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Tsunagu Group Holdings, Inc. (JP:6551)
:6551
Japanese Market
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Tsunagu Group Holdings, Inc. (6551) AI Stock Analysis

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JP:6551

Tsunagu Group Holdings, Inc.

(6551)

Rating:71Outperform
Price Target:
¥702.00
▲(1.74%Upside)
Tsunagu Group Holdings' strong financial performance, particularly in revenue growth and profitability, is the most significant factor supporting its stock score. Technical analysis is neutral with mixed signals, and the valuation is fair but not compelling. The lack of earnings call and corporate events data means these components do not influence the score.

Tsunagu Group Holdings, Inc. (6551) vs. iShares MSCI Japan ETF (EWJ)

Tsunagu Group Holdings, Inc. Business Overview & Revenue Model

Company DescriptionTsunagu Group Holdings, Inc. is a Japan-based company engaged primarily in the human resources sector. The company focuses on providing staffing services and recruitment solutions across various industries, including retail, food service, and office work. It offers temporary staffing, permanent placement, and outsourcing services, aiming to connect job seekers with suitable employment opportunities and help businesses meet their staffing needs effectively.
How the Company Makes MoneyTsunagu Group Holdings, Inc. generates revenue primarily through its staffing and recruitment services. The company earns income by charging businesses for temporary staffing solutions, where it provides workers to client companies on a short-term basis. Additionally, it receives fees for permanent placement services, where it facilitates the hiring of employees into full-time positions within client organizations. The company may also engage in outsourcing services, where it manages specific business functions or processes on behalf of its clients, providing another stream of income. Strategic partnerships with corporations and a broad network of job seekers contribute significantly to its business growth and revenue generation.

Tsunagu Group Holdings, Inc. Financial Statement Overview

Summary
Tsunagu Group Holdings exhibits robust revenue growth and improving profitability, backed by strong gross margins and operational efficiency. However, challenges in cash flow management and a moderate reliance on debt financing suggest areas for improvement. Overall, financial health is improving but needs careful cash management.
Income Statement
82
Very Positive
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
76
Positive
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
68
Positive
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.
BreakdownSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income Statement
Total Revenue16.39B15.03B12.72B11.03B12.10B
Gross Profit7.17B6.65B6.02B5.47B5.80B
EBITDA751.94M580.91M931.35M191.93M-148.15M
Net Income358.31M132.23M491.66M-216.29M-581.62M
Balance Sheet
Total Assets4.96B4.55B5.21B4.62B5.30B
Cash, Cash Equivalents and Short-Term Investments917.61M812.74M1.25B693.27M805.53M
Total Debt819.21M775.62M1.72B2.19B2.73B
Total Liabilities3.10B2.92B3.67B3.78B4.58B
Stockholders Equity1.77B1.53B1.43B838.01M713.26M
Cash Flow
Free Cash Flow550.17M546.47M314.84M-124.89M-464.51M
Operating Cash Flow634.88M653.11M478.99M54.95M-154.14M
Investing Cash Flow-387.10M-119.83M292.88M59.01M-448.89M
Financing Cash Flow-142.91M-983.28M-254.17M-226.22M238.99M

Tsunagu Group Holdings, Inc. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price690.00
Price Trends
50DMA
644.20
Positive
100DMA
612.18
Positive
200DMA
612.20
Positive
Market Momentum
MACD
14.28
Negative
RSI
64.13
Neutral
STOCH
83.83
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 690 is above the 20-day moving average (MA) of 650.15, above the 50-day MA of 644.20, and above the 200-day MA of 612.20, indicating a bullish trend. The MACD of 14.28 indicates Negative momentum. The RSI at 64.13 is Neutral, neither overbought nor oversold. The STOCH value of 83.83 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

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
¥5.40B7.89
2.21%11.90%1.48%
78
Outperform
¥5.06B12.05
4.24%5.46%8.07%
76
Outperform
¥5.15B15.66
8.13%-7.47%
76
Outperform
¥5.69B9.84
2.86%12.46%10.03%
73
Outperform
¥5.57B9.28
10.47%
71
Outperform
¥5.94B17.27
1.45%13.79%16.63%
66
Neutral
CHF4.03B22.9613.13%2.39%-2.92%-42.32%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6551
Tsunagu Group Holdings, Inc.
690.00
178.66
34.94%
JP:2136
Hip Corporation
1,274.00
454.10
55.38%
JP:4177
i-plug, Inc.
1,379.00
448.00
48.12%
JP:7080
Sportsfield Co., Ltd.
724.00
164.81
29.47%
JP:7089
For Startups, Inc.
1,600.00
820.00
105.13%
JP:9346
Cocorport,Inc.
1,527.00
238.89
18.55%
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.Date of analysis: Jul 17, 2025