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

• Market Cap: ¥4.69B
• Dividend Yield: 3.82%
• Average Volume (3M): 21.80K
• Price to Earnings (P/E): 18.1
• Beta (1Y): 0.30
• Revenue Growth: 23.31%
• EPS Growth: 23.31%
• Country: JP
• Employees: 336
• Sector: Technology
• Sector Strength: 98
• Industry: Information Technology Services
• EPS (TTM): 3.52
• Shares Outstanding: 6,634,800
• 10 Day Avg. Volume: 36,350
• 30 Day Avg. Volume: 21,800
• PEG Ratio: -2.00
• Price to Book (P/B): 1.96
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥893.00
• Price Target Upside: 25.60% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: ¥893.00 ▲(25.60%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 strong financial performance with solid revenue growth, profitability, and low financial leverage. The income statement and balance sheet reflect robust operational efficiency and financial stability. While the company is actively reinvesting as seen from negative investing cash flow, its overall financial health is strong, supported by effective cash flow management.

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

TENDA Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 711.00
• 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 711 is below the 20-day moving average (MA) of 747.85, below the 50-day MA of 773.08, and below the 200-day MA of 854.50, indicating a bearish trend. The MACD of -22.46 indicates Positive momentum. The RSI at 36.67 is Neutral, neither overbought nor oversold. The STOCH value of 52.25 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	¥6.10B	14.00		1.21%	12.89%	-8.37%
6888	76 Outperform	¥5.45B	15.96		4.46%	-1.08%	-22.95%
4198	74 Outperform	¥4.69B	18.13		3.82%	23.31%	23.31%
8226	65 Neutral	¥5.31B	8.03		1.70%	54.35%	72.76%
5576	64 Neutral	¥6.82B	14.41		2.80%	11.42%	12.23%
Sector *	62 Neutral	£503.40M	23.45	-8.55%	2.78%	4.81%	-18.71%
6182	56 Neutral	¥6.46B	64.46		―	-5.89%	-83.27%