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

• Market Cap: ¥23.77B
• Dividend Yield: 2.47%
• Average Volume (3M): 10.02K
• Price to Earnings (P/E): 16.4
• Beta (1Y): 0.46
• Revenue Growth: 15.04%
• EPS Growth: 68.39%
• Country: JP
• Employees: 113
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 21.62
• 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: ¥1,519.00 ▲(27.11% Upside)
• Action: Reiterated Date: 10/23/25
• Date: Action: Reiterated 10/23/25

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

The company delivered ~16.8% revenue growth year-over-year, reflecting expanding demand for its real-estate services. That pace of top-line expansion supports durable market-position gains, enables reinvestment in operations, and underpins medium-term earnings stability even as the sector cycles.

Strong Cash Flow Conversion

Nearly one-for-one conversion of net income to operating and free cash flow indicates efficient working capital and predictable cash generation. This durable cash convertibility supports debt servicing, capital expenditures and targeted growth initiatives without relying on external financing.

Improved Leverage and High ROE

The balance sheet shows improving leverage and a high ROE, signaling effective capital allocation and stronger financial flexibility. Sustained ROE in mid-twenties provides a structural advantage for shareholder returns and indicates profitable deployment of capital across cycles.

Negative Factors

High Liabilities Relative to Assets

A persistently high liabilities-to-assets ratio creates structural leverage risk in a capital-intensive real estate services business. This elevates sensitivity to interest costs and limits maneuverability for opportunistic investments, making sustained deleveraging essential for resilience.

Modest Net Profit Margin

A net margin around 6% leaves a relatively thin buffer against cost inflation, pricing pressure or demand softness in real estate services. Structurally modest profitability increases volatility of free cash flow in downturns and constrains the pace of reinvestment without margin expansion.

Limited Scale / Small Headcount

A small workforce implies limited operational scale and potential concentration of capabilities. Over the medium term this can hinder geographic expansion, product diversification and resilience to staff turnover, requiring sustained investment to scale operations and reduce key-person 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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: Negative
• RSI: Negative
• 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 1310.50, below the 50-day MA of 1262.50, and above the 200-day MA of 1091.59, indicating a bullish trend. The MACD of 23.10 indicates Negative momentum. The RSI at 72.06 is Negative, neither overbought nor oversold. The STOCH value of 68.81 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
3484	75 Outperform	¥23.77B	16.42	―	2.47%	15.04%	68.39%
3276	73 Outperform	¥22.34B	12.82	―	4.36%	1.52%	16.04%
2991	67 Neutral	¥15.83B	6.50	―	1.47%	20.82%	9.86%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
2980	64 Neutral	¥46.80B	19.15	―	0.45%	-8.33%	-36.89%
3486	61 Neutral	¥38.04B	8.40	―	6.11%	81.19%	250.41%
5532	61 Neutral	¥18.69B	18.30	―	―	23.19%	44.46%

Tenpo Innovation CO.,LTD. Corporate Events

Innovation Holdings Reports Modest February Exercise of 3rd Series Stock Acquisition Rights

Innovation Holdings reported the February 2026 exercise status of its 3rd Series Stock Acquisition Rights, a third-party allotment utilizing treasury stock with an exercise price adjustment and suspension clause. The disclosure details modest dilution and confirms compliance with Tokyo Stock Exchange and Japan Securities Dealers Association rules.

In February, 94 units of these rights were exercised, corresponding to 9,400 shares delivered and representing 1.04% of the total rights issued, leaving 8,906 units unexercised. The total shares delivered under all series represent only about 0.05% of the listed shares, indicating limited immediate impact on outstanding share count and signaling controlled use of this equity financing mechanism.

The most recent analyst rating on (JP:3484) stock is a Buy with a Yen1593.00 price target. To see the full list of analyst forecasts on Tenpo Innovation CO.,LTD. stock, see the JP:3484 Stock Forecast page.

Innovation Holding Posts Strong Nine-Month Earnings and Affirms Growth Outlook

Innovation Holding reported robust results for the nine months ended December 31, 2025, with net sales rising 17.2% year on year to ¥14.61 billion and profit attributable to owners of parent climbing 48.3% to ¥1.07 billion, driving basic earnings per share up to ¥64.02. Total assets increased to ¥17.34 billion and the equity ratio improved to 26.6%, while the company maintained its full-year forecast for fiscal 2026, projecting 16.4% sales growth, a 23.8% rise in profit attributable to owners of parent to ¥1.27 billion, and a higher annual dividend of ¥34 per share, signaling confidence in continued earnings expansion and shareholder returns.

The company kept its interim dividend at zero but plans a higher year-end payout versus the previous fiscal year, suggesting a stronger commitment to capital return as profits grow. Together with double-digit gains in operating and ordinary profit, the unchanged earnings guidance and improved balance sheet indicate steady operational momentum and a solidifying financial position that may support further investment and enhance its standing among investors.

The most recent analyst rating on (JP:3484) stock is a Buy with a Yen1536.00 price target. To see the full list of analyst forecasts on Tenpo Innovation CO.,LTD. stock, see the JP:3484 Stock Forecast page.