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

• Market Cap: ¥6.47B
• Dividend Yield: 1.87%
• Average Volume (3M): 33.54K
• Price to Earnings (P/E): 12.4
• Beta (1Y): 0.87
• 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: 61 Neutral
• Price Target: ¥784.00 ▲(7.54% Upside)

Tsunagu Group Holdings, Inc. has a solid financial foundation with strong revenue growth and improved profitability, which is the most significant factor in its stock score. The technical analysis indicates a bearish trend, but the valuation suggests the stock may be undervalued. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Revenue Growth

Consistent revenue growth indicates expanding market presence and successful execution of business strategies, supporting long-term stability.

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, enabling the company to invest in growth opportunities and weather economic downturns.

Profitability Improvement

Improved profitability reflects efficient operations and cost management, which can lead to sustained earnings growth and shareholder value.

Negative Factors

Gross Profit Margin Decline

A declining gross profit margin may indicate increased cost pressures or pricing challenges, potentially impacting future profitability.

Moderate Equity Ratio

A moderate equity ratio may limit financial flexibility and increase vulnerability to economic fluctuations, necessitating careful capital management.

Technical Analysis Bearish Trend

A sustained bearish trend in technical analysis may reflect underlying market concerns, potentially affecting investor confidence and stock performance.

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

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 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: Neutral
• 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 Neutral. The current price of 729 is below the 20-day moving average (MA) of 747.10, below the 50-day MA of 771.06, and above the 200-day MA of 701.78, indicating a neutral trend. The MACD of -5.13 indicates Negative momentum. The RSI at 46.82 is Neutral, neither overbought nor oversold. The STOCH value of 59.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	¥5.98B	10.07	―	―	10.47%	229.21%
2136	79 Outperform	¥6.36B	15.21	―	3.39%	5.71%	18.97%
9346	79 Outperform	¥6.31B	11.12	―	2.76%	10.27%	-0.35%
7080	74 Outperform	¥6.12B	9.38	―	2.01%	12.91%	14.39%
7089	68 Neutral	¥6.26B	12.36	―	―	21.37%	93.71%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6551	61 Neutral	¥6.47B	12.36	―	1.87%	11.47%	45.70%

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.