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TESS Holdings Co., Ltd.
(5074)
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Rating:50Neutral
Price Target:
¥678.00
▲(92.61% Upside)
Action:Reiterated
Date:07/14/26
The score is held back primarily by weakening profitability and negative free cash flow despite improving operating cash flow and some margin recovery. Technicals add downside pressure given the stock’s position below key moving averages and negative MACD, while valuation is a further headwind due to the very high P/E and modest dividend yield.
Positive Factors
Revenue growth recovery
A 9.22% revenue increase signals renewed top-line momentum and demand recovery after prior declines. Sustained revenue growth supports scale economies, improves capacity utilization, and provides a foundation for margin recovery and reinvestment over the next several quarters.
Negative Factors
Negative free cash flow
Persistently negative free cash flow indicates earnings are not translating into discretionary cash, constraining the company's ability to service debt, invest in growth, or return capital. Without durable FCF improvement, financing needs may remain elevated.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue growth recovery
A 9.22% revenue increase signals renewed top-line momentum and demand recovery after prior declines. Sustained revenue growth supports scale economies, improves capacity utilization, and provides a foundation for margin recovery and reinvestment over the next several quarters.
Read all positive factors
TESS Holdings Co., Ltd. (5074) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥47.84B
Dividend Yield1.19%
Average Volume (3M)976.56K
Price to Earnings (P/E)56.2
Beta (1Y)0.74
Revenue Growth36.93%
EPS GrowthN/A
CountryJP
Employees471
SectorUtilities
Sector Strength65
IndustryRenewable Utilities
Share Statistics
EPS (TTM)12.07
Shares Outstanding70,773,230
10 Day Avg. Volume647,250
30 Day Avg. Volume976,560
Financial Highlights & Ratios
PEG Ratio-1.38
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)29.8
Revenue Forecast (FY)¥57.50B
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
null...
TESS Holdings Co., Ltd. Financial Statement Overview
Summary
Income Statement
65
Positive
Balance Sheet
58
Neutral
Cash Flow
50
Neutral
| Breakdown | TTM | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 47.34B | 36.68B | 30.64B | 34.41B | 34.95B | 34.25B |
| Gross Profit | 8.59B | 7.45B | 6.55B | 10.61B | 8.46B | 7.54B |
| EBITDA | 10.04B | 7.10B | 5.63B | 10.03B | 8.02B | 6.94B |
| Net Income | 851.00M | 205.00M | 1.19B | 3.59B | 2.69B | 1.99B |
Balance Sheet | ||||||
| Total Assets | 162.58B | 151.26B | 119.13B | 94.09B | 94.26B | 100.72B |
| Cash, Cash Equivalents and Short-Term Investments | 19.69B | 22.88B | 18.34B | 15.36B | 22.60B | 26.04B |
| Total Debt | 94.89B | 92.77B | 65.64B | 57.92B | 61.11B | 70.55B |
| Total Liabilities | 112.78B | 108.40B | 77.33B | 65.75B | 69.01B | 77.91B |
| Stockholders Equity | 49.52B | 42.56B | 41.51B | 28.25B | 25.21B | 22.73B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -1.05B | -15.18B | -979.00M | 12.54B | -2.88B |
| Operating Cash Flow | 0.00 | 7.82B | -42.00M | 13.83B | 14.65B | 431.00M |
| Investing Cash Flow | 0.00 | -9.18B | -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
Positive
352.00
Price Trends
859.98
Negative
817.37
Negative
605.15
Positive
Market Momentum
-38.31
Negative
51.87
Neutral
75.20
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 352 is below the 20-day moving average (MA) of 743.80, below the 50-day MA of 859.98, and below the 200-day MA of 605.15, indicating a neutral trend. The MACD of -38.31 indicates Negative momentum. The RSI at 51.87 is Neutral, neither overbought nor oversold. The STOCH value of 75.20 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
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | ¥102.81B | 14.54 | ― | 4.59% | 27.89% | 39.80% | |
73 Outperform | ¥6.99B | 2.88 | ― | 2.29% | 11.63% | 312.03% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
58 Neutral | ¥670.07B | 19.37 | 4.27% | 2.63% | -7.32% | -70.76% | |
56 Neutral | ¥66.06B | 12.36 | ― | 1.79% | -1.20% | 115.89% | |
51 Neutral | ¥84.50B | 25.42 | 3.23% | ― | 24.74% | 22.80% | |
50 Neutral | ¥47.84B | 56.17 | ― | 1.46% | 36.93% | ― |
* Utilities Sector Average
JP:5074
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TESS Holdings Co., Ltd. Corporate Events
TESS Holdings Reports No Immediate Damage from 2026 Kumamoto Quake
Jul 28, 2026
TESS Holdings Co., Ltd., a Japan-based energy and construction-oriented group listed on the Tokyo Stock Exchange Prime Market, operates offices, power plants, and construction sites across the country, including in Kyushu. Its diversified infrastr...
TESS Holdings Ups Earnings and Dividend Forecast on Strong Power Storage Business
Jul 23, 2026
TESS Holdings has sharply raised its full-year forecast for the fiscal year ending June 30, 2026, citing strong performance in power storage system-related EPC projects within its Engineering Segment and better-than-expected results in operation a...
TESS Holdings Wins ¥6 Billion Grid Storage EPC Contract in Nagano
Jul 17, 2026
TESS Holdings Co., Ltd., through its subsidiary TESS Engineering, has secured a major EPC contract to build a grid-connected power storage plant in Komoro, Nagano, with an output of about 43 MW and capacity of roughly 171 MWh. The order, valued at...
TESS Holdings Subsidiary Secures Syndicated Loan with Financial Covenants
Jul 15, 2026
TESS Holdings announced that its consolidated subsidiary TESS Engineering has entered into a syndicated commitment line loan arranged by Sumitomo Mitsui Banking Corporation, securing 8,001 million yen in short-term working capital with a total fac...
TESS Holdings Corrects Green Loan Data for Biomass Power Project
Jul 8, 2026
TESS Holdings Co., Ltd. has corrected previously disclosed data on the allocation of funds procured through sustainability financing, specifically within its green loan category. The revision affects figures related to financing for the Saga Imari...
Y Co. Buys 6.1% Stake in TESS Holdings in Tender-Offer-Equivalent Deal
Jun 30, 2026
Y Co., Ltd., an asset management company linked to TESS Holdings’ Representative Director and President Kazuki Yamamoto, has acquired a significant voting stake in TESS Holdings from another Yamamoto-led entity, K Co., Ltd., on June 22, 2026...
TESS Holdings Completes Restricted Stock Issuance for Employee Compensation
Jun 24, 2026
TESS Holdings Co., Ltd. has completed payment procedures for a new share issuance under its restricted stock compensation program for employees. The company issued 114,100 common shares at 908 yen each, for total proceeds of about 103.6 million ye...
TESS Holdings Corrects Details of Subsidiary Loan Under Commitment Line
Jun 18, 2026
TESS Holdings has announced a correction to details of a recently disclosed loan agreement entered into by its consolidated subsidiary, TESS Engineering Co., Ltd., under an existing commitment line arranged by Sumitomo Mitsui Banking Corporation. ...
TESS Subsidiary Secures ¥8 Billion Covenant-Linked Loan for Working Capital
Jun 17, 2026
TESS Holdings has disclosed that its consolidated subsidiary TESS Engineering has entered into a loan agreement featuring financial covenants to secure working capital. The financing is structured as a commitment line totaling ¥15.4 billion a...
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...
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.