teno.Holdings Co., Ltd. (7037) AI Stock Analysis

• Market Cap: ¥3.97B
• Dividend Yield: 0.92%
• Average Volume (3M): 16.22K
• Price to Earnings (P/E): 35.1
• Beta (1Y): 0.27
• Revenue Growth: 12.88%
• EPS Growth: -340.62%
• Country: JP
• Employees: 2,059
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): -31.44
• Shares Outstanding: 4,701,300
• 10 Day Avg. Volume: 10,960
• 30 Day Avg. Volume: 16,220
• PEG Ratio: -0.31
• Price to Book (P/B): 2.36
• Price to Sales (P/S): 0.23
• P/FCF Ratio: 5.13
• 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: ¥908.00 ▲(1.45% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is primarily held back by weaker financial quality (profit volatility and high leverage), with additional pressure from soft technical momentum. Valuation also detracts due to a high P/E and modest dividend yield, partly offset by improving recent cash flow and steady revenue growth.

Positive Factors

Steady Revenue Growth

Consistent top-line growth across 2020–2025 shows durable demand for the company’s childcare services. A multi-year growth trend supports scale benefits, capacity utilization, and long-term contract or enrolment stability, improving predictability of operating cash flows and strategic planning.

Improving Cash Generation

Material improvement in operating cash flow and a return to positive free cash flow by 2024–2025 enhances financial flexibility. Sustained cash generation supports reinvestment in facilities, services, and debt servicing capacity, reducing reliance on external funding over the medium term.

Expanding Asset Base

An increasing asset base indicates investments in physical capacity and service infrastructure critical for childcare operations. Durable asset growth supports scaling enrollment and revenue, enabling broader geographic or service expansion and helping lock in future cash flows from established facilities.

Negative Factors

High Leverage

A leveraged capital structure with rising debt and limited equity cushion increases interest and refinancing risk. High leverage reduces financial flexibility for capex or downturns and magnifies the impact of earnings variability on solvency and credit metrics, constraining long-term strategic options.

Volatile Profitability

Irregular earnings demonstrate sensitivity to cost pressures or execution challenges, weakening predictability of returns. Profit swings complicate budgeting, dividend policy, and debt servicing plans, and suggest management must stabilize margins to convert revenue growth into dependable long-term profitability.

Uneven Free Cash Flow History

A history of negative free cash flow followed by recent improvement implies prior cash strain and inconsistent conversion of earnings into cash. Until multi-year stability is demonstrated, cash flow volatility raises risks around funding operations, servicing debt, and sustaining investments during cyclical pressure.

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

Company Description

teno.Holdings Co., Ltd. (7037) is a diversified investment holding company based in Japan, primarily engaged in the management and investment of various subsidiaries across sectors such as technology, telecommunications, and finance. The company focuses on leveraging innovative solutions and strategic acquisitions to enhance its portfolio, delivering value to stakeholders through a range of products and services that drive growth and operational efficiency.

How the Company Makes Money

teno.Holdings Co., Ltd. generates revenue through multiple streams, including capital gains from its investments in subsidiaries, dividends from equity holdings, and management fees associated with its investment activities. The company may also earn income from strategic partnerships and collaborations with external firms, enhancing its market reach and operational synergies. By actively managing its portfolio and reinvesting profits, teno aims to achieve sustainable growth and maximize shareholder value.

teno.Holdings Co., Ltd. Financial Statement Overview

Summary

Revenue growth is steady and operating/free cash flow improved materially in 2024–2025, but overall quality is constrained by volatile profitability (loss years mixed with modest profit years) and a leveraged balance sheet with limited equity cushion.

Income Statement

Revenue has grown consistently across the period (from 2020 to 2025), with solid growth in the most recent annual report (2025: +5.69% on top of 2024’s +10.03%). Profitability, however, has been volatile: net income swung from losses (2022, 2024) to modest profits (2023, 2025), suggesting execution and/or cost pressure variability. Gross profit has expanded in absolute yen terms, but margins appear mixed over time and earnings power is not yet stable enough to score higher.

Balance Sheet

Leverage is the key constraint. Total debt has increased over time (2020: ~3.51B to 2025: ~5.57B) while equity remains relatively small (~1.80B in 2025), leaving the company with a leveraged capital structure (2024 debt-to-equity: ~3.09x; 2023: ~2.12x). Total assets have grown, but equity has trended down from earlier years (e.g., 2021–2023 levels were higher than 2025), reducing balance-sheet flexibility. Returns on equity have also been inconsistent, including negative years, highlighting sensitivity to earnings swings.

Cash Flow

Cash generation has improved recently, with positive operating cash flow each year and a meaningful step-up by 2025 (~1.04B vs ~0.69B in 2024). Free cash flow has been volatile—negative for several years (2020–2023) before turning positive in 2024 and strengthening further in 2025 (~0.83B). The improving trajectory is a clear positive, but the history of weak/negative free cash flow and uneven conversion versus reported earnings keeps the score in the middle range.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	17.15B	18.13B	16.02B	14.56B	12.13B	11.45B
Gross Profit	2.70B	2.97B	2.39B	2.18B	1.74B	1.80B
EBITDA	1.01B	1.15B	275.00M	620.00M	491.00M	678.68M
Net Income	-276.00M	110.00M	-466.00M	100.00M	-27.00M	237.00M
Balance Sheet
Total Assets	10.61B	10.43B	9.74B	9.53B	9.32B	7.29B
Cash, Cash Equivalents and Short-Term Investments	2.41B	2.52B	2.17B	1.93B	2.17B	1.79B
Total Debt	5.79B	5.57B	5.37B	4.76B	4.93B	3.38B
Total Liabilities	8.77B	8.62B	8.01B	7.29B	7.14B	4.96B
Stockholders Equity	1.83B	1.80B	1.74B	2.24B	2.18B	2.33B
Cash Flow
Free Cash Flow	0.00	829.00M	413.00M	-114.00M	-145.00M	-674.00M
Operating Cash Flow	0.00	1.04B	691.00M	324.00M	297.00M	292.00M
Investing Cash Flow	0.00	-531.00M	-916.00M	-367.00M	-967.00M	-251.35M
Financing Cash Flow	0.00	-205.00M	458.00M	-208.00M	1.04B	-161.45M

teno.Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 895.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7037, the sentiment is Negative. The current price of 895 is above the 20-day moving average (MA) of 888.40, below the 50-day MA of 912.14, and above the 200-day MA of 729.80, indicating a neutral trend. The MACD of -15.01 indicates Positive momentum. The RSI at 22.40 is Positive, neither overbought nor oversold. The STOCH value of 5.29 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7037.

teno.Holdings Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9220	81 Outperform	¥2.97B	6.19	―	2.82%	4.82%	9.78%
2425	75 Outperform	¥3.02B	13.05	―	2.56%	-3.06%	-38.56%
2435	72 Outperform	¥2.36B	4.55	―	4.76%	1.84%	92.34%
9214	69 Neutral	¥2.01B	15.20	―	―	32.45%	58.25%
7129	68 Neutral	¥3.28B	63.02	―	2.64%	4.69%	103.59%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
7037	51 Neutral	¥3.97B	35.05	―	0.92%	12.88%	-340.62%

teno.Holdings Co., Ltd. Corporate Events

Teno Holdings Swings Back to Profit and Lifts Dividend on Strong 2025 Results

Teno Holdings reported robust results for the year ended December 31, 2025, with net sales rising 13.2% to ¥18.13 billion and EBITDA jumping 66.3%, while operating profit more than tripled and net profit swung to ¥110 million from a loss a year earlier. Profitability ratios improved notably, cash flow from operations strengthened to ¥1.04 billion, and the equity base remained relatively stable, leading the company to lift its year-end dividend to ¥10 per share.

For 2026, the company forecasts net sales growth of 7.6% to ¥19.5 billion and a further sharp rebound in profit attributable to owners of parent to ¥290 million, even as operating and ordinary profit growth is expected to be modest. The guidance implies a continued earnings recovery and higher earnings per share of ¥63.48, suggesting improving capital efficiency and offering a potentially more attractive return profile for shareholders through both earnings growth and sustained dividends.

The most recent analyst rating on (JP:7037) stock is a Hold with a Yen905.00 price target. To see the full list of analyst forecasts on teno.Holdings Co., Ltd. stock, see the JP:7037 Stock Forecast page.