TB Group Inc. (6775) AI Stock Analysis

• Market Cap: ¥2.66B
• 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: 49 Neutral
• Price Target: ¥192.00 ▲(44.36% Upside)
• Action: Reiterated Date: 03/03/26
• Date: Action: Reiterated 03/03/26

The score is held back primarily by weak financial performance—ongoing losses, negative operating/free cash flow, and higher leverage—despite recent improvement. Strong technical momentum supports the stock in the near term, but valuation is constrained by negative earnings and no dividend yield data.

Positive Factors

High Gross Margin

A sustained ~54–58% gross margin indicates durable product-level profitability and pricing power. That margin buffer supports future operating leverage: as revenue grows or fixed costs are trimmed, the company can move toward operating profitability faster than peers with thinner gross margins.

Improving Loss Trajectory

The narrowing of losses and smaller cash outflow on a TTM basis signals operational progress and better cost control. If sustained, this trajectory reduces dependency on external financing and increases the probability of reaching break-even within several quarters, improving long-term viability.

Top-line and EPS Growth

Positive revenue and EPS growth indicate the business is regaining momentum and improving unit economics. Durable revenue expansion combined with earnings improvement supports scaling benefits and provides a foundation to convert high gross margins into sustainable operating profits over the next few quarters.

Negative Factors

Ongoing Net Losses

Persistent operating losses limit the firm's ability to self-fund growth and weigh on returns. Continued net losses hinder retention of earnings, restrict strategic flexibility, and mean operational improvements must be sustained to fully restore profitability and shareholder value over time.

Negative Cash Generation

Consistent negative operating and free cash flow indicate the business is not yet self-financing. This forces reliance on external capital or debt for working capital and investment, raising refinancing and liquidity risk if funding conditions tighten, until cash generation turns positive.

Rising Leverage

A near-doubling of leverage and a thinner equity cushion reduce financial flexibility and increase interest and covenant risk. Higher leverage constrains strategic options, raises cost of capital, and magnifies downside if earnings slip before the company achieves consistent profitability.

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

Overall fundamentals are still weak: the company remains loss-making with negative operating profit and net income, and operating/free cash flow are still negative. Recent improvement is notable (narrowing losses and reduced cash outflow), and gross margin is consistently solid, but rising leverage and declining equity increase financial risk until profits and cash flow turn positive.

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: Negative
• 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 below the 20-day moving average (MA) of 136.80, above the 50-day MA of 125.82, and above the 200-day MA of 127.38, indicating a bullish trend. The MACD of 15.27 indicates Negative momentum. The RSI at 76.42 is Negative, neither overbought nor oversold. The STOCH value of 51.64 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	¥2.24B	16.60	―	1.23%	-7.80%	-4418.51%
6969	71 Outperform	¥3.50B	8.65	―	―	16.21%	3915.63%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6867	52 Neutral	¥1.89B	-105.57	―	3.02%	-0.26%	―
6775	49 Neutral	¥2.66B	-11.76	―	―	10.78%	26.78%
6664	48 Neutral	¥5.05B	-9.21	―	―	5.29%	47.66%
6977	45 Neutral	¥1.23B	-3.28	―	3.16%	-10.07%	-133.40%