Techfirm Holdings, Inc. (3625) AI Stock Analysis

• Market Cap: ¥4.96B
• Dividend Yield: 0.71%
• Average Volume (3M): 92.31K
• Price to Earnings (P/E): 9.9
• Beta (1Y): 0.81
• Revenue Growth: 32.20%
• EPS Growth: 221.55%
• Country: JP
• Employees: 294
• Sector: Technology
• Sector Strength: 92
• Industry: Information Technology Services
• EPS (TTM): 14.23
• Shares Outstanding: 7,515,000
• 10 Day Avg. Volume: 182,380
• 30 Day Avg. Volume: 92,306
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥941.00
• Price Target Upside: 30.69% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 68 Neutral
• Price Target: ¥941.00 ▲(30.69% Upside)

Techfirm Holdings, Inc. scores well due to its strong financial position and reasonable valuation. The main strength lies in its balance sheet and profitability, although cash flow management needs improvement. Technical indicators show mixed signals, with some short-term bullishness tempered by potential bearish momentum.

Techfirm Holdings, Inc. Business Overview & Revenue Model

Company Description

Techfirm Holdings, Inc. (3625) is a diversified technology company engaged in various sectors, including information technology services, software development, and digital transformation solutions. The company focuses on delivering innovative IT solutions that enhance business operations for its clients across multiple industries. Techfirm Holdings is dedicated to leveraging cutting-edge technologies to drive efficiency and growth for its customers.

How the Company Makes Money

Techfirm Holdings, Inc. generates revenue through a combination of service contracts, software licensing, and consulting fees. Its primary revenue streams include IT consulting services, custom software development projects, and subscription-based software products. The company also partners with various technology vendors to offer integrated solutions, which contributes to its earnings. Additionally, Techfirm Holdings invests in research and development to create proprietary technologies that provide competitive advantages and additional revenue opportunities.

Techfirm Holdings, Inc. Financial Statement Overview

Summary

Techfirm Holdings, Inc. shows robust profitability with a strong balance sheet, indicative of effective cost management and a solid capital structure. However, cash flow management is weak, with zero operating cash flow in the TTM and a history of negative free cash flow, necessitating improvements in cash conversion to support growth.

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

Techfirm Holdings, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 720.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3625, the sentiment is Negative. The current price of 720 is below the 20-day moving average (MA) of 832.20, below the 50-day MA of 870.48, and above the 200-day MA of 700.20, indicating a neutral trend. The MACD of -29.75 indicates Positive momentum. The RSI at 27.64 is Positive, neither overbought nor oversold. The STOCH value of 8.93 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥6.81B	8.86		3.49%	5.59%	16.69%
3940	72 Outperform	¥6.54B	16.22		2.32%	8.71%	4.70%
3625	68 Neutral	¥4.96B	9.95		0.71%	32.20%	221.55%
5576	64 Neutral	¥6.71B	14.18		2.82%	6.24%	-4.10%
Sector *	61 Neutral	$35.97B	6.65	-10.17%	1.99%	8.60%	-7.54%
6182	58 Neutral	¥6.90B	68.47		―	-5.89%	-83.27%
4398	55 Neutral	¥6.03B	41.55		1.11%	-5.47%	-68.65%