TKC Corporation (9746) AI Stock Analysis

• Market Cap: ¥221.68B
• Dividend Yield: 2.44%
• Average Volume (3M): 73.10K
• Price to Earnings (P/E): 19.9
• Beta (1Y): 0.37
• Revenue Growth: 6.15%
• EPS Growth: 2.06%
• Country: JP
• Employees: 2,922
• Sector: Technology
• Sector Strength: 83
• Industry: Information Technology Services
• EPS (TTM): 67.65
• Shares Outstanding: 52,301,468
• 10 Day Avg. Volume: 62,420
• 30 Day Avg. Volume: 73,100
• PEG Ratio: -21.52
• Price to Book (P/B): 2.11
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 78 Outperform
• Price Target: ¥4,811.00 ▲(11.88%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 engages in the accounting firm, local governments, and printing businesses in Japan. The company provides information processing, and software and consulting services; and sells office equipment and office supplies for computer-based accounting, as well as help desk services to accounting firms and their clients, medium and large size companies, local municipalities, etc. It also develops and offers software to be installed on system devices for information service applications; manufactures and sells business forms for PCs and general office forms; and publishes books and monthly magazines on business management, and taxing and accounting. In addition, the company provides data printing and systems consulting services; security, maintenance, and repair; liability insurance and banking agency; and cloud computing and Internet services. Further, it engages in the development and maintenance of website; money loaning and mediation of money loaning for accounting firms and their client companies; collections administration on behalf of accounting firms and their client companies; and development, sale, and maintenance of computer software, office equipment and supplies, and legal information database services. The company was formerly known as Tochigi Prefecture Computing Center Co., Ltd. and changed its name to TKC Corporation in December 1986. TKC Corporation was incorporated in 1966 and is headquartered in Utsunomiya, Japan.

How the Company Makes Money

TKC Corporation generates revenue through a diverse range of IT services and products. The company's primary revenue streams include the sale of software licenses, subscription-based cloud services, and consulting fees. TKC Corporation's software solutions, particularly in accounting and tax-related areas, are widely used by SMEs and local government agencies, providing a steady income from licensing and subscription renewals. Additionally, the company offers IT consulting services, which contribute to its revenue by helping clients implement and optimize their IT infrastructure. TKC Corporation maintains significant partnerships with local governments and financial institutions, which bolster its market presence and drive sales of its tailored software solutions and services.

TKC Corporation Financial Statement Overview

Summary

TKC Corporation exhibits strong financial health with impressive revenue and profit growth, robust profitability margins, and a solid equity base. The income statement and balance sheet scores are high due to effective cost management, low leverage, and financial stability. However, the cash flow score is moderate due to variability in free cash flow.

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	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
75.63B	75.22B	71.92B	67.84B	66.22B	67.81B
	Gross Profit
54.09B	53.65B	50.44B	47.93B	46.90B	45.15B
	EBIT
15.69B	15.51B	14.34B	13.35B	12.31B	11.38B
	EBITDA
18.75B	19.53B	18.67B	16.40B	15.26B	14.45B
	Net Income Common Stockholders
11.37B	11.27B	10.83B	9.32B	8.69B	7.82B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
32.21B	33.73B	32.09B	30.28B	26.81B	27.20B
	Total Assets
118.82B	124.88B	116.36B	109.22B	103.41B	97.67B
	Total Debt
71.00M	471.00M	816.00M	1.19B	1.46B	2.07B
	Net Debt
-32.14B	-33.23B	-31.28B	-28.73B	-24.97B	-24.70B
	Total Liabilities
15.56B	22.71B	21.05B	21.90B	19.99B	20.59B
	Stockholders Equity
103.26B	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: Positive
• Last Price: 4300.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9746, the sentiment is Positive. The current price of 4300 is above the 20-day moving average (MA) of 4138.25, above the 50-day MA of 3989.00, and above the 200-day MA of 3822.68, indicating a bullish trend. The MACD of 83.09 indicates Negative momentum. The RSI at 71.67 is Negative, neither overbought nor oversold. The STOCH value of 81.98 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9746.

TKC Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2317	82 Outperform	¥143.51B	17.09		3.04%	8.68%	24.30%
9889	81 Outperform	¥93.54B	18.13		2.49%	7.17%	45.75%
9746	78 Outperform	¥221.68B	19.90		2.44%	6.15%	2.06%
4722	73 Outperform	¥194.49B	19.22		1.91%	19.53%	9.84%
9682	73 Outperform	¥181.02B	19.54	17.46%	2.84%	8.80%	50.65%
9742	71 Outperform	¥34.16B	14.57		3.22%	0.01%	35.72%
Sector *	62 Neutral	$11.72B	10.43	-7.10%	2.91%	7.41%	-7.94%

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.