TESS Holdings Co., Ltd. (JP:5074)
:5074
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TESS Holdings Co., Ltd.
(5074)
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Rating:62Neutral
Price Target:
¥986.00
▲(180.11% Upside)
Action:Downgraded
Date:05/19/26
The score is driven primarily by strong technical momentum (price well above key moving averages with positive MACD), partly offset by mixed financial performance (sharp net margin compression and negative free cash flow despite revenue growth and improved leverage) and weak valuation signals (negative P/E and low dividend yield).
Positive Factors
Revenue Growth
Sustained top-line expansion (9.22% year) indicates recovering demand and improved market traction. Over a 2–6 month horizon this supports durable cash generation potential if cost control continues, underpins reinvestment capacity and stabilizes operational planning.
Negative Factors
Net Margin Compression
Severe net margin erosion reflects pressure on profitability that may persist absent pricing power or cost fixes. Over 2–6 months this reduces retained earnings, constrains reinvestment and magnifies the impact of any demand softness on earnings durability.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Sustained top-line expansion (9.22% year) indicates recovering demand and improved market traction. Over a 2–6 month horizon this supports durable cash generation potential if cost control continues, underpins reinvestment capacity and stabilizes operational planning.
Read all positive factors
TESS Holdings Co., Ltd. (5074) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥81.07B
Dividend Yield1.46%
Average Volume (3M)976.56K
Price to Earnings (P/E)―
Beta (1Y)0.62
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. 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 op...
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
Positive
352.00
Price Trends
715.46
Positive
565.98
Positive
470.23
Positive
Market Momentum
109.27
Negative
68.14
Neutral
62.87
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 859.65, below the 50-day MA of 715.46, and below the 200-day MA of 470.23, indicating a bullish trend. The MACD of 109.27 indicates Negative momentum. The RSI at 68.14 is Neutral, neither overbought nor oversold. The STOCH value of 62.87 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | ¥8.59B | 1.00 | ― | 2.29% | 11.63% | 312.03% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
62 Neutral | ¥81.07B | -177.56 | ― | 1.46% | 36.93% | ― | |
62 Neutral | ¥114.63B | 22.90 | 7.71% | ― | 24.74% | 22.82% | |
58 Neutral | ¥767.41B | 13.31 | 7.17% | 3.22% | -10.21% | -35.69% | |
53 Neutral | ¥69.75B | 14.15 | ― | 1.79% | -1.20% | 115.90% | |
52 Neutral | ¥125.42B | 30.36 | ― | 4.59% | 4.89% | -4.69% |
* Utilities Sector Average
JP:5074
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TESS Holdings Co., Ltd. Corporate Events
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...
TESS Holdings Unit Details Series of Covenant-Linked Short-Term Loans for Working Capital
Feb 27, 2026
TESS Holdings disclosed that its consolidated subsidiary TESS Engineering has been using a syndicated commitment line arranged by Sumitomo Mitsui Banking Corporation to secure working capital, with a total commitment amount of ¥9 billion and ...
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.