TENDA Co., Ltd. (4198) AI Stock Analysis

• Market Cap: ¥5.12B
• Dividend Yield: 3.5%
• Average Volume (3M): 17.19K
• Price to Earnings (P/E): 13.5
• Beta (1Y): 0.30
• Revenue Growth: 23.31%
• EPS Growth: 23.31%
• Country: JP
• Employees: 336
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 57.16
• Shares Outstanding: 6,634,800
• 10 Day Avg. Volume: 12,250
• 30 Day Avg. Volume: 17,190
• PEG Ratio: 0.60
• Price to Book (P/B): 0.55
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.53
• 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

• Rating: 74 Outperform
• Price Target: ¥893.00 ▲(15.97%Upside)

TENDA Co., Ltd. achieves a strong overall stock score of 74, primarily driven by its robust financial performance and reasonable valuation. The company's solid revenue growth, profitability, and effective cash flow management place it in a favorable financial position. While the technical analysis suggests a neutral trend, the company's valuation with a decent P/E ratio and dividend yield provides additional support to the stock score.

TENDA Co., Ltd. Business Overview & Revenue Model

Company Description

TENDA Co., Ltd. (4198) is a Japanese company specializing in providing information technology solutions and services. The company operates primarily in sectors related to software development, IT consulting, and system integration. It focuses on delivering high-quality technology services to enhance operational efficiency for its clients across various industries.

How the Company Makes Money

TENDA Co., Ltd. generates revenue through multiple streams, primarily centered around its IT service offerings. The company earns money by providing customized software development, IT consulting services, and system integration solutions to its clients. Additionally, it may engage in ongoing maintenance and support contracts, ensuring a steady stream of income. The company's revenue is further bolstered by strategic partnerships with other technology firms, which help in expanding its market reach and enhancing service offerings. Significant factors contributing to its earnings include its ability to maintain long-term client relationships and continuously adapt to emerging technological trends, thereby meeting the evolving needs of its customer base.

TENDA Co., Ltd. Financial Statement Overview

Summary

TENDA Co., Ltd. shows a strong financial performance with consistent revenue growth, solid profitability, and efficient cost management. The company's low debt-to-equity ratio and positive cash flow generation further support its robust financial position. However, the negative investing cash flow indicates significant reinvestment activities.

Income Statement

TENDA Co., Ltd. exhibits a strong income statement with consistent revenue growth and solid profitability. The revenue growth rate from 2023 to 2024 was approximately 22.2%, showcasing robust expansion. The gross profit margin for 2024 was 39.3%, indicating efficient cost management. The net profit margin improved to 6.6%, reflecting enhanced bottom-line performance. Both EBIT and EBITDA margins are healthy at 10.5% and 13.2%, respectively, reflecting strong operational efficiency.

Balance Sheet

The balance sheet of TENDA Co., Ltd. is strong, characterized by a low debt-to-equity ratio of 0.12, indicating low financial leverage and reduced risk. The return on equity stands at a healthy 13.2%, showing effective utilization of shareholders' equity to generate profits. With an equity ratio of 65.9%, the company maintains a solid capital structure, suggesting financial stability.

Cash Flow

TENDA Co., Ltd.'s cash flow statement demonstrates positive cash flow generation, with a free cash flow growth rate of 42.8% from 2023 to 2024. The operating cash flow to net income ratio is 1.4, indicating efficient conversion of income into cash. The free cash flow to net income ratio of 1.2 further supports solid cash generation. However, investing cash flow is negative, suggesting significant investment activities.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	5.85B	5.18B	4.24B	3.51B	2.99B	3.19B
Gross Profit	2.26B	2.03B	1.60B	1.45B	1.27B	1.27B
EBITDA	836.74M	684.85M	507.46M	421.52M	385.75M	343.94M
Net Income	394.39M	341.06M	266.74M	240.17M	223.92M	205.25M
Balance Sheet
Total Assets	3.81B	3.91B	3.22B	3.00B	1.88B	1.83B
Cash, Cash Equivalents and Short-Term Investments	1.82B	1.71B	2.10B	2.12B	1.27B	1.20B
Total Debt	196.00M	305.80M	323.31M	376.92M	473.87M	585.92M
Total Liabilities	1.12B	1.33B	932.27M	925.75M	873.30M	1.02B
Stockholders Equity	2.69B	2.57B	2.29B	2.08B	1.00B	809.60M
Cash Flow
Free Cash Flow	0.00	395.55M	276.94M	157.27M	221.27M	340.26M
Operating Cash Flow	0.00	477.13M	340.97M	211.41M	264.47M	418.74M
Investing Cash Flow	0.00	-787.99M	-153.86M	-92.51M	-49.10M	-135.94M
Financing Cash Flow	0.00	-80.30M	-211.77M	725.43M	-148.49M	390.36M

TENDA Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 770.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4198, the sentiment is Negative. The current price of 770 is below the 20-day moving average (MA) of 781.75, below the 50-day MA of 791.04, and below the 200-day MA of 861.96, indicating a bearish trend. The MACD of -7.57 indicates Positive momentum. The RSI at 42.88 is Neutral, neither overbought nor oversold. The STOCH value of 30.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4198.

TENDA Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3988	81 Outperform	¥5.91B	13.56		1.07%	12.89%	-8.37%
6888	79 Outperform	¥5.29B	15.47		4.61%	-1.08%	-22.95%
4198	74 Outperform	¥5.12B	13.51		3.50%	23.31%	23.31%
6182	73 Outperform	¥7.03B	23.57		―	-2.23%	-44.50%
8226	71 Outperform	¥5.62B	8.51		1.64%	54.35%	72.76%
5576	64 Neutral	¥6.63B	13.30		2.84%	11.42%	12.23%
Sector *	50 Neutral	C$2.97B	1.65	-61.70%	2.76%	11.24%	-12.42%