Tsunagu Group Holdings, Inc. (6551) AI Stock Analysis

• Market Cap: ¥6.45B
• Dividend Yield: 1.87%
• Average Volume (3M): 33.54K
• Price to Earnings (P/E): 12.3
• Beta (1Y): 0.91
• Revenue Growth: 11.47%
• EPS Growth: 45.70%
• Country: JP
• Employees: 586
• Sector: Industrials
• Sector Strength: 72
• Industry: Staffing & Employment Services
• EPS (TTM): 6.91
• Shares Outstanding: 8,692,622
• 10 Day Avg. Volume: 27,490
• 30 Day Avg. Volume: 33,536
• PEG Ratio: 0.29
• Price to Book (P/B): 3.39
• Price to Sales (P/S): 0.37
• P/FCF Ratio: 6.16
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: ¥855.00 ▲(17.28% Upside)

The score is driven primarily by solid financial performance (strong growth, improving profitability, and healthy cash generation), partially offset by only moderate balance-sheet strength. Technicals are supportive due to price trading above key moving averages, but negative MACD tempers momentum. Valuation is relatively reasonable with a moderate P/E and a modest dividend yield.

Positive Factors

Sustained revenue growth

Double-digit revenue growth reflects expanding client relationships and market penetration in staffing services. Consistent top-line expansion supports scale benefits, long-term contract visibility and reinvestment capacity, underpinning durable earnings growth over months.

Strong cash generation

Improving operating and free cash flow with robust cash conversion indicates the business reliably converts earnings into cash. This durability funds capex, working capital, debt paydown and shareholder returns without needing frequent external financing.

Improving profitability and operating efficiency

Rising net, EBIT and EBITDA margins signal meaningful operational improvements and better cost management. Higher margin structure increases resilience to revenue swings, supports ROE expansion and provides room to invest in growth or cushion wage/price pressures.

Negative Factors

Moderate balance-sheet strength

Despite reduced leverage and higher ROE, a moderate equity ratio limits the firm's financial buffer. That constrains flexibility for large M&A or sustained downturns and can force reliance on external funding for sizable strategic initiatives.

Slight gross margin compression

A modest decline in gross margin points to cost or pricing pressure in the staffing business. If persistent, margin erosion could offset revenue gains and require ongoing efficiency improvements to preserve long-term profitability and cash generation.

Limited operational scale

A relatively small employee base implies limited geographic and client scale versus larger staffing peers. This can reduce bargaining power, restrict ability to service very large contracts, and slow investment in technology or national expansion over the medium term.

Tsunagu Group Holdings, Inc. Business Overview & Revenue Model

Company Description

Tsunagu Group Holdings, Inc. (6551) is a diversified holding company based in Japan, focusing on multiple sectors including technology, healthcare, and finance. The company aims to connect various industries through innovative solutions and services, providing a robust platform for growth and collaboration. Tsunagu Group Holdings is committed to enhancing corporate value by leveraging its subsidiaries' expertise across different domains, including software development, consulting services, and investment management.

How the Company Makes Money

Tsunagu Group Holdings generates revenue through several key streams. Primarily, the company earns income from its technology solutions, including software licensing and consulting services offered to corporate clients. Additionally, the healthcare segment contributes significantly through partnerships with medical institutions, providing healthcare IT solutions and management services. The finance division, which includes investment management, adds to revenue through fees and commissions on managed assets. Strategic partnerships with other enterprises enhance Tsunagu's offerings, creating synergies that lead to increased profitability. Overall, the company's diversified portfolio minimizes risk and maximizes revenue opportunities across its various business segments.

Tsunagu Group Holdings, Inc. Financial Statement Overview

Summary

Income statement strength (75) reflects strong revenue growth and improved profitability/operating efficiency. Cash flow is solid (70) with good operating and free cash flow growth and strong cash conversion. Balance sheet is adequate but less strong (65): leverage improved and ROE increased, though the equity ratio remains only moderate.

Income Statement

Tsunagu Group Holdings, Inc. has shown strong revenue growth over the years, with a significant increase in revenue from 2024 to 2025. The gross profit margin remains healthy, although it has slightly decreased from previous years. The net profit margin has improved, indicating better profitability. EBIT and EBITDA margins have also improved, reflecting enhanced operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has significantly improved, indicating a reduction in leverage and a stronger equity position. Return on equity has increased, showcasing improved profitability relative to shareholder equity. However, the equity ratio remains moderate, suggesting room for further strengthening of the balance sheet.

Cash Flow

Operating cash flow and free cash flow have both shown positive growth, indicating strong cash generation capabilities. The operating cash flow to net income ratio is robust, suggesting efficient conversion of income into cash. The free cash flow to net income ratio is high, reflecting strong cash flow relative to earnings.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	18.13B	18.27B	16.39B	15.03B	12.72B	11.03B
Gross Profit	7.85B	7.90B	7.17B	6.65B	6.02B	5.47B
EBITDA	842.19M	1.09B	751.94M	580.91M	931.35M	191.93M
Net Income	340.64M	511.42M	358.31M	132.23M	491.66M	-212.53M
Balance Sheet
Total Assets	4.39B	4.44B	4.96B	4.55B	5.21B	4.62B
Cash, Cash Equivalents and Short-Term Investments	887.04M	1.15B	917.61M	812.74M	1.25B	693.27M
Total Debt	248.82M	159.16M	819.21M	775.62M	1.72B	2.19B
Total Liabilities	2.36B	2.38B	3.10B	2.92B	3.67B	3.78B
Stockholders Equity	1.95B	2.01B	1.77B	1.53B	1.43B	838.01M
Cash Flow
Free Cash Flow	0.00	1.11B	550.17M	546.47M	314.84M	-124.89M
Operating Cash Flow	0.00	1.13B	634.88M	653.11M	478.99M	54.95M
Investing Cash Flow	0.00	53.05M	-387.10M	-119.83M	292.88M	59.01M
Financing Cash Flow	0.00	-953.73M	-142.91M	-983.28M	-254.17M	-226.22M

Tsunagu Group Holdings, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 729.00
• 50DMA: Negative
• 100DMA: Negative
• 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:6551, the sentiment is Positive. The current price of 729 is below the 20-day moving average (MA) of 746.65, below the 50-day MA of 759.44, and above the 200-day MA of 715.94, indicating a neutral trend. The MACD of -2.32 indicates Negative momentum. The RSI at 49.82 is Neutral, neither overbought nor oversold. The STOCH value of 38.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6551.

Tsunagu Group Holdings, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4177	81 Outperform	¥6.72B	11.32	―	―	10.47%	229.21%
2136	79 Outperform	¥6.50B	15.55	―	3.39%	5.71%	18.97%
9346	79 Outperform	¥6.04B	10.64	―	2.76%	10.27%	-0.35%
7080	74 Outperform	¥6.10B	9.31	―	2.01%	12.91%	14.39%
6551	68 Neutral	¥6.45B	12.32	―	1.87%	11.47%	45.70%
7089	68 Neutral	¥6.13B	12.10	―	―	21.37%	93.71%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Tsunagu Group Holdings, Inc. Corporate Events

Tsunagu Group Holdings Reports Strong Financial Growth for FY 2025

Tsunagu Group Holdings Inc. reported a significant increase in its financial performance for the fiscal year ended September 30, 2025, with net sales rising by 11.5% year-on-year to ¥18,269 million. The company also saw a substantial growth in operating profit and ordinary profit, with increases of 39.3% and 43.2% respectively, reflecting its strong market positioning and operational efficiency. The company’s equity ratio improved to 45.2%, and cash flows from operating activities increased significantly, indicating robust financial health. The announcement of a higher dividend per share from ¥10.00 to ¥14.00 further underscores the company’s commitment to delivering value to its shareholders.

The most recent analyst rating on (JP:6551) stock is a Hold with a Yen834.00 price target. To see the full list of analyst forecasts on Tsunagu Group Holdings, Inc. stock, see the JP:6551 Stock Forecast page.