TB Group Inc. (6775) AI Stock Analysis

• Market Cap: ¥1.82B
• Dividend Yield: N/A
• Average Volume (3M): 75.57K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.96
• 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: 55 Neutral
• Price Target: ¥135.00 ▲(1.50% Upside)
• Action: Reiterated Date: 03/04/26
• Date: Action: Reiterated 03/04/26

The score is held back primarily by weak financial performance (ongoing losses, negative free cash flow, and higher leverage), partially offset by strong technical momentum with the stock trading above key moving averages and a positive MACD. Valuation is not supportive given the negative P/E and lack of a provided dividend yield.

Positive Factors

High Gross Margins

Sustainably high gross margins (~54–58%) provide structural profitability potential: they create a buffer to cover SG&A and R&D as revenue grows, enabling operating leverage. Over 2-6 months this margin strength supports faster path to break-even if top-line trends and cost control continue.

Revenue Growth Trend

Positive revenue growth indicates recovering demand or product traction that can be compounded. With strong gross margins, sustained mid-single-digit revenue gains can translate into outsized improvement in operating results over several quarters, helping the company move toward sustainable profitability.

Narrowing Losses / Improving Fundamentals

A clear trend of narrowing operating and net losses signals structural improvement in either cost base or revenue mix. This reduces insolvency and financing risk over the medium term and increases the probability management can achieve break-even without permanent damage to the business model.

Negative Factors

Persistent Negative Cash Flow

Ongoing negative operating and free cash flow means the business cannot self-fund operations or reinvest, making it dependent on external financing. This structural cash shortfall increases dilution or refinancing risk and constrains strategic investment until cash generation turns consistently positive.

Rising Leverage

Material increase in leverage and a thinner equity cushion reduce financial flexibility and raise fixed obligations. Higher debt levels amplify downside risk from further revenue shocks or margin pressure, limit ability to finance growth internally, and can force costly capital raises if losses persist.

Ongoing Operating Losses

Persistent negative operating profit prevents accumulation of retained earnings and depresses return metrics. Until operating costs are materially controlled or revenue growth accelerates, the company cannot convert healthy gross margins into net profitability, keeping structural performance fragile.

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.

TB Group Inc. Financial Statement Overview

Summary

Fundamentals are improving but still weak: profitability remains negative (operating loss and net loss), free cash flow is still negative despite a smaller TTM outflow, and leverage has increased meaningfully (debt-to-equity near ~0.90–0.95) while equity has declined. A consistent positive is a solid gross margin (~54–58%) and narrowing losses versus the 2021 trough.

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	1.32B	1.32B	1.26B	1.28B	1.15B
EBITDA	-89.56M	-165.68M	-181.13M	-222.30M	-224.25M	-390.31M
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	553.12M	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	-293.89M	-316.13M	-299.85M	-251.48M
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: Neutral
• Last Price: 133.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6775, the sentiment is Neutral. The current price of 133 is below the 20-day moving average (MA) of 153.30, below the 50-day MA of 133.66, and above the 200-day MA of 128.03, indicating a neutral trend. The MACD of -0.45 indicates Positive momentum. The RSI at 44.32 is Neutral, neither overbought nor oversold. The STOCH value of 11.37 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6775.

TB Group Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4240	76 Outperform	¥2.27B	14.68	―	1.33%	35.32%	304.33%
2479	74 Outperform	¥1.97B	10.86	―	4.17%	3.23%	-3.16%
6663	71 Outperform	¥1.86B	10.51	―	1.23%	-7.80%	-4418.51%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6775	55 Neutral	¥1.82B	-5.55	―	―	10.78%	26.78%
6867	52 Neutral	¥1.87B	-6.99	―	3.02%	-0.26%	―
6977	45 Neutral	¥1.25B	-3.17	―	3.16%	-10.07%	-133.40%