TESS Holdings Co., Ltd. (5074) AI Stock Analysis

• Market Cap: ¥26.34B
• Dividend Yield: 2.07%
• Average Volume (3M): 724.23K
• Price to Earnings (P/E): 129.3
• Beta (1Y): 0.50
• Revenue Growth: 19.71%
• EPS Growth: -82.80%
• Country: JP
• Employees: 405
• Sector: Utilities
• Sector Strength: 56
• Industry: Renewable Utilities
• EPS (TTM): -5.83
• Shares Outstanding: 70,646,130
• 10 Day Avg. Volume: 470,860
• 30 Day Avg. Volume: 724,233
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥372.00
• Price Target Upside: 1.92% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 54 Neutral
• Price Target: ¥372.00 ▲(1.92% Upside)

The overall stock score reflects the mixed financial performance with revenue growth but challenges in profitability and cash flow. Technical indicators suggest bearish momentum, and the high P/E ratio indicates potential overvaluation. The dividend yield provides some support but is insufficient to offset valuation concerns.

TESS Holdings Co., Ltd. Business Overview & Revenue Model

Company Description

Tess Holdings Co.,Ltd. engages in the engineering and energy supply businesses. The company is involved in the engineering, procurement, and construction of energy conservation and renewable energy-related facilities. It is also involved in the operations and maintenance of renewable energy power plants; retail supply of electricity; and energy management, remote monitoring, and fuel supply services, as well as energy resource aggregation services, including supply-demand adjustment capacity, imbalance avoidance, rate reduction, and output suppression avoidance to general power transmission and distribution operators, power retailers, and consumers. As of February 28, 2021, its total installed capacity was approximately 200 MW. The company was formerly known as Tess Techno Service Co., Ltd. and changed its name to Tess Holdings Co., Ltd. in April 2018. Tess Holdings Co., Ltd. was incorporated in 2009 and is headquartered in Osaka, Japan.

How the Company Makes Money

TESS Holdings generates revenue primarily through the sale of its high-tech equipment and systems to various industry sectors. The company benefits from a diversified revenue model that includes direct sales, long-term contracts, and service agreements. Key revenue streams come from the automotive sector, where demand for advanced manufacturing technologies is strong, as well as from the electronics and healthcare industries. Additionally, TESS Holdings may engage in partnerships with other technology firms and suppliers to enhance its product offerings and expand its market reach, further contributing to its earnings.

TESS Holdings Co., Ltd. Financial Statement Overview

Summary

TESS Holdings Co., Ltd. shows mixed financial performance with revenue growth and improved operational efficiency. However, declining net profit margins and negative free cash flow indicate profitability and liquidity challenges. Improved leverage management is a positive, but high debt levels remain a risk.

Income Statement

TESS Holdings Co., Ltd. has shown a positive revenue growth rate of 9.22% in the most recent year, indicating a strong recovery from previous declines. However, the net profit margin has decreased significantly from 10.44% in 2023 to 0.56% in 2025, reflecting challenges in maintaining profitability. The gross profit margin has also declined over the years, suggesting increased cost pressures. Despite these challenges, the company has managed to improve its EBIT and EBITDA margins slightly, indicating operational efficiency improvements.

Balance Sheet

The company's debt-to-equity ratio has improved from a high of 8.37 in 2020 to 2.18 in 2025, showing better leverage management. However, the current ratio still indicates a relatively high level of debt compared to equity, which could pose risks if not managed carefully. The return on equity has decreased over the years, reflecting reduced profitability. The equity ratio has improved, indicating a stronger equity base relative to total assets.

Cash Flow

TESS Holdings has faced challenges with free cash flow, which remains negative, indicating potential liquidity issues. The operating cash flow has improved significantly, turning positive in 2025, which is a positive sign for cash generation. However, the free cash flow to net income ratio is negative, suggesting that the company is not converting its earnings into free cash flow effectively.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	34.57B	36.68B	30.64B	34.41B	34.95B	34.25B
Gross Profit	7.71B	7.45B	6.55B	10.61B	8.46B	7.54B
EBITDA	6.13B	5.84B	7.74B	9.27B	7.96B	6.90B
Net Income	-597.00M	205.00M	1.19B	3.59B	2.69B	1.99B
Balance Sheet
Total Assets	149.80B	151.26B	119.13B	94.09B	94.26B	100.72B
Cash, Cash Equivalents and Short-Term Investments	20.56B	22.88B	18.34B	15.36B	22.60B	26.04B
Total Debt	89.30B	92.77B	65.64B	57.92B	61.11B	70.55B
Total Liabilities	106.16B	108.40B	77.33B	65.75B	69.02B	77.91B
Stockholders Equity	43.37B	42.56B	41.51B	28.25B	25.20B	22.73B
Cash Flow
Free Cash Flow	0.00	-1.06B	-15.25B	-2.10B	11.27B	-3.75B
Operating Cash Flow	0.00	7.81B	-42.00M	13.83B	14.65B	431.00M
Investing Cash Flow	0.00	-9.16B	-15.49B	-16.03B	-6.21B	-4.47B
Financing Cash Flow	0.00	3.79B	18.44B	-5.19B	-12.40B	17.10B

TESS Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 365.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5074, the sentiment is Positive. The current price of 365 is below the 20-day moving average (MA) of 367.00, below the 50-day MA of 386.32, and above the 200-day MA of 309.52, indicating a neutral trend. The MACD of -5.92 indicates Negative momentum. The RSI at 47.84 is Neutral, neither overbought nor oversold. The STOCH value of 74.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5074.

TESS Holdings Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	66 Neutral	$17.06B	17.77	5.60%	3.68%	6.63%	11.55%
5074	54 Neutral	¥26.34B	129.28		2.07%	19.71%	-82.80%
OKEPF	―	$375.14M	9.67	5.05%	1.39%	―	―
REOVF	―	$551.48M	14.35	3.54%	―	―	―
9514	71 Outperform	¥9.45B	13.14		1.86%	0.72%	153.87%
1711	51 Neutral	¥3.21B	―		―	-10.57%	-124.58%
2743	29 Underperform	¥15.00B	―		―	47.60%	25.72%

TESS Holdings Co., Ltd. Corporate Events

TESS Holdings Announces Corrections to Director Election Notice

TESS Holdings Co., Ltd. has announced corrections to a previous notice regarding proposals for the election of directors. The correction pertains to an error in the career summary of a candidate for the Audit and Supervisory Committee, specifically the timeline of their employment with the Environmental Policy Bureau.

The most recent analyst rating on (JP:5074) stock is a Hold with a Yen459.00 price target. To see the full list of analyst forecasts on TESS Holdings Co., Ltd. stock, see the JP:5074 Stock Forecast page.

TESS Holdings Proposes Amendments to Strengthen Governance

TESS Holdings Co., Ltd. has announced a proposal to amend its Articles of Incorporation to increase the number of Directors who are Audit and Supervisory Committee Members from four to five. This change, aimed at strengthening the company’s supervisory functions and corporate governance, will be voted on at the upcoming Annual General Meeting of Shareholders on September 26, 2025.

The most recent analyst rating on (JP:5074) stock is a Hold with a Yen459.00 price target. To see the full list of analyst forecasts on TESS Holdings Co., Ltd. stock, see the JP:5074 Stock Forecast page.

TESS Holdings Announces Dividend of Surplus for FY 2025

TESS Holdings Co., Ltd. announced a resolution regarding dividends of surplus, proposing a dividend of 5.12 yen per share for the fiscal year ended June 30, 2025. This decision aligns with the company’s policy to maintain a consolidated payout ratio of approximately 30%, aiming to enhance shareholder returns as business performance improves.

The most recent analyst rating on (JP:5074) stock is a Hold with a Yen459.00 price target. To see the full list of analyst forecasts on TESS Holdings Co., Ltd. stock, see the JP:5074 Stock Forecast page.

TESS Holdings Announces Director Election Proposals

TESS Holdings Co., Ltd. announced a resolution for the election of directors, including reappointments and new appointments, to be proposed at the upcoming Annual General Meeting of Shareholders. This decision reflects the company’s strategic focus on strengthening its governance and ensuring compliance with Tokyo Stock Exchange regulations, potentially impacting its operational efficiency and stakeholder confidence.

The most recent analyst rating on (JP:5074) stock is a Hold with a Yen459.00 price target. To see the full list of analyst forecasts on TESS Holdings Co., Ltd. stock, see the JP:5074 Stock Forecast page.

TESS Holdings Releases Fiscal Year 2025 Financial Results, Emphasizing Decarbonization

TESS Holdings Co., Ltd. has released its financial results for the fiscal year ending June 30, 2025, highlighting its commitment to decarbonization and energy efficiency. The company’s diverse portfolio, including renewable energy systems and high-efficiency solutions, underscores its strategic focus on sustainable energy, potentially strengthening its market position and offering significant benefits to stakeholders.

The most recent analyst rating on (JP:5074) stock is a Hold with a Yen459.00 price target. To see the full list of analyst forecasts on TESS Holdings Co., Ltd. stock, see the JP:5074 Stock Forecast page.

TESS Holdings Reports Full Allocation of Sustainability Funds and Environmental Impact

TESS Holdings Co., Ltd. has reported on the allocation of funds procured through sustainability financing, emphasizing full allocation for several renewable energy projects, including solar and biomass power plants. The company highlights significant environmental impacts, such as a CO₂ emission reduction of 29,113 tons per year from the Fukuoka Miyako Mega Solar Plant, showcasing its commitment to sustainability and enhancing its industry positioning in renewable energy.

TESS Holdings Releases Supplementary Material for Mid-term Plan

TESS Holdings Co., Ltd. has released supplementary material for its mid-term management plan, TX2030 TESS Transformation 2030, which outlines growth strategies in key business areas. This update follows investor inquiries and aims to provide further clarity on the company’s strategic direction for the period 2025-2030.

TESS Holdings Reports Strong Financial Growth and Positive Outlook

TESS Holdings Co., Ltd. reported year-on-year increases in revenue and profit for the fiscal year ended June 30, 2025, driven by strong performances in both its engineering and energy supply segments. The company anticipates continued growth in the fiscal year ending June 30, 2026, with expectations of increased revenue and profit, alongside a planned dividend of 5.80 yen per share.

TESS Holdings Reports FY2025 Financial Results and Positive Outlook for FY2026

TESS Holdings Co., Ltd. reported its consolidated financial results for the fiscal year ended June 30, 2025, showing a significant increase in net sales by 19.7% to ¥36,684 million. However, the company faced a decline in profit attributable to owners of the parent by 82.7% to ¥204 million. Despite the challenges, the company forecasts a positive outlook for the fiscal year ending June 30, 2026, with expected net sales of ¥47,000 million and a substantial increase in profit attributable to owners of the parent by 485.8% to ¥1,200 million.

TESS Holdings Revises Financial and Dividend Forecasts Amid Performance Challenges

TESS Holdings Co., Ltd. announced revisions to its consolidated financial results and dividend forecasts for the fiscal year ending June 30, 2025, due to a recorded non-operating expense and recent business performance trends. The company’s revised forecasts indicate a decrease in net sales, operating profit, and profit attributable to owners, primarily due to underperformance in the Energy Supply Segment and foreign exchange losses. Consequently, the dividend forecast has been reduced, aligning with the company’s policy to maintain a 30% payout ratio while ensuring internal reserves for future growth.