TKC Corporation (9746) AI Stock Analysis

• Market Cap: ¥201.07B
• Dividend Yield: 2.55%
• Average Volume (3M): 53.77K
• Price to Earnings (P/E): 13.6
• Beta (1Y): 0.31
• Revenue Growth: 10.98%
• EPS Growth: 8.65%
• Country: JP
• Employees: 2,922
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 115.34
• Shares Outstanding: 50,641,464
• 10 Day Avg. Volume: 61,320
• 30 Day Avg. Volume: 53,773
• PEG Ratio: 2.16
• Price to Book (P/B): 2.01
• Price to Sales (P/S): 2.62
• P/FCF Ratio: 19.75
• 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): 247.6
• Revenue Forecast (FY): ¥87.60B

• Rating: 73 Outperform
• Price Target: ¥4,559.00 ▲(11.06% Upside)
• Action: Reiterated Date: 12/11/25
• Date: Action: Reiterated 12/11/25

TKC Corporation's strong financial performance is the most significant factor, supported by consistent revenue growth and robust profitability. The valuation is reasonable, with an attractive dividend yield. However, technical analysis indicates potential short-term weakness, which slightly offsets the overall positive outlook.

Positive Factors

Revenue Growth

Consistent revenue growth indicates TKC's ability to expand its market reach and adapt to client needs, supporting long-term business stability.

Balance Sheet Health

A low debt-to-equity ratio suggests minimal financial risk, providing TKC with flexibility to invest in growth opportunities.

Profitability

Strong profitability margins indicate efficient operations and pricing power, enhancing TKC's ability to generate sustainable profits.

Negative Factors

Free Cash Flow Decline

A decline in free cash flow growth may limit TKC's ability to fund new projects or return capital to shareholders, impacting future growth.

Cost Pressures

Cost pressures could erode profitability if not managed effectively, potentially impacting TKC's competitive position and margins.

Cash Conversion Efficiency

While effective, any inefficiencies in cash conversion could affect liquidity, impacting TKC's ability to invest in growth or manage debt.

TKC Corporation Business Overview & Revenue Model

Company Description

TKC Corporation (9746) is a diversified company primarily engaged in the provision of technology-driven solutions across various sectors, including telecommunications, electronics, and information technology. The company specializes in developing and manufacturing high-quality electronic components, software solutions, and integrated systems that cater to both consumer and industrial markets. With a focus on innovation and sustainability, TKC Corporation aims to enhance connectivity and efficiency through its cutting-edge products and services.

How the Company Makes Money

TKC Corporation generates revenue through multiple streams, including the sale of electronic components, software licensing, and integrated system solutions. The company benefits from long-term contracts with major telecommunications firms and partnerships with technology providers, which provide a stable revenue base. Additionally, TKC Corporation invests in research and development to create innovative products that meet the evolving needs of its clients, further enhancing its market position. The company also explores opportunities in emerging markets and industries, which contributes to its overall revenue growth.

TKC Corporation Financial Statement Overview

Summary

TKC Corporation exhibits strong financial health with consistent revenue growth, robust profitability, and a solid balance sheet with minimal leverage. The cash flow situation is generally positive, though the recent decline in free cash flow growth warrants monitoring.

Income Statement

TKC Corporation has demonstrated consistent revenue growth over the years, with a notable 4.6% increase in the latest period. The company maintains strong profitability metrics, with a gross profit margin of 66.9% and a net profit margin of 14.5%. EBIT and EBITDA margins are also robust at 19.98% and 25.37%, respectively. These figures indicate a stable and profitable operation, although the slight decline in gross profit margin from the previous year suggests some cost pressures.

Balance Sheet

The balance sheet of TKC Corporation is strong, characterized by a very low debt-to-equity ratio of 0.002, indicating minimal leverage and financial risk. The return on equity is healthy at 11.15%, reflecting efficient use of shareholder funds. The equity ratio stands at 83.6%, showcasing a solid capital structure with a high proportion of equity financing.

Cash Flow

TKC Corporation's cash flow position is solid, with a free cash flow to net income ratio of 88.56%, indicating strong cash generation relative to profits. However, there was a decline in free cash flow growth, which could be a concern if it persists. The operating cash flow to net income ratio of 68.05% suggests effective cash conversion from earnings.

Breakdown	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	83.48B	75.22B	71.92B	67.84B	66.22B
Gross Profit	55.87B	53.65B	50.44B	47.93B	46.90B
EBITDA	21.18B	19.53B	18.67B	16.70B	15.60B
Net Income	12.09B	11.27B	10.83B	9.32B	8.69B
Balance Sheet
Total Assets	129.82B	124.88B	116.36B	109.22B	103.41B
Cash, Cash Equivalents and Short-Term Investments	36.88B	33.73B	32.09B	29.92B	26.43B
Total Debt	244.00M	471.00M	816.00M	1.19B	1.46B
Total Liabilities	21.32B	22.71B	21.05B	21.90B	19.99B
Stockholders Equity	108.50B	102.18B	95.31B	87.33B	83.42B
Cash Flow
Free Cash Flow	11.06B	7.28B	8.28B	9.72B	7.24B
Operating Cash Flow	12.49B	12.80B	13.07B	13.05B	10.55B
Investing Cash Flow	-360.00M	-5.96B	-5.86B	-4.34B	-7.20B
Financing Cash Flow	-8.94B	-5.23B	-5.57B	-5.21B	-3.69B

TKC Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4105.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9746, the sentiment is Negative. The current price of 4105 is above the 20-day moving average (MA) of 4066.75, below the 50-day MA of 4170.50, and below the 200-day MA of 4200.15, indicating a bearish trend. The MACD of -53.36 indicates Positive momentum. The RSI at 39.30 is Neutral, neither overbought nor oversold. The STOCH value of 10.37 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9746.

TKC Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9889	77 Outperform	¥94.16B	16.73	―	2.32%	5.09%	26.12%
2317	76 Outperform	¥160.18B	14.15	―	2.30%	13.82%	37.07%
9746	73 Outperform	¥201.07B	13.60	―	2.55%	10.98%	8.65%
4722	67 Neutral	¥161.03B	13.77	―	2.22%	9.29%	1.18%
9682	66 Neutral	¥181.68B	15.39	18.89%	2.78%	11.90%	60.66%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
9742	58 Neutral	¥42.55B	45.42	―	2.77%	-2.93%	-30.16%

TKC Corporation Corporate Events

TKC Unveils Five-Year Shareholder Return Policy With Buybacks and Higher Dividends

TKC Corporation has adopted a formal shareholder return policy aimed at enhancing capital efficiency and sustaining a return on equity of at least 11%. The board-approved framework includes flexible share buybacks of up to ¥15 billion or 3.5 million shares over a five-year period, alongside a continued commitment to a non-consolidated dividend payout ratio of around 50% and ongoing dividend increases, a practice maintained for 11 consecutive terms. The policy will be in effect from the fiscal year ending September 2026 through the fiscal year ending September 2030, after which it will be reviewed, signaling to investors a multi-year roadmap for capital allocation and shareholder returns.

The most recent analyst rating on (JP:9746) stock is a Buy with a Yen4559.00 price target. To see the full list of analyst forecasts on TKC Corporation stock, see the JP:9746 Stock Forecast page.

TKC Corporation Announces Board Changes to Boost Operations

TKC Corporation announced proposed changes to its board of directors, including the nomination of Yoshinori Nakajima as a new director, aiming to enhance business operations by increasing the number of directors. These changes reflect the company’s strategy to strengthen its management team and focus on customer contributions, potentially impacting its operational efficiency and market positioning.

The most recent analyst rating on (JP:9746) stock is a Buy with a Yen4668.00 price target. To see the full list of analyst forecasts on TKC Corporation stock, see the JP:9746 Stock Forecast page.

TKC Corporation Announces Retirement of Treasury Stock

TKC Corporation has announced its decision to retire 560,000 shares of its common stock, which represents 1.1% of the total number of issued shares prior to retirement. This move, approved by the Board of Directors, is in accordance with Article 178 of the Companies Act and is scheduled to take place on November 28, 2025. The retirement of these shares is expected to impact the company’s capital structure by reducing the total number of issued shares to 51,741,466, potentially enhancing shareholder value and improving financial metrics.

The most recent analyst rating on (JP:9746) stock is a Buy with a Yen4668.00 price target. To see the full list of analyst forecasts on TKC Corporation stock, see the JP:9746 Stock Forecast page.

TKC Corporation Reports Strong Financial Results for FY 2025

TKC Corporation reported its consolidated financial results for the fiscal year ending September 2025, showing an 11% increase in turnover and a 7.3% rise in net profit attributable to owners of the parent company. The company also improved its equity ratio to 83.6% and increased its annual dividend to 110 yen per share, reflecting its strong financial performance and commitment to shareholder returns.

The most recent analyst rating on (JP:9746) stock is a Buy with a Yen4668.00 price target. To see the full list of analyst forecasts on TKC Corporation stock, see the JP:9746 Stock Forecast page.