Temona, Inc. (3985) AI Stock Analysis

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Temona, Inc.

(TSE/TYO:3985)

Select Model

Rating:53Neutral

Price Target:JPY 203.00▲(14.69% Upside)

Action:reiterated

Date:08/06/26

The overall score of 53 reflects a mixed operational profile. The company's primary strength lies in its successful return to profitability and strong free cash flow generation. However, this progress is significantly weighed down by consistent top-line revenue declines, a highly negative P/E ratio, and sluggish technical momentum as the stock trades below major moving averages.

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 1.90B
Dividend Yield: ―
Average Volume (3M): 8,864
Price to Earnings (P/E): -35.1
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

Financial performance shows a strong turnaround with exceptional cash flow generation (OCF to Net Income of 3.05) and a return to profitability. However, the score is tempered by persistent revenue declines (-8.3%) and a weakening balance sheet with rising financial leverage.

Income Statement

62Positive

Balance Sheet

48Neutral

Cash Flow

85Very Positive

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 Price177.00

Price Trends

50DMA187.40Negative

100DMA182.76Negative

200DMA192.05Negative

Market Momentum

MACD-2.48Positive

RSI37.46Neutral

STOCH14.44Positive

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 177.00 is below the 20-day moving average (MA) of 182.80, below the 50-day MA of 187.40, and below the 200-day MA of 192.05, indicating a bearish trend. The MACD of -2.48 indicates Positive momentum. The RSI at 37.46 is Neutral, neither overbought nor oversold. The STOCH value of 14.44 is Positive, 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	90Outperform	JPY 29.69B	13.65	―	0.63%	12.93%	27.79%
JP:6180	78Outperform	JPY 6.02B	13.63	―	6.89%	-1.51%	-34.53%
JP:2489	68Neutral	JPY 12.00B	16.92	―	2.03%	4.61%	―
JP:6185	64Neutral	JPY 4.97B	24.53	―	―	8.74%	-57.20%
Sector *	60Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
JP:3985	53Neutral	JPY 1.91B	-35.11	―	―	-2.43%	78.90%
JP:3674	50Neutral	JPY 3.30B	-11.13	―	―	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.	177.00	-59.00	-25.00%
JP:2489	Adways, Inc.	317.00	28.79	9.99%
JP:3674	Aucfan Co., Ltd.	310.00	-31.00	-9.09%
JP:3922	PR TIMES Corporation	2192.00	-683.27	-23.76%
JP:6180	GMO Media, Inc.	3500.00	-2084.66	-37.33%
JP:6185	SMN Corporation	339.00	-122.00	-26.46%

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