TETSUJIN Holdings.Inc. (2404) AI Stock Analysis

• Market Cap: ¥6.78B
• Dividend Yield: N/A
• Average Volume (3M): 35.81K
• Price to Earnings (P/E): 20.8
• Beta (1Y): 0.27
• Revenue Growth: 11.57%
• EPS Growth: N/A
• Country: JP
• Employees: 384
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Travel Lodging
• EPS (TTM): 6.78
• Shares Outstanding: 13,817,362
• 10 Day Avg. Volume: 10,950
• 30 Day Avg. Volume: 35,806
• 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: ¥563.00
• Price Target Upside: 10.83% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 56 Neutral
• Price Target: ¥563.00 ▲(10.83% Upside)

TETSUJIN Holdings Inc. has a moderate overall stock score driven by strong cash flow management and fair valuation. However, high leverage and low profitability margins pose significant risks. Technical indicators suggest neutral to bearish momentum, which could impact short-term performance.

TETSUJIN Holdings.Inc. Business Overview & Revenue Model

Company Description

TETSUJIN Holdings, Inc. (2404) is a diversified entertainment services company based in Japan. The company operates primarily in the leisure and amusement sectors, with a strong presence in karaoke entertainment and related services. TETSUJIN Holdings is known for its karaoke chain, providing customers with a comprehensive entertainment experience that combines music, food, and social interaction.

How the Company Makes Money

TETSUJIN Holdings, Inc. generates revenue primarily through its karaoke entertainment facilities spread across Japan. The company makes money by charging customers for time spent in private karaoke rooms, offering a range of pricing plans based on duration and room type. Additionally, TETSUJIN Holdings enhances its revenue through the sale of food and beverages in its karaoke establishments, which are often a significant part of the customer experience. The company may also derive income from related entertainment services and collaborations with other businesses in the leisure sector, although specific partnerships and their financial impact are not detailed.

TETSUJIN Holdings.Inc. Financial Statement Overview

Summary

TETSUJIN Holdings Inc. shows moderate improvement in its income statement with a revenue growth rate of 7.23% and improved EBIT and EBITDA margins. However, profitability margins remain low, and the balance sheet reveals high leverage with a debt-to-equity ratio of 11.83, indicating financial risk. Cash flow performance is strong, with a free cash flow growth rate of 181.76% year-over-year, indicating effective cash management.

Income Statement

TETSUJIN Holdings Inc. shows moderate improvement in its income statement. The gross profit margin stands at 13.96% and the net profit margin at 0.06%. The revenue growth rate is 7.23%. EBIT and EBITDA margins improved to 0.98% and 3.59%, respectively, signaling a recovery from previous losses. However, margins remain relatively low, indicating room for improvement in profitability.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 11.83, indicating significant leverage and potential financial risk. Return on equity is low at 1.80%, while the equity ratio is a mere 5.17%, suggesting limited financial stability and a heavy reliance on debt financing.

Cash Flow

Cash flow analysis shows a strong performance with a free cash flow growth rate of 181.76% year-over-year. The operating cash flow to net income ratio is 105.94, and the free cash flow to net income ratio is 55.16, both indicating effective cash management despite low net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.61B	7.07B	6.59B	5.88B	5.24B	5.53B
Gross Profit	1.15B	987.53M	845.75M	663.39M	748.48M	340.17M
EBITDA	443.36M	253.56M	303.17M	299.70M	-38.84M	-1.24B
Net Income	214.52M	4.02M	5.55M	32.34M	-281.61M	-1.58B
Balance Sheet
Total Assets	4.60B	4.33B	4.32B	4.50B	4.94B	5.79B
Cash, Cash Equivalents and Short-Term Investments	892.85M	738.61M	880.36M	951.37M	1.44B	1.85B
Total Debt	2.76B	2.65B	2.91B	3.09B	3.52B	4.00B
Total Liabilities	4.16B	4.10B	4.10B	4.28B	4.75B	5.30B
Stockholders Equity	437.02M	223.53M	220.23M	220.85M	190.16M	484.85M
Cash Flow
Free Cash Flow	0.00	221.69M	78.69M	127.06M	-182.41M	-1.05B
Operating Cash Flow	0.00	425.90M	217.42M	187.00M	-165.18M	-746.59M
Investing Cash Flow	0.00	-221.38M	-107.54M	-22.91M	228.46M	-445.43M
Financing Cash Flow	0.00	-346.08M	-182.01M	-616.72M	-473.91M	1.71B

TETSUJIN Holdings.Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 508.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2404, the sentiment is Negative. The current price of 508 is below the 20-day moving average (MA) of 538.00, below the 50-day MA of 564.72, and above the 200-day MA of 483.56, indicating a neutral trend. The MACD of -12.21 indicates Positive momentum. The RSI at 31.50 is Neutral, neither overbought nor oversold. The STOCH value of 5.75 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2404.

TETSUJIN Holdings.Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4691	72 Outperform	¥18.59B	6.96	21.55%	1.30%	20.01%	290.10%
9723	72 Outperform	¥7.66B	9.29	29.00%	0.47%	3.63%	-7.07%
9713	61 Neutral	¥16.47B	6.94	8.09%	0.46%	28.56%	213.63%
9720	57 Neutral	¥8.57B	29.90	8.58%	0.34%	9.47%	-57.17%
2404	56 Neutral	¥6.78B	20.84	―	―	11.57%	―
9704	53 Neutral	¥16.25B	66.29	2.84%	―	17.45%	664.98%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%