Tamagawa Holdings Co., Ltd. (6838) AI Stock Analysis

• Market Cap: ¥4.94B
• Dividend Yield: 0.79%
• Average Volume (3M): 77.91K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.10
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: JP
• Employees: 263
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): -0.41
• Shares Outstanding: 6,584,900
• 10 Day Avg. Volume: 107,790
• 30 Day Avg. Volume: 77,910
• 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: ¥741.00
• Price Target Upside: -2.24% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 45 Neutral
• Price Target: ¥741.00 ▼(-2.24% Downside)

The overall stock score is primarily influenced by financial performance challenges, including declining revenues and profitability issues. Technical analysis indicates bearish momentum, and valuation metrics reflect ongoing financial struggles. Improvements in cash flow provide some optimism, but strategic changes are needed for long-term growth.

Tamagawa Holdings Co., Ltd. Business Overview & Revenue Model

Company Description

Tamagawa Holdings Co., Ltd. (6838) is a Japanese company engaged in the manufacturing and sale of electronic and telecommunications equipment. The company operates in sectors including renewable energy and electronics, providing solutions and services that cater to various industrial and commercial needs. Its core products and services include the development and deployment of solar power generation systems and the provision of electronic components and communication devices.

How the Company Makes Money

Tamagawa Holdings Co., Ltd. primarily generates revenue through the sale and installation of solar power generation systems, which are in high demand due to the global shift towards renewable energy. Additionally, the company earns income from its electronics and communication equipment segment by providing specialized components and devices to businesses and consumers. Key revenue streams include the sale of hardware, installation services, and maintenance contracts. Strategic partnerships with other technology firms and renewable energy companies play a significant role in expanding its market reach and enhancing its product offerings, contributing to its overall earnings.

Tamagawa Holdings Co., Ltd. Financial Statement Overview

Summary

Tamagawa Holdings Co., Ltd. faces declining revenues and profitability struggles, with increased leverage indicating financial risk. Recent cash flow improvements are positive, but overall financial health suggests the need for strategic enhancements to boost profitability and growth.

Income Statement

The company has faced declining revenues over recent years, with a notable drop from 2021 to 2024. The gross profit margin has decreased, and the company has struggled with negative net income in recent periods, leading to negative net profit margins. Despite slight improvements in TTM, the EBIT and EBITDA margins remain low, indicating operational challenges.

Balance Sheet

The balance sheet shows a stable equity base, but the debt-to-equity ratio has increased, reflecting higher leverage. The equity ratio remains reasonable, providing some stability. Return on equity has been negative due to recent losses, highlighting profitability issues. Overall, the balance sheet reflects a mix of stability and increasing financial risk.

Cash Flow

Cash flow has shown signs of recovery in the TTM period, with positive operating cash flow and a significant improvement in free cash flow. However, historical periods of negative free cash flow and operating cash flow raise concerns about sustainability. The cash flow to net income ratios have been volatile, indicating inconsistent cash generation relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.51B	4.74B	4.15B	3.29B	6.24B	6.74B
Gross Profit	1.29B	1.32B	1.09B	889.74M	1.67B	1.47B
EBITDA	57.27M	289.52M	12.53M	-198.22M	513.85M	571.25M
Net Income	-240.00M	-168.00M	-443.35M	-482.79M	148.70M	90.23M
Balance Sheet
Total Assets	9.54B	9.84B	9.57B	8.64B	8.36B	8.39B
Cash, Cash Equivalents and Short-Term Investments	992.00M	1.74B	1.21B	1.06B	2.06B	2.45B
Total Debt	3.19B	3.64B	3.22B	2.23B	1.12B	1.36B
Total Liabilities	4.59B	5.16B	4.69B	3.63B	2.92B	3.22B
Stockholders Equity	4.95B	4.68B	4.89B	5.00B	5.44B	5.16B
Cash Flow
Free Cash Flow	0.00	305.14M	-1.21B	-2.11B	-124.28M	1.15B
Operating Cash Flow	0.00	440.57M	-1.13B	-1.88B	-16.80M	1.23B
Investing Cash Flow	0.00	-97.06M	-859.00K	-273.42M	-165.85M	23.85M
Financing Cash Flow	0.00	391.57M	1.27B	1.15B	-170.10M	-862.49M

Tamagawa Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 758.00
• 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:6838, the sentiment is Negative. The current price of 758 is below the 20-day moving average (MA) of 800.80, below the 50-day MA of 784.98, and above the 200-day MA of 735.02, indicating a neutral trend. The MACD of -10.96 indicates Positive momentum. The RSI at 40.41 is Neutral, neither overbought nor oversold. The STOCH value of 15.74 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6838.

Tamagawa Holdings Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7509	73 Outperform	¥5.99B	5.06	8.07%	3.34%	5.13%	-20.24%
8835	72 Outperform	¥6.08B	13.37	2.44%	4.99%	4.53%	-21.01%
3204	72 Outperform	¥3.96B	4.93	5.95%	2.93%	0.28%	30.35%
5355	71 Outperform	¥4.04B	12.50	6.58%	2.83%	1.65%	-0.31%
5856	48 Neutral	¥4.14B	2.90	6.65%	―	-61.02%	―
6838	45 Neutral	¥4.94B	―	―	0.79%	―	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%