Temona, Inc. (3985) AI Stock Analysis

• Market Cap: ¥3.32B
• Dividend Yield: N/A
• Average Volume (3M): 314.90K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.73
• Revenue Growth: -2.64%
• EPS Growth: -79.22%
• Country: JP
• Employees: 129
• Sector: Communication Services
• Sector Strength: 96
• Industry: Internet Content & Information
• EPS (TTM): 2.62
• Shares Outstanding: 11,425,592
• 10 Day Avg. Volume: 767,540
• 30 Day Avg. Volume: 314,896
• 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: ¥393.00
• Price Target Upside: 23.20% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 54 Neutral
• Price Target: ¥393.00 ▲(23.20% Upside)

Temona, Inc.'s stock score is primarily impacted by its weak financial performance and poor valuation metrics, which are offset by strong technical indicators suggesting bullish momentum. However, the lack of profitability and negative earnings remain significant concerns.

Temona, Inc. Business Overview & Revenue Model

Company Description

Temona, Inc. (3985) is a Japan-based technology company that specializes in providing subscription management solutions through its cloud-based platform. The company operates primarily within the software and technology services sectors, offering a suite of tools designed to streamline subscription-based business models. Temona's core products include subscription management software that assists businesses in automating and optimizing their recurring billing, customer relationship management, and analytics processes.

How the Company Makes Money

Temona, Inc. generates revenue primarily through subscription fees for its software as a service (SaaS) offerings. The company charges businesses a recurring fee to access its cloud-based subscription management platform, which is often based on the number of subscribers or transactions processed through the system. Additionally, Temona may offer various pricing tiers that provide different levels of functionality and support, enabling them to cater to businesses of varying sizes and needs. Significant partnerships with payment processors and e-commerce platforms can also drive revenue by facilitating seamless integration and expanding the reach of their services. Furthermore, consulting and support services could contribute to revenue by assisting clients in optimizing their subscription operations.

Temona, Inc. Financial Statement Overview

Summary

Temona, Inc. faces significant financial challenges with declining revenues, negative profitability metrics, and inconsistent cash flows. Despite a manageable leverage position, persistent operational losses and cash flow difficulties weaken overall financial health.

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	1.80B	1.83B	2.34B	2.25B	2.41B	2.30B
Gross Profit	956.82M	937.20M	1.23B	1.29B	1.48B	1.37B
EBITDA	-38.36M	-126.43M	52.64M	-47.53M	522.07M	172.98M
Net Income	-307.82M	-393.55M	-127.96M	-175.72M	290.30M	96.47M
Balance Sheet
Total Assets	1.77B	1.54B	2.25B	2.31B	2.19B	2.04B
Cash, Cash Equivalents and Short-Term Investments	1.12B	910.42M	1.20B	994.96M	1.45B	1.25B
Total Debt	732.84M	624.92M	830.43M	709.90M	436.65M	576.62M
Total Liabilities	1.02B	840.99M	1.16B	1.11B	827.64M	973.60M
Stockholders Equity	748.94M	698.45M	1.09B	1.20B	1.36B	1.06B
Cash Flow
Free Cash Flow	0.00	-88.21M	81.16M	-302.93M	337.64M	18.86M
Operating Cash Flow	0.00	29.58M	229.72M	-128.28M	471.35M	159.37M
Investing Cash Flow	0.00	-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: Positive
• Last Price: 319.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3985, the sentiment is Positive. The current price of 319 is above the 20-day moving average (MA) of 306.80, above the 50-day MA of 278.00, and above the 200-day MA of 218.09, indicating a bullish trend. The MACD of 12.09 indicates Positive momentum. The RSI at 56.01 is Neutral, neither overbought nor oversold. The STOCH value of 11.61 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3985.

Temona, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4057	62 Neutral	¥1.92B	13.75		―	10.39%	―
Sector *	60 Neutral	$46.60B	4.08	-11.40%	4.13%	1.85%	-42.71%
3845	58 Neutral	¥4.78B	―		―	-26.88%	26.91%
3985	54 Neutral	¥3.32B	―		―	-2.64%	-79.22%
2459	51 Neutral	¥1.97B	―		―	-38.66%	16.87%
6081	49 Neutral	¥3.27B	―		―	-14.72%	-60.34%
7077	―	¥2.20B	77.56		―	―	―

Temona, Inc. Corporate Events

Temona, Inc. Reports Improved Profits and Revised Forecasts for 2025

Temona, Inc. reported its earnings for the six months ending March 31, 2025, showing a slight decline in net sales compared to the previous year. Despite this, the company achieved a positive operating profit and ordinary profit, marking a significant turnaround from the losses recorded in the same period last year. The inclusion of Subsc Solutions Inc. in the company’s consolidation scope and changes in accounting policies are expected to impact future financial performance. The company has also revised its full-year earnings forecast, indicating a cautious yet optimistic outlook for the fiscal year ending September 30, 2025.