Techfirm Holdings, Inc. (3625) AI Stock Analysis

• Market Cap: ¥4.79B
• Dividend Yield: 1.2%
• Average Volume (3M): 54.73K
• Price to Earnings (P/E): 10.0
• Beta (1Y): 0.87
• Revenue Growth: 26.70%
• EPS Growth: 93.41%
• Country: JP
• Employees: 294
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): N/A
• Shares Outstanding: 7,515,000
• 10 Day Avg. Volume: 53,030
• 30 Day Avg. Volume: 54,733
• PEG Ratio: 0.06
• Price to Book (P/B): 2.44
• Price to Sales (P/S): 0.99
• P/FCF Ratio: 21.99
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: ¥705.00 ▲(7.47% Upside)
• Action: Downgraded Date: 11/18/25
• Date: Action: Downgraded 11/18/25

Techfirm Holdings, Inc. shows strong financial performance with robust revenue growth and a stable balance sheet. However, technical indicators suggest bearish momentum, which could pose short-term risks. The stock's attractive valuation with a low P/E ratio and reasonable dividend yield provides a solid investment case, balancing the technical weaknesses.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Balance Sheet Health

A stable debt-to-equity ratio reflects financial prudence, ensuring the company can withstand economic fluctuations and invest in growth.

Cash Flow Improvement

Improving cash flow enhances financial flexibility, enabling reinvestment in core operations and strategic initiatives.

Negative Factors

Net Profit Margin

A moderate net profit margin indicates potential inefficiencies in cost management, which could impact long-term profitability.

Cash Flow Efficiency

Suboptimal cash flow efficiency may limit the company's ability to fund new projects or return capital to shareholders.

Profitability Enhancement

Limited profitability improvements could hinder the company's ability to compete effectively and sustain growth in a competitive market.

Techfirm Holdings, Inc. Business Overview & Revenue Model

Company Description

Techfirm Holdings Inc. develops, operates, and maintains system solutions for business support activities. It also provides marketing solutions utilizing the internet, such as smartphones, tablets, and PCs; and system and service consulting, and server network integration services. In addition, the company offers mobile advertising services. The company was formerly known as Techfirm Inc. and changed its name to Techfirm Holdings Inc. in July 2015. Techfirm Holdings Inc. was incorporated in 1991 and is based in Tokyo, Japan.

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 experiencing strong revenue growth and improved profitability margins. The balance sheet is stable with a healthy equity position, and cash flow metrics indicate improving cash generation. However, there is room for enhancement in profitability and cash flow efficiency.

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	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2021
Income Statement
Total Revenue	6.71B	5.07B	5.77B	5.52B	6.00B
Gross Profit	2.21B	1.53B	1.47B	1.08B	1.80B
EBITDA	779.42M	271.30M	-52.92M	-186.78M	-121.33M
Net Income	501.34M	155.91M	-48.71M	-168.80M	-538.74M
Balance Sheet
Total Assets	4.96B	4.07B	4.03B	3.69B	3.65B
Cash, Cash Equivalents and Short-Term Investments	2.96B	2.74B	2.82B	1.98B	1.92B
Total Debt	1.11B	1.11B	1.11B	505.41M	510.73M
Total Liabilities	2.24B	1.79B	1.87B	1.45B	1.23B
Stockholders Equity	2.72B	2.28B	2.17B	2.24B	2.42B
Cash Flow
Free Cash Flow	301.56M	-23.20M	261.97M	70.23M	-71.09M
Operating Cash Flow	327.62M	-6.86M	263.22M	75.34M	-33.22M
Investing Cash Flow	-60.78M	48.88M	-495.34M	3.60M	-19.24M
Financing Cash Flow	-40.83M	-46.66M	560.98M	-34.98M	-39.35M

Techfirm Holdings, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 656.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• 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 656 is below the 20-day moving average (MA) of 668.45, below the 50-day MA of 670.48, and below the 200-day MA of 752.58, indicating a neutral trend. The MACD of 0.50 indicates Negative momentum. The RSI at 54.82 is Neutral, neither overbought nor oversold. The STOCH value of 29.51 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
3940	78 Outperform	¥6.72B	16.54	―	2.43%	2.92%	-0.94%
5576	77 Outperform	¥6.49B	12.26	―	3.13%	6.08%	0.53%
3839	76 Outperform	¥5.26B	27.15	―	1.61%	7.03%	1.01%
3988	68 Neutral	¥5.84B	14.48	―	1.23%	11.62%	-16.59%
3625	65 Neutral	¥4.79B	9.99	―	1.20%	26.70%	93.41%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4261	57 Neutral	¥5.68B	19.47	―	―	27.60%	-15.54%