Tsuzuki Denki Co., Ltd. (8157) AI Stock Analysis

• Market Cap: ¥53.00B
• Dividend Yield: 2.82%
• Average Volume (3M): 29.82K
• Price to Earnings (P/E): 11.6
• Beta (1Y): 0.87
• Revenue Growth: -14.87%
• EPS Growth: -0.65%
• Country: JP
• Employees: 1,239
• Sector: Industrials
• Sector Strength: 79
• Industry: Conglomerates
• EPS (TTM): 15.03
• Shares Outstanding: 18,977,894
• 10 Day Avg. Volume: 23,050
• 30 Day Avg. Volume: 29,820
• 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: ¥3,583.00
• Price Target Upside: 12.32% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 80 Outperform
• Price Target: ¥3,583.00 ▲(12.32% Upside)

The stock of Tsuzuki Denki Co., Ltd. is rated highly due to strong technical indicators suggesting bullish momentum and an attractive valuation with a low P/E ratio and healthy dividend yield. Financial performance shows a solid balance sheet but highlights challenges in revenue growth and cash flow stability, which are areas to watch. The absence of earnings call data and notable corporate events limits additional insights.

Tsuzuki Denki Co., Ltd. Business Overview & Revenue Model

Company Description

Tsuzuki Denki Co., Ltd. is a Japanese company engaged in the information technology and electronics sectors. The company offers a variety of products and services, including system integration, software development, and sales of information technology equipment. Tsuzuki Denki focuses on delivering comprehensive IT solutions and services tailored to meet the specific needs of its diverse clientele, which spans various industries.

How the Company Makes Money

Tsuzuki Denki Co., Ltd. generates revenue through multiple streams. Primarily, the company makes money by providing IT solutions and services, which include system integration and software development projects. These services are often customized for clients, leading to long-term contracts and recurring revenue. Additionally, Tsuzuki Denki earns income by selling IT hardware and equipment, which includes computers, servers, and network devices. The company may also benefit from strategic partnerships and collaborations with other technology firms, enhancing its service offerings and market reach. Tsuzuki Denki's earnings are further supported by its ability to adapt to technological advancements and industry trends, ensuring relevance and demand for its products and solutions.

Tsuzuki Denki Co., Ltd. Financial Statement Overview

Summary

Tsuzuki Denki Co., Ltd. demonstrates overall financial strength with a solid balance sheet and efficient operations, though there are challenges in revenue growth and cash flow stability. The company's profitability margins are stable, but a focus on enhancing revenue growth and cash flow generation will be critical for future success.

Income Statement

Gross profit margin has been relatively stable with a slight increase to 23.06% in the latest year. However, the net profit margin has decreased from 4.38% to 4.85% over the last two years, suggesting some pressure on net earnings. Revenue growth rate shows a decline in the most recent year, highlighting potential challenges in sustaining top-line growth. Despite these concerns, EBIT and EBITDA margins remain decent, indicating operational efficiency.

Balance Sheet

The debt-to-equity ratio has improved, reflecting a strong balance sheet with reduced leverage. The company's equity ratio is robust at 55.14%, indicating a solid capital structure. ROE has been consistent, though there is room for improvement. Overall, the balance sheet is strong, with a favorable equity position and controlled debt levels.

Cash Flow

Free cash flow has shown variability, with a decline in the most recent year. The operating cash flow to net income ratio indicates that cash generation is in line with accounting earnings, but the recent decline in operating cash flow is a concern. Free cash flow to net income ratio remains positive, but the trend suggests a need for improvement in cash generation efficiency.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	98.26B	124.86B	123.90B	119.32B	120.00B
Gross Profit	22.66B	25.31B	24.18B	22.51B	21.47B
EBITDA	8.29B	10.13B	7.91B	7.18B	5.82B
Net Income	4.76B	5.48B	3.52B	2.80B	2.35B
Balance Sheet
Total Assets	80.06B	81.07B	83.21B	79.23B	76.20B
Cash, Cash Equivalents and Short-Term Investments	38.71B	38.70B	20.88B	19.16B	15.94B
Total Debt	9.55B	10.19B	10.99B	12.51B	12.85B
Total Liabilities	35.43B	40.20B	47.82B	46.03B	45.03B
Stockholders Equity	44.16B	40.40B	34.95B	32.85B	30.93B
Cash Flow
Free Cash Flow	3.13B	4.01B	3.17B	3.69B	-1.44B
Operating Cash Flow	3.41B	4.95B	4.26B	5.56B	749.00M
Investing Cash Flow	-792.00M	15.47B	39.00M	-4.00M	-1.27B
Financing Cash Flow	-2.60B	-2.61B	-2.61B	-2.41B	-2.03B

Tsuzuki Denki Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3190.00
• 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:8157, the sentiment is Positive. The current price of 3190 is above the 20-day moving average (MA) of 3173.75, above the 50-day MA of 3005.82, and above the 200-day MA of 2636.58, indicating a bullish trend. The MACD of 62.69 indicates Positive momentum. The RSI at 62.78 is Neutral, neither overbought nor oversold. The STOCH value of 57.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8157.

Tsuzuki Denki Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8157	80 Outperform	¥53.00B	11.58		2.82%	-14.87%	-0.65%
8057	76 Outperform	¥104.92B	12.13		2.05%	15.78%	20.79%
8070	76 Outperform	¥24.63B	10.41		3.96%	-13.72%	―
4685	75 Outperform	¥49.68B	13.94		2.30%	19.82%	38.84%
8081	73 Outperform	¥39.73B	11.36		3.60%	16.51%	19.39%
Sector *	64 Neutral	$10.96B	16.35	8.89%	1.96%	2.68%	-15.17%

Tsuzuki Denki Co., Ltd. Corporate Events

Tsuzuki Denki Co., Ltd. Reports Significant Profit Growth and Strong Market Positioning

Tsuzuki Denki Co., Ltd. reported higher revenue and significant profit growth for the quarter ending June 30, 2025, driven by improved profitability in its equipment business and increased sales in development, construction, and service sectors. The company saw favorable orders and progress in six growth areas, leading to a 23.5% year-over-year sales increase in these sectors, indicating strong market positioning and potential positive implications for stakeholders.

Tsuzuki Denki Reports Strong Quarterly Profit Growth

Tsuzuki Denki Co., Ltd. reported a slight increase in net sales for the quarter ending June 30, 2025, with a significant rise in quarterly profit attributable to owners of the parent, indicating improved operational efficiency. The company’s financial forecast for the fiscal year ending March 31, 2026, shows expected growth in net sales and operating income, reflecting a positive outlook for its market positioning.

Tsuzuki Denki Strengthens Alliance with Aso Corporation

Tsuzuki Denki Co., Ltd. announced its relationship with Aso Corporation, which holds 24.03% of its voting rights, positioning Tsuzuki Denki as an equity-method affiliate. This alliance aims to enhance corporate value by developing services across multiple industries, leveraging Aso Corporation’s diverse business expertise. There are no significant transactions with controlling shareholders for the fiscal year ending March 2025.

Tsuzuki Denki Announces Parent Company’s Financial Results

Tsuzuki Denki Co., Ltd. announced the financial results of its unlisted parent company, ASO CORPORATION, for the fiscal year ending March 31, 2025. ASO CORPORATION is involved in medical-related and real estate businesses and holds a 24.03% voting stake in Tsuzuki Denki. This announcement may impact Tsuzuki Denki’s operations and market positioning due to its close ties with ASO CORPORATION, a major shareholder.

Tsuzuki Denki Achieves Record Operating Income and Plans Dividend Increase

Tsuzuki Denki Co., Ltd. reported a record high operating income for the third consecutive year, achieving its medium-term management plan targets ahead of schedule despite a sales downturn from divesting its Electronic Devices business. The company plans to capitalize on strong ICT investment demand to increase sales and profits, with a raised operating profit target and a commitment to increasing dividends for the fifth consecutive year.

Tsuzuki Denki Reports Decline in Sales but Increases Dividends

Tsuzuki Denki Co., Ltd. reported a decline in net sales by 21.3% for the fiscal year ending March 31, 2025, compared to the previous year. Despite this, the company saw slight increases in operating and ordinary income. The company has also announced an increase in dividends per share, reflecting a commitment to shareholder returns. Looking forward, Tsuzuki Denki forecasts a modest recovery in net sales and income for the fiscal year ending March 31, 2026, indicating a cautious optimism about future performance.