Tenmaya Store Co., Ltd. (9846) AI Stock Analysis

Tenmaya Store Co., Ltd.

(TSE/TYO:9846)

Select Model

Rating:71Outperform

Price Target:JPY 1,107.00▲(14.48% Upside)

Action:upgraded

Date:08/04/26

Tenmaya Store's overall score is primarily anchored by its deeply discounted valuation and a remarkably robust, deleveraged balance sheet. Technical indicators confirm a sustained long-term upward price trend. However, the overall upside potential is currently capped by sluggish top-line growth and severely constrained free cash flow, highlighting near-term operational challenges in generating discretionary cash.

Positive Factors

De-risked balance sheetA meaningful decline in leverage over several years materially reduces default and refinancing risk, giving management financial flexibility to fund capex or weather sales volatility. Lower debt also supports steady dividends and preserves strategic optionality over the next 2–6 months and beyond.

Negative Factors

Very thin profitabilityLow single-digit net margins leave limited room to absorb commodity, labor, or rent inflation without profit erosion. Such a narrow cushion amplifies operational risk, constrains internal reinvestment, and makes earnings sensitive to small adverse cost or volume shocks over the medium term.

Tenmaya Store Co., Ltd. (9846) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 11.13B
Dividend Yield: 1.91%
Average Volume (3M): 6,815
Price to Earnings (P/E): 7.7
Beta (1Y): 0.10
Revenue Growth: 1.51%
EPS Growth: 6.92%
Country: Japan
Employees: 501
Sector: Consumer Defensive
Sector Strength: 62
Industry: Grocery Stores

Tenmaya Store Co., Ltd. Business Overview & Revenue Model

Company Description

Tenmaya Store Co., Ltd. manages a network of retail outlets throughout Japan. These establishments provide customers with a diverse selection of merchandise, encompassing foodstuffs, general household goods, and apparel. The company, which commenced...

How the Company Makes Money

Tenmaya Store Co., Ltd. primarily makes money through retail sales generated at its department stores: revenue is recognized when customers purchase merchandise in-store (and through any associated sales channels operated by the company, if applicabl...

Tenmaya Store Co., Ltd. Financial Statement Overview

Summary

The company boasts a pristine balance sheet driven by aggressive debt reduction and steady equity growth. However, financial momentum is tempered by stagnant revenues, declining net income, and a significant drop in free cash flow resulting from heavy capital expenditures.

Income Statement

60Neutral

Balance Sheet

88Very Positive

Cash Flow

52Neutral

Financial statement breakdown
Breakdown	TTM	Feb 2025	Feb 2024	Feb 2023	Feb 2022	Feb 2021
Income Statement
Total Revenue	59.71B	59.24B	58.68B	58.57B	57.74B	69.46B
Gross Profit	18.51B	17.45B	17.51B	17.88B	17.31B	18.21B
EBITDA	3.76B	3.76B	3.84B	3.89B	3.72B	4.02B
Net Income	1.44B	1.35B	1.58B	1.19B	1.07B	798.21M
Balance Sheet
Total Assets	47.36B	45.51B	42.05B	42.75B	43.77B	45.95B
Cash, Cash Equivalents and Short-Term Investments	522.21M	581.52M	571.77M	708.29M	822.02M	1.04B
Total Debt	4.46B	4.75B	4.53B	6.29B	8.84B	13.16B
Total Liabilities	18.94B	17.76B	15.71B	17.90B	20.06B	24.27B
Stockholders Equity	28.39B	27.71B	26.30B	24.81B	23.68B	21.63B
Cash Flow
Free Cash Flow	0	53.39M	2.03B	2.74B	2.77B	1.94B
Operating Cash Flow	0	2.95B	2.96B	3.72B	3.64B	3.37B
Investing Cash Flow	0	-2.69B	-834.59M	-1.13B	-885.00M	-508.82M
Financing Cash Flow	0	-252.93M	-2.26B	-2.70B	-2.49B	-2.62B

Tenmaya Store Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

JP:9846 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:8198	71Outperform	JPY 98.65B	12.60	―	2.74%	0.90%	-28.84%
JP:9846	71Outperform	JPY 11.12B	7.72	―	1.91%	1.51%	6.92%
JP:9993	67Neutral	JPY 12.42B	10.38	―	2.37%	-2.31%	―
JP:8194	66Neutral	JPY 213.70B	19.73	―	2.75%	2.59%	0.10%
JP:9974	65Neutral	JPY 135.63B	12.18	―	1.97%	4.94%	-9.98%
Sector *	62Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
JP:9823	56Neutral	JPY 49.36B	8.51	―	2.31%	21.09%	6.94%

* Consumer Defensive Sector Average

Performance Comparison

JP:9846 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:9846	Tenmaya Store Co., Ltd.	967.00	28.81	3.07%
JP:8194	Life Corporation	2470.00	119.85	5.10%
JP:8198	Maxvalu Tokai Co., Ltd.	3100.00	-267.64	-7.95%
JP:9823	Mammy Mart Corporation	917.00	-650.58	-41.50%
JP:9974	BELC Co., Ltd.	6500.00	-654.13	-9.14%
JP:9993	Yamazawa Co., Ltd.	1139.00	21.45	1.92%

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 04, 2026

Tenmaya Store Co., Ltd. AI Stock Analysis