Techno Mathematical Co., Ltd. (3787) AI Stock Analysis

• Market Cap: ¥1.52B
• Dividend Yield: N/A
• Average Volume (3M): 4.80K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.34
• Revenue Growth: -1.34%
• EPS Growth: 17.01%
• Country: JP
• Employees: 56
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 7.76
• Shares Outstanding: 2,593,100
• 10 Day Avg. Volume: 3,720
• 30 Day Avg. Volume: 4,796
• PEG Ratio: -0.05
• Price to Book (P/B): 0.77
• Price to Sales (P/S): 3.27
• P/FCF Ratio: -6.61
• 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: 50 Neutral
• Price Target: ¥598.00 ▲(1.70% Upside)

The score is held down primarily by weak financial performance (recurring losses, deteriorating margins, and renewed cash burn), despite a debt-free balance sheet. Technicals provide moderate support with the stock trading above major moving averages and neutral momentum. Valuation is constrained by negative earnings (negative P/E) and no stated dividend yield.

Positive Factors

Debt-Free Balance Sheet

A debt-free balance sheet reduces financial risk and refinancing pressure, providing stability and flexibility for long-term strategic initiatives.

High Gross Margins

High gross margins suggest strong pricing power and operational efficiency, which can support profitability improvements if operating costs are controlled.

Recent Sales Growth

Significant sales growth indicates potential market demand and business expansion opportunities, which could enhance revenue stability and future profitability.

Negative Factors

Recurring Net Losses

Ongoing net losses and deteriorating margins highlight challenges in achieving profitability, which could affect long-term sustainability and investor confidence.

Negative Cash Flow

Negative cash flow indicates potential liquidity issues and raises execution risk, limiting the company's ability to invest in growth or weather economic downturns.

Declining Shareholder Equity

Declining shareholder equity reflects erosion of value, which can undermine investor trust and limit the company's ability to raise capital for future growth.

Techno Mathematical Co., Ltd. Business Overview & Revenue Model

Company Description

Techno Mathematical Co., Ltd. develops software and hardware IPs in Japan. It develops and licenses image, audio, and voice related software IPs for various types of digital equipment; hardware IPs used for design data for silicon chips. The company develops video devices, FPGA design kits, and codec chips. It serves electronic device, entertainment, service, media, security, medical, construction, telecommunication, machine, automobile, agriculture, forestry, fisheries, and transportation industries. Techno Mathematical Co., Ltd. was incorporated in 2000 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Techno Mathematical Co., Ltd. makes money through the sale of its proprietary software products and licensing of its advanced mathematical algorithms. The company generates revenue by offering software libraries and development tools that are essential for enhancing the performance of digital imaging and video processing technologies. Additionally, Techno Mathematical Co., Ltd. may enter into strategic partnerships with technology firms and device manufacturers, which utilize its software solutions to improve their product offerings. These collaborations often result in licensing agreements and service contracts that contribute to the company's earnings.

Techno Mathematical Co., Ltd. Financial Statement Overview

Summary

Overall, Techno Mathematical Co., Ltd. faces significant financial challenges, with declining revenues, persistent losses, and negative cash flows. While the company's debt-free position and strong liquidity provide some stability, the ongoing operational and profitability issues highlight the need for strategic improvements to ensure financial sustainability.

Income Statement

Techno Mathematical Co., Ltd. has been experiencing declining revenue with a negative revenue growth rate from 2023 to the TTM (Trailing-Twelve-Months). Net income has remained negative, resulting in a negative net profit margin. The company also has a negative EBIT and EBITDA margin, indicating ongoing operational challenges and unprofitability.

Balance Sheet

The company's balance sheet shows strength with no debt and a high equity ratio due to substantial stockholders' equity. However, the declining total assets and stockholders' equity over time may pose future risks. The firm maintains a strong liquidity position with significant cash and cash equivalents.

Cash Flow

Techno Mathematical Co., Ltd. has struggled with cash flow, particularly in generating positive operating cash flow, as evidenced by historical negative free cash flow and operating cash flow. This reflects poor cash generation from operations, impacting overall financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	443.30M	416.59M	527.77M	599.39M	569.31M	416.34M
Gross Profit	392.43M	376.85M	491.82M	559.04M	549.50M	372.26M
EBITDA	-243.97M	-273.93M	-150.00M	-48.00M	-71.00M	-246.00M
Net Income	-273.89M	-285.00M	-144.56M	-46.29M	-70.94M	-245.81M
Balance Sheet
Total Assets	1.78B	1.84B	2.19B	2.30B	2.35B	2.43B
Cash, Cash Equivalents and Short-Term Investments	699.54M	738.37M	946.48M	1.21B	1.13B	1.41B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	76.93M	81.03M	116.64M	94.13M	91.01M	83.61M
Stockholders Equity	1.70B	1.76B	2.07B	2.20B	2.26B	2.35B
Cash Flow
Free Cash Flow	0.00	-205.81M	-277.42M	67.20M	-242.73M	-144.01M
Operating Cash Flow	0.00	-202.85M	-272.94M	70.88M	-230.73M	-143.50M
Investing Cash Flow	0.00	778.00K	-1.41M	-3.08M	-54.54M	1.66M
Financing Cash Flow	0.00	0.00	0.00	0.00	-53.00K	-25.00K

Techno Mathematical Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 588.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3787, the sentiment is Negative. The current price of 588 is below the 20-day moving average (MA) of 599.90, below the 50-day MA of 594.80, and above the 200-day MA of 563.80, indicating a neutral trend. The MACD of 5.79 indicates Positive momentum. The RSI at 45.30 is Neutral, neither overbought nor oversold. The STOCH value of 22.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3787.

Techno Mathematical Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3913	75 Outperform	¥3.36B	17.25	―	―	14.42%	3652.58%
4020	64 Neutral	¥1.68B	-49.67	―	―	3.27%	-141.89%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4255	59 Neutral	¥4.68B	24.32	―	―	12.56%	―
4381	54 Neutral	¥1.42B	-8.38	―	―	-14.58%	54.57%
3787	50 Neutral	¥1.52B	-9.31	―	―	-1.34%	17.01%
4179	48 Neutral	¥1.87B	-12.64	―	―	30.10%	40.65%

Techno Mathematical Co., Ltd. Corporate Events

Techno Mathematical Co., Ltd. Reports Increased Sales Amidst Ongoing Financial Challenges

Techno Mathematical Co., Ltd. reported a significant increase in net sales by 49.3% for the quarter ending September 2025 compared to the same period in the previous year. Despite the increase in sales, the company continues to face challenges with operating and ordinary profits remaining negative, indicating ongoing financial difficulties.