capabilities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	17.69B	16.66B	14.26B	13.07B	11.42B	10.34B
Gross Profit	3.68B	3.24B	2.57B	2.52B	2.09B	1.83B
EBITDA	1.70B	1.44B	1.02B	1.25B	1.09B	891.45M
Net Income	1.23B	1.03B	666.08M	885.51M	662.39M	575.61M
Balance Sheet
Total Assets	15.55B	15.65B	13.70B	12.88B	11.90B	10.43B
Cash, Cash Equivalents and Short-Term Investments	4.18B	4.28B	3.33B	3.50B	3.47B	2.91B
Total Debt	153.00M	103.00M	7.28B	6.90B	5.95B	5.30B
Total Liabilities	11.61B	11.64B	10.37B	9.69B	8.57B	7.47B
Stockholders Equity	3.93B	4.01B	3.32B	3.20B	3.33B	2.96B
Cash Flow
Free Cash Flow	232.02M	1.01B	382.42M	1.06B	864.21M	536.00M
Operating Cash Flow	234.04M	1.02B	455.22M	1.07B	1.12B	666.07M
Investing Cash Flow	-1.87M	177.22M	-87.94M	-21.91M	-269.48M	-139.90M
Financing Cash Flow	-167.26M	-244.07M	-537.30M	-1.02B	-295.71M	-160.41M

Tenpo Innovation CO.,LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1195.00
• 50DMA: Positive
• 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:3484, the sentiment is Positive. The current price of 1195 is below the 20-day moving average (MA) of 1271.65, above the 50-day MA of 1183.08, and above the 200-day MA of 1056.59, indicating a bullish trend. The MACD of 32.58 indicates Positive momentum. The RSI at 66.88 is Neutral, neither overbought nor oversold. The STOCH value of 50.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3484.

Tenpo Innovation CO.,LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8908	80 Outperform	¥16.40B	9.06	―	4.00%	19.97%	69.40%
3484	75 Outperform	¥22.85B	17.07	―	2.47%	15.04%	68.39%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
3300	61 Neutral	¥17.08B	10.06	―	4.52%	-3.46%	-42.76%
5078	61 Neutral	¥16.49B	14.16	―	1.96%	―	―
8999	60 Neutral	¥18.50B	24.85	―	5.27%	-1.41%	194.28%

Tenpo Innovation CO.,LTD. Corporate Events

Innovation Holdings Extends Stock Acquisition Rights Restriction Period

Innovation Holdings Co., LTD. has announced the extension of the exercise restriction period for its 3rd Series Stock Acquisition Rights, initially issued in December 2023 to Tokai Tokyo Securities Co., Ltd. This extension, decided by the Board of Directors, moves the restriction period’s end date from December 5, 2025, to June 5, 2026, potentially affecting stakeholders by altering the timeline for stock acquisition activities.

The most recent analyst rating on (JP:3484) stock is a Buy with a Yen1202.00 price target. To see the full list of analyst forecasts on Tenpo Innovation CO.,LTD. stock, see the JP:3484 Stock Forecast page.

Innovation Holdings Revises Financial Forecasts Upwards Amid Strong Performance

Innovation Holdings Co., LTD. has announced a significant revision in its financial forecasts for the fiscal year ending March 31, 2026. The company, which operates in the store sublease, real estate trading, and rent guarantee businesses, has reported higher-than-expected net sales and profits due to successful contract signings, major real estate deals, and effective external sales activities. Consequently, the full-year financial forecast has been adjusted upwards, and the year-end dividend forecast has been increased, indicating a positive outlook for stakeholders.

The most recent analyst rating on (JP:3484) stock is a Buy with a Yen1202.00 price target. To see the full list of analyst forecasts on Tenpo Innovation CO.,LTD. stock, see the JP:3484 Stock Forecast page.