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

• Market Cap: ¥3.87B
• Dividend Yield: 4.95%
• Average Volume (3M): 11.91K
• Price to Earnings (P/E): 767.3
• Beta (1Y): 0.33
• Revenue Growth: -5.92%
• EPS Growth: -78.33%
• Country: JP
• Employees: 336
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): -2.49
• 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: ¥688.00 ▲(9.55% Upside)

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 Flow Management

Strong cash flow management ensures TENDA can fund operations, invest in growth opportunities, and maintain financial stability over the long term.

Balance Sheet Health

A healthier debt-to-equity ratio enhances financial leverage management, providing TENDA with more flexibility to navigate economic fluctuations.

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion and stability.

Negative Factors

Revenue Decline

A recent decline in revenue could signal challenges in maintaining growth momentum, potentially affecting future profitability and market position.

Net Profit Margin Decrease

A decrease in net profit margin may indicate rising costs or competitive pressures, which could impact TENDA's profitability if not addressed.

Asset Reduction

A reduction in total assets might limit TENDA's ability to invest in growth and innovation, potentially affecting its competitive edge in the 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.58B	5.57B	5.18B	4.24B	3.51B	2.99B
Gross Profit	2.13B	2.13B	2.03B	1.60B	1.45B	1.27B
EBITDA	699.00M	706.13M	684.85M	507.46M	421.52M	385.75M
Net Income	258.03M	257.60M	341.06M	266.74M	240.17M	223.92M
Balance Sheet
Total Assets	3.88B	3.88B	3.91B	3.22B	3.00B	1.88B
Cash, Cash Equivalents and Short-Term Investments	1.63B	1.63B	1.71B	2.10B	2.12B	1.27B
Total Debt	142.12M	142.12M	305.80M	323.31M	376.92M	473.87M
Total Liabilities	1.08B	1.08B	1.33B	932.27M	925.75M	873.30M
Stockholders Equity	2.74B	2.74B	2.57B	2.29B	2.08B	1.00B
Cash Flow
Free Cash Flow	0.00	709.04M	395.55M	276.94M	157.27M	221.27M
Operating Cash Flow	0.00	718.38M	477.13M	340.97M	211.41M	264.47M
Investing Cash Flow	0.00	-570.50M	-787.99M	-153.86M	-92.51M	-49.10M
Financing Cash Flow	0.00	-259.65M	-80.30M	-211.77M	725.43M	-148.49M

TENDA Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• 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 Neutral. The current price of 628 is above the 20-day moving average (MA) of 565.05, above the 50-day MA of 580.78, and below the 200-day MA of 707.62, indicating a neutral trend. The MACD of 1.07 indicates Negative momentum. The RSI at 58.74 is Neutral, neither overbought nor oversold. The STOCH value of 75.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4198.

TENDA Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5576	77 Outperform	¥6.94B	14.36	―	3.13%	6.08%	0.53%
3988	68 Neutral	¥6.35B	15.27	―	1.23%	11.62%	-16.59%
6888	68 Neutral	¥5.46B	15.63	―	4.69%	0.95%	-8.59%
8226	66 Neutral	¥7.73B	11.04	―	1.27%	12.64%	12.70%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4198	60 Neutral	¥3.87B	767.31	―	4.95%	-5.92%	-78.33%
6182	54 Neutral	¥5.20B	167.11	―	―	-0.62%	-93.84%