Techfirm Holdings, Inc. (3625) AI Stock Analysis

• Market Cap: ¥5.77B
• Dividend Yield: 0.98%
• Average Volume (3M): 47.45K
• Price to Earnings (P/E): 11.6
• Beta (1Y): 0.85
• Revenue Growth: 32.20%
• EPS Growth: 221.55%
• Country: JP
• Employees: 294
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 14.23
• Shares Outstanding: 7,515,000
• 10 Day Avg. Volume: 68,110
• 30 Day Avg. Volume: 47,446
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 72 Outperform
• Price Target: ¥856.00 ▲(14.44% Upside)

Techfirm Holdings, Inc. shows strong financial performance with robust revenue growth and a stable balance sheet. The stock's valuation is attractive, with a low P/E ratio and reasonable dividend yield. Technical indicators suggest mixed signals, with short-term bullish momentum but potential bearish signals from MACD. Overall, the stock is well-positioned in its industry, with opportunities for further profitability and cash flow improvements.

Techfirm Holdings, Inc. Business Overview & Revenue Model

Company Description

Techfirm Holdings, Inc. (3625) is a diversified technology company that operates across multiple sectors, including software development, cloud computing, and cybersecurity solutions. The company specializes in providing innovative software products and IT services designed to enhance business efficiency and security. With a robust portfolio that includes enterprise software applications and cloud-based solutions, Techfirm Holdings aims to address the evolving needs of businesses in a digital-first environment.

How the Company Makes Money

Techfirm Holdings generates revenue through a combination of software licensing, subscription services, and consulting fees. Its primary revenue streams include the sale of enterprise software licenses, recurring subscription fees from cloud services, and professional services related to implementation and support. Significant partnerships with major cloud service providers enhance its market reach and enable cross-selling opportunities. Additionally, the company benefits from maintenance contracts and updates for its software products, ensuring a steady flow of income from existing clients.

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: Positive
• Last Price: 748.00
• 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:3625, the sentiment is Positive. The current price of 748 is above the 20-day moving average (MA) of 737.85, above the 50-day MA of 734.78, and above the 200-day MA of 737.68, indicating a bullish trend. The MACD of 16.52 indicates Negative momentum. The RSI at 68.37 is Neutral, neither overbought nor oversold. The STOCH value of 89.15 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	81 Outperform	¥7.27B	9.46	―	3.35%	5.59%	16.69%
3625	72 Outperform	¥5.77B	11.56	―	0.98%	32.20%	221.55%
3940	72 Outperform	¥6.16B	15.17	―	2.46%	8.71%	4.70%
4398	65 Neutral	¥6.19B	42.63	―	1.09%	-5.47%	-68.77%
5576	64 Neutral	¥7.15B	14.65	―	2.68%	6.07%	0.36%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6182	57 Neutral	¥5.33B	174.10	―	―	-0.62%	-93.84%