Techfirm Holdings, Inc. (3625) AI Stock Analysis

• Market Cap: ¥6.08B
• Dividend Yield: 0.59%
• Average Volume (3M): 57.66K
• Price to Earnings (P/E): 12.8
• Beta (1Y): 0.93
• Revenue Growth: 30.89%
• EPS Growth: 421.07%
• Country: JP
• Employees: 294
• Sector: Technology
• Sector Strength: 96
• Industry: Information Technology Services
• EPS (TTM): 25.75
• Shares Outstanding: 7,515,000
• 10 Day Avg. Volume: 48,930
• 30 Day Avg. Volume: 57,663
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• 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: ¥1,074.00
• Price Target Upside: 24.59% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 69 Neutral
• Price Target: ¥943.00 ▲(9.40%Upside)

Techfirm Holdings, Inc. scores a 69, reflecting solid financial health with strong profitability and a robust balance sheet. However, cash flow issues and mixed technical signals temper the overall outlook. The stock's valuation is fair, but improving cash management and revenue growth are crucial for enhancing investor confidence and long-term performance.

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
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
Total Liabilities
Stockholders Equity
Cash Flow
Free Cash Flow
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow

Techfirm Holdings, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 862.00
• 50DMA: Negative
• 100DMA: Positive
• 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 Positive. The current price of 862 is above the 20-day moving average (MA) of 848.45, below the 50-day MA of 881.56, and above the 200-day MA of 679.93, indicating a neutral trend. The MACD of -7.86 indicates Negative momentum. The RSI at 47.54 is Neutral, neither overbought nor oversold. The STOCH value of 71.58 is Neutral, 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	83 Outperform	¥6.39B	8.75		3.81%	4.48%	9.27%
3940	72 Outperform	¥6.30B	14.92		2.34%	11.17%	2.06%
3625	69 Neutral	¥6.08B	12.80		0.59%	30.89%	421.07%
Sector *	69 Neutral	¥230.42B	14.66	7.50%	2.60%	9.31%	5.75%
5576	64 Neutral	¥6.71B	14.18		2.82%	11.42%	12.23%
4398	55 Neutral	¥5.52B	28.50		1.22%	-3.90%	-63.64%
6182	54 Neutral	¥6.63B	64.15		―	-5.89%	-83.27%