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

• Market Cap: ¥6.85B
• Dividend Yield: 1.77%
• Average Volume (3M): 33.54K
• Price to Earnings (P/E): 19.6
• Beta (1Y): 0.92
• Revenue Growth: 11.47%
• EPS Growth: 46.06%
• 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: 0.09
• Price to Book (P/B): 3.13
• Price to Sales (P/S): 0.34
• P/FCF Ratio: 10.09
• 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: 68 Neutral
• Price Target: ¥834.00 ▲(3.99% Upside)

The stock score is primarily driven by strong financial performance, with notable revenue growth and profitability improvements. However, technical indicators suggest neutral momentum, and valuation metrics are fair but not compelling. Cash flow management and leverage reduction remain key areas for improvement.

Positive Factors

Revenue Growth

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

Profitability Improvements

Improved profitability through cost management enhances financial stability and allows for reinvestment in growth opportunities.

Operational Efficiency

Strong operational efficiency supports sustainable profit margins and competitive positioning in the market.

Negative Factors

Cash Flow Management Issues

Challenges in cash flow management could limit the company's ability to fund operations and growth, impacting long-term financial health.

Thin Net Margins

Thin net margins may limit the company's ability to absorb cost increases or invest in new opportunities, affecting future profitability.

Leverage Concerns

Moderate reliance on debt could pose risks if interest rates rise or if the company faces economic downturns, impacting financial flexibility.

Tsunagu Group Holdings, Inc. Business Overview & Revenue Model

Company Description

Tsunagu Group Holdings, Inc. provides career consulting services primarily for part-time jobs in Japan. It is involved in the recruitment agency activities; various consulting activities in the areas of general human resources, and personnel and general affairs; and human resource development/training, personnel placement and paid employment placement, general worker dispatching, and promotion support businesses. The company was formerly known as Tsunagu Solutions Inc. and changed its name to Tsunagu Group Holdings, Inc. in November 2018. Tsunagu Group Holdings, Inc. was founded in 2007 and is headquartered in Tokyo, Japan.

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

Tsunagu Group Holdings demonstrates robust revenue growth and improving profitability, with strong gross margins and operational efficiency. However, challenges in cash flow management and leverage reduction are areas for improvement.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	18.13B	16.39B	15.03B	12.72B	11.03B	12.10B
Gross Profit	7.85B	7.17B	6.65B	6.02B	5.47B	5.80B
EBITDA	842.19M	751.94M	580.91M	931.35M	191.93M	-148.15M
Net Income	340.64M	358.31M	132.23M	491.66M	-212.53M	-571.66M
Balance Sheet
Total Assets	4.39B	4.96B	4.55B	5.21B	4.62B	5.30B
Cash, Cash Equivalents and Short-Term Investments	887.04M	917.61M	812.74M	1.25B	693.27M	805.53M
Total Debt	248.82M	819.21M	775.62M	1.72B	2.19B	2.73B
Total Liabilities	2.36B	3.10B	2.92B	3.67B	3.78B	4.58B
Stockholders Equity	1.95B	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: 802.00
• 50DMA: Positive
• 100DMA: Positive
• 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 802 is above the 20-day moving average (MA) of 788.05, above the 50-day MA of 788.83, and above the 200-day MA of 679.75, indicating a bullish trend. The MACD of 2.81 indicates Negative momentum. The RSI at 54.16 is Neutral, neither overbought nor oversold. The STOCH value of 76.69 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
2136	79 Outperform	¥5.75B	13.50	―	3.61%	5.71%	18.97%
9346	79 Outperform	¥6.31B	11.05	―	2.85%	10.27%	-0.35%
7089	76 Outperform	¥6.61B	13.06	―	―	21.37%	93.71%
7080	74 Outperform	¥6.15B	9.42	―	1.98%	12.91%	14.39%
4177	73 Outperform	¥4.78B	7.35	―	―	10.47%	229.21%
6551	68 Neutral	¥6.85B	19.56	―	1.77%	11.47%	46.06%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%