Conservative Balance SheetAn almost zero leverage position materially lowers financial risk and preserves strategic optionality. Over the medium term this durable strength supports funding for capex, M&A or downturns without straining cashflows or needing external financing, improving resilience.

Sustained Revenue GrowthMulti-year top-line expansion indicates persistent demand and successful market penetration. Continued revenue growth provides scale benefits, underpins long-term margin recovery potential, and increases absolute cash generation if operating efficiency stabilizes.

Positive Operating Cash GenerationImproved operating cashflow in 2025 shows the business can convert sales into cash in favorable periods. Structurally, positive operating cash provides a repeatable source to fund working capital, reinvestment and shareholder returns when conversion stabilizes.

Bears Say

Margin CompressionSustained margin erosion reduces profitability and free cash flow generation per unit of revenue. If structural (pricing pressure or rising costs), continued compression will limit reinvestment, weaken ROE and constrain the firm's ability to fund growth or returns over the medium term.

Volatile Free Cash FlowLarge swings and a reported zero FCF in 2025 undermine predictability of internally generated funds. Structural volatility in FCF pressures reinvestment, dividend policy and balance-sheet choices, and raises questions about working-capital management and earnings quality.

Earnings Contraction / ROE NormalizationA sharp EPS decline and reported moderation in returns on equity signal profitability normalization. Persistent EPS contraction reduces retained earnings and funding capacity, curtails strategic flexibility, and can pressure investor confidence if not reversed by margin or revenue gains.

7046 FAQ

What was TDSE Inc.’s price range in the past 12 months?

TDSE Inc. lowest stock price was ¥957.00 and its highest was ¥2162.00 in the past 12 months.

What is TDSE Inc.’s market cap?

TDSE Inc.’s market cap is ¥2.95B.

When is TDSE Inc.’s upcoming earnings report date?

TDSE Inc.’s upcoming earnings report date is May 20, 2026 which is in 92 days.

How were TDSE Inc.’s earnings last quarter?

TDSE Inc. released its earnings results on Jan 30, 2026. The company reported ¥38.74 earnings per share for the quarter, beating the consensus estimate of N/A by ¥38.74.

Is TDSE Inc. overvalued?

According to Wall Street analysts TDSE Inc.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does TDSE Inc. pay dividends?

TDSE Inc. pays a Annually dividend of ¥10 which represents an annual dividend yield of 0.69%. See more information on TDSE Inc. dividends here

What is TDSE Inc.’s EPS estimate?

TDSE Inc.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does TDSE Inc. have?

TDSE Inc. has 2,200,000 shares outstanding.

What happened to TDSE Inc.’s price movement after its last earnings report?

TDSE Inc. reported an EPS of ¥38.74 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went down -0.531%.

Which hedge fund is a major shareholder of TDSE Inc.?

Currently, no hedge funds are holding shares in JP:7046

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

TDSE Inc.

TDSE Inc. primarily provides consulting services on information processing and computer systems in Japan. The company offers DX and analytics consulting, SNS analysis, analysis base construction, and analysis operation and application development services; and IoT data utilization, learning utilization, and data scientist development support services. It also provides Scorobo, an artificial intelligence engine for use in finance, digital marketing, manufacture, social infrastructure, human resources, and telematics industries; and NetBase, a social listening tool for enterprise social analytics. The company was formerly known as Tecnos Data Science Engineering Incorporated and changed its name to TDSE Inc. in November 2021. TDSE Inc. was incorporated in 2013 and is based in Tokyo, Japan.