Techfirm Holdings, Inc. (3625) AI Stock Analysis

• Market Cap: ¥5.94B
• Dividend Yield: 0.59%
• Average Volume (3M): 56.01K
• Price to Earnings (P/E): 12.5
• Beta (1Y): 0.93
• Revenue Growth: 30.89%
• EPS Growth: 421.07%
• Country: JP
• Employees: 294
• Sector: Technology
• Sector Strength: 87
• Industry: Information Technology Services
• EPS (TTM): 25.75
• Shares Outstanding: 7,515,000
• 10 Day Avg. Volume: 63,100
• 30 Day Avg. Volume: 56,006
• PEG Ratio: 1.28
• Price to Book (P/B): 2.04
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.91
• 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

• Rating: 67 Neutral
• Price Target: ¥914.00 ▲(8.55%Upside)

Techfirm Holdings, Inc.'s stock score reflects strong financial performance and attractive valuation metrics. However, the overall score is moderated by weak cash flow management and bearish technical indicators, which suggest caution in the short term.

Techfirm Holdings, Inc. Business Overview & Revenue Model

Company Description

Techfirm Holdings, Inc. (3625) is a diversified technology company headquartered in Japan. The company operates through various sectors, including information technology, telecommunications, and software services. It offers a wide range of products and services, including IT consulting, system integration, software development, and network solutions. Techfirm Holdings is committed to driving innovation and delivering advanced technology solutions to its clients across different industries.

How the Company Makes Money

Techfirm Holdings, Inc. generates revenue primarily through its IT services and solutions offerings. The company's revenue model is based on providing consulting services, system integration, and software development to businesses in various sectors. Key revenue streams include fees for IT consulting services, contracts for custom software development, and charges for system integration projects. The company may also earn income from licensing its proprietary software solutions and providing ongoing support and maintenance services. Additionally, Techfirm Holdings could have partnerships with other technology firms, which may contribute to its earnings through collaborative projects or joint ventures. The company's strategic focus on innovation and technology advancement helps maintain its competitive edge and attract a diverse client base, contributing to its financial performance.

Techfirm Holdings, Inc. Financial Statement Overview

Summary

Techfirm Holdings, Inc. demonstrates robust profitability and a strong balance sheet with effective cost management and a solid capital structure. However, cash flow management is a concern, with insufficient cash generation from operations, indicating a need for improved cash conversion.

Income Statement

The company has shown a strong improvement in gross profit margin over the TTM, rising to 33.33%. The net profit margin also improved significantly to 6.30% from negative values in previous years, indicative of better operational efficiency and cost management. Revenue growth has been modest at 1.27% from 2023 to 2024, but the stability in EBIT and EBITDA margins at 9.60% and 9.99% respectively suggests decent profitability. However, the company needs to maintain momentum in revenue growth to sustain profitability.

Balance Sheet

The balance sheet reflects a solid financial position with a high equity ratio of 55.42%, indicating strong capitalization. The debt-to-equity ratio is low at 0.45, suggesting manageable leverage. Return on equity improved to 15.07% in the TTM, showing effective use of shareholders' funds to generate profits. The company’s strong equity base and low debt levels position it well for future growth, though it must continue to manage liabilities cautiously.

Cash Flow

Cash Flow analysis shows challenges, with operating cash flow at zero in the TTM, indicating potential issues in cash generation from operations. The absence of reported free cash flow growth and negative free cash flow in prior periods highlight the need for improved cash management. The company must focus on converting income into cash more effectively to support operations and growth initiatives.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	5.84B	5.07B	5.77B	5.52B	6.00B	6.31B
Gross Profit	1.95B	1.53B	1.47B	1.08B	1.80B	2.40B
EBITDA	583.78M	271.30M	-51.81M	-186.78M	-121.33M	-109.12M
Net Income	368.50M	155.91M	-48.71M	-168.80M	-538.74M	-492.62M
Balance Sheet
Total Assets	4.41B	4.07B	4.03B	3.69B	3.65B	4.31B
Cash, Cash Equivalents and Short-Term Investments	2.74B	2.74B	2.82B	1.98B	1.92B	2.00B
Total Debt	1.10B	1.11B	1.11B	505.41M	510.73M	513.01M
Total Liabilities	1.97B	1.79B	1.87B	1.45B	1.23B	1.25B
Stockholders Equity	2.45B	2.28B	2.17B	2.24B	2.42B	3.00B
Cash Flow
Free Cash Flow	0.00	-23.20M	261.97M	70.23M	-71.09M	-139.00M
Operating Cash Flow	0.00	-6.86M	263.22M	75.34M	-33.22M	-65.79M
Investing Cash Flow	0.00	48.88M	-495.34M	3.60M	-19.24M	-143.75M
Financing Cash Flow	0.00	-46.66M	560.98M	-34.98M	-39.35M	-419.21M

Techfirm Holdings, Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 842.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3625, the sentiment is Neutral. The current price of 842 is below the 20-day moving average (MA) of 919.04, above the 50-day MA of 840.35, and above the 200-day MA of 656.89, indicating a neutral trend. The MACD of 6.16 indicates Positive momentum. The RSI at 40.29 is Neutral, neither overbought nor oversold. The STOCH value of 9.21 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3625.

Techfirm Holdings, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4752	83 Outperform	¥6.38B	8.73		3.82%	4.48%	9.27%
6182	73 Outperform	¥7.02B	23.35		―	-2.23%	-44.50%
3940	72 Outperform	¥6.12B	14.47		2.48%	11.17%	2.06%
4398	69 Neutral	¥5.84B	30.19		0.77%	-3.90%	-63.64%
3625	67 Neutral	¥5.94B	12.50		0.59%	30.89%	421.07%
5576	64 Neutral	¥6.67B	13.39		2.84%	11.42%	12.23%
Sector *	63 Neutral	€10.05B	18.64	6.74%	1.75%	2.60%	-31.99%