TKC Corporation (9746) AI Stock Analysis

• Market Cap: ¥180.86B
• Dividend Yield: 2.55%
• Average Volume (3M): 53.77K
• Price to Earnings (P/E): 9.3
• Beta (1Y): 0.37
• 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: ¥4,068.00 ▼(-0.90% Downside)
• 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

Strong balance sheet / low leverage

Extremely low leverage and an 83.6% equity ratio give TKC durable financial flexibility. Minimal debt reduces refinancing and interest risk, preserving cash for product development, services and dividends through economic cycles and funding strategic initiatives.

Consistent revenue growth and high margins

Sustained revenue growth alongside very healthy gross and net margins indicates a scalable software-and-services model. High margins support strong operating cash generation and reinvestment capacity, underpinning long-term profitability and business resilience.

Strong cash generation / conversion

High FCF-to-net-income and robust operating cash conversion show the business turns accounting profits into real cash. Durable cash generation supports recurring service delivery, funds upgrades, and maintains capital allocation flexibility over the medium term.

Negative Factors

Decline in free cash flow growth

A recent drop in free cash flow growth, if sustained, would weaken the company's funding for R&D and customer support. Reduced FCF growth can constrain dividends, strategic investment pace and make the firm more sensitive to cost or demand shocks over several quarters.

Margin pressure: slight gross margin decline

Even a modest erosion in gross margin for a high-margin software/services provider implies rising costs or pricing pressure. Persistent margin compression would reduce operating leverage, limit reinvestment, and could materially lower free cash flow over the medium term.

Concentration in public & professional sectors

Heavy reliance on local governments and professional firms makes revenue growth sensitive to public budgets and slow procurement cycles. This limits addressable-market expansion and can make top-line progress lumpy or capped during tighter municipal or client spending periods.

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 makes money mainly by providing (1) software and cloud-based systems, and (2) the associated recurring and support services that keep those systems running for customers. Key revenue streams typically include: - Software / system offerings: Fees from providing packaged applications and platforms used by target customer groups (e.g., local government operations and professional-firm practice workflows). Revenue may be recognized through licenses, usage-based fees, or subscription-style arrangements depending on the product/service configuration. - Cloud and service subscriptions: Ongoing recurring revenue from hosting and operating systems in TKC-managed environments (e.g., cloud services), including access fees for users and organizations. - Maintenance and support: Recurring fees for system maintenance, updates, customer support, and help-desk services. - Implementation and related services: One-time or project-based revenue from installation, configuration, data migration, customization (where applicable), training, and other professional services tied to deployments. Important earnings drivers are the size and retention of its installed user base (which supports recurring subscription/maintenance income) and the continued adoption/upgrade cycle of systems by local governments and professional offices. Specific material partnerships, customer concentration, or segment-level revenue breakdowns are null.

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	52.95B	49.79B	47.23B	46.18B
EBITDA	20.64B	19.02B	17.87B	16.40B	15.26B
Net Income	12.09B	11.27B	10.83B	9.32B	8.69B
Balance Sheet
Total Assets	132.29B	126.05B	117.32B	109.30B	103.66B
Cash, Cash Equivalents and Short-Term Investments	36.88B	33.70B	32.09B	29.92B	26.43B
Total Debt	244.00M	471.00M	816.00M	1.19B	1.46B
Total Liabilities	23.80B	23.87B	22.01B	21.97B	20.24B
Stockholders Equity	108.50B	102.18B	95.31B	87.33B	83.42B
Cash Flow
Free Cash Flow	11.06B	11.35B	11.40B	12.29B	9.13B
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: Positive
• 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 3850.50, above the 50-day MA of 4034.20, and below the 200-day MA of 4181.93, indicating a bearish trend. The MACD of -116.43 indicates Positive momentum. The RSI at 28.69 is Positive, neither overbought nor oversold. The STOCH value of 14.84 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	¥88.67B	19.07	―	2.32%	5.09%	26.12%
2317	76 Outperform	¥151.48B	14.81	―	2.30%	13.82%	37.07%
9746	73 Outperform	¥180.86B	9.34	―	2.55%	10.98%	8.65%
4722	67 Neutral	¥141.73B	15.01	―	2.22%	9.29%	1.18%
9682	66 Neutral	¥169.13B	15.99	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	¥44.58B	74.72	―	2.77%	-2.93%	-30.16%

TKC Corporation Corporate Events

TKC Corporation Completes Share Buyback and Announces Retirement of 400,000 Shares

TKC Corporation has completed a share buyback authorized by its board on March 11, 2026, acquiring 400,000 shares of its common stock through the Tokyo Stock Exchange’s ToSTNeT-3 off-auction repurchase system. The shares were purchased on March 12, 2026 at 3,780 yen per share, for a total outlay of 1,512,000,000 yen, representing up to 0.79% of its issued shares excluding treasury stock.

The company will retire all 400,000 repurchased shares on March 31, 2026, reducing its total number of issued shares to 50,241,466 and leaving 488,561 shares as treasury stock, including shares held by a BIP Trust. This capital measure tightens TKC’s share base and may enhance shareholder value by increasing earnings per share and signaling management’s confidence in the company’s financial position and long-term prospects.

The most recent analyst rating on (JP:9746) stock is a Buy with a Yen4494.00 price target. To see the full list of analyst forecasts on TKC Corporation stock, see the JP:9746 Stock Forecast page.

TKC Corp to Buy Back and Retire Up to 0.79% of Shares to Lift Capital Efficiency

TKC Corporation’s board has approved a share buyback and subsequent retirement of treasury stock to improve capital efficiency and enhance shareholder returns. The company plans to repurchase up to 400,000 shares, representing 0.79% of its outstanding stock, for a maximum of ¥1.512 billion through the Tokyo Stock Exchange’s ToSTNeT-3 off-auction own-share repurchase system at the March 11 closing price, with all acquired shares scheduled for cancellation by March 31, 2026.

The transaction is designed to fine-tune TKC’s capital structure after a comprehensive review of its financial position and market conditions, potentially boosting per-share metrics and signaling management’s confidence in the firm’s valuation. Results of the buyback execution will be disclosed following the planned trading window on March 12, 2026, with the final number of shares to be retired to be announced once the acquisition is completed.

The most recent analyst rating on (JP:9746) stock is a Buy with a Yen4575.00 price target. To see the full list of analyst forecasts on TKC Corporation stock, see the JP:9746 Stock Forecast page.

TKC Corporation Completes ¥4.4 Billion Share Buyback and Treasury Share Retirement

TKC Corporation has executed a share buyback and retirement program, acquiring 1.1 million shares of its common stock for approximately 4.44 billion yen through the Tokyo Stock Exchange’s ToSTNeT-3 off-auction repurchase system. The shares, bought at 4,035 yen each on February 16, 2026, represent about 2.13% of the company’s issued shares excluding treasury stock and will all be retired on February 27, 2026.

Following this retirement, TKC’s total issued shares will decrease to 50,641,466, while treasury stock will stand at 448,561 shares, including shares held in a BIP trust. The transaction, fully aligned with a board resolution passed on February 13, 2026, effectively returns capital to shareholders and is likely to enhance earnings per share and capital efficiency, potentially supporting the company’s valuation in the market.

The most recent analyst rating on (JP:9746) stock is a Buy with a Yen4575.00 price target. To see the full list of analyst forecasts on TKC Corporation stock, see the JP:9746 Stock Forecast page.

TKC Corporation Launches ¥4.4 Billion Share Buyback and Plans Full Retirement of Repurchased Shares

TKC Corporation’s board has approved a share buyback of up to 1.1 million shares, representing 2.13% of its issued shares excluding treasury stock, for a maximum total of ¥4.44 billion. The company will execute the repurchase through the Tokyo Stock Exchange’s ToSTNeT-3 off-auction trading system, placing a one-time order on February 16 at today’s closing price of ¥4,035 per share.

Following completion of the buyback, TKC plans to retire all shares acquired by February 27, effectively reducing the total number of shares outstanding. The initiative is aimed at improving capital efficiency and enhancing shareholder returns, reflecting management’s confidence in the company’s financial position and its commitment to shareholder-focused capital allocation.

The most recent analyst rating on (JP:9746) stock is a Buy with a Yen4575.00 price target. To see the full list of analyst forecasts on TKC Corporation stock, see the JP:9746 Stock Forecast page.

TKC Corporation Outlines 60th Term Q1 Results and Outlook

TKC Corporation has released its 60th term first quarter financial results for the fiscal year ending September 2026, outlining operating results, key topics and a business results forecast. The disclosure signals the start of its new fiscal reporting cycle and frames upcoming management policies and main activities, but offers no quantitative figures or detailed strategic implications for stakeholders.

The most recent analyst rating on (JP:9746) stock is a Buy with a Yen4575.00 price target. To see the full list of analyst forecasts on TKC Corporation stock, see the JP:9746 Stock Forecast page.

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.