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

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Tenmaya Store Co., Ltd.

(TSE/TYO:9846)

Select Model

Rating:64Neutral

Price Target:JPY 1,034.00▲(6.49% Upside)

Action:reiterated

Date:11/05/26

The score is driven primarily by solid financial footing—especially the improved, lower-leverage balance sheet—tempered by the sharp drop in recent free cash flow. Valuation is supportive due to the low P/E and a moderate dividend yield. Technicals are the main offset, with price below key moving averages and negative MACD signaling weak near-term momentum despite oversold readings.

Positive Factors

Balance Sheet DeleveragingMeaningful deleveraging has made the balance sheet sturdier and reduced financial risk compared with earlier years. Lower reliance on debt should improve resilience across the retail cycle, preserve borrowing capacity, and give management more flexibility to fund operations or investment.

Negative Factors

Free Cash Flow CompressionThe sharp decline in free cash flow materially reduces financial flexibility compared with prior years. Although operating cash flow remained positive, near-breakeven free cash flow leaves less internally generated capital for reinvestment, debt reduction, dividends, or protection against weaker trading.

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

Market Cap: JPY 11.21B
Dividend Yield: 1.91%
Average Volume (3M): 6,986
Price to Earnings (P/E): 7.8
Beta (1Y): 0.11
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 by its department store operations. The main revenue stream is the sale of merchandise to consumers across multiple product categories (e.g., apparel, cosmetics, food, and h...

Tenmaya Store Co., Ltd. Financial Statement Overview

Summary

Overall fundamentals are solid but not strong: profitability is steady yet structurally thin (low single-digit operating profitability; ~1%–3% net margin). The balance sheet is a clear strength with meaningful deleveraging (debt-to-equity improved to ~0.17 by 2025). The main drag is cash-flow quality: operating cash flow is stable, but free cash flow fell sharply in 2026 to near breakeven, reducing financial flexibility if persistent.

Income Statement

62Positive

Balance Sheet

74Positive

Cash Flow

57Neutral

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. Technical Analysis

Technical Analysis SentimentPositive

Last Price971.00

Price Trends

50DMA975.98Negative

100DMA982.29Negative

200DMA970.38Positive

Market Momentum

MACD-2.78Negative

RSI50.70Neutral

STOCH73.43Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9846, the sentiment is Positive. The current price of 971.00 is above the 20-day moving average (MA) of 967.75, below the 50-day MA of 975.98, and above the 200-day MA of 970.38, indicating a neutral trend. The MACD of -2.78 indicates Negative momentum. The RSI at 50.70 is Neutral, neither overbought nor oversold. The STOCH value of 73.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9846.

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:9974	78Outperform	JPY 138.76B	12.40	―	1.95%	4.94%	-9.98%
JP:8198	76Outperform	JPY 101.20B	12.83	―	2.70%	0.90%	-28.84%
JP:8194	71Outperform	JPY 233.34B	21.63	―	2.51%	2.59%	0.10%
JP:9993	70Outperform	JPY 12.48B	10.40	―	2.36%	-2.31%	―
JP:9846	64Neutral	JPY 11.20B	7.77	―	1.91%	1.51%	6.92%
Sector *	62Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
JP:9823	59Neutral	JPY 50.33B	8.68	―	2.29%	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.	971.00	29.87	3.17%
JP:8194	Life Corporation	2707.00	282.73	11.66%
JP:8198	Maxvalu Tokai Co., Ltd.	3150.00	-300.73	-8.71%
JP:9823	Mammy Mart Corporation	926.00	-616.06	-39.95%
JP:9974	BELC Co., Ltd.	6570.00	-702.06	-9.65%
JP:9993	Yamazawa Co., Ltd.	1143.00	27.40	2.46%

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: Nov 05, 2026

Tenmaya Store Co., Ltd. AI Stock Analysis