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TESS Holdings Co., Ltd. (5074) AI Stock Analysis
TESS Holdings Co., Ltd.
(TSE/TYO:5074)
The score is primarily held back by financial constraints—especially high leverage and recent negative free cash flow—despite a 2026 rebound in revenue growth and profitability. Technicals add further pressure, with the stock trading below major moving averages and bearish momentum signals. Valuation is reasonable (P/E 16.38) with a ~1.99% yield, but not enough to offset the balance sheet and cash-flow risks.
TESS Holdings Co., Ltd. (5074) vs. iShares MSCI Japan ETF (EWJ)
- Market Cap
- JPY 32.07B
- Dividend Yield
- 2.10%
- Average Volume (3M)
- 1.16M
- Price to Earnings (P/E)
- 15.1
- Beta (1Y)
- 0.79
- Revenue Growth
- 39.62%
- EPS Growth
- 939.82%
- Country
- Japan
- Employees
- 526
- Sector
- Utilities
- Sector Strength
- 66
- Industry
- Renewable Utilities
TESS Holdings Co., Ltd. Business Overview & Revenue Model
Company Description
Tess Holdings Co.,Ltd. operates within the engineering and energy supply industries. The company is engaged in the entire process of project development, from engineering and procurement to the construction of facilities focused on energy efficiency...
TESS Holdings Co., Ltd. Financial Statement Overview
Summary
Operating performance improved in 2026 with stronger revenue growth (8.19%) and a rebound in net margin (~4.15%), but the overall profile is constrained by high leverage (debt-to-equity ~1.78x) and weak cash conversion, with free cash flow still negative in 2026 (~-1.3B) and 2025 (~-1.0B). Earnings durability is also reduced by margin volatility across the period.
Income Statement
66PositiveBalance Sheet
45NeutralCash Flow
34Negative| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 51.22B | 51.22B | 36.68B | 30.64B | 34.41B | 34.25B |
| Gross Profit | 10.42B | 10.42B | 7.45B | 6.55B | 10.61B | 7.54B |
| EBITDA | 12.46B | 12.46B | 7.10B | 5.63B | 10.03B | 6.94B |
| Net Income | 2.12B | 2.12B | 205.00M | 1.19B | 3.59B | 1.99B |
Balance Sheet | ||||||
| Total Assets | 164.95B | 164.95B | 151.26B | 119.13B | 94.09B | 100.72B |
| Cash, Cash Equivalents and Short-Term Investments | 19.14B | 19.14B | 22.88B | 18.34B | 15.36B | 26.04B |
| Total Debt | 92.79B | 92.79B | 92.77B | 65.64B | 57.92B | 70.55B |
| Total Liabilities | 112.52B | 112.52B | 108.40B | 77.33B | 65.75B | 77.91B |
| Stockholders Equity | 52.12B | 52.12B | 42.56B | 41.51B | 28.25B | 22.73B |
Cash Flow | ||||||
| Free Cash Flow | 0 | -1.32B | -1.05B | -15.18B | -979.00M | -2.88B |
| Operating Cash Flow | 0 | 5.10B | 7.82B | -42.00M | 13.83B | 431.00M |
| Investing Cash Flow | 0 | -7.31B | -9.18B | -15.49B | -16.03B | -4.47B |
| Financing Cash Flow | 0 | -1.45B | 3.79B | 18.44B | -5.19B | 17.10B |
TESS Holdings Co., Ltd. Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5074, the sentiment is Negative. The current price of 454.00 is below the 20-day moving average (MA) of 492.50, below the 50-day MA of 557.18, and below the 200-day MA of 669.10, indicating a bearish trend. The MACD of -30.21 indicates Negative momentum. The RSI at 32.10 is Neutral, neither overbought nor oversold. The STOCH value of 49.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5074.
TESS Holdings Co., Ltd. Peers Comparison
Overall Rating
JP:951471Outperform
JP:140760Neutral
JP:951957Neutral
JP:951349.25Neutral
JP:951748Neutral- JP:507447Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| JP:9514 | 71Outperform | JPY 7.18B | 5.86 | ― | 2.41% | 17.83% | 70.40% |
| Sector * | 66Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% |
| JP:1407 | 60Neutral | JPY 80.49B | 9.77 | ― | 3.54% | 19.89% | 50.08% |
| JP:9519 | 57Neutral | JPY 65.52B | 25.65 | 2.20% | ― | 14.29% | -21.04% |
| JP:9513 | 49Neutral | JPY 718.57B | 13.92 | 3.56% | 2.45% | 4.40% | -51.15% |
| JP:9517 | 48Neutral | JPY 59.41B | 9.37 | ― | 2.89% | 3.34% | 1621.01% |
| JP:5074 | 47Neutral | JPY 32.03B | 15.08 | ― | 2.10% | 39.62% | 939.82% |
* Utilities Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| JP:5074 | TESS Holdings Co., Ltd. | 454.00 | 107.08 | 30.87% | |
| JP:9513 | Electric Power Development Co | 4075.00 | 1214.29 | 42.45% | |
| JP:9519 | RENOVA | 721.00 | -118.00 | -14.06% | |
| JP:1407 | West Holdings Corporation | 1980.00 | 552.46 | 38.70% | |
| JP:9514 | EF-ON, Inc. | 332.00 | -54.28 | -14.05% | |
| JP:9517 | eREX Co., Ltd. | 760.00 | 103.86 | 15.83% |
TESS Holdings Co., Ltd. Corporate Events
TESS Engineering Secures ¥9.24 Billion Syndicated Loan With Financial Covenants
TESS Holdings announced that its consolidated subsidiary, TESS Engineering, has entered into a syndicated commitment line arranged by Sumitomo Mitsui Banking Corporation to secure short-term working capital. Under this agreement, TESS Engineering is...
TESS Holdings Corrects Employee Allotments in Restricted Stock Issuance
TESS Holdings Co., Ltd. has corrected figures related to a previously announced issuance of new shares under its restricted stock compensation program for employees. The revision stems from a misclassification of certain personnel between the parent...
TESS Holdings Corrects Employee Allocation in Restricted Stock Issuance
TESS Holdings Co., Ltd. has corrected details in its previously announced issuance of new shares as restricted stock compensation for employees, after discovering classification errors between employees of the parent company and its subsidiaries. The...
TESS Holdings Subsidiary Secures ¥9.24 Billion Syndicated Loan with Covenants
TESS Holdings announced that its consolidated subsidiary, TESS Engineering, has entered into a syndicated commitment line agreement to secure working capital, arranged by Sumitomo Mitsui Banking Corporation. Under this framework, the subsidiary has i...
TESS Holdings Corrects ESG Education Investment Data in FY 2026 Materials
TESS Holdings Co., Ltd. has announced corrections to its previously released financial results meeting materials for the fiscal year ended June 30, 2026. The revisions concern an error in the calculation of per capita investment in education for full...
TESS Holdings Reshapes Board With Director Reappointments and Chairman’s Retirement
TESS Holdings has resolved to propose the reappointment of three key directors, including Representative Director and President Kazuki Yamamoto, Executive Managing Director Toshihiro Takasaki, and Director Mayumi Yoshida, who oversees ESG and women&#...
TESS Holdings Proposes Higher Year-End Dividend and Lifts Payout Forecast
TESS Holdings Co., Ltd. has resolved to propose a year-end dividend of 9.54 yen per share for the fiscal year ended June 30, 2026, with a total planned distribution of 673,934,926 yen from retained earnings and an effective payment date of September...
TESS Holdings Details Comprehensive Decarbonization and Energy-Saving Portfolio
TESS Holdings has outlined its vision to become a leading company in decarbonization, emphasizing a comprehensive suite of technologies and services designed to maximize energy savings for its customers. The financial results meeting materials highli...
TESS Holdings Subsidiary Secures ¥10.78 Billion Syndicated Loan for Working Capital
TESS Engineering Co., Ltd., a core subsidiary of TESS Holdings Co., Ltd., has secured a new syndicated commitment line arranged by Sumitomo Mitsui Banking Corporation to support its working capital needs. The Osaka-based engineering firm specializes...
TESS Holdings Subsidiary Cancels ¥4 Billion Grid Battery EPC Contract
TESS Holdings said its subsidiary TESS Engineering will cancel a roughly ¥4.0 billion EPC construction contract for a power storage plant in Kumamoto, Japan, after the customer DEI Battery Fund Alpha LLC judged the project no longer commercially...
TESS Holdings Raises Dividend Forecast as Adjusted Profits Improve
TESS Holdings Co., Ltd., a Prime Market-listed Japanese company on the Tokyo Stock Exchange under code 5074, prioritizes a stable management base and future business development while emphasizing shareholder returns. Its dividend policy seeks to main...
TESS Holdings Revises Expense Classification in TX2030 Plan Without Changing Profit Targets
TESS Holdings Co., Ltd. is listed on the Prime Market of the Tokyo Stock Exchange under code 5074 and operates across multiple renewable energy segments. Its businesses include power storage plant EPC, solar power development and commissioned EPC, bi...
TESS Holdings Boosts Sales on Storage Battery EPC, Plans Further Investment Despite Profit Dip
TESS Holdings reported consolidated net sales of ¥64 billion for the year ended June 30, 2026, up 25% year on year, with higher gross profit but lower operating and ordinary profit as margins contracted and net profit attributable to owners fell...
TESS Holdings Posts Earnings Surge but Sees Profit Moderation Ahead
TESS Holdings reported a strong rebound in earnings for the fiscal year ended June 30, 2026, with net sales up 39.6% to ¥51.2 billion and operating profit more than doubling to ¥5.3 billion. Profit attributable to owners of parent surged to...
TESS Completes Allocation of Sustainability Financing to Major Renewable Projects
TESS Holdings has fully allocated all funds raised through its sustainability-linked financing instruments, including listing-related proceeds, a sustainability rights offering, and a green loan, totaling more than ¥43 billion. The capital was d...
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 16, 2026