Techfirm Holdings, Inc. (3625) AI Stock Analysis

• Market Cap: ¥5.00B
• Dividend Yield: 1.12%
• Average Volume (3M): 111.39K
• Price to Earnings (P/E): 10.0
• Beta (1Y): 0.86
• Revenue Growth: 32.20%
• EPS Growth: 221.55%
• Country: JP
• Employees: 294
• Sector: Technology
• Sector Strength: 83
• Industry: Information Technology Services
• EPS (TTM): 14.23
• Shares Outstanding: 7,515,000
• 10 Day Avg. Volume: 64,320
• 30 Day Avg. Volume: 111,393
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥778.00
• Price Target Upside: 10.04% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 66 Neutral
• Price Target: ¥778.00 ▲(10.04% Upside)

Techfirm Holdings, Inc. shows strong financial performance with robust revenue growth and a stable balance sheet, contributing positively to the overall score. However, technical analysis indicates bearish momentum, which is a significant risk factor. The stock's valuation is attractive, suggesting potential for appreciation. The absence of earnings call and corporate events data limits additional insights.

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. is on a positive growth trajectory with strong revenue and profit improvements. The balance sheet is stable with a healthy equity position, and cash flow metrics indicate improving cash generation. While profitability and cash flow efficiency have room for enhancement, the company is well-positioned in the Information Technology Services industry.

Income Statement

Techfirm Holdings, Inc. has shown strong revenue growth of 14.74% in the latest year, indicating a positive trajectory. The gross profit margin improved significantly to 32.97%, reflecting enhanced operational efficiency. However, the net profit margin remains moderate at 7.48%, suggesting room for improvement in cost management. The EBIT and EBITDA margins have also improved, indicating better profitability.

Balance Sheet

The company's debt-to-equity ratio is stable at 0.41, indicating a balanced approach to leveraging. Return on equity has improved to 18.44%, showcasing effective use of shareholder funds. The equity ratio stands at 54.75%, reflecting a solid equity base. Overall, the balance sheet demonstrates stability with a healthy equity position.

Cash Flow

Techfirm Holdings, Inc. has shown a remarkable improvement in free cash flow, with a growth rate of 'Infinity' due to a previous negative base. The operating cash flow to net income ratio is 0.65, indicating efficient cash generation relative to net income. However, the free cash flow to net income ratio is 0.60, suggesting potential for further cash flow optimization.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.34B	6.71B	5.07B	5.77B	5.52B	6.00B
Gross Profit	2.11B	2.21B	1.53B	1.47B	1.08B	1.80B
EBITDA	766.58M	779.42M	271.30M	-51.81M	-186.78M	-121.33M
Net Income	477.10M	501.34M	155.91M	-48.71M	-168.80M	-538.74M
Balance Sheet
Total Assets	4.63B	4.96B	4.07B	4.03B	3.69B	3.65B
Cash, Cash Equivalents and Short-Term Investments	2.68B	2.96B	2.74B	2.82B	1.98B	1.92B
Total Debt	1.11B	1.11B	1.11B	1.11B	505.41M	510.73M
Total Liabilities	2.02B	2.24B	1.79B	1.87B	1.45B	1.23B
Stockholders Equity	2.62B	2.72B	2.28B	2.17B	2.24B	2.42B
Cash Flow
Free Cash Flow	0.00	301.56M	-23.20M	261.97M	70.23M	-71.09M
Operating Cash Flow	0.00	327.62M	-6.86M	263.22M	75.34M	-33.22M
Investing Cash Flow	0.00	-60.78M	48.88M	-495.34M	3.60M	-19.24M
Financing Cash Flow	0.00	-40.83M	-46.66M	560.98M	-34.98M	-39.35M

Techfirm Holdings, Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 707.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 707 is below the 20-day moving average (MA) of 721.20, below the 50-day MA of 798.98, and below the 200-day MA of 716.45, indicating a neutral trend. The MACD of -26.84 indicates Negative momentum. The RSI at 42.47 is Neutral, neither overbought nor oversold. The STOCH value of 41.72 is Neutral, 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	¥7.07B	9.20		3.50%	5.59%	16.69%
3940	72 Outperform	¥7.05B	17.49		2.14%	8.71%	4.70%
3625	66 Neutral	¥5.00B	10.02		1.12%	32.20%	221.55%
5576	64 Neutral	¥6.68B	14.12		2.83%	6.24%	-4.10%
Sector *	61 Neutral	$35.83B	9.00	-10.39%	1.87%	8.46%	-7.85%
4398	57 Neutral	¥5.75B	39.64		1.18%	-5.47%	-68.65%
6182	57 Neutral	¥6.40B	62.04		―	-5.89%	-83.27%