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

• Market Cap: ¥3.70B
• Dividend Yield: 4.95%
• Average Volume (3M): 11.91K
• Price to Earnings (P/E): 737.1
• Beta (1Y): 0.30
• Revenue Growth: -5.92%
• EPS Growth: -78.33%
• Country: JP
• Employees: 336
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): N/A
• Shares Outstanding: 6,634,800
• 10 Day Avg. Volume: 21,650
• 30 Day Avg. Volume: 11,913
• PEG Ratio: -0.81
• Price to Book (P/B): 1.90
• Price to Sales (P/S): 0.94
• P/FCF Ratio: 7.35
• 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: 60 Neutral
• Price Target: ¥590.00 ▼(-6.05% Downside)
• Action: Downgraded Date: 10/16/25
• Date: Action: Downgraded 10/16/25

TENDA Co., Ltd. has a strong financial foundation with robust cash flow and a solid balance sheet, which is the most significant factor in its score. However, the stock is experiencing bearish technical indicators and appears overvalued based on its P/E ratio, which are notable risks.

Positive Factors

Cash Generation

Significant operating and free cash flow growth provides durable internal funding for R&D, capex, dividends, and debt reduction. Strong cash conversion lowers reliance on external financing, enhancing flexibility to pursue growth initiatives and withstand cyclical industry slowdowns.

Balance Sheet Strength

Material improvement in debt-to-equity and a strong equity ratio give the company lasting financial flexibility. Healthy ROE signals management effectively deploys capital. This balance-sheet strength supports investment, M&A optionality, and resilience during demand fluctuations.

Margin Sustainability

Consistently strong gross profit margin and stable EBIT/EBITDA margins reflect efficient cost structure and operational discipline. Sustained margins underpin capacity to invest in product development, maintain pricing power, and generate returns even if revenue growth lags.

Negative Factors

Revenue Decline

An ~11% recent revenue decline is structurally meaningful; persistent top-line contraction erodes scale and bargaining power, pressures margins and fixed-cost absorption, and forces strategic shifts. Reversing revenue loss is crucial for long-term profitability and market position.

Earnings Volatility

EPS nearly collapsed (~-99% growth), indicating earnings volatility or one-off hits. Such sharp earnings deterioration reduces retained earnings for reinvestment, undermines confidence in recurring profitability, and constrains ability to sustain dividends or fund strategic initiatives.

Asset Reduction Risk

Declining total assets, if sustained, may signal asset sales, underinvestment, or shrinking productive capacity. That weakens future revenue-generating capability, could hinder product development or fulfilment capacity, and limits the firm's ability to scale operations long-term.

TENDA Co., Ltd. Business Overview & Revenue Model

Company Description

TENDA Co., Ltd. (4198) is a technology company based in Japan that specializes in the development and manufacturing of networking products and solutions. The company operates primarily in the information technology sector, focusing on producing high-quality routers, switches, and other networking equipment that cater to both consumers and businesses. TENDA is known for its commitment to innovation and affordability, providing users with reliable and efficient connectivity options across various platforms.

How the Company Makes Money

TENDA Co., Ltd. generates revenue primarily through the sale of its networking products, which include routers, switches, and accessories. The company operates a business-to-consumer (B2C) model, selling directly to consumers via online platforms and retail partnerships, as well as a business-to-business (B2B) model, providing solutions to enterprises and telecommunications providers. Key revenue streams include direct product sales, recurring revenue from subscription-based services, and potential licensing agreements for proprietary technologies. Additionally, strategic partnerships with distributors and technology providers enhance TENDA's market reach and contribute to its overall earnings.

TENDA Co., Ltd. Financial Statement Overview

Summary

TENDA Co., Ltd. demonstrates strong financial performance with robust cash flow management and a solid balance sheet. While there are some concerns about recent revenue decline and asset reduction, the company's profitability and leverage metrics remain healthy.

Income Statement

TENDA Co., Ltd. has shown consistent revenue growth over the years, although there was a slight decline in the most recent year. The gross profit margin remains strong, indicating efficient cost management. However, the net profit margin has slightly decreased, suggesting increased expenses or reduced pricing power. EBIT and EBITDA margins are stable, reflecting solid operational efficiency.

Balance Sheet

The company has improved its debt-to-equity ratio significantly over the years, indicating better financial leverage management. Return on equity remains healthy, showcasing effective use of equity capital. The equity ratio is strong, suggesting a solid financial foundation. However, the decrease in total assets could be a concern if it continues.

Cash Flow

Operating cash flow has increased significantly, indicating strong cash generation capabilities. The free cash flow growth is impressive, showing robust financial health. The ratios of operating and free cash flow to net income are favorable, suggesting efficient cash management. However, the volatility in free cash flow growth rates could be a potential risk.

Breakdown	May 2024	May 2023	May 2022	May 2021	May 2021
Income Statement
Total Revenue	5.57B	5.18B	4.24B	3.51B	2.99B
Gross Profit	2.13B	2.03B	1.60B	1.45B	1.27B
EBITDA	706.13M	684.85M	507.46M	421.52M	385.75M
Net Income	257.60M	341.06M	266.74M	240.17M	223.92M
Balance Sheet
Total Assets	3.88B	3.91B	3.22B	3.00B	1.88B
Cash, Cash Equivalents and Short-Term Investments	1.63B	1.71B	2.10B	2.12B	1.27B
Total Debt	142.12M	305.80M	323.31M	376.92M	473.87M
Total Liabilities	1.08B	1.33B	932.27M	925.75M	873.30M
Stockholders Equity	2.74B	2.57B	2.29B	2.08B	1.00B
Cash Flow
Free Cash Flow	709.04M	395.55M	276.94M	157.27M	221.27M
Operating Cash Flow	718.38M	477.13M	340.97M	211.41M	264.47M
Investing Cash Flow	-570.50M	-787.99M	-153.86M	-92.51M	-49.10M
Financing Cash Flow	-259.65M	-80.30M	-211.77M	725.43M	-148.49M

TENDA Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 628.00
• 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:4198, the sentiment is Positive. The current price of 628 is above the 20-day moving average (MA) of 557.30, above the 50-day MA of 559.68, and below the 200-day MA of 663.97, indicating a neutral trend. The MACD of -0.24 indicates Negative momentum. The RSI at 53.64 is Neutral, neither overbought nor oversold. The STOCH value of 71.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4198.

TENDA Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4076	80 Outperform	¥4.97B	9.22	―	4.35%	8.71%	23.46%
3940	78 Outperform	¥6.72B	16.54	―	2.43%	2.92%	-0.94%
3839	76 Outperform	¥5.26B	27.15	―	1.61%	7.03%	1.01%
3920	74 Outperform	¥5.44B	14.34	―	1.21%	10.06%	62.77%
4736	66 Neutral	¥3.34B	9.33	―	1.54%	7.59%	16.93%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4198	60 Neutral	¥3.70B	737.15	―	4.95%	-5.92%	-78.33%