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

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

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JP

Tsunagu Group Holdings, Inc.

(6551)

Rating:72Outperform
Price Target:
¥713.00
▲(6.74%Upside)
The stock's overall score is driven by strong financial performance with notable revenue growth and improving profitability. Technical analysis supports a positive price trend, while the valuation remains reasonable. However, challenges in cash flow management and leverage reduction present risks that should be monitored.

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

Tsunagu Group Holdings, Inc. Business Overview & Revenue Model

Company DescriptionTsunagu 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 MoneyTsunagu 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
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.
Breakdown
TTMSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income StatementTotal Revenue
17.02B16.39B15.03B12.72B11.03B12.10B
Gross Profit
7.36B7.17B6.65B6.02B5.47B5.80B
EBIT
684.73M629.96M443.39M215.53M-83.15M-610.46M
EBITDA
937.59M751.94M580.91M931.35M191.93M-148.15M
Net Income Common Stockholders
398.73M358.31M132.23M491.66M-216.29M-581.62M
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.34B917.61M812.74M1.25B693.27M805.53M
Total Assets
5.10B4.96B4.55B5.21B4.62B5.30B
Total Debt
1.36B819.21M775.62M1.72B2.19B2.73B
Net Debt
22.00M-98.40M-37.12M471.98M1.49B1.92B
Total Liabilities
3.29B3.10B2.92B3.67B3.78B4.58B
Stockholders Equity
1.71B1.77B1.53B1.43B838.01M713.26M
Cash FlowFree Cash Flow
0.00550.17M546.47M314.84M-124.89M-464.51M
Operating Cash Flow
0.00634.88M653.11M478.99M54.95M-154.14M
Investing Cash Flow
0.00-387.10M-119.83M292.88M59.01M-448.89M
Financing Cash Flow
0.00-142.91M-983.28M-254.17M-226.22M238.99M

Tsunagu Group Holdings, Inc. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price668.00
Price Trends
50DMA
591.68
Positive
100DMA
595.82
Positive
200DMA
615.13
Positive
Market Momentum
MACD
17.97
Negative
RSI
65.21
Neutral
STOCH
84.27
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 668 is above the 20-day moving average (MA) of 647.20, above the 50-day MA of 591.68, and above the 200-day MA of 615.13, indicating a bullish trend. The MACD of 17.97 indicates Negative momentum. The RSI at 65.21 is Neutral, neither overbought nor oversold. The STOCH value of 84.27 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
86
Outperform
¥4.75B11.31
4.53%5.46%8.14%
78
Outperform
¥5.25B7.68
2.27%11.90%1.48%
76
Outperform
¥5.10B14.05
8.13%-7.47%
76
Outperform
¥5.52B9.66
12.46%10.03%
72
Outperform
¥5.75B16.72
1.50%13.79%16.63%
70
Outperform
¥4.72B7.88
10.47%
66
Neutral
$4.51B12.295.40%3.67%4.15%-12.21%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6551
Tsunagu Group Holdings, Inc.
668.00
20.69
3.20%
JP:2136
Hip Corporation
1,185.00
162.12
15.85%
JP:4177
i-plug, Inc.
1,188.00
-389.00
-24.67%
JP:7080
Sportsfield Co., Ltd.
701.00
-30.33
-4.15%
JP:7089
For Startups, Inc.
1,399.00
298.00
27.07%
JP:9346
Cocorport,Inc.
1,510.00
-208.00
-12.11%
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.