TB Group Inc. (6775) AI Stock Analysis

• Market Cap: ¥2.41B
• Dividend Yield: N/A
• Average Volume (3M): 75.57K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.80
• Revenue Growth: 10.78%
• EPS Growth: 26.78%
• Country: JP
• Employees: 130
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -5.18
• Shares Outstanding: 13,996,942
• 10 Day Avg. Volume: 143,800
• 30 Day Avg. Volume: 75,570
• PEG Ratio: 0.46
• Price to Book (P/B): 3.05
• Price to Sales (P/S): 0.79
• P/FCF Ratio: -7.31
• 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: 51 Neutral
• Price Target: ¥169.00 ▲(27.07% Upside)
• Action: Reiterated Date: 02/26/26
• Date: Action: Reiterated 02/26/26

The score is held back primarily by weak financial performance (ongoing losses, negative cash flow, and rising leverage). Technicals are a key positive with strong price momentum above major moving averages, but valuation provides limited support given the negative P/E and no dividend yield data.

Positive Factors

High Gross Margin

A sustained gross margin near the mid-50s gives the business structural insulation versus peers: it supports pricing power and product-level profitability, enabling operating leverage to materialize as sales scale and helping the company move toward break-even once operating costs are controlled.

Narrowing Losses / Improving Trends

The trajectory of narrowing losses and reduced cash burn is a durable positive: it reflects operational fixes and points to lower incremental financing needs over 2–6 months, improving the odds of reaching operating profitability if the trend continues and cost discipline is sustained.

Positive Revenue Trend

Reported revenue growth of roughly 8.4% indicates ongoing top-line expansion. Durable revenue gains help absorb fixed costs, support margin recovery, and validate market demand for products — important foundations for converting high gross margins into positive operating profits over time.

Negative Factors

Ongoing Losses

Persistent negative operating profit and net losses are a structural headwind: they limit retained earnings, prevent internal funding of growth, keep returns on equity negative, and mean the company must prove sustained profit conversion before delivering durable shareholder value.

Negative Cash Generation

Consistently negative operating and free cash flow indicate the business cannot self-fund operations or reinvestment. This structural cash gap raises dependency on external financing, increases dilution or leverage risk, and constrains strategic flexibility until operating cash flow turns positive.

Rising Leverage and Thinner Equity

A near 0.9–0.95 debt-to-equity ratio and eroded equity cushion materially reduce balance-sheet flexibility. Higher leverage increases interest and refinancing risk, limits capacity to absorb shocks, and raises the stakes on achieving consistent profitability to avoid future solvency stress.

TB Group Inc. Business Overview & Revenue Model

Company Description

TB Group Inc. (6775) is a diversified enterprise operating primarily in the technology and manufacturing sectors. With a strong focus on innovation, the company specializes in developing advanced electronic components and solutions tailored for various industries, including automotive, telecommunications, and consumer electronics. TB Group Inc. is committed to enhancing product performance and efficiency, offering a wide range of products such as semiconductors, circuit boards, and integrated systems.

How the Company Makes Money

TB Group Inc. generates revenue through multiple streams, primarily by selling its electronic components and solutions to manufacturers across various sectors. The company operates on a business-to-business (B2B) model, where it partners with OEMs (Original Equipment Manufacturers) to supply essential components for their products. Key revenue streams include direct sales of electronic parts, long-term contracts with major clients, and providing customized solutions that meet specific industry needs. Additionally, TB Group Inc. may engage in research and development collaborations with technology firms, which can lead to revenue through licensing agreements and joint ventures, enhancing their earnings potential.

TB Group Inc. Financial Statement Overview

Summary

Fundamentals are improving but still weak: the company remains loss-making with negative operating profit and net margin, and cash generation is negative (operating cash flow and free cash flow). Gross margin is consistently solid (~54–58%) and losses/cash burn have narrowed in the TTM period, but rising leverage (debt-to-equity ~0.90–0.95) and declining equity increase financial risk.

Income Statement

Profitability remains weak: TTM (Trailing-Twelve-Months) shows negative operating profit and a net loss, with net margin still in the red. Revenue has been largely flat to down over the last several years (including a slight decline in TTM), but there is a clear improvement versus earlier years as losses and negative margins have narrowed meaningfully from the 2021 trough. Strength is a consistently solid gross margin (~54–58%), but operating costs continue to prevent break-even.

Balance Sheet

Leverage has risen and the capital cushion has thinned. Debt-to-equity moved from ~0.23–0.45 (2021–2024) to ~0.90–0.95 in the latest annual and TTM periods, while equity has stepped down materially. Returns on equity remain negative across all periods due to ongoing losses, which limits balance-sheet flexibility. A positive is that equity is still positive, but the trend points to higher financial risk than in prior years.

Cash Flow

Cash generation is the main pressure point: operating cash flow and free cash flow are negative across all shown periods, indicating the business is not yet self-funding. There is improvement in TTM (Trailing-Twelve-Months) with a much smaller cash outflow than prior years, but cash flow still does not cover debt needs or reinvestment on its own. Overall, the trajectory is better, but the company remains dependent on external funding or balance-sheet capacity until operating cash flow turns positive.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	2.40B	2.33B	2.30B	2.35B	2.42B	2.46B
Gross Profit	1.37B	1.34B	1.34B	1.27B	1.30B	1.19B
EBITDA	-181.06M	-144.57M	-190.69M	-196.77M	-159.92M	-376.84M
Net Income	-227.60M	-193.50M	-244.32M	-245.28M	-217.03M	-438.42M
Balance Sheet
Total Assets	1.42B	1.56B	1.57B	1.68B	1.56B	1.64B
Cash, Cash Equivalents and Short-Term Investments	258.85M	256.77M	325.92M	485.94M	440.12M	394.38M
Total Debt	500.97M	546.28M	357.69M	358.80M	345.29M	198.62M
Total Liabilities	962.66M	957.69M	771.82M	770.27M	753.10M	785.47M
Stockholders Equity	461.35M	604.52M	798.16M	904.12M	804.86M	853.38M
Cash Flow
Free Cash Flow	-54.91M	-252.64M	-302.82M	-328.95M	-308.08M	-257.80M
Operating Cash Flow	-43.35M	-239.96M	-271.29M	-299.21M	-291.48M	-204.83M
Investing Cash Flow	-18.97M	-17.03M	-26.42M	-26.36M	-10.14M	-44.21M
Financing Cash Flow	133.42M	187.67M	136.36M	370.48M	342.52M	46.15M

TB Group Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 133.00
• 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:6775, the sentiment is Positive. The current price of 133 is above the 20-day moving average (MA) of 130.40, above the 50-day MA of 123.10, and above the 200-day MA of 126.86, indicating a bullish trend. The MACD of 11.10 indicates Negative momentum. The RSI at 68.08 is Neutral, neither overbought nor oversold. The STOCH value of 62.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6775.

TB Group Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6663	71 Outperform	¥2.27B	16.60	―	1.23%	-7.80%	-4418.51%
6969	71 Outperform	¥3.21B	7.93	―	―	16.21%	3915.63%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6867	52 Neutral	¥1.91B	-106.28	―	3.02%	-0.26%	―
6775	51 Neutral	¥2.41B	-10.66	―	―	10.78%	26.78%
6664	48 Neutral	¥5.14B	-9.38	―	―	5.29%	47.66%
6977	45 Neutral	¥1.23B	-3.27	―	3.16%	-10.07%	-133.40%