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

• Market Cap: ¥3.56B
• Dividend Yield: 4.95%
• Average Volume (3M): 11.91K
• Price to Earnings (P/E): ―
• 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: ¥563.00 ▼(-10.35% 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

Consistently rising operating cash flow and strong free cash flow growth provide durable internal funding for capex, dividends and strategic investment. This reduces reliance on external financing and improves resilience through business cycles, supporting long-term value creation.

Balance Sheet Strength

A materially improved debt-to-equity ratio and strong equity base give the company financial flexibility to withstand downturns, pursue M&A or invest in growth. Healthy ROE indicates efficient capital use, supporting sustainable returns for shareholders over time.

Margin Sustainability

Stable and strong gross and operating margins reflect durable cost discipline and scalable operations. Margin stability cushions profitability against modest revenue swings, enabling consistent cash generation and reinvestment capacity over multiple quarters.

Negative Factors

Revenue Decline

An over 11% decline in reported revenue signals weakening top-line momentum that can erode scale economics and pricing power if persistent. Sustained revenue contraction pressures margins, cash flow and the ability to fund growth initiatives without structural change.

Earnings Volatility

Nearly complete earnings decline indicates a sharp drop in profitability or one-off losses. Such extreme EPS volatility undermines retained earnings, complicates dividend and reinvestment planning, and raises the risk that operating issues are deeper than temporary.

Asset Reduction & FCF Volatility

A declining asset base could reflect shrinking operations or asset sales, which combined with volatile free cash flow growth creates uncertainty about the durability of reported cash strength. That mix raises execution risk for sustaining investments and dividends.

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

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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	2.12B	2.02B	1.59B	1.42B	1.25B
EBITDA	667.37M	681.61M	530.59M	431.44M	388.73M
Net Income	257.60M	341.06M	266.74M	240.17M	223.92M
Balance Sheet
Total Assets	3.88B	3.91B	3.22B	3.01B	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	935.11M	927.24M	875.22M
Stockholders Equity	2.74B	2.57B	2.29B	2.08B	1.00B
Cash Flow
Free Cash Flow	709.04M	471.76M	333.92M	211.21M	261.48M
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: Negative
• Last Price: 628.00
• 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 628 is above the 20-day moving average (MA) of 549.55, above the 50-day MA of 555.16, and below the 200-day MA of 645.66, indicating a bearish trend. The MACD of -4.59 indicates Positive momentum. The RSI at 36.93 is Neutral, neither overbought nor oversold. The STOCH value of 29.63 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
4076	80 Outperform	¥4.94B	10.23	―	4.35%	8.71%	23.46%
3940	78 Outperform	¥6.40B	14.84	―	2.43%	2.92%	-0.94%
3839	76 Outperform	¥5.26B	-16.02	―	1.61%	7.03%	1.01%
3920	74 Outperform	¥5.35B	-55.34	―	1.21%	10.06%	62.77%
4736	66 Neutral	¥3.08B	30.93	―	1.54%	7.59%	16.93%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4198	60 Neutral	¥3.56B	-78.74	―	4.95%	-5.92%	-78.33%