Tiemco (7501) AI Stock Analysis

• Market Cap: ¥4.37B
• Dividend Yield: 0.81%
• Average Volume (3M): 49.49K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.15
• Revenue Growth: -3.29%
• EPS Growth: -150.43%
• Country: JP
• Employees: 69
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): -10.67
• Shares Outstanding: 3,339,995
• 10 Day Avg. Volume: 26,500
• 30 Day Avg. Volume: 49,493
• PEG Ratio: -1.46
• Price to Book (P/B): 0.77
• Price to Sales (P/S): 1.05
• P/FCF Ratio: -11.90
• 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: 60 Neutral
• Price Target: ¥1,943.00 ▲(18.40% Upside)
• Action: Reiterated Date: 01/19/26
• Date: Action: Reiterated 01/19/26

The score is supported mainly by strong technical uptrend signals and a conservative, low-debt balance sheet. It is held back by deteriorating profitability and negative operating/free cash flow, and by limited valuation support due to current losses and only a modest dividend yield.

Positive Factors

Conservative balance sheet

Very low leverage and a large equity base materially reduce financial risk and provide durable optionality. Over a multi-month horizon this capital flexibility lets the company fund working capital, absorb cash shortfalls, and invest selectively in product or distribution without immediate refinancing pressure.

Stable gross margins

Mid-40% gross margins indicate structural pricing power and efficient manufacturing for fishing tackle and accessories. If maintained, these margins form a resilient earnings base that can support recovery at the operating line once SG&A or other cost pressures are addressed, aiding long-term profitability potential.

Niche brand and distribution position

Specialization in fly and lure fishing with owned brands and established retail distribution creates a durable competitive moat in specialty outdoor retail. Brand recognition and focused channels support customer loyalty and targeted product development, helping maintain steady demand among niche anglers over time.

Negative Factors

Negative operating and free cash flow

Two consecutive years of cash burn signal weakened core cash generation and elevate liquidity risk if losses persist. Even with low debt, sustained negative operating/free cash flow constrains capital allocation, forces reliance on reserves, and limits investments in product development or expansion over the medium term.

Earnings have shifted to losses

A structural move from profit to loss erodes retained earnings and undermines return on invested capital. Persistent negative operating profit reduces ability to fund dividends or growth organically, and signals either demand deterioration or rising operating cost structure that must be addressed to restore sustainable profitability.

Limited top-line momentum

Flat revenue limits operating leverage and caps potential margin expansion. In specialty retail, failing to grow top line suggests constrained market share gains and susceptibility to competitor innovation or changing consumer habits, making recovery of profitability more dependent on cost cutting than on organic growth.

Tiemco Business Overview & Revenue Model

Company Description

Tiemco Ltd. plans, develops, manufactures, imports, exports, and sells fishing tackle and outdoor products under the Tiemco Fly Hooks, Sight Master, and Foxfire brands in Japan and internationally. The company provides fly fishing products, comprising fly hooks, fly tying tools and materials, fly rods and reels, leaders and tippet, and accessories; and lure fishing products, which include bass rods and lures, saltwater rods and lures, trout rods and lures, and accessories. It offers polarized sunglasses with plastic, acetate, and metal frames, and accessories; and jackets, vests and packs, waders and gaiters, wading shoes, rain wear, shirts, cut and sewn products, pants, tights and socks, hats and caps, gloves, inflatable PFDs, bags and luggage, and accessories. In addition, the company operates a fly-fishing school for salt-water. The company was incorporated in 1969 and is headquartered in Tokyo, Japan.

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

Balance sheet strength is a key positive (minimal debt, strong capitalization), but operating performance has weakened: the company moved from profits to losses in 2024–2025 and recent operating/free cash flow turned negative, indicating cash burn alongside weaker profitability.

Income Statement

Revenue has been broadly flat over the last several years, with modest growth in 2025 (annual) but a decline in 2024, pointing to limited top-line momentum. Profitability has weakened materially: the company moved from positive earnings in 2022–2023 to losses in 2024–2025, with negative operating profit and negative net margin in the most recent year. A consistent gross margin in the mid-40% range is a clear strength, but it is being outweighed by higher operating costs/pressure below gross profit, resulting in structurally weaker bottom-line performance lately.

Balance Sheet

The balance sheet looks conservative and resilient, with essentially no debt across the period (debt-to-equity near zero) and a large equity base relative to total assets. This low leverage meaningfully reduces financial risk and provides flexibility to navigate weaker profitability. The main drawback is that returns on equity have turned negative in the last two years, reflecting that capital is not currently generating positive earnings despite the strong capitalization.

Cash Flow

Cash generation has deteriorated in the last two years, with negative operating cash flow and negative free cash flow in 2024 and 2025 (annual), reversing the positive cash generation seen in 2021–2023. This suggests the recent accounting losses are also translating into cash burn, which can pressure liquidity if sustained. While the company has shown an ability to generate positive free cash flow in prior years, the current trajectory is unfavorable and increases reliance on existing balance-sheet resources.

Breakdown	Nov 2025	Nov 2024	Nov 2023	Nov 2022	Nov 2021
Income Statement
Total Revenue	3.22B	3.21B	3.40B	3.29B	2.96B
Gross Profit	1.40B	1.41B	1.56B	1.45B	1.27B
EBITDA	-35.05M	47.63M	185.25M	174.66M	24.35M
Net Income	-128.87M	-109.27M	108.69M	126.04M	-9.67M
Balance Sheet
Total Assets	5.46B	5.54B	5.75B	5.73B	5.46B
Cash, Cash Equivalents and Short-Term Investments	1.29B	1.62B	1.86B	1.96B	1.68B
Total Debt	0.00	925.00K	6.45M	11.97M	18.46M
Total Liabilities	1.10B	1.01B	1.08B	1.13B	981.38M
Stockholders Equity	4.37B	4.53B	4.67B	4.60B	4.48B
Cash Flow
Free Cash Flow	-283.97M	-196.39M	105.74M	192.56M	167.69M
Operating Cash Flow	-247.57M	-117.99M	140.65M	221.05M	195.67M
Investing Cash Flow	197.60M	-93.43M	-101.34M	46.96M	-127.73M
Financing Cash Flow	-30.59M	-35.24M	-35.05M	-19.86M	-20.00M

Tiemco Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1641.00
• 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 1641 is below the 20-day moving average (MA) of 1759.90, below the 50-day MA of 1728.86, and above the 200-day MA of 1279.98, indicating a bullish trend. The MACD of 8.34 indicates Positive momentum. The RSI at 52.80 is Neutral, neither overbought nor oversold. The STOCH value of 59.08 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
8022	74 Outperform	¥260.93B	11.87	10.61%	1.81%	5.29%	16.34%
3028	63 Neutral	¥76.68B	10.29	―	2.11%	6.04%	93.19%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7501	60 Neutral	¥4.37B	-26.23	-3.27%	0.81%	-3.29%	-150.43%
8281	60 Neutral	¥44.92B	15.79	―	3.31%	0.88%	-138.66%
8289	53 Neutral	¥10.08B	-2.93	―	4.61%	3.14%	-183.07%
7514	43 Neutral	¥10.31B	-8.39	―	3.08%	3.31%	-94.69%