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

• Market Cap: ¥5.47B
• Dividend Yield: 1.57%
• Average Volume (3M): 22.55K
• Price to Earnings (P/E): 15.9
• Beta (1Y): 0.86
• Revenue Growth: 13.79%
• EPS Growth: 16.63%
• Country: JP
• Employees: 586
• Sector: Industrials
• Sector Strength: 91
• Industry: Staffing & Employment Services
• EPS (TTM): 23.00
• Shares Outstanding: 8,692,622
• 10 Day Avg. Volume: 22,100
• 30 Day Avg. Volume: 22,553
• PEG Ratio: -0.02
• Price to Book (P/B): 2.12
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.64
• 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: ¥713.00
• Price Target Upside: 12.28% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 69 Neutral
• Price Target: ¥689.00 ▲(8.50%Upside)

The most significant factors influencing the score are strong financial performance, particularly in revenue growth and profitability. However, the challenges in cash flow management and moderate technical indicators limit the score. Valuation metrics suggest the stock is fairly priced, supporting a stable albeit cautious outlook.

Tsunagu Group Holdings, Inc. Business Overview & Revenue Model

Company Description

Tsunagu Group Holdings, Inc. operates primarily in the human resources sector, focusing on recruitment and staffing services. The company offers a range of services to connect employers with potential employees, including permanent placement, temporary staffing, and contract staffing solutions. Tsunagu Group Holdings aims to bridge the gap between job seekers and companies by providing tailored recruitment solutions that meet the specific needs of both parties.

How the Company Makes Money

Tsunagu Group Holdings, Inc. generates revenue primarily through fees charged for its recruitment and staffing services. The company earns fees from employers when successfully placing candidates in permanent positions, as well as recurring fees for temporary and contract staff placements. Additionally, Tsunagu may offer consulting services related to human resources management, further diversifying its income streams. Partnerships with various companies seeking staffing solutions and a strong network of job seekers are significant factors contributing to its revenue generation.

Tsunagu Group Holdings, Inc. Financial Statement Overview

Summary

The company demonstrates robust revenue growth and improving profitability, as evidenced by strong gross margins and operational efficiency. However, challenges in cash flow management and the need for further leverage reduction are notable concerns. Overall, financial health is on an upward trajectory but requires careful management of cash flows and debt.

Income Statement

The company has shown impressive revenue growth, with a Revenue Growth Rate of 13.6% from 2023 to 2024. The Gross Profit Margin stands at a healthy 43.3% TTM, indicating strong profitability. Net Profit Margin improved significantly to 2.3% TTM from previous losses, reflecting better cost management. The EBIT Margin of 4% TTM and EBITDA Margin of 5.5% TTM indicate solid operational efficiency. Overall, the income statement reflects strong growth and improving profitability, though net margins remain relatively thin.

Balance Sheet

The company has a manageable Debt-to-Equity Ratio of 0.79 TTM, showing prudent leverage use. Return on Equity improved to 23.3% TTM, indicating efficient use of equity to generate profit. The Equity Ratio is at 33.6% TTM, suggesting a moderate reliance on debt financing. Despite improvements, the balance sheet shows room for strengthening equity positions and reducing liabilities.

Cash Flow

Free Cash Flow has been volatile, with a minor growth rate of 0.7% from 2023 to 2024. The Operating Cash Flow to Net Income Ratio is unavailable due to zero operating cash flow in the TTM period, indicating potential cash flow management issues. The absence of Free Cash Flow to Net Income Ratio further highlights cash flow concerns. The cash flow statement suggests challenges in cash generation despite profitability improvements.

Breakdown	TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	17.02B	16.39B	15.03B	12.72B	11.03B	12.10B
Gross Profit	7.36B	7.17B	6.65B	6.02B	5.47B	5.80B
EBITDA	937.59M	751.94M	580.91M	931.35M	191.93M	-148.15M
Net Income	398.73M	358.31M	132.23M	491.66M	-216.29M	-581.62M
Balance Sheet
Total Assets	5.10B	4.96B	4.55B	5.21B	4.62B	5.30B
Cash, Cash Equivalents and Short-Term Investments	1.34B	917.61M	812.74M	1.25B	693.27M	805.53M
Total Debt	1.36B	819.21M	775.62M	1.72B	2.19B	2.73B
Total Liabilities	3.29B	3.10B	2.92B	3.67B	3.78B	4.58B
Stockholders Equity	1.71B	1.77B	1.53B	1.43B	838.01M	713.26M
Cash Flow
Free Cash Flow	0.00	550.17M	546.47M	314.84M	-124.89M	-464.51M
Operating Cash Flow	0.00	634.88M	653.11M	478.99M	54.95M	-154.14M
Investing Cash Flow	0.00	-387.10M	-119.83M	292.88M	59.01M	-448.89M
Financing Cash Flow	0.00	-142.91M	-983.28M	-254.17M	-226.22M	238.99M

Tsunagu Group Holdings, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 635.00
• 50DMA: Positive
• 100DMA: Positive
• 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:6551, the sentiment is Positive. The current price of 635 is above the 20-day moving average (MA) of 631.05, above the 50-day MA of 632.02, and above the 200-day MA of 612.56, indicating a bullish trend. The MACD of -2.14 indicates Negative momentum. The RSI at 52.48 is Neutral, neither overbought nor oversold. The STOCH value of 87.20 is Negative, 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
2136	86 Outperform	¥4.81B	11.45		4.46%	5.46%	8.07%
7080	78 Outperform	¥5.25B	7.68		2.27%	11.90%	1.48%
7089	76 Outperform	¥4.95B	15.06		―	8.13%	-7.47%
9346	76 Outperform	¥5.72B	9.90		2.84%	12.46%	10.03%
4177	73 Outperform	¥5.40B	9.03		―	10.47%	―
6551	69 Neutral	¥5.47B	15.90		1.57%	13.79%	16.63%
Sector *	67 Neutral	£2.82B	10.41	4.69%	3.50%	2.40%	-24.53%