Tiemco (7501) AI Stock Analysis

• Market Cap: $3.77B
• Dividend Yield: 0.79%
• Average Volume (3M): 49.49K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.13
• Revenue Growth: -3.29%
• EPS Growth: -150.43%
• Country: JP
• Employees: 69
• Sector: Services
• Sector Strength: N/A
• Industry: Specialty Retail
• EPS (TTM): -22.91
• Shares Outstanding: 3,339,995
• 10 Day Avg. Volume: 26,500
• 30 Day Avg. Volume: 49,493
• PEG Ratio: 0.08
• Price to Book (P/B): 0.41
• Price to Sales (P/S): 0.57
• P/FCF Ratio: -8.43
• Enterprise Value/Market Cap: 0.36
• Enterprise Value/Revenue: 0.43
• Enterprise Value/Gross Profit: 0.94
• Enterprise Value/Ebitda: -23.06
• 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: 60 Neutral
• Price Target: ¥1,613.00 ▲(6.82% Upside)

The overall stock score is primarily influenced by the company's strong technical momentum, which is a positive indicator for short-term performance. However, significant concerns remain due to negative profitability and valuation metrics, which weigh heavily on the long-term outlook. The financial performance is mixed, with a strong balance sheet but poor cash flow and income statement results.

Positive Factors

Strong Balance Sheet

A strong equity base with low debt levels provides financial stability and flexibility, allowing Tiemco to invest in growth opportunities without significant leverage risk.

Product Quality and Brand Reputation

High-quality products and a strong brand reputation in the fishing tackle market can drive customer loyalty and support long-term revenue stability.

Low Beta

A low beta indicates that Tiemco's stock is less volatile compared to the market, providing a stable investment option during market fluctuations.

Negative Factors

Profitability Challenges

Negative net income and profitability issues can hinder Tiemco's ability to reinvest in business growth and may affect long-term financial health.

Cash Flow Issues

Negative cash flow indicates potential liquidity challenges, which could limit Tiemco's ability to fund operations and strategic initiatives.

Inconsistent Revenue Trends

Inconsistent revenue trends can undermine growth prospects and investor confidence, making it difficult for Tiemco to plan and execute long-term strategies.

Tiemco Business Overview & Revenue Model

Company Description

Tiemco (7501) is a Japanese company primarily engaged in the manufacturing and sale of fishing tackle and outdoor gear. The company operates in the sporting goods sector, focusing on various segments such as fishing equipment, apparel, and accessories. Tiemco is known for its high-quality products catering to both recreational and professional anglers, offering a wide range of items including rods, reels, lures, and other fishing accessories.

How the Company Makes Money

Tiemco generates revenue through the direct sale of its fishing tackle and outdoor gear products. The company operates on a business-to-consumer (B2C) model, selling products through both physical retail outlets and online platforms. Key revenue streams include sales from fishing tackle, apparel, and related accessories. Additionally, Tiemco may benefit from partnerships with sporting goods retailers, distributors, and outdoor events that enhance brand visibility and drive sales. Seasonal trends, such as fishing tournaments and outdoor recreational activities, also contribute to fluctuations in revenue, with peak sales periods typically aligning with fishing seasons.

Tiemco Financial Statement Overview

Summary

Tiemco faces profitability challenges, reflected in negative net income and inconsistent revenue trends. While the balance sheet is strong with low leverage, the cash flow situation requires attention due to negative free cash flow and operating cash flow. Overall, the company needs to address operational inefficiencies and improve cash generation to enhance financial stability.

Income Statement

The company has shown inconsistent revenue performance over the years with some growth but recent declines. Gross profit margin is relatively stable, but negative net profit margins, especially in the latest year, indicate profitability challenges. The negative EBIT and low EBITDA margins further highlight operational inefficiencies.

Balance Sheet

The company exhibits a strong equity base with an equity ratio of around 81.7%. The debt-to-equity ratio is very low, indicating conservative leverage. However, return on equity is negative due to recent net losses, which is a concern.

Cash Flow

The cash flow statement shows significant fluctuations in free cash flow, with recent years showing negative figures. Operating cash flow to net income ratio is negative in the latest year, indicating cash flow issues. The free cash flow to net income ratio is also unfavorable, reflecting potential liquidity challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.14B	3.21B	3.40B	3.29B	2.96B	2.67B
Gross Profit	1.43B	1.49B	1.62B	1.51B	1.32B	1.17B
EBITDA	-58.23M	47.53M	185.00M	174.61M	24.34M	-63.72M
Net Income	-158.05M	-109.27M	108.69M	126.04M	-9.67M	-228.98M
Balance Sheet
Total Assets	5.66B	5.54B	5.75B	5.73B	5.46B	5.56B
Cash, Cash Equivalents and Short-Term Investments	1.46B	1.62B	1.86B	1.96B	1.68B	1.63B
Total Debt	0.00	925.00K	6.45M	11.97M	18.46M	31.16M
Total Liabilities	1.21B	1.01B	1.08B	1.13B	978.89M	1.04B
Stockholders Equity	4.45B	4.53B	4.67B	4.60B	4.48B	4.52B
Cash Flow
Free Cash Flow	0.00	-218.37M	104.44M	188.53M	165.53M	-351.95M
Operating Cash Flow	0.00	-117.99M	140.65M	221.05M	195.67M	-272.28M
Investing Cash Flow	0.00	-93.43M	-101.34M	46.96M	-127.73M	317.08M
Financing Cash Flow	0.00	-35.24M	-35.05M	-19.86M	-20.00M	-35.55M

Tiemco Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1510.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7501, the sentiment is Positive. The current price of 1510 is above the 20-day moving average (MA) of 1360.10, above the 50-day MA of 1195.64, and above the 200-day MA of 965.93, indicating a bullish trend. The MACD of 49.25 indicates Positive momentum. The RSI at 63.53 is Neutral, neither overbought nor oversold. The STOCH value of 62.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7501.

Tiemco Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3416	82 Outperform	¥2.40B	5.44	―	4.53%	-10.69%	-60.56%
3375	76 Outperform	¥2.42B	7.56	―	4.30%	4.14%	31.98%
8225	73 Outperform	¥2.49B	7.06	―	1.30%	14.90%	-8.27%
2666	67 Neutral	¥2.24B	7.63	―	1.89%	11.96%	30.75%
7501	60 Neutral	$3.77B	―	-3.27%	0.79%	-3.29%	-150.43%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
7640	52 Neutral	¥2.59B	-3.47	―	―	-4.21%	43.38%