TENMA (7958) AI Stock Analysis

• Market Cap: $65.28B
• Dividend Yield: 2.25%
• Average Volume (3M): 50.52K
• Price to Earnings (P/E): 19.5
• Beta (1Y): 0.79
• Revenue Growth: 12.81%
• EPS Growth: 26.90%
• Country: JP
• Employees: 7,868
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Chemicals - Specialty
• EPS (TTM): 51.94
• Shares Outstanding: 22,313,026
• 10 Day Avg. Volume: 6,420
• 30 Day Avg. Volume: 50,520
• PEG Ratio: 0.11
• Price to Book (P/B): 0.66
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.44
• 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

• Rating: 76 Outperform
• Price Target: ¥4,036.00 ▲(13.37%Upside)

TENMA's stock score reflects strong financial performance with robust revenue growth and a stable balance sheet, coupled with positive technical indicators suggesting bullish momentum. While the valuation metrics are balanced, the potential for operational efficiency improvements offers room for further growth. The absence of earnings call and corporate events data did not impact the score.

TENMA Business Overview & Revenue Model

Company Description

TENMA Corporation is a Japanese company primarily engaged in the manufacturing and distribution of plastic products. The company operates across various sectors, including home products, industrial products, and logistics materials. TENMA offers a wide range of products, such as storage containers, household goods, office supplies, and industrial-use containers, catering to both consumer and business markets.

How the Company Makes Money

TENMA Corporation generates revenue through the production and sale of plastic products across its diverse product lines. The company's primary revenue streams include sales from household products, such as storage solutions and kitchenware, as well as industrial products used in logistics and packaging. TENMA's earnings are bolstered by its extensive distribution network, which allows it to effectively reach various markets domestically and internationally. Additionally, the company may engage in strategic partnerships that enhance its distribution capabilities and market reach, further driving sales and revenue growth.

TENMA Financial Statement Overview

Summary

TENMA displays a robust financial profile with strong revenue growth, efficient cash flow generation, and a stable balance sheet. The company is leveraging its assets effectively while maintaining low debt levels, reducing financial risks. However, there is room for operational efficiency improvements as indicated by the EBIT margin. Overall, TENMA's financial health is solid, positioning it well for future growth.

Income Statement

TENMA's revenue grew by 12.8% from 2024 to 2025, indicating strong growth after a slight dip the previous year. The gross profit margin stands at 13.8%, reflecting solid production efficiency. The net profit margin improved to 3.5% in 2025 from 3.3% in 2024, showcasing enhanced profitability. However, EBIT margin of 2.1% suggests room for improvement in operational efficiency.

Balance Sheet

TENMA maintains a robust balance sheet with an equity ratio of 76.3%, highlighting financial stability. The debt-to-equity ratio is low at 0.03, indicating minimal leverage risk. The return on equity (ROE) is 4.4%, showing moderate profitability for shareholders. Overall, the company exhibits strong financial health with low debt burdens.

Cash Flow

TENMA's free cash flow grew significantly by over 1497% from 2024 to 2025, indicating improved cash generation. The operating cash flow to net income ratio of 2.1 indicates strong cash conversion. The free cash flow to net income ratio is 1.0, reflecting effective capital management. Nonetheless, the substantial increase in free cash flow suggests a potential fluctuation in future periods.

Breakdown
TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
98.19B	104.83B	92.93B	102.05B	82.70B	73.64B
	Gross Profit
13.64B	14.51B	13.11B	14.77B	13.09B	14.32B
	EBIT
1.69B	2.20B	1.36B	3.01B	1.97B	2.89B
	EBITDA
7.73B	10.77B	6.10B	9.01B	6.51B	7.60B
	Net Income Common Stockholders
3.53B	3.71B	3.09B	2.80B	1.06B	3.01B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
29.64B	32.92B	29.84B	30.68B	27.36B	30.25B
	Total Assets
104.65B	110.74B	101.92B	102.80B	93.98B	92.39B
	Total Debt
2.80B	2.44B	2.86B	3.14B	3.15B	3.10B
	Net Debt
-26.84B	-30.48B	-26.98B	-27.54B	-24.22B	-27.15B
	Total Liabilities
24.70B	26.28B	20.86B	24.49B	20.79B	19.49B
	Stockholders Equity
79.95B	84.46B	81.06B	78.31B	73.20B	72.90B
Cash Flow		Free Cash Flow
0.00	3.78B	239.16M	4.51B	52.11M	2.39B
	Operating Cash Flow
0.00	7.76B	5.90B	7.51B	3.05B	5.80B
	Investing Cash Flow
0.00	-2.60B	1.26B	1.31B	-287.65M	2.32B
	Financing Cash Flow
0.00	-5.22B	-4.05B	-3.23B	-4.72B	-4.24B

TENMA Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3560.00
• 50DMA: Negative
• 100DMA: Positive
• 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:7958, the sentiment is Neutral. The current price of 3560 is below the 20-day moving average (MA) of 3568.75, below the 50-day MA of 3570.80, and above the 200-day MA of 3042.57, indicating a neutral trend. The MACD of 2.98 indicates Positive momentum. The RSI at 49.79 is Neutral, neither overbought nor oversold. The STOCH value of 16.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7958.

TENMA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4365	79 Outperform	¥66.33B	8.71		1.95%	5.44%	8.53%
4116	79 Outperform	¥54.75B	5.08		4.93%	4.12%	192.18%
7958	76 Outperform	$65.28B	19.49	4.42%	2.25%	12.81%	26.90%
4028	75 Outperform	¥77.31B	8.80		4.39%	4.87%	5.12%
4956	71 Outperform	¥74.69B	9.44		0.87%	2.19%	11.03%
Sector *	70 Neutral	¥167.87B	10.89	6.37%	3.46%	3.94%	6.27%
4008	66 Neutral	¥59.30B	9.53		4.66%	3.21%	-2.40%

TENMA Corporate Events

TENMA Corporation Announces Treasury Stock Cancellation

TENMA Corporation has announced its decision to cancel a portion of its treasury stock, amounting to 2,130,903 common shares, which represents 9.55% of the total issued shares before cancellation. This move, contingent on shareholder approval, is part of a broader strategy involving share consolidation and amendments to the company’s Articles of Incorporation, potentially impacting its market positioning and shareholder value.

TENMA Announces Shareholders’ Meeting and Delisting Plans

TENMA Corporation has announced an extraordinary shareholders’ meeting to discuss share consolidation and amendments to its Articles of Incorporation. This move will lead to the company’s shares being delisted from the Tokyo Stock Exchange, impacting its trading status and potentially affecting stakeholders involved in the transactions.

Tenma Corporation Announces Director Nominees for Upcoming Shareholders Meeting

Tenma Corporation, a company listed on the TSE Prime, has announced the nomination of candidates for its Board of Directors. The nominations, recommended by the Nomination and Compensation Committee and approved by the Audit and Supervisory Committee, will be presented at the upcoming 77th Ordinary General Meeting of Shareholders. This move is part of Tenma’s ongoing efforts to ensure effective governance and leadership continuity.

Tenma Corporation Announces Change in Independent Auditor

Tenma Corporation has announced a change in its independent auditor, transitioning from Russell Bedford HIBISCUS to UHY Tokyo & Co. This change is prompted by the business integration of the two audit firms, effective July 1, 2025, ensuring continuity and maintaining audit quality. The transition is expected to uphold a global audit system with enhanced independence and expertise, as the current auditors from Russell Bedford HIBISCUS will move to UHY Tokyo & Co.

TENMA Corporation Reports Financial Results and Announces Delisting Plans

TENMA Corporation reported a 12.8% increase in net sales for the fiscal year ending March 31, 2025, with operating profit rising by 62.5%. However, ordinary profit decreased by 22.4%, while profit attributable to owners of the parent increased by 20%. The company announced it would not pay a year-end dividend for the fiscal year due to a tender offer by FHL Holdings Co., Ltd. and the planned delisting of its shares, which has also led to the absence of a financial forecast for the next fiscal year.

Tenma Corporation Sets Record Date for Extraordinary Shareholders Meeting

Tenma Corporation has announced the setting of a record date for an Extraordinary General Meeting of Shareholders, scheduled for late July 2025. This meeting is significant as it will address the company’s transition to a private entity, following a tender offer by FHL Holdings Inc., which necessitates a partial amendment of the Articles of Incorporation.

TENMA Corporation Announces Change in Major Shareholder

TENMA CORPORATION announced the successful completion of a tender offer for its common shares by FHL Holdings Inc., which began on March 17, 2025, and concluded on April 28, 2025. As a result of the tender offer, FHL Holdings Inc. will become the new parent company and largest shareholder of TENMA, with a voting rights ratio exceeding 50% as of May 9, 2025. Dalton Investments, Inc., the previous largest shareholder, will no longer hold this status.