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

• Market Cap: ¥23.73B
• Dividend Yield: 1.46%
• Average Volume (3M): 976.56K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.54
• Revenue Growth: 25.53%
• EPS Growth: -128.67%
• Country: JP
• Employees: 405
• Sector: Utilities
• Sector Strength: 65
• Industry: Renewable Utilities
• EPS (TTM): 0.36
• Shares Outstanding: 70,649,130
• 10 Day Avg. Volume: 647,250
• 30 Day Avg. Volume: 976,560
• PEG Ratio: -1.37
• Price to Book (P/B): 0.55
• Price to Sales (P/S): 0.63
• P/FCF Ratio: -21.91
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: ¥357.00 ▲(1.71% Upside)

The overall stock score for TESS Holdings Co., Ltd. is primarily impacted by its mixed financial performance and weak technical indicators. The high P/E ratio suggests overvaluation, and the lack of earnings call and corporate events data limits further insights. The company needs to address profitability and cash flow issues to improve its financial stability.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Operational Efficiency

Improved operational efficiency suggests better cost management and resource utilization, enhancing profitability potential.

Leverage Management

Better leverage management reduces financial risk, providing more stability and flexibility for future investments.

Negative Factors

Profitability Challenges

Declining profit margins indicate cost pressures and pricing challenges, potentially impacting long-term financial health.

Negative Free Cash Flow

Negative free cash flow suggests difficulties in funding operations and investments, which could limit growth opportunities.

High Debt Levels

High debt levels can strain financial resources and increase vulnerability to economic downturns, affecting long-term sustainability.

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 through multiple streams, primarily from the sale of electronic components and systems to various sectors, including automotive and industrial. The company also derives income from research and development services, collaborating with clients to create customized solutions that meet specific needs. Key revenue streams include direct sales, long-term contracts with major manufacturers, and partnerships with technology firms that enhance its product offerings. Additionally, TESS Holdings benefits from economies of scale and operational efficiencies that allow it to maintain competitive pricing while maximizing profit margins.

TESS Holdings Co., Ltd. Financial Statement Overview

Summary

TESS Holdings Co., Ltd. shows mixed financial performance with revenue growth and improved operational efficiency. However, profitability and cash flow conversion remain concerns, and high debt levels pose risks despite improved leverage management.

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	36.68B	36.68B	30.64B	34.41B	34.95B	34.25B
Gross Profit	7.45B	7.45B	6.55B	10.61B	8.46B	7.54B
EBITDA	5.84B	5.84B	7.74B	9.27B	7.96B	6.90B
Net Income	204.00M	205.00M	1.19B	3.59B	2.69B	1.99B
Balance Sheet
Total Assets	151.26B	151.26B	119.13B	94.09B	94.26B	100.72B
Cash, Cash Equivalents and Short-Term Investments	22.88B	22.88B	18.34B	15.36B	22.60B	26.04B
Total Debt	92.77B	92.77B	65.64B	57.92B	61.11B	70.55B
Total Liabilities	108.40B	108.40B	77.33B	65.75B	69.02B	77.91B
Stockholders Equity	42.56B	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: 351.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 351 is above the 20-day moving average (MA) of 325.85, above the 50-day MA of 344.26, and above the 200-day MA of 342.89, indicating a bullish trend. The MACD of -4.75 indicates Negative momentum. The RSI at 59.46 is Neutral, neither overbought nor oversold. The STOCH value of 88.41 is Negative, 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	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
9511	63 Neutral	$58.06B	9.78	4.73%	2.31%	-1.96%	33.15%
9514	60 Neutral	¥7.68B	13.08	―	2.29%	4.05%	38.64%
9519	58 Neutral	¥59.49B	9.63	6.76%	―	28.85%	-9.70%
1711	53 Neutral	¥2.51B	-15.90	―	―	3.63%	7.60%
5074	48 Neutral	¥23.73B	-54.40	―	1.46%	25.53%	-128.67%
2743	29 Underperform	¥1.15B	-0.55	―	―	47.60%	25.72%

TESS Holdings Co., Ltd. Corporate Events

TESS Holdings Reports Q3 2025 Financial Results, Emphasizing Decarbonization Leadership

TESS Holdings Co., Ltd. has released its financial results for the three months ending September 30, 2025, highlighting its commitment to leading in decarbonization. The company’s diverse portfolio in energy solutions positions it strongly in the market, with implications for enhanced operational efficiency and sustainability for its stakeholders.

TESS Holdings Reports Strong Q1 Performance Amid Renewable Energy Growth

TESS Holdings reported a year-on-year increase in revenue and profit for the quarter ending September 30, 2025, driven by strong performance in renewable energy projects and retail electricity supply. However, unprofitable biomass EPC projects impacted profits in the engineering segment. The company anticipates continued growth in revenue and profit for the fiscal year ending June 2026, with a dividend forecast of 5.80 yen per share.

TESS Holdings Reports Mixed Financial Results for Q3 2025

TESS Holdings Co., Ltd. reported a significant increase in net sales for the three months ended September 30, 2025, with a 53% rise compared to the previous year. Despite this growth, the company experienced a substantial decline in profit attributable to owners of the parent, dropping by 96.3%. The financial results indicate a challenging period for the company, with implications for its stakeholders as it navigates these financial dynamics.

TESS Holdings Secures Major Order for Power Storage Plants

TESS Holdings Co., Ltd. announced that its subsidiary, TESS Engineering Co., Ltd., has secured a significant order for the development-type EPC of power storage plants for power grids, valued at approximately 9 billion yen. This order is part of TESS’s strategic focus on power-storage systems and aligns with its medium-term management plan, TX2030 TESS Transformation 2030. The income from this order is expected to be recorded from the fiscal year ending June 30, 2026, through June 30, 2028, with the potential for significant impact on the company’s financial results.

TESS Holdings Subsidiary Secures Major Power Storage Plant Order

TESS Holdings Co., Ltd.’s subsidiary, TESS Engineering Co., Ltd., has secured a significant order for the EPC of power storage plants for power grids, valued at approximately 13 billion yen. This order is part of TESS’s strategic focus on power-storage systems and aligns with its business alliance with Daiwa Energy & Infrastructure Co. Ltd. The financial impact of this order on TESS’s results is expected to be minimal initially, with income recognized over several fiscal years.