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TENMA CORPORATION (JP:7958)
:7958

TENMA (7958) AI Stock Analysis

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JP

TENMA

(OTC:7958)

Rating:76Outperform
Price Target:
¥4,028.00
▲(12.83%Upside)
TENMA's strong financial performance, characterized by excellent cash flow generation and a stable balance sheet, plays a pivotal role in its overall score. The technical analysis supports a positive outlook, though the stock is approaching overbought conditions. The valuation indicates fair pricing with a reasonable dividend yield. Earnings call and corporate events data were not provided, so their influence is not considered.

TENMA (7958) vs. iShares MSCI Japan ETF (EWJ)

TENMA Business Overview & Revenue Model

Company DescriptionTENMA Corporation is a Japanese company engaged in the manufacturing and distribution of plastic products. It operates primarily in the plastic processing industry, offering a diverse range of products including household goods, industrial materials, and packaging solutions. TENMA is known for its innovation in creating high-quality, durable plastic products that cater to both consumer and industrial needs.
How the Company Makes MoneyTENMA Corporation generates revenue through the sale of its extensive range of plastic products. The company's key revenue streams include household plastic goods, which are sold directly to consumers through retail outlets and online platforms, and industrial materials and packaging solutions, which are supplied to various industries such as automotive, electronics, and food packaging. TENMA's earnings are bolstered by its commitment to innovation and quality, as well as strategic partnerships with distributors and retailers that enhance its market reach. Additionally, the company's focus on sustainability and eco-friendly products aligns with growing consumer and industrial demands, contributing to its financial performance.

TENMA Financial Statement Overview

Summary
TENMA displays a robust financial profile with strong revenue growth, efficient cash flow generation, and a stable balance sheet. The company is leveraging its assets effectively while maintaining low debt levels, reducing financial risks. However, there is room for operational efficiency improvements as indicated by the EBIT margin. Overall, TENMA's financial health is solid, positioning it well for future growth.
Income Statement
78
Positive
TENMA's revenue grew by 12.8% from 2024 to 2025, indicating strong growth after a slight dip the previous year. The gross profit margin stands at 13.8%, reflecting solid production efficiency. The net profit margin improved to 3.5% in 2025 from 3.3% in 2024, showcasing enhanced profitability. However, EBIT margin of 2.1% suggests room for improvement in operational efficiency.
Balance Sheet
85
Very Positive
TENMA maintains a robust balance sheet with an equity ratio of 76.3%, highlighting financial stability. The debt-to-equity ratio is low at 0.03, indicating minimal leverage risk. The return on equity (ROE) is 4.4%, showing moderate profitability for shareholders. Overall, the company exhibits strong financial health with low debt burdens.
Cash Flow
82
Very Positive
TENMA's free cash flow grew significantly by over 1497% from 2024 to 2025, indicating improved cash generation. The operating cash flow to net income ratio of 2.1 indicates strong cash conversion. The free cash flow to net income ratio is 1.0, reflecting effective capital management. Nonetheless, the substantial increase in free cash flow suggests a potential fluctuation in future periods.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue98.19B104.83B92.93B102.05B82.70B73.64B
Gross Profit13.64B14.51B13.11B14.77B13.09B14.32B
EBITDA7.73B10.77B6.10B9.01B6.51B7.60B
Net Income3.53B3.71B3.09B2.80B1.06B3.01B
Balance Sheet
Total Assets104.65B110.74B101.92B102.80B93.98B92.39B
Cash, Cash Equivalents and Short-Term Investments29.64B32.92B29.84B30.68B27.36B30.25B
Total Debt2.80B2.44B2.86B3.14B3.15B3.10B
Total Liabilities24.70B26.28B20.86B24.49B20.79B19.49B
Stockholders Equity79.95B84.46B81.06B78.31B73.20B72.90B
Cash Flow
Free Cash Flow0.003.78B239.16M4.51B52.11M2.39B
Operating Cash Flow0.007.76B5.90B7.51B3.05B5.80B
Investing Cash Flow0.00-2.60B1.26B1.31B-287.65M2.32B
Financing Cash Flow0.00-5.22B-4.05B-3.23B-4.72B-4.24B

TENMA Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3570.00
Price Trends
50DMA
3568.40
Positive
100DMA
3381.65
Positive
200DMA
3112.45
Positive
Market Momentum
MACD
1.59
Positive
RSI
54.64
Neutral
STOCH
50.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7958, the sentiment is Positive. The current price of 3570 is above the 20-day moving average (MA) of 3565.50, above the 50-day MA of 3568.40, and above the 200-day MA of 3112.45, indicating a bullish trend. The MACD of 1.59 indicates Positive momentum. The RSI at 54.64 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7958.

TENMA Peers Comparison

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
¥77.24B9.73
0.85%2.19%11.03%
79
Outperform
¥62.77B8.24
2.06%5.44%8.53%
79
Outperform
¥56.73B5.26
4.75%4.12%192.18%
76
Outperform
$65.37B19.524.42%2.24%12.81%27.07%
74
Outperform
¥84.46B9.66
4.02%4.87%5.07%
66
Neutral
¥60.13B9.66
4.55%3.21%-2.40%
58
Neutral
HK$16.41B4.43-5.52%5.25%-3.57%-61.41%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7958
TENMA
3,570.00
757.09
26.92%
JP:4008
Sumitomo Seika Chemicals Co., Ltd.
4,390.00
-864.53
-16.45%
JP:4028
ISHIHARA SANGYO KAISHA, LTD.
2,125.00
564.30
36.16%
JP:4116
Dainichiseika Color & Chemicals Mfg.Co., Ltd.
3,155.00
43.98
1.41%
JP:4365
Matsumoto Yushiseiyaku Co., Ltd.
19,400.00
2,093.33
12.10%
JP:4956
Konishi Co., Ltd.
1,178.00
-44.82
-3.67%

TENMA Corporate Events

TENMA CORPORATION Confirms New Independent Auditor
Jul 11, 2025

TENMA CORPORATION has announced a change in its independent auditor, with UHY Tokyo & Co. being confirmed as the new auditor. This change is part of the company’s ongoing efforts to ensure transparency and compliance in its financial reporting, potentially impacting its market positioning and stakeholder confidence.

TENMA Corporation Announces Leadership Changes
Jun 25, 2025

TENMA Corporation has announced changes in its leadership structure following its 77th Annual General Meeting of Shareholders. Hiroshi Kaneda has been appointed as the new Senior Managing Director and Representative Director, effective June 25, 2025, to enhance the company’s management system. This leadership change is expected to strengthen TENMA’s operational capabilities and strategic direction, potentially impacting its market positioning and stakeholder relations positively.

TENMA Corporation Announces Treasury Stock Cancellation
Jun 13, 2025

TENMA Corporation has announced its decision to cancel a portion of its treasury stock, amounting to 2,130,903 common shares, which represents 9.55% of the total issued shares before cancellation. This move, contingent on shareholder approval, is part of a broader strategy involving share consolidation and amendments to the company’s Articles of Incorporation, potentially impacting its market positioning and shareholder value.

TENMA Announces Shareholders’ Meeting and Delisting Plans
Jun 13, 2025

TENMA Corporation has announced an extraordinary shareholders’ meeting to discuss share consolidation and amendments to its Articles of Incorporation. This move will lead to the company’s shares being delisted from the Tokyo Stock Exchange, impacting its trading status and potentially affecting stakeholders involved in the transactions.

Tenma Corporation Announces Director Nominees for Upcoming Shareholders Meeting
May 23, 2025

Tenma Corporation, a company listed on the TSE Prime, has announced the nomination of candidates for its Board of Directors. The nominations, recommended by the Nomination and Compensation Committee and approved by the Audit and Supervisory Committee, will be presented at the upcoming 77th Ordinary General Meeting of Shareholders. This move is part of Tenma’s ongoing efforts to ensure effective governance and leadership continuity.

Tenma Corporation Announces Change in Independent Auditor
May 21, 2025

Tenma Corporation has announced a change in its independent auditor, transitioning from Russell Bedford HIBISCUS to UHY Tokyo & Co. This change is prompted by the business integration of the two audit firms, effective July 1, 2025, ensuring continuity and maintaining audit quality. The transition is expected to uphold a global audit system with enhanced independence and expertise, as the current auditors from Russell Bedford HIBISCUS will move to UHY Tokyo & Co.

TENMA Corporation Reports Financial Results and Announces Delisting Plans
May 9, 2025

TENMA Corporation reported a 12.8% increase in net sales for the fiscal year ending March 31, 2025, with operating profit rising by 62.5%. However, ordinary profit decreased by 22.4%, while profit attributable to owners of the parent increased by 20%. The company announced it would not pay a year-end dividend for the fiscal year due to a tender offer by FHL Holdings Co., Ltd. and the planned delisting of its shares, which has also led to the absence of a financial forecast for the next fiscal year.

Tenma Corporation Sets Record Date for Extraordinary Shareholders Meeting
May 9, 2025

Tenma Corporation has announced the setting of a record date for an Extraordinary General Meeting of Shareholders, scheduled for late July 2025. This meeting is significant as it will address the company’s transition to a private entity, following a tender offer by FHL Holdings Inc., which necessitates a partial amendment of the Articles of Incorporation.

TENMA Corporation Announces Change in Major Shareholder
Apr 29, 2025

TENMA CORPORATION announced the successful completion of a tender offer for its common shares by FHL Holdings Inc., which began on March 17, 2025, and concluded on April 28, 2025. As a result of the tender offer, FHL Holdings Inc. will become the new parent company and largest shareholder of TENMA, with a voting rights ratio exceeding 50% as of May 9, 2025. Dalton Investments, Inc., the previous largest shareholder, will no longer hold this status.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 04, 2025