TECHNO HORIZON HOLDINGS CO (6629) AI Stock Analysis

• Market Cap: ¥12.71B
• Dividend Yield: 0.97%
• Average Volume (3M): 2.53M
• Price to Earnings (P/E): 9.8
• Beta (1Y): 1.18
• Revenue Growth: 2.36%
• EPS Growth: -72.81%
• Country: JP
• Employees: 1,416
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 29.61
• Shares Outstanding: 21,063,240
• 10 Day Avg. Volume: 5,750,220
• 30 Day Avg. Volume: 2,531,690
• PEG Ratio: 0.09
• Price to Book (P/B): 0.53
• Price to Sales (P/S): 0.11
• P/FCF Ratio: 10.06
• 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: 64 Neutral
• Price Target: ¥1,009.00 ▲(140.81% Upside)
• Action: Reiterated Date: 12/25/25
• Date: Action: Reiterated 12/25/25

The score is driven primarily by moderate financial performance (revenue growth offset by net losses, high leverage, and weaker free cash flow). Technicals are strong with clear upside momentum, but overbought signals add near-term risk. Valuation is a major headwind due to the very high P/E and modest yield.

Positive Factors

Revenue Growth

Sustained revenue increase (~4.1% YoY) indicates persistent customer demand and modest top-line momentum. Over a multi-month horizon this supports scale benefits, better absorption of fixed costs and a foundation for margin recovery if operating leverage is realized.

Operating Cash Conversion

Positive operating cash flow conversion means operations generate real cash even amid accounting losses. This durability helps meet working capital and near-term obligations, reducing reliance on external financing and providing runway for strategic investments or restructuring.

Stronger Equity Base

An increase in stockholders' equity boosts the company’s solvency buffer and creditor confidence. A stronger equity base improves resilience to shocks, supports future capital raises on better terms, and underpins long-term stability despite current earnings volatility.

Negative Factors

Profitability Weakness

Net losses and falling EBIT/EBITDA margins signal structural pressure on core profitability. Persistent margin erosion reduces retained earnings, limits reinvestment capacity and undermines ability to generate shareholder returns absent clear operational fixes or pricing power recovery.

High Leverage

Elevated debt-to-equity raises financial risk and increases fixed interest obligations. High leverage narrows strategic flexibility, heightens refinancing and covenant risk, and makes the firm more vulnerable to demand or margin shocks over the medium term.

Declining Free Cash Flow

A significant drop in free cash flow constrains the company’s ability to fund capex, pay down debt or return capital to shareholders. If sustained, weak FCF undermines balance sheet repair and reduces optionality for growth or restructuring initiatives.

TECHNO HORIZON HOLDINGS CO Business Overview & Revenue Model

Company Description

Techno Horizon Co.,Ltd. engages in the video and IT, and robotics businesses in Japan. The company offers document camera, projector, AV controller, and video smart switcher; xSync board, an integrated electronic blackboard; programming education application and learning materials; xSync classroom class support software for school education; Easy site, an attendance/construction management cloud service; QPR Metrics, a management strategy support tool; QPR Process Analyzer, a process mining tool; QPR Process Designer for visualization of business processes; QPR J-SOX, an internal control solution; BzPLAN WE, a budget performance management system; TAMIC, an operational evaluation / audit support tool; and ERP introduction support service. It also provides in-vehicle devices, such as cameras, in-vehicle IoT gateway, tachographs, and driver monitor systems for commercial vehicles, as well as automobile parts; wearable, outdoor, and indoor cloud cameras; multi-payment and handy terminals; Mimamori-fu for long-term care by watching sleep; microD / macroD / multiD drivers; robot controllers and pendants; tablet communicators for work record / inspection record / equipment status / material management; VisualCheck Eye, an automatic visual inspection machine; professional work supporter; machine vision camera and lens; machine vision related products; image input boards; and image processing software system solution. Techno Horizon Co.,Ltd. was incorporated in 2010 and is based in Nagoya, Japan.

How the Company Makes Money

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TECHNO HORIZON HOLDINGS CO Financial Statement Overview

Summary

Revenue grew (~4.1% from 2024 to 2025), but profitability weakened with a net loss and declining EBIT/EBITDA margins. Leverage is high (elevated debt-to-equity) and ROE turned negative, while cash flow is mixed with significantly lower free cash flow despite positive operating cash flow conversion.

Income Statement

The company demonstrated a significant revenue growth from 2024 to 2025, with an increase of approximately 4.1%. However, profitability metrics are concerning, with a negative net profit margin due to a net loss in 2025. The EBIT and EBITDA margins have also declined, indicating operational challenges. Gross profit margin remained relatively stable, reflecting consistent cost management.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio, reflecting substantial leverage. Stockholders' equity has increased, suggesting stronger financial backing, but the equity ratio remains moderate. Return on equity has turned negative due to the net loss, indicating challenges in generating returns for shareholders.

Cash Flow

Free cash flow decreased significantly from the previous year, highlighting cash generation issues. The operating cash flow to net income ratio is positive, indicating that the company can convert net income into cash. However, the free cash flow to net income ratio is also negative, which requires attention.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	49.91B	50.62B	48.62B	43.77B	34.52B	26.48B
Gross Profit	10.26B	10.02B	10.41B	8.83B	9.08B	8.10B
EBITDA	1.86B	1.42B	2.95B	934.87M	2.37B	3.50B
Net Income	-355.72M	-435.33M	1.00B	-1.55B	431.07M	2.14B
Balance Sheet
Total Assets	34.65B	37.40B	36.09B	36.90B	31.78B	28.97B
Cash, Cash Equivalents and Short-Term Investments	4.76B	3.44B	3.19B	3.68B	4.15B	8.28B
Total Debt	15.80B	16.59B	15.68B	16.30B	14.30B	13.56B
Total Liabilities	25.36B	27.30B	26.28B	28.19B	22.05B	19.64B
Stockholders Equity	9.29B	10.09B	9.80B	8.70B	9.74B	9.34B
Cash Flow
Free Cash Flow	0.00	535.81M	748.94M	-1.98B	278.94M	1.18B
Operating Cash Flow	0.00	849.97M	1.37B	-1.27B	1.03B	1.65B
Investing Cash Flow	0.00	-955.47M	-835.12M	-864.45M	-4.59B	-2.33B
Financing Cash Flow	0.00	141.48M	-1.50B	1.52B	-789.07M	4.01B

TECHNO HORIZON HOLDINGS CO Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 419.00
• 50DMA: Negative
• 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:6629, the sentiment is Neutral. The current price of 419 is below the 20-day moving average (MA) of 997.80, below the 50-day MA of 1087.96, and below the 200-day MA of 661.24, indicating a neutral trend. The MACD of -34.07 indicates Negative momentum. The RSI at 45.99 is Neutral, neither overbought nor oversold. The STOCH value of 44.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6629.

TECHNO HORIZON HOLDINGS CO Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6861	80 Outperform	$14.33T	30.90	12.80%	0.78%	7.09%	7.51%
6951	78 Outperform	¥303.25B	8.42	―	2.04%	-0.69%	-29.88%
6590	77 Outperform	¥310.19B	17.58	―	1.49%	18.20%	28.13%
2760	70 Outperform	¥95.85B	10.19	―	3.02%	-14.47%	-26.11%
6629	64 Neutral	¥12.71B	9.79	1.75%	0.97%	2.36%	-72.81%
6728	62 Neutral	$451.71B	19.19	5.63%	2.35%	-9.06%	-35.95%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%