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

• Market Cap: ¥20.15B
• Dividend Yield: 2.47%
• Average Volume (3M): 10.02K
• Price to Earnings (P/E): 15.1
• Beta (1Y): 0.41
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: ¥1,202.00 ▲(5.44% 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

Revenue Growth

Consistent revenue growth indicates expanding market reach and product adoption, which strengthens the company's competitive position in the industry.

Cash Flow Generation

Strong cash flow generation supports future investments and debt servicing, providing financial stability and growth opportunities for the company.

Leverage Management

Effective leverage management reduces financial risk and enhances the company's ability to invest in growth initiatives, ensuring long-term sustainability.

Negative Factors

High Liabilities

High liabilities can strain financial resources and limit flexibility, potentially impacting the company's ability to respond to market changes and invest in new opportunities.

Industry Competition

Intense competition in the digital transformation space may pressure margins and require continuous innovation, challenging the company's ability to maintain its market position.

Equity Ratio Concerns

A lower equity ratio can indicate higher financial leverage, which may pose risks if the company faces economic downturns or needs to secure additional financing.

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: 1140.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 1140 is above the 20-day moving average (MA) of 1115.25, above the 50-day MA of 1096.10, and above the 200-day MA of 1019.39, indicating a bullish trend. The MACD of 13.23 indicates Negative momentum. The RSI at 64.70 is Neutral, neither overbought nor oversold. The STOCH value of 85.42 is Negative, 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	¥14.87B	8.56	―	4.00%	19.97%	69.40%
3484	75 Outperform	¥20.15B	15.05	―	2.47%	15.04%	68.39%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
3300	61 Neutral	¥17.12B	10.08	―	4.52%	-3.46%	-42.76%
8999	60 Neutral	¥18.12B	24.34	―	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.

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.

Innovation Holdings Reports Dividend Receipt from Subsidiaries

Innovation Holdings Co., LTD. announced the receipt of dividends from its consolidated subsidiaries, which will be recorded as net sales in its nonconsolidated financial statements for the fiscal year ending March 2026. However, these dividends will not impact the company’s consolidated earnings for the same fiscal year. The company acknowledges a delay in disclosure and commits to improving its timely disclosure practices.