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Tamagawa Holdings Co., Ltd. (JP:6838)
:6838
Japanese Market

Tamagawa Holdings Co., Ltd. (6838) AI Stock Analysis

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JP

Tamagawa Holdings Co., Ltd.

(6838)

Rating:54Neutral
Price Target:
¥774.00
▲(1.98%Upside)
The overall stock score is primarily driven by the challenging financial performance, with declining revenues and profitability struggles posing significant risks. Technical analysis provides some positive signals with strong momentum, but valuation concerns due to a negative P/E ratio and low dividend yield weigh heavily on the score.

Tamagawa Holdings Co., Ltd. (6838) vs. iShares MSCI Japan ETF (EWJ)

Tamagawa Holdings Co., Ltd. Business Overview & Revenue Model

Company DescriptionTamagawa Holdings Co., Ltd. (6838) is a Japanese company engaged in the manufacturing and sale of electronic and telecommunications equipment. The company operates in sectors including renewable energy and electronics, providing solutions and services that cater to various industrial and commercial needs. Its core products and services include the development and deployment of solar power generation systems and the provision of electronic components and communication devices.
How the Company Makes MoneyTamagawa Holdings Co., Ltd. primarily generates revenue through the sale and installation of solar power generation systems, which are in high demand due to the global shift towards renewable energy. Additionally, the company earns income from its electronics and communication equipment segment by providing specialized components and devices to businesses and consumers. Key revenue streams include the sale of hardware, installation services, and maintenance contracts. Strategic partnerships with other technology firms and renewable energy companies play a significant role in expanding its market reach and enhancing its product offerings, contributing to its overall earnings.

Tamagawa Holdings Co., Ltd. Financial Statement Overview

Summary
Tamagawa Holdings Co., Ltd. displays a challenging financial trajectory with declining revenues, profitability struggles, and increased leverage. While recent improvements in cash flow are positive, the company faces ongoing risks due to its operational performance and leverage. The balance sheet offers some stability, but the overall financial health suggests a need for strategic improvements to enhance profitability and growth.
Income Statement
45
Neutral
The company has faced declining revenues over recent years, with a notable drop from 2021 to 2024. The gross profit margin has decreased, and the company has struggled with negative net income in recent periods, leading to negative net profit margins. Despite slight improvements in TTM, the EBIT and EBITDA margins remain low, indicating operational challenges.
Balance Sheet
50
Neutral
The balance sheet shows a stable equity base, but the debt-to-equity ratio has increased, reflecting higher leverage. The equity ratio remains reasonable, providing some stability. Return on equity has been negative due to recent losses, highlighting profitability issues. Overall, the balance sheet reflects a mix of stability and increasing financial risk.
Cash Flow
55
Neutral
Cash flow has shown signs of recovery in the TTM period, with positive operating cash flow and a significant improvement in free cash flow. However, historical periods of negative free cash flow and operating cash flow raise concerns about sustainability. The cash flow to net income ratios have been volatile, indicating inconsistent cash generation relative to earnings.
BreakdownTTMDec 2024Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue4.51B4.74B4.15B3.29B6.24B6.74B
Gross Profit1.29B1.32B1.09B889.74M1.67B1.47B
EBITDA49.24M289.52M12.53M-198.22M513.85M571.25M
Net Income-240.00M-168.00M-443.35M-482.79M148.70M90.23M
Balance Sheet
Total Assets9.54B9.84B9.57B8.64B8.36B8.39B
Cash, Cash Equivalents and Short-Term Investments992.00M1.74B1.21B1.06B2.06B2.45B
Total Debt3.19B3.64B3.22B2.23B1.12B1.36B
Total Liabilities4.59B5.16B4.69B3.63B2.92B3.22B
Stockholders Equity4.95B4.68B4.89B5.00B5.44B5.16B
Cash Flow
Free Cash Flow0.00305.14M-1.21B-2.11B-124.28M1.15B
Operating Cash Flow0.00440.57M-1.13B-1.88B-16.80M1.23B
Investing Cash Flow0.00-166.29M-859.00K-273.42M-165.85M23.85M
Financing Cash Flow0.00670.29M1.27B1.15B-170.10M-862.49M

Tamagawa Holdings Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price759.00
Price Trends
50DMA
735.28
Positive
100DMA
712.30
Positive
200DMA
719.73
Positive
Market Momentum
MACD
6.80
Positive
RSI
49.56
Neutral
STOCH
3.78
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6838, the sentiment is Positive. The current price of 759 is below the 20-day moving average (MA) of 772.95, above the 50-day MA of 735.28, and above the 200-day MA of 719.73, indicating a neutral trend. The MACD of 6.80 indicates Positive momentum. The RSI at 49.56 is Neutral, neither overbought nor oversold. The STOCH value of 3.78 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6838.

Tamagawa Holdings Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
¥5.14B4.02
3.46%4.56%-6.52%
74
Outperform
¥4.05B10.80
2.82%1.81%29.37%
72
Outperform
¥5.53B14.48
5.49%2.36%-38.98%
72
Outperform
¥3.55B5.14
3.27%-2.21%17.90%
67
Neutral
€8.12B20.226.46%2.71%1.89%-38.57%
61
Neutral
¥4.90B4.62
-45.83%
54
Neutral
¥4.95B
0.79%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6838
Tamagawa Holdings Co., Ltd.
759.00
-30.74
-3.89%
JP:3204
Toabo Corporation
400.00
-11.65
-2.83%
JP:5355
Nippon Crucible Co., Ltd.
601.00
-22.27
-3.57%
JP:5856
Life Intelligent Enterprise Holdings Co., Ltd.
50.00
11.00
28.21%
JP:7509
I. A Group Corporation
3,530.00
109.60
3.20%
JP:8835
Taiheiyo Kouhatsu Incorporated
709.00
-47.39
-6.27%
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.Date of analysis: Jun 06, 2025