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

• Market Cap: ¥5.16B
• Dividend Yield: 0.36%
• Average Volume (3M): 75.97K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.11
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: JP
• Employees: 263
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): -0.41
• Shares Outstanding: 6,584,900
• 10 Day Avg. Volume: 52,290
• 30 Day Avg. Volume: 75,970
• PEG Ratio: 0.43
• Price to Book (P/B): 0.97
• Price to Sales (P/S): 0.96
• P/FCF Ratio: 14.92
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: ¥764.00 ▼(-5.80% Downside)

Tamagawa Holdings Co., Ltd. receives a moderate score due to financial challenges, including declining revenues and profitability issues. Technical analysis provides some positive momentum, but valuation metrics are weak due to negative earnings. The absence of earnings call data and corporate events limits further insights.

Positive Factors

Cash Flow Improvement

The improvement in cash flow indicates better operational efficiency and financial management, which can enhance the company's ability to fund growth initiatives and manage debt.

Stable Equity Base

A stable equity base provides a foundation for future growth and financial stability, allowing the company to withstand economic fluctuations and invest in long-term projects.

Innovation and Quality Focus

A strong emphasis on innovation and quality can lead to sustained competitive advantages, enabling the company to command premium pricing and secure long-term contracts.

Negative Factors

Declining Revenues

Declining revenues can signal weakening market position and demand for products, potentially impacting long-term profitability and growth prospects.

Profitability Challenges

Negative net income and profitability challenges can hinder the company's ability to reinvest in its business, affecting future growth and operational sustainability.

Increased Leverage

Higher leverage increases financial risk, potentially limiting the company's flexibility to navigate economic downturns and invest in growth opportunities.

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

Company Description

Tamagawa Holdings Co., Ltd. (6838) is a diversified company based in Japan, primarily engaged in the development, manufacturing, and sale of electronic components and systems. The company operates across multiple sectors, including industrial automation, automotive electronics, and consumer electronics, providing innovative solutions that encompass sensors, connectivity devices, and control systems. Tamagawa Holdings is known for its commitment to quality and technological advancement, catering to a wide range of industries with its core products designed to enhance operational efficiency and performance.

How the Company Makes Money

Tamagawa Holdings generates revenue through the sale of its electronic components and systems, targeting various industries such as manufacturing, automotive, and consumer electronics. The company has established key revenue streams through direct product sales, long-term contracts with major clients, and partnerships with other technology firms for collaborative development projects. Additionally, revenue is bolstered by ongoing research and development initiatives that lead to new product offerings and improvements in existing technologies. The company's focus on innovation and quality helps maintain customer loyalty and enables it to command premium pricing in its market segments.

Tamagawa Holdings Co., Ltd. Financial Statement Overview

Summary

Tamagawa Holdings Co., Ltd. faces declining revenues and profitability challenges, with negative net income and increased leverage. Recent cash flow improvements are positive, but overall financial health suggests a need for strategic improvements.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.51B	4.74B	4.15B	3.29B	6.24B	6.74B
Gross Profit	1.29B	1.32B	1.09B	889.74M	1.67B	1.47B
EBITDA	57.27M	289.52M	12.43M	-198.22M	513.85M	571.25M
Net Income	-240.00M	-168.00M	-443.35M	-482.79M	148.70M	90.23M
Balance Sheet
Total Assets	9.54B	9.84B	9.57B	8.64B	8.36B	8.39B
Cash, Cash Equivalents and Short-Term Investments	992.00M	1.74B	1.21B	1.06B	2.06B	2.45B
Total Debt	3.19B	3.64B	3.22B	2.23B	1.12B	1.36B
Total Liabilities	4.59B	5.16B	4.69B	3.63B	2.92B	3.22B
Stockholders Equity	4.95B	4.68B	4.89B	5.00B	5.44B	5.16B
Cash Flow
Free Cash Flow	0.00	305.14M	-1.21B	-2.11B	-124.28M	1.15B
Operating Cash Flow	0.00	440.57M	-1.13B	-1.88B	-16.80M	1.23B
Investing Cash Flow	0.00	-97.06M	-859.00K	-273.42M	-165.85M	23.85M
Financing Cash Flow	0.00	391.57M	1.27B	1.15B	-170.10M	-862.49M

Tamagawa Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 811.00
• 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:6838, the sentiment is Positive. The current price of 811 is above the 20-day moving average (MA) of 793.95, above the 50-day MA of 767.59, and above the 200-day MA of 740.70, indicating a bullish trend. The MACD of 14.49 indicates Negative momentum. The RSI at 63.27 is Neutral, neither overbought nor oversold. The STOCH value of 61.58 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3204	78 Outperform	¥4.50B	5.61	―	2.67%	-3.33%	30.77%
7509	73 Outperform	¥5.94B	4.51	―	3.33%	7.25%	-11.62%
5355	72 Outperform	¥4.12B	11.29	―	2.81%	3.32%	18.84%
8835	68 Neutral	¥6.24B	11.60	―	4.83%	14.94%	2.87%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6838	52 Neutral	¥5.16B	―	―	0.36%	―	―
5856	39 Underperform	¥3.70B	2.59	―	―	-52.40%	-321.23%