Tokyo Communications Group,Inc. (7359) AI Stock Analysis

• Market Cap: ¥2.58B
• Dividend Yield: N/A
• Average Volume (3M): 160.62K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.88
• Revenue Growth: -4.55%
• EPS Growth: -45.82%
• Country: JP
• Employees: 138
• Sector: Communication Services
• Sector Strength: 84
• Industry: Advertising Agencies
• EPS (TTM): 1.88
• Shares Outstanding: 10,074,072
• 10 Day Avg. Volume: 260,030
• 30 Day Avg. Volume: 160,623
• PEG Ratio: 0.24
• Price to Book (P/B): 4.62
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Tokyo Communications Group, Inc. scores moderately at 54. The company's financial performance is hindered by negative profitability and high debt levels, posing substantial risks. However, recent improvements in cash flow are encouraging. Technical analysis indicates positive short-term momentum, yet valuation remains unattractive due to negative earnings. The lack of dividend yield further detracts from its appeal.

Tokyo Communications Group,Inc. Business Overview & Revenue Model

Company Description

TokyoTsushin, Inc. provides mobile application, advertising agency, and other services. It plans and develops casual game apps for smartphones. The company was incorporated in 2015 and is based in Shibuya, Japan.

How the Company Makes Money

Tokyo Communications Group, Inc. generates revenue primarily through its digital marketing and advertising solutions. The company offers services such as content creation, media planning, and digital strategy development. By working closely with clients to enhance their digital footprint, the company earns fees for its consulting and project-based services. Additionally, partnerships with media companies and technology providers help expand its service offerings and contribute to revenue growth. The company also benefits from ongoing contracts with clients for continuous digital marketing services.

Tokyo Communications Group,Inc. Financial Statement Overview

Summary

The company shows revenue growth but is struggling with profitability and high leverage. Net income has been consistently negative, posing significant risks. Despite improved cash flow management, the high debt levels and negative net income are concerning.

Income Statement

The company has experienced a consistent revenue growth over the past years, but profitability has been a significant issue. The gross profit margin remains strong, indicating efficient cost management. However, net income has been negative in recent years, leading to negative net profit margins and EBIT margins, which is a major concern.

Balance Sheet

The balance sheet shows a decreasing stockholders' equity and high levels of debt, resulting in an increasing debt-to-equity ratio, which poses a financial risk. The equity ratio has also decreased, indicating more reliance on debt financing. Return on equity is negative due to continuous net losses.

Cash Flow

Cash flow from operations has shown improvement in the latest year, turning positive after being negative in the previous period. The free cash flow has also improved, suggesting better cash management. However, the free cash flow to net income ratio remains concerning due to negative net income.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
5.86B	6.22B	5.07B	4.73B	2.45B
	Gross Profit
4.64B	5.12B	4.22B	4.21B	2.35B
	EBIT
-230.00M	-133.99M	-30.39M	465.22M	383.16M
	EBITDA
149.44M	743.27M	255.90M	730.39M	377.32M
	Net Income Common Stockholders
-413.00M	-204.94M	-267.35M	202.41M	193.34M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
771.14M	1.44B	898.18M	906.05M	693.80M
	Total Assets
3.75B	4.97B	3.88B	4.00B	1.48B
	Total Debt
1.74B	1.95B	1.85B	1.81B	0.00
	Net Debt
971.12M	513.55M	956.36M	906.45M	-693.80M
	Total Liabilities
2.99B	3.23B	3.01B	2.87B	547.30M
	Stockholders Equity
568.62M	970.50M	869.24M	1.13B	931.60M
Cash Flow		Free Cash Flow
83.91M	-83.60M	134.41M	235.08M	249.91M
	Operating Cash Flow
129.13M	-45.20M	257.22M	305.29M	284.52M
	Investing Cash Flow
71.44M	193.14M	-307.38M	-1.85B	-64.75M
	Financing Cash Flow
-868.24M	355.91M	36.41M	1.74B	89.77M

Tokyo Communications Group,Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 256.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7359, the sentiment is Positive. The current price of 256 is above the 20-day moving average (MA) of 253.45, above the 50-day MA of 248.20, and below the 200-day MA of 305.24, indicating a neutral trend. The MACD of 6.39 indicates Negative momentum. The RSI at 64.59 is Neutral, neither overbought nor oversold. The STOCH value of 49.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7359.

Tokyo Communications Group,Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9434	76 Outperform	¥10.38T	19.91		3.93%	5.03%	20.25%
9435	74 Outperform	¥1.78T	15.41		1.58%	5.47%	55.03%
Sector *	60 Neutral	$13.88B	7.03	-2.76%	3.71%	2.20%	-43.04%
7359	54 Neutral	¥2.58B	―		―	-4.55%	-45.82%