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

• Market Cap: ¥2.36B
• Dividend Yield: 1.8%
• Average Volume (3M): 2.77K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.31
• Revenue Growth: 10.80%
• EPS Growth: -559.06%
• Country: JP
• Employees: 2,059
• Sector: Healthcare
• Sector Strength: 39
• Industry: Medical - Care Facilities
• EPS (TTM): 10.23
• Shares Outstanding: 4,701,300
• 10 Day Avg. Volume: 2,850
• 30 Day Avg. Volume: 2,773
• PEG Ratio: 0.73
• Price to Book (P/B): 1.05
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -15.81
• 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

• Rating: 64 Neutral
• Price Target: ¥548.00 ▲(8.51%Upside)

The stock's overall score is driven by strong technical indicators and improved cash flow, though profitability and leverage concerns weigh heavily on its financial performance. The negative P/E ratio impacts valuation negatively, but the dividend yield offers some investor appeal. Addressing profitability and leverage issues is crucial for future strength.

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

Company Description

Teno.Holdings Co., Ltd. (7037) operates primarily in the education and childcare sectors, providing a range of services designed to support early childhood education and development. The company is known for its childcare facilities and educational programs that cater to young children, aiming to foster a nurturing and enriching environment for early learners. Teno.Holdings also engages in related activities that support its core mission of delivering quality childcare and education.

How the Company Makes Money

Teno.Holdings Co., Ltd. generates revenue primarily through fees charged for its childcare and educational services. This includes tuition and enrollment fees from parents and guardians who use their childcare facilities and educational programs. The company also may receive government subsidies or grants, which support its operations and help maintain affordable pricing for its services. Additionally, Teno.Holdings might engage in partnerships with educational institutions or government bodies to enhance its offerings and expand its reach, thus contributing further to its revenue streams.

teno.Holdings Co., Ltd. Financial Statement Overview

Summary

The company shows strong revenue growth but faces profitability and leverage challenges. The negative net income and increased debt levels are concerns. Improvements in operating and free cash flow provide a positive outlook for liquidity management, but profitability issues need addressing.

Income Statement

The company has shown consistent revenue growth over the years, with a notable increase from 2023 to 2024. However, the net profit margin has deteriorated, turning negative in 2024, indicating profitability concerns. The EBIT and EBITDA margins have declined slightly, reflecting pressure on operational efficiency.

Balance Sheet

The debt-to-equity ratio has increased, suggesting higher financial leverage and potential risk. The return on equity has turned negative, highlighting challenges in generating returns for shareholders. The equity ratio remains relatively low, indicating a higher reliance on debt financing.

Cash Flow

Operating cash flow has improved significantly from 2023 to 2024, indicating better cash generation from operations. Free cash flow has also turned positive, suggesting improved liquidity. However, the free cash flow to net income ratio is strained due to negative net income, indicating reliance on operating cash flow to cover financial obligations.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	16.02B	14.56B	12.13B	11.45B	10.78B
Gross Profit	2.39B	2.18B	1.74B	1.80B	1.89B
EBITDA	275.00M	616.00M	491.00M	678.68M	792.27M
Net Income	-466.00M	100.00M	-28.00M	237.00M	339.10M
Balance Sheet
Total Assets	9.74B	9.53B	9.32B	7.29B	7.42B
Cash, Cash Equivalents and Short-Term Investments	2.17B	1.93B	2.17B	1.79B	1.90B
Total Debt	5.37B	4.76B	4.93B	3.38B	3.51B
Total Liabilities	8.01B	7.29B	7.14B	4.96B	5.29B
Stockholders Equity	1.74B	2.24B	2.18B	2.33B	2.13B
Cash Flow
Free Cash Flow	413.00M	-114.00M	-145.00M	-674.00M	-689.91M
Operating Cash Flow	691.00M	324.00M	297.00M	292.00M	508.61M
Investing Cash Flow	-916.00M	-367.00M	-967.00M	-251.35M	-1.10B
Financing Cash Flow	458.00M	-208.00M	1.04B	-161.45M	677.57M

teno.Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 505.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7037, the sentiment is Positive. The current price of 505 is above the 20-day moving average (MA) of 502.10, above the 50-day MA of 491.24, and above the 200-day MA of 471.94, indicating a bullish trend. The MACD of 3.53 indicates Positive momentum. The RSI at 53.31 is Neutral, neither overbought nor oversold. The STOCH value of 60.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
9214	80 Outperform	¥1.95B	11.76		―	27.30%	34.86%
2425	79 Outperform	¥3.03B	8.10		2.49%	2.33%	-0.96%
9220	76 Outperform	¥2.66B	6.95		3.82%	5.85%	-22.29%
7129	75 Outperform	¥3.10B	9.73		3.08%	4.85%	4751.70%
2435	66 Neutral	¥2.36B	5.31		2.84%	3.03%	118.71%
7037	64 Neutral	¥2.36B	―		1.80%	10.80%	-559.06%
Sector *	49 Neutral	AU$2.53B	3.19	-57.47%	2.77%	36.73%	13.67%

teno.Holdings Co., Ltd. Corporate Events

teno. Holdings Co., Ltd. Reports Strong Q1 2025 Financial Results

teno. Holdings Co., Ltd. reported a significant increase in its financial performance for the first quarter of 2025, with net sales rising by 15.1% and profit attributable to owners of the parent surging by 283.8% compared to the same period last year. This robust growth in financial metrics indicates a strong operational performance and may enhance the company’s market positioning, potentially benefiting shareholders and other stakeholders.