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

• Market Cap: ¥5.79B
• Dividend Yield: N/A
• Average Volume (3M): 503.86K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.71
• Revenue Growth: 4.43%
• EPS Growth: 24.14%
• Country: JP
• Employees: 138
• Sector: Communication Services
• Sector Strength: 92
• Industry: Advertising Agencies
• EPS (TTM): 2.64
• Shares Outstanding: 10,074,072
• 10 Day Avg. Volume: 229,210
• 30 Day Avg. Volume: 503,856
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥534.00
• Price Target Upside: -7.13% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 57 Neutral
• Price Target: ¥534.00 ▼(-7.13% Downside)

The overall stock score is driven by strong technical momentum, despite weak financial performance and valuation concerns. The company's profitability and leverage issues are major risks, while the upward price trend suggests potential for growth, albeit with caution due to overbought signals.

Tokyo Communications Group,Inc. Business Overview & Revenue Model

Company Description

Tokyo Communications Group, Inc. (7359) is a Japan-based company primarily engaged in the provision of digital marketing services. The company operates in sectors such as advertising, media, and technology, offering a range of services including digital marketing strategy, content creation, and digital advertising solutions. With a focus on leveraging technology and data-driven insights, Tokyo Communications Group helps businesses enhance their online presence and optimize their marketing efforts.

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: Positive
• Last Price: 575.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 575 is above the 20-day moving average (MA) of 495.15, above the 50-day MA of 435.52, and above the 200-day MA of 311.35, indicating a bullish trend. The MACD of 41.46 indicates Negative momentum. The RSI at 80.17 is Negative, neither overbought nor oversold. The STOCH value of 85.19 is Negative, 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
3690	72 Outperform	¥3.90B	32.72		1.23%	24.61%	19.89%
Sector *	69 Neutral	5.93B	16.80	23.99%	3.40%	-2.70%	63.92%
7036	66 Neutral	¥3.88B	29.93		3.22%	10.03%	236.86%
9466	63 Neutral	¥3.27B	6.86		6.05%	-4.30%	198.64%
2139	63 Neutral	¥3.07B	26.12		2.56%	5.42%	-33.20%
4170	63 Neutral	¥3.60B	217.42		―	2.73%	-28115.76%
7359	57 Neutral	¥5.79B	―		―	4.43%	24.14%