Techno Alpha Co., Ltd. (3089) AI Stock Analysis

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Techno Alpha Co., Ltd.

(TSE/TYO:3089)

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Rating:70Outperform

Price Target:JPY 1,117.00▲(10.70% Upside)

Action:reiterated

Date:10/02/26

The score is driven primarily by solid financial performance (strong 2025 margin/earnings improvement and low leverage) and attractive valuation (low P/E and healthy dividend yield). These positives are partly offset by weak technicals, with the stock trading below major moving averages and negative momentum indicators.

Positive Factors

Improving ProfitabilityThe substantial improvement in net and operating margins indicates stronger earnings conversion and better underlying profitability. If maintained, this progress can support internal investment, strengthen resilience during industry cycles, and improve the company’s ability to compound earnings over the next several quarters.

Negative Factors

Inconsistent Revenue GrowthThe uneven revenue pattern suggests that demand and business performance remain cyclical rather than steadily expanding. A modest rebound after a significant decline makes future growth less predictable, which can limit operating leverage and make sustained margin and earnings improvement harder to maintain.

Techno Alpha Co., Ltd. (3089) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 1.78B
Dividend Yield: 3.48%
Average Volume (3M): 7,206
Price to Earnings (P/E): 9.6
Beta (1Y): 0.55
Revenue Growth: 4.08%
EPS Growth: -60.76%
Country: Japan
Employees: 87
Sector: Technology
Sector Strength: 61
Industry: Semiconductors

Techno Alpha Co., Ltd. Business Overview & Revenue Model

Company Description

Techno Alpha Co., Ltd., a trading enterprise founded in Shinagawa, Japan, in 1989, conducts its business both domestically and internationally. The company is a key importer and supplier of equipment for semiconductor manufacturing, including vacuum...

Techno Alpha Co., Ltd. Financial Statement Overview

Summary

Fundamentals are solid overall, led by a meaningful profitability turnaround (net margin ~9.1% in 2025 and EBIT margin ~13.0% vs ~7.0% in 2024) and a conservative balance sheet (debt-to-equity ~0.13, ROE ~17.8%). The main drag is cyclicality/consistency: revenue declined in 2024 (~-9.1%) with only a modest rebound in 2025 (~+4.0%), and cash flow has been volatile across years despite a strong 2025 recovery.

Income Statement

74Positive

Balance Sheet

82Very Positive

Cash Flow

61Positive

Financial statement breakdown
Breakdown	TTM	Nov 2025	Nov 2024	Nov 2023	Nov 2022	Nov 2021
Income Statement
Total Revenue	4.52B	4.52B	3.97B	4.37B	4.27B	3.15B
Gross Profit	1.24B	1.53B	1.15B	1.09B	1.18B	889.39M
EBITDA	308.46M	614.37M	306.36M	222.07M	350.91M	149.47M
Net Income	185.64M	412.65M	212.42M	166.22M	229.23M	113.39M
Balance Sheet
Total Assets	3.27B	3.34B	3.02B	2.98B	2.78B	2.59B
Cash, Cash Equivalents and Short-Term Investments	710.58M	725.12M	449.33M	657.58M	573.90M	527.81M
Total Debt	300.87M	302.17M	512.91M	303.72M	200.89M	402.07M
Total Liabilities	921.29M	1.02B	1.07B	1.18B	1.09B	1.07B
Stockholders Equity	2.35B	2.31B	1.96B	1.80B	1.69B	1.52B
Cash Flow
Free Cash Flow	550.68M	550.68M	-392.57M	66.52M	200.28M	-341.65M
Operating Cash Flow	606.59M	606.59M	-336.03M	79.87M	247.77M	-328.49M
Investing Cash Flow	-60.96M	-60.96M	-20.47M	-39.70M	47.07M	51.68M
Financing Cash Flow	-272.51M	-272.51M	147.53M	46.04M	-248.75M	54.49M

Techno Alpha Co., Ltd. Technical Analysis

Technical Analysis SentimentPositive

Last Price1009.00

Price Trends

50DMA1037.22Negative

100DMA1052.91Negative

200DMA1107.96Negative

Market Momentum

MACD-8.18Negative

RSI48.07Neutral

STOCH30.30Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3089, the sentiment is Positive. The current price of 1009.00 is above the 20-day moving average (MA) of 1000.60, below the 50-day MA of 1037.22, and below the 200-day MA of 1107.96, indicating a neutral trend. The MACD of -8.18 indicates Negative momentum. The RSI at 48.07 is Neutral, neither overbought nor oversold. The STOCH value of 30.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3089.

Techno Alpha Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

JP:3089 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:8150	77Outperform	JPY 39.18B	9.13	9.51%	5.97%	1.30%	-8.31%
JP:7087	74Outperform	JPY 8.58B	8.12	―	3.30%	7.42%	104.71%
JP:3089	70Outperform	JPY 1.76B	9.61	―	3.48%	4.08%	-60.76%
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
JP:6769	45Neutral	JPY 9.85B	1397.01	―	1.57%	86.23%	-19.85%
JP:6656	40Underperform	JPY 2.23B	10.23	―	―	36.25%	―
JP:6614	38Underperform	JPY 3.58B	-289.65	―	1.86%	-0.43%	73.73%

* Technology Sector Average

Performance Comparison

JP:3089 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:3089	Techno Alpha Co., Ltd.	1009.00	-248.91	-19.79%
JP:8150	Sanshin Electronics Co., Ltd.	3230.00	393.77	13.88%
JP:6614	Shikino High-Tech CO.,LTD.	840.00	128.31	18.03%
JP:6656	Inspec Inc.	551.00	-31.00	-5.33%
JP:6769	Thine Electronics, Inc.	925.00	117.43	14.54%
JP:7087	WILLTEC Co., Ltd.	1417.00	171.89	13.81%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 02, 2026

Techno Alpha Co., Ltd. AI Stock Analysis