Tokyo Communications Group,Inc. (7359) AI Stock Analysis

• Market Cap: ¥4.12B
• Dividend Yield: N/A
• Average Volume (3M): 204.91K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.87
• Revenue Growth: 4.43%
• EPS Growth: 24.14%
• Country: JP
• Employees: 138
• Sector: Communication Services
• Sector Strength: 97
• Industry: Software - Application
• EPS (TTM): 2.65
• Shares Outstanding: 10,074,422
• 10 Day Avg. Volume: 67,670
• 30 Day Avg. Volume: 204,913
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥408.00
• Price Target Upside: -0.24% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 43 Neutral
• Price Target: ¥408.00 ▼(-0.24% Downside)

The overall stock score is primarily impacted by financial performance challenges, including negative net income and high leverage. Technical analysis indicates bearish momentum, and valuation concerns are heightened by a negative P/E ratio and lack of dividend yield. Improved cash flow management is a positive aspect but not enough to offset other risks.

Tokyo Communications Group,Inc. Business Overview & Revenue Model

Company Description

Tokyo Communications Group, Inc. engages in the provision of application and advertising services. It operates through the following segments: Media and Platform Business. The Media Business segment based on a business model that relies primarily on advertising revenue from advertisers, the company operates, plans and develops free smartphone apps, and sells advertising products that utilize ad technology. The Platform Business segment plan and operate communication services, health tech apps, and messaging app services, primarily based on a monthly/pay-as-you-go business model. The company was founded by Yuki Furuya on May 15, 2015 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Tokyo Communications Group, Inc. generates revenue primarily through its digital marketing services. The company's key revenue streams include fees for digital advertising campaigns, consulting services related to marketing strategies, and content production. By providing tailored marketing solutions that leverage advanced analytics and digital platforms, the company helps clients improve brand visibility and drive customer engagement. Strategic partnerships with media outlets and technology providers also play a significant role in enhancing the company's offerings and expanding its market reach, contributing to its revenue growth.

Tokyo Communications Group,Inc. Financial Statement Overview

Summary

Tokyo Communications Group, Inc. demonstrates revenue growth but struggles with profitability and high leverage. Consistent negative net income and high debt levels are significant risks. Improved cash flow management is a positive sign, but profitability and leverage need addressing.

Income Statement

The company has experienced a consistent revenue growth over the past years, but profitability has been a significant issue. The gross profit margin remains strong, indicating efficient cost management. However, net income has been negative in recent years, leading to negative net profit margins and EBIT margins, which is a major concern.

Balance Sheet

The balance sheet shows a decreasing stockholders' equity and high levels of debt, resulting in an increasing debt-to-equity ratio, which poses a financial risk. The equity ratio has also decreased, indicating more reliance on debt financing. Return on equity is negative due to continuous net losses.

Cash Flow

Cash flow from operations has shown improvement in the latest year, turning positive after being negative in the previous period. The free cash flow has also improved, suggesting better cash management. However, the free cash flow to net income ratio remains concerning due to negative net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.05B	5.86B	6.22B	5.07B	4.73B	2.45B
Gross Profit	4.81B	4.64B	5.12B	4.22B	4.21B	2.35B
EBITDA	176.76M	149.44M	719.60M	255.90M	669.48M	377.32M
Net Income	-313.85M	-413.00M	-204.56M	-265.26M	202.41M	193.34M
Balance Sheet
Total Assets	3.53B	3.75B	4.97B	3.88B	4.00B	1.48B
Cash, Cash Equivalents and Short-Term Investments	780.24M	771.14M	1.44B	898.18M	906.05M	693.80M
Total Debt	1.73B	1.74B	1.95B	1.85B	1.81B	0.00
Total Liabilities	2.75B	2.99B	3.23B	3.01B	2.87B	547.30M
Stockholders Equity	589.47M	568.62M	970.50M	869.24M	1.13B	931.60M
Cash Flow
Free Cash Flow	0.00	83.91M	-83.60M	134.41M	235.08M	249.91M
Operating Cash Flow	0.00	129.13M	-45.20M	257.22M	305.29M	284.52M
Investing Cash Flow	0.00	71.44M	193.14M	-307.38M	-1.85B	-64.75M
Financing Cash Flow	0.00	-868.24M	355.91M	36.41M	1.74B	89.77M

Tokyo Communications Group,Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 409.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7359, the sentiment is Negative. The current price of 409 is below the 20-day moving average (MA) of 448.10, below the 50-day MA of 476.66, and above the 200-day MA of 335.58, indicating a neutral trend. The MACD of -18.39 indicates Positive momentum. The RSI at 32.40 is Neutral, neither overbought nor oversold. The STOCH value of 12.76 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7359.

Tokyo Communications Group,Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7036	66 Neutral	¥3.94B	30.39	4.96%	3.17%	10.03%	236.86%
2139	64 Neutral	¥3.06B	26.00	8.09%	2.67%	5.42%	-33.20%
9466	62 Neutral	¥3.27B	6.86	14.34%	6.00%	-5.78%	177.67%
3690	61 Neutral	¥4.23B	35.53	3.66%	1.18%	24.61%	19.89%
4170	54 Neutral	¥3.47B	-32.27	-5.81%	―	-1.52%	-457.01%
7359	43 Neutral	¥4.12B	―	―	―	4.43%	24.14%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%