TKC Corporation (9746) AI Stock Analysis

• Market Cap: ¥227.86B
• Dividend Yield: 2.38%
• Average Volume (3M): 59.18K
• Price to Earnings (P/E): 20.7
• Beta (1Y): 0.35
• Revenue Growth: 9.00%
• EPS Growth: 3.63%
• Country: JP
• Employees: 2,922
• Sector: Technology
• Sector Strength: 87
• Industry: Information Technology Services
• EPS (TTM): 60.95
• Shares Outstanding: 52,301,468
• 10 Day Avg. Volume: 60,950
• 30 Day Avg. Volume: 59,176
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥4,811.00
• Price Target Upside: 8.85% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 78 Outperform
• Price Target: ¥4,811.00 ▲(8.85% Upside)

TKC Corporation's strong financial performance and positive technical indicators are the primary drivers of its favorable stock score. While the company's valuation is moderate, its stable financial position and upward price trend position it well for future growth.

TKC Corporation Business Overview & Revenue Model

Company Description

TKC Corporation (9746) is a Japan-based company engaged primarily in the development and provision of software solutions and IT services. Operating within sectors such as information technology, accounting, and consulting, the company offers a range of products and services designed to enhance business operations, including integrated software systems for accounting, tax preparation, and practice management. TKC Corporation serves a diverse clientele that includes small to medium-sized enterprises, accounting firms, and corporate clients, aiming to support their digital transformation and efficiency enhancement initiatives.

How the Company Makes Money

TKC Corporation generates revenue through a multifaceted business model that includes software licensing, consulting services, and subscription fees. A significant portion of their income is derived from providing software solutions tailored for accounting and tax professionals, which are offered through both one-time sales and recurring subscription models. Additionally, the company provides IT support and consulting services, which further contribute to its revenue streams. TKC Corporation also engages in partnerships with other technology firms to expand its service offerings and enhance its market reach, thereby creating additional revenue opportunities.

TKC Corporation Financial Statement Overview

Summary

TKC Corporation demonstrates strong financial health with consistent revenue and profit growth, robust profitability margins, and a solid equity base. The low debt levels and high equity ratio reflect financial stability. However, the variability in free cash flow slightly tempers the score.

Income Statement

TKC Corporation demonstrates strong income statement performance with consistent revenue and profit growth. Over the recent periods, the company achieved a revenue growth rate of approximately 5.2% annually. The gross profit margin remains robust at around 71.5%, and the net profit margin is healthy at 15.0%. These figures indicate effective cost management and profitability. The EBIT and EBITDA margins also reflect operational efficiency, contributing to a high score.

Balance Sheet

The balance sheet of TKC Corporation is solid, characterized by a strong equity position and low leverage. The debt-to-equity ratio is minimal at 0.07, indicating low reliance on debt financing. The company boasts a high equity ratio of 86.9%, reflecting financial stability and resilience. Return on Equity (ROE) is commendable at approximately 11.0%, showcasing effective utilization of shareholder funds. These factors contribute to a high balance sheet score, although slightly tempered by a modest increase in liabilities.

Cash Flow

TKC Corporation's cash flow performance is moderate, primarily due to fluctuations in free cash flow. The operating cash flow to net income ratio is unavailable for the latest period but was previously strong, indicating good conversion of profits into cash. However, the free cash flow has shown variability, with a noticeable decline in the most recent year. This poses a potential risk to cash flow stability, resulting in a moderate score.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	77.40B	75.22B	71.92B	67.84B	66.22B	67.81B
Gross Profit	54.24B	53.65B	50.44B	47.93B	46.90B	45.15B
EBITDA	19.23B	19.53B	18.67B	16.70B	15.60B	14.45B
Net Income	11.21B	11.27B	10.83B	9.32B	8.69B	7.82B
Balance Sheet
Total Assets	122.32B	124.88B	116.36B	109.22B	103.41B	97.67B
Cash, Cash Equivalents and Short-Term Investments	33.16B	33.73B	32.09B	29.92B	26.43B	26.77B
Total Debt	725.00M	471.00M	816.00M	1.19B	1.46B	2.07B
Total Liabilities	18.30B	22.71B	21.05B	21.90B	19.99B	20.59B
Stockholders Equity	104.02B	102.18B	95.31B	87.33B	83.42B	77.08B
Cash Flow
Free Cash Flow	0.00	7.28B	8.28B	9.72B	7.24B	7.46B
Operating Cash Flow	0.00	12.80B	13.07B	13.05B	10.55B	10.57B
Investing Cash Flow	0.00	-5.96B	-5.86B	-4.34B	-7.20B	-10.12B
Financing Cash Flow	0.00	-5.23B	-5.57B	-5.21B	-3.69B	-3.79B

TKC Corporation Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4420.00
• 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:9746, the sentiment is Neutral. The current price of 4420 is below the 20-day moving average (MA) of 4509.00, above the 50-day MA of 4409.90, and above the 200-day MA of 4006.98, indicating a neutral trend. The MACD of -1.68 indicates Positive momentum. The RSI at 43.48 is Neutral, neither overbought nor oversold. The STOCH value of 23.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:9746.

TKC Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9889	80 Outperform	¥95.62B	18.01		2.44%	4.72%	37.65%
9746	78 Outperform	¥227.86B	20.69		2.38%	9.00%	3.63%
Sector *	61 Neutral	$35.48B	7.63	-10.11%	1.88%	8.73%	-9.23%
DTSOF	―	$1.28B	16.23	19.83%	3.13%	―	―
2317	76 Outperform	¥180.11B	19.29		2.41%	10.87%	27.25%
4722	73 Outperform	¥202.55B	20.22		1.92%	13.51%	2.63%
9742	71 Outperform	¥35.77B	17.75		3.08%	2.06%	83.15%

TKC Corporation Corporate Events

TKC Corporation Reports Mixed Financial Results for Q2 FY2025

TKC Corporation reported its consolidated financial results for the second quarter of the fiscal year ending September 2025, showing a 5.9% increase in turnover compared to the previous year. However, the company experienced a decline in operating profit, ordinary profit, and interim net profit attributable to owners of the parent company, with decreases of 3.5%, 4.2%, and 1.0% respectively. Despite these declines, the equity ratio improved to 85.0% from 81.8%, indicating a stronger financial position. The company also announced an increase in dividends for the fiscal year ending September 2025.