Temona, Inc. (3985) AI Stock Analysis

Temona, Inc.

(TSE/TYO:3985)

Select Model

Rating:63Neutral

Price Target:JPY 213.00▲(18.99% Upside)

Action:reiterated

Date:08/06/26

The overall score of 63 reflects a neutral to slightly positive outlook, driven primarily by improving financial performance (profitability recovery, strong cash flows) and neutral technical momentum. The weak trailing valuation tempers the score, but its lower weight limits the downside. The stock shows signs of stabilization after prior declines, though it has not yet regained its historical strength.

Positive Factors

Profitability recoveryThe 2025 return to positive earnings, with net margin around 4% and EBIT margin around 8.6%, marks a meaningful recovery from losses in 2022–2024. Sustained profitability would improve internal funding capacity and provide a more durable base for operating decisions.

Negative Factors

Persistent revenue contractionRevenue fell materially in both 2024 and 2025, by roughly 22% and 17%, respectively. A multi-year contraction weakens operating scale and makes future profit recovery less secure, because the recent return to profitability is occurring on a shrinking top-line base.

Temona, Inc. (3985) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 1.92B
Dividend Yield: ―
Average Volume (3M): 8,671
Price to Earnings (P/E): -35.3
Beta (1Y): 0.56
Revenue Growth: -2.43%
EPS Growth: 78.90%
Country: Japan
Employees: 115
Sector: Communication Services
Sector Strength: 60
Industry: Software - Application

Temona, Inc. Business Overview & Revenue Model

Company Description

TEMONA.inc. is a Japanese firm specializing in the e-commerce sector. Its core offerings include "Egg repeat," a cloud-based system designed for retail mail-order businesses, and "subscription @," a specialized management platform tailored for variou...

Temona, Inc. Financial Statement Overview

Summary

Temona returned to profitability with 4.0% net margin and 53.3% gross margin. Revenue grew 0.4% after prior declines. Strong cash flow conversion (FCF 2.43x net income) and moderate leverage. While not yet at historical peaks, the turnaround is positive.

Income Statement

65Positive

Balance Sheet

60Neutral

Cash Flow

75Positive

Financial statement breakdown
Breakdown	TTM	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	1.79B	1.83B	1.83B	2.34B	2.25B	2.41B
Gross Profit	803.28M	976.47M	937.20M	1.23B	1.29B	1.45B
EBITDA	66.21M	218.65M	-126.43M	52.64M	-47.53M	522.07M
Net Income	-54.29M	73.47M	-393.55M	-127.96M	-175.72M	290.30M
Balance Sheet
Total Assets	2.10B	1.77B	1.54B	2.26B	2.31B	2.19B
Cash, Cash Equivalents and Short-Term Investments	1.03B	1.23B	910.42M	1.20B	994.96M	1.45B
Total Debt	904.60M	714.45M	624.92M	830.43M	709.90M	436.65M
Total Liabilities	1.38B	999.72M	842.72M	1.16B	1.11B	827.63M
Stockholders Equity	723.04M	764.64M	698.46M	1.09B	1.20B	1.36B
Cash Flow
Free Cash Flow	69.47M	178.47M	28.96M	227.28M	-145.53M	454.88M
Operating Cash Flow	112.96M	223.96M	29.58M	229.72M	-128.28M	471.35M
Investing Cash Flow	16.60M	6.60M	-117.79M	-146.17M	-379.93M	-135.93M
Financing Cash Flow	90.52M	90.52M	-201.91M	122.04M	55.75M	-129.99M

Temona, Inc. Technical Analysis

Technical Analysis SentimentNegative

Last Price179.00

Price Trends

50DMA187.50Negative

100DMA182.73Negative

200DMA192.30Negative

Market Momentum

MACD-2.25Positive

RSI40.24Neutral

STOCH30.74Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3985, the sentiment is Negative. The current price of 179.00 is below the 20-day moving average (MA) of 183.25, below the 50-day MA of 187.50, and below the 200-day MA of 192.30, indicating a bearish trend. The MACD of -2.25 indicates Positive momentum. The RSI at 40.24 is Neutral, neither overbought nor oversold. The STOCH value of 30.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3985.

Temona, Inc. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (60)

Financial Indicators

JP:3985 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:3922	85Outperform	JPY 30.29B	13.13	―	0.63%	12.93%	27.79%
JP:6180	78Outperform	JPY 5.96B	13.71	―	6.93%	-1.51%	-34.53%
JP:2489	68Neutral	JPY 15.09B	8.63	―	1.65%	4.61%	―
JP:6185	64Neutral	JPY 5.11B	24.60	―	―	8.74%	-57.20%
JP:3985	63Neutral	JPY 1.90B	-35.30	―	―	-2.43%	78.90%
Sector *	60Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
JP:3674	50Neutral	JPY 3.32B	-11.10	―	―	10.56%	-436.94%

* Communication Services Sector Average

Performance Comparison

JP:3985 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:3985	Temona, Inc.	179.00	-69.00	-27.82%
JP:2489	Adways, Inc.	310.00	27.65	9.79%
JP:3674	Aucfan Co., Ltd.	311.00	-32.00	-9.33%
JP:3922	PR TIMES Corporation	2186.00	-772.78	-26.12%
JP:6180	GMO Media, Inc.	3520.00	-1968.70	-35.87%
JP:6185	SMN Corporation	340.00	-139.00	-29.02%

Temona, Inc. Corporate Events

Temona Swings to Loss in Q3 but Holds Course on Full-Year Profit Outlook

Aug 18, 2026

Temona reported consolidated net sales of ¥1,338 million for the nine months ended June 30, 2026, down 3.0% year on year and shifted to an operating loss of ¥29 million, resulting in a net loss attributable to owners of the parent of ¥...

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: Aug 06, 2026

Temona, Inc. AI Stock Analysis