TESS Holdings Co., Ltd. (JP:5074)
:5074
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TESS Holdings Co., Ltd.
(5074)
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Rating:51Neutral
Price Target:
¥809.00
▲(129.83% Upside)
Action:Reiterated
Date:06/11/26
The score is held back primarily by weakening profitability and negative free cash flow, despite revenue growth and some leverage improvement. Technicals are soft with the stock trading below key short-term averages and weak momentum readings. Valuation further pressures the score due to a very high P/E and low dividend yield.
Positive Factors
Revenue Growth
Sustained revenue growth of 9.22% signals durable demand recovery and expanding market traction. Over 2–6 months this underpins top-line stability, supports scale efficiencies, and provides a base to fund margin-improvement initiatives or necessary investments.
Negative Factors
Profitability Decline
A collapse in net margin from double digits to near breakeven is a durable concern: it erodes earnings power, reduces retained earnings, compresses ROE and limits ability to weather shocks. Restoring margins requires structural cost or pricing fixes, not temporary measures.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Sustained revenue growth of 9.22% signals durable demand recovery and expanding market traction. Over 2–6 months this underpins top-line stability, supports scale efficiencies, and provides a base to fund margin-improvement initiatives or necessary investments.
Read all positive factors
TESS Holdings Co., Ltd. (5074) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥58.53B
Dividend Yield1.46%
Average Volume (3M)976.56K
Price to Earnings (P/E)68.9
Beta (1Y)0.67
Revenue Growth36.93%
EPS GrowthN/A
CountryJP
Employees405
SectorUtilities
Sector Strength65
IndustryRenewable Utilities
Share Statistics
EPS (TTM)2.90
Shares Outstanding70,649,130
10 Day Avg. Volume647,250
30 Day Avg. Volume976,560
Financial Highlights & Ratios
PEG Ratio-1.37
Price to Book (P/B)0.55
Price to Sales (P/S)0.63
P/FCF Ratio-22.23
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)25.5
Revenue Forecast (FY)¥50.00B
TESS Holdings Co., Ltd. Business Overview & Revenue Model
Company Description
Tess Holdings Co.,Ltd. operates within the engineering and energy supply industries. The company is engaged in the entire process of project development, from engineering and procurement to the construction of facilities focused on energy efficien...
How the Company Makes Money
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TESS Holdings Co., Ltd. Financial Statement Overview
Summary
Income Statement
65
Positive
Balance Sheet
58
Neutral
Cash Flow
50
Neutral
| Breakdown | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 36.68B | 30.64B | 34.41B | 34.95B | 34.25B |
| Gross Profit | 7.45B | 6.55B | 10.61B | 8.46B | 7.54B |
| EBITDA | 7.10B | 5.63B | 10.03B | 8.02B | 6.94B |
| Net Income | 205.00M | 1.19B | 3.59B | 2.69B | 1.99B |
Balance Sheet | |||||
| Total Assets | 151.26B | 119.13B | 94.09B | 94.26B | 100.72B |
| Cash, Cash Equivalents and Short-Term Investments | 22.88B | 18.34B | 15.36B | 22.60B | 26.04B |
| Total Debt | 92.77B | 65.64B | 57.92B | 61.11B | 70.55B |
| Total Liabilities | 108.40B | 77.33B | 65.75B | 69.01B | 77.91B |
| Stockholders Equity | 42.56B | 41.51B | 28.25B | 25.21B | 22.73B |
Cash Flow | |||||
| Free Cash Flow | -1.05B | -15.18B | -979.00M | 12.54B | -2.88B |
| Operating Cash Flow | 7.82B | -42.00M | 13.83B | 14.65B | 431.00M |
| Investing Cash Flow | -9.18B | -15.49B | -16.03B | -6.21B | -4.47B |
| Financing Cash Flow | 3.79B | 18.44B | -5.19B | -12.40B | 17.10B |
TESS Holdings Co., Ltd. Technical Analysis
Neutral
352.00
Price Trends
856.98
Negative
682.67
Positive
521.73
Positive
Market Momentum
-19.80
Positive
42.06
Neutral
14.47
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5074, the sentiment is Neutral. The current price of 352 is below the 20-day moving average (MA) of 1041.75, below the 50-day MA of 856.98, and below the 200-day MA of 521.73, indicating a neutral trend. The MACD of -19.80 indicates Positive momentum. The RSI at 42.06 is Neutral, neither overbought nor oversold. The STOCH value of 14.47 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:5074.
TESS Holdings Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | ¥7.40B | 3.05 | ― | 2.29% | 11.63% | 312.03% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
58 Neutral | ¥713.45B | 12.67 | 7.17% | 3.22% | -10.21% | -35.69% | |
53 Neutral | ¥59.22B | 11.11 | ― | 1.79% | -1.20% | 115.90% | |
52 Neutral | ¥94.03B | 17.75 | ― | 4.59% | 4.89% | -4.69% | |
51 Neutral | ¥58.53B | 68.86 | ― | 1.46% | 36.93% | ― | |
51 Neutral | ¥81.12B | 24.42 | 7.71% | ― | 24.74% | 22.82% |
* Utilities Sector Average
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TESS Holdings Co., Ltd. Corporate Events
TESS Holdings Launches Restricted Stock Plan for Employees
Jun 9, 2026
TESS Holdings has approved the issuance of 114,100 new common shares as restricted stock to 127 employees across the parent and its subsidiaries, with a total value of ¥103.6 million at an issue price aligned with the recent market close. The...
TESS Holdings Highlights Comprehensive Decarbonization and Energy-Saving Solutions Portfolio
May 21, 2026
TESS Holdings Co., Ltd. emphasizes its vision of becoming a leading company in decarbonization by delivering comprehensive Total Energy Savings Solutions to customers. The group’s portfolio spans renewable generation assets, high-efficiency...
TESS Subsidiary Secures ¥10.78 Billion Syndicated Loan with Financial Covenants
May 15, 2026
TESS Holdings Co., Ltd. announced that its consolidated subsidiary TESS Engineering Co., Ltd. has entered into a syndicated commitment line agreement, arranged by Sumitomo Mitsui Banking Corporation, to secure working capital. The facility, totali...
TESS Holdings Lifts Earnings on Battery EPC and Renewable Power Growth
May 15, 2026
TESS Holdings reported strong consolidated results for the nine months ended March 31, 2026, with significant year-on-year growth in revenue and profit driven by increased power storage system projects within its renewable energy EPC business. The...
TESS Holdings Posts Strong Nine-Month Earnings and Confirms Profit-Rebound Outlook
May 15, 2026
TESS Holdings reported strong consolidated results for the nine months ended March 31, 2026, with net sales up 39.8% year on year to ¥37.4 billion and operating profit up 34.6% to ¥3.6 billion. Profit attributable to owners of parent mor...
TESS Holdings Subsidiary Secures Syndicated Loan with Financial Covenants
Apr 15, 2026
TESS Engineering Co., Ltd., a consolidated subsidiary of TESS Holdings Co., Ltd., has entered into a syndicated commitment line agreement arranged by Sumitomo Mitsui Banking Corporation to secure working capital. The facility totals ¥15.4 bil...
TESS Holdings Introduces Restricted Stock Plan for Group Employees
Mar 31, 2026
TESS Holdings has approved the introduction of a restricted stock compensation plan for employees of the company and its subsidiaries who meet specified eligibility criteria. The scheme grants monetary claims that employees contribute in kind to r...
TESS Subsidiary Secures ¥8.1 Billion Covenant-Linked Loan for Working Capital
Mar 13, 2026
TESS Holdings said its consolidated subsidiary TESS Engineering, a specialist in energy-saving and environmental protection systems including co-generation and renewable energy projects, has arranged new financing to support its operations. The Os...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.