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

• Market Cap: ¥2.50B
• Dividend Yield: N/A
• Average Volume (3M): 116.85K
• Price to Earnings (P/E): 9.8
• Beta (1Y): 0.99
• Revenue Growth: 9.46%
• EPS Growth: N/A
• Country: JP
• Employees: 138
• Sector: Communication Services
• Sector Strength: 97
• Industry: Software - Application
• EPS (TTM): 7.51
• Shares Outstanding: 10,074,422
• 10 Day Avg. Volume: 212,920
• 30 Day Avg. Volume: 116,853
• PEG Ratio: -0.08
• Price to Book (P/B): 3.74
• Price to Sales (P/S): 0.48
• P/FCF Ratio: 7.93
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: ¥282.00 ▼(-4.08% Downside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is driven primarily by mid-range financial performance: a 2025 profitability/cash-flow rebound is offset by a sharp revenue decline and a leveraged balance sheet. Technicals are meaningfully negative with the stock below key moving averages and weak momentum indicators, while valuation is a modest positive due to a reasonable P/E.

Positive Factors

Improving Cash Generation

A sustained shift to positive operating and free cash flow across 2024–2025 provides durable financial flexibility: it supports reinvestment, debt servicing and strategic options without immediate financing, reducing execution risk even if revenue remains uneven.

Negative Factors

Revenue Volatility & Decline

Large, persistent swings and a steep 2025 revenue drop weaken demand visibility and hinder long-term planning. Structural revenue weakness constrains margin recovery, reduces bargaining power with customers, and limits ability to sustainably scale fixed-cost investments.

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 ...

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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 ...

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 cons...

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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 cons...

Tokyo Communications Group,Inc. Financial Statement Overview

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.27B	6.22B	5.86B	6.22B	5.07B	4.73B
Gross Profit	5.04B	4.83B	4.64B	5.12B	4.22B	4.21B
EBITDA	491.45M	550.82M	173.72M	210.61M	318.58M	707.96M
Net Income	-209.43M	230.43M	-413.54M	-204.56M	-265.26M	202.41M
Balance Sheet
Total Assets	3.71B	3.67B	3.77B	5.00B	3.88B	4.00B
Cash, Cash Equivalents and Short-Term Investments	1.06B	1.14B	771.14M	1.44B	898.18M	906.05M
Total Debt	1.87B	1.67B	1.74B	1.95B	1.85B	1.81B
Total Liabilities	2.91B	2.78B	3.00B	3.26B	3.01B	2.87B
Stockholders Equity	608.34M	791.24M	568.62M	970.88M	869.24M	1.13B
Cash Flow
Free Cash Flow	0.00	373.46M	127.17M	-50.91M	185.90M	288.05M
Operating Cash Flow	0.00	376.28M	129.13M	-45.20M	232.23M	309.44M
Investing Cash Flow	0.00	590.83M	71.44M	193.14M	-270.39M	-1.85B
Financing Cash Flow	0.00	-606.31M	-868.24M	355.91M	24.41M	1.74B

Tokyo Communications Group,Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 294.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Neutral. The current price of 294 is above the 20-day moving average (MA) of 246.15, above the 50-day MA of 271.50, and below the 200-day MA of 362.25, indicating a neutral trend. The MACD of -5.72 indicates Negative momentum. The RSI at 47.84 is Neutral, neither overbought nor oversold. The STOCH value of 58.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
4375	59 Neutral	¥42.08B	29.34	―	―	29.56%	86.66%
5572	58 Neutral	¥8.89B	33.78	―	―	60.41%	-27.67%
5580	52 Neutral	¥2.68B	78.31	―	―	29.04%	-21.85%
7359	51 Neutral	¥2.50B	9.79	―	―	9.46%	―
3681	41 Neutral	¥1.97B	-1.07	-233.58%	―	-8.32%	71.98%