TKC Corporation (9746) AI Stock Analysis

• Market Cap: ¥208.27B
• Dividend Yield: 2.73%
• Average Volume (3M): 54.14K
• Price to Earnings (P/E): 18.9
• Beta (1Y): 0.36
• Revenue Growth: 9.00%
• EPS Growth: 3.63%
• Country: JP
• Employees: 2,922
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 60.95
• Shares Outstanding: 52,301,468
• 10 Day Avg. Volume: 64,330
• 30 Day Avg. Volume: 54,136
• PEG Ratio: 3.78
• Price to Book (P/B): 1.95
• Price to Sales (P/S): 2.65
• P/FCF Ratio: 27.40
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ¥4,668.00 ▲(13.71% Upside)

TKC Corporation's overall stock score is driven by strong financial performance and reasonable valuation. The company's robust profitability and low leverage are significant strengths. However, technical analysis presents mixed signals, indicating potential caution in the short term. The absence of earnings call and corporate events data limits further insights.

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 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 and profit growth, high profitability margins, and a solid equity base. The income statement and balance sheet are particularly strong, though cash flow variability poses a moderate risk.

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	79.81B	75.22B	71.92B	67.84B	66.22B	67.81B
Gross Profit	54.81B	53.65B	50.44B	47.93B	46.90B	45.15B
EBITDA	19.41B	19.53B	18.67B	16.70B	15.60B	14.45B
Net Income	11.03B	11.27B	10.83B	9.32B	8.69B	7.82B
Balance Sheet
Total Assets	123.77B	124.88B	116.36B	109.22B	103.41B	97.67B
Cash, Cash Equivalents and Short-Term Investments	36.01B	33.73B	32.09B	29.92B	26.43B	26.77B
Total Debt	732.00M	471.00M	816.00M	1.19B	1.46B	2.07B
Total Liabilities	16.58B	22.71B	21.05B	21.90B	19.99B	20.59B
Stockholders Equity	107.18B	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: Negative
• Last Price: 4105.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 4105 is below the 20-day moving average (MA) of 4128.25, below the 50-day MA of 4224.23, and above the 200-day MA of 4038.26, indicating a bearish trend. The MACD of -53.36 indicates Positive momentum. The RSI at 38.84 is Neutral, neither overbought nor oversold. The STOCH value of 24.64 is Neutral, 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	76 Outperform	¥89.85B	16.74	―	3.13%	5.09%	26.12%
2317	76 Outperform	¥193.15B	18.58	―	2.36%	13.82%	37.07%
9682	74 Outperform	¥206.64B	19.03	19.83%	2.66%	10.18%	56.98%
4722	73 Outperform	¥188.65B	18.46	―	2.02%	9.29%	1.18%
9746	72 Outperform	¥208.27B	18.91	―	2.73%	9.00%	3.63%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
9742	56 Neutral	¥33.56B	26.85	―	2.69%	-2.93%	-30.16%

TKC Corporation Corporate Events

TKC Corporation Increases Dividend Forecast for FY 2025

TKC Corporation announced an increase in its dividend forecast for the fiscal year ending September 2025, raising the year-end dividend from 50.00 yen to 60.00 yen per share. This decision reflects the company’s appreciation for its shareholders and is based on favorable business results forecasts for the current period.

TKC Corporation Reports Q3 Financial Results and Dividend Increase

TKC Corporation reported its consolidated financial results for the third quarter of the fiscal year ending September 2025, showing an 8.3% increase in turnover compared to the previous year. Despite the increase in turnover, the company experienced a decline in operating profit, ordinary profit, and net profit attributable to owners of the parent company. The equity ratio improved to 86.6% from 81.8% in the previous year, indicating a stronger financial position. The company also announced a revision in its dividend forecast, with an increase in the total annual dividend to 110 yen, reflecting a positive outlook for stakeholders.