Temona, Inc. (3985) AI Stock Analysis

• Market Cap: ¥2.65B
• Dividend Yield: N/A
• Average Volume (3M): 53.35K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.71
• Revenue Growth: 0.36%
• EPS Growth: N/A
• Country: JP
• Employees: 129
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): -1.30
• Shares Outstanding: 11,438,920
• 10 Day Avg. Volume: 37,110
• 30 Day Avg. Volume: 53,353
• PEG Ratio: -0.02
• Price to Book (P/B): 2.81
• Price to Sales (P/S): 1.08
• P/FCF Ratio: -22.28
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 42 Neutral
• Price Target: ¥252.00 ▲(10.53% Upside)

Temona, Inc. is currently facing significant financial and technical challenges. The company's declining revenues, negative profitability, and bearish technical indicators are the primary concerns. The lack of profitability and absence of a dividend yield further impact its valuation negatively. Strategic improvements are necessary to stabilize and enhance its financial performance.

Positive Factors

Business Model Strength

Temona's focus on subscription management solutions positions it well in the growing SaaS market, providing recurring revenue streams and scalability.

Revenue Model

A subscription-based revenue model ensures predictable cash flows and customer retention, crucial for long-term growth and stability.

Partnerships

Strategic partnerships enhance service integration and market reach, supporting revenue growth and competitive positioning in the industry.

Negative Factors

Revenue Decline

Declining revenues indicate potential market challenges or competitive pressures, which could hinder long-term growth and profitability.

Profitability Challenges

Ongoing profitability issues and cash flow inconsistencies pose risks to financial health, limiting reinvestment and strategic flexibility.

Cash Flow Issues

Inconsistent cash flow generation can strain liquidity and operational capabilities, impacting the company's ability to sustain growth and innovation.

Temona, Inc. Business Overview & Revenue Model

Company Description

Temona, Inc. (3985) is a leading technology company focused on providing innovative solutions in the digital payment and financial services sectors. The company specializes in developing software and applications that facilitate secure and efficient transactions for businesses and consumers. Core products include payment processing systems, mobile wallet applications, and financial management tools designed to enhance user experience and streamline financial operations.

How the Company Makes Money

Temona, Inc. generates revenue primarily through transaction fees charged to businesses for each payment processed through its systems. Additionally, the company earns income from subscription services offered to businesses using its financial management tools, which include premium features and analytics. Partnerships with financial institutions and e-commerce platforms further enhance revenue by enabling seamless integrations and expanding the user base. Furthermore, Temona benefits from data analytics services, providing insights to clients while ensuring compliance with privacy regulations, thus creating additional revenue opportunities.

Temona, Inc. Financial Statement Overview

Summary

Temona, Inc. faces significant financial challenges, including declining revenues, negative profitability metrics, and inconsistent cash flows. While the balance sheet shows manageable leverage, the overall financial health is weakened by persistent operational losses and cash flow difficulties.

Income Statement

Temona, Inc. has experienced revenue fluctuations over the years, with recent periods showing declining revenue. Gross profit margins have been decreasing, and the company has been struggling with negative EBIT and net income, indicating ongoing profitability challenges. The net profit margin and EBIT margin remain negative, reflecting persistent operational inefficiencies.

Balance Sheet

The balance sheet of Temona, Inc. shows a moderate debt-to-equity ratio, indicating a balanced leverage position. However, the company's equity ratio has been declining, signaling increased reliance on liabilities. Although the company maintains a positive cash position, the return on equity is negative due to continuous losses.

Cash Flow

Temona, Inc. faces challenges with cash flow generation, as evidenced by volatile free cash flow figures and recent negative operating cash flow. The company's inability to generate consistent free cash flow relative to net income highlights liquidity concerns and operational inefficiencies.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.83B	1.83B	2.34B	2.25B	2.41B	2.30B
Gross Profit	983.18M	937.20M	1.23B	1.29B	1.48B	1.37B
EBITDA	256.47M	-126.43M	52.64M	-47.53M	522.07M	172.98M
Net Income	-256.83M	-393.55M	-127.96M	-175.72M	290.30M	96.47M
Balance Sheet
Total Assets	1.78B	1.54B	2.25B	2.31B	2.19B	2.04B
Cash, Cash Equivalents and Short-Term Investments	1.15B	910.42M	1.20B	994.96M	1.45B	1.25B
Total Debt	699.62M	624.92M	830.43M	709.90M	436.65M	576.62M
Total Liabilities	1.00B	840.99M	1.16B	1.11B	827.64M	973.60M
Stockholders Equity	777.90M	698.45M	1.09B	1.20B	1.36B	1.06B
Cash Flow
Free Cash Flow	109.00M	-88.21M	81.16M	-302.93M	337.64M	18.86M
Operating Cash Flow	111.00M	29.58M	229.72M	-128.28M	471.35M	159.37M
Investing Cash Flow	-10.00M	-117.79M	-146.17M	-379.93M	-135.93M	-173.85M
Financing Cash Flow	0.00	-201.91M	122.04M	55.75M	-129.99M	-411.92M

Temona, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 228.00
• 50DMA: Negative
• 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:3985, the sentiment is Negative. The current price of 228 is below the 20-day moving average (MA) of 234.55, below the 50-day MA of 260.86, and below the 200-day MA of 239.24, indicating a bearish trend. The MACD of -10.66 indicates Negative momentum. The RSI at 40.81 is Neutral, neither overbought nor oversold. The STOCH value of 36.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3985.

Temona, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4057	64 Neutral	¥1.83B	11.75	―	―	12.83%	193.35%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
3845	52 Neutral	¥5.45B	―	―	―	-32.32%	-69.96%
6081	46 Neutral	¥2.93B	-4.01	―	―	-14.76%	22.12%
2459	44 Neutral	¥2.05B	―	―	―	-34.99%	19.36%
3985	42 Neutral	¥2.65B	-10.31	―	―	0.36%	―