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

• Market Cap: ¥3.62B
• Dividend Yield: N/A
• Average Volume (3M): 65.81K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.88
• 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: 52,110
• 30 Day Avg. Volume: 65,806
• PEG Ratio: -0.07
• Price to Book (P/B): 4.89
• Price to Sales (P/S): 0.47
• P/FCF Ratio: 33.13
• 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): 1,561.05
• Revenue Forecast (FY): ¥1.08T

• Rating: 42 Neutral
• Price Target: ¥343.00 ▼(-12.50% Downside)

The overall stock score is primarily impacted by the company's financial performance and technical analysis. The significant risks associated with negative profitability and high leverage are major concerns. The bearish technical indicators further weigh down the score. Valuation is also a concern due to negative earnings and lack of dividend yield.

Tokyo Communications Group,Inc. Business Overview & Revenue Model

Company Description

Tokyo Communications Group, Inc. (7359) is a prominent Japanese company engaged primarily in the telecommunications and information technology sectors. The company specializes in providing a wide range of communication services, including mobile phone services, internet connectivity, and data solutions. Additionally, Tokyo Communications Group is involved in software development and IT consulting, catering to both individual consumers and businesses. With a focus on innovation and customer satisfaction, the company aims to enhance connectivity and improve digital experiences for its clients.

How the Company Makes Money

Tokyo Communications Group, Inc. generates revenue through multiple streams, primarily from its telecommunications services, including mobile subscriptions, data plans, and broadband internet services. The company also earns money from its IT consulting and software development services, which are offered to businesses looking to optimize their operations and improve their technological capabilities. Additionally, Tokyo Communications may have partnerships with other technology firms, allowing for collaborative projects that can enhance service offerings and generate additional revenue. The company’s ability to innovate and adapt to market demands plays a crucial role in sustaining its earnings.

Tokyo Communications Group,Inc. Financial Statement Overview

Summary

Tokyo Communications Group, Inc. has shown revenue growth but faces significant challenges with profitability and high leverage. The consistent negative net income and high debt levels are major risks. Improved cash flow management is a positive sign, but the company needs to address its profitability and leverage to stabilize its financial health.

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	6.27B	5.86B	6.22B	5.07B	4.73B	2.45B
Gross Profit	5.04B	4.64B	5.12B	4.22B	4.21B	2.35B
EBITDA	327.36M	149.44M	210.72M	255.90M	669.48M	377.32M
Net Income	-209.39M	-413.00M	-204.56M	-265.26M	202.41M	193.34M
Balance Sheet
Total Assets	3.71B	3.75B	4.97B	3.88B	4.00B	1.48B
Cash, Cash Equivalents and Short-Term Investments	1.06B	771.14M	1.44B	898.18M	906.05M	693.80M
Total Debt	1.87B	1.74B	1.95B	1.85B	1.81B	0.00
Total Liabilities	2.91B	2.99B	3.23B	3.01B	2.87B	547.30M
Stockholders Equity	608.34M	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: Positive
• Last Price: 392.00
• 50DMA: Negative
• 100DMA: Negative
• 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:7359, the sentiment is Positive. The current price of 392 is above the 20-day moving average (MA) of 367.25, below the 50-day MA of 399.28, and above the 200-day MA of 354.00, indicating a neutral trend. The MACD of -11.50 indicates Negative momentum. The RSI at 52.64 is Neutral, neither overbought nor oversold. The STOCH value of 65.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
2139	66 Neutral	¥2.90B	23.53	―	2.91%	3.80%	-30.52%
9466	63 Neutral	¥3.09B	6.48	―	6.33%	-5.78%	177.67%
4170	62 Neutral	¥3.37B	―	―	―	-1.52%	-457.01%
3690	61 Neutral	¥3.76B	―	―	1.32%	35.71%	-306.45%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
7036	56 Neutral	¥3.65B	23.66	―	3.43%	16.63%	324.42%
7359	42 Neutral	¥3.62B	―	―	―	4.43%	24.14%