| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 528.05 | -42 |
| Intrinsic value (DCF) | 7569.21 | 725 |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
teno. Holdings Company Limited (7037.T) is a leading provider of childcare services in Japan, specializing in public and contract childcare solutions. Headquartered in Fukuoka City, the company operates nursery schools, childcare facilities, and in-hospital/institutional childcare services, catering to diverse childcare needs. Additionally, teno. Holdings offers home services such as babysitting, daycare centers, and temporary staffing, along with educational programs for nursery teachers and childcare workers through its training school. Established in 2015, the company plays a vital role in Japan's healthcare sector, addressing the growing demand for quality childcare services amid demographic shifts and workforce participation trends. With a comprehensive service portfolio, teno. Holdings is well-positioned to capitalize on Japan's childcare market, supported by government initiatives promoting childcare accessibility.
teno. Holdings presents a mixed investment profile. The company operates in a stable and growing sector due to Japan's increasing demand for childcare services, driven by demographic trends and government support. However, its recent financial performance shows challenges, with a net loss of JPY 466 million in the latest fiscal year and negative diluted EPS of JPY -102.03. While the company maintains a solid operating cash flow of JPY 691 million and a healthy cash position of JPY 2.17 billion, its high total debt of JPY 5.36 billion raises concerns. Investors should weigh the sector's growth potential against teno.'s financial health and competitive positioning before making investment decisions.
teno. Holdings competes in Japan's fragmented childcare services market, where demand is driven by demographic trends and government policies promoting childcare accessibility. The company's competitive advantage lies in its diversified service offerings, including public and contract childcare, home services, and training programs, which provide multiple revenue streams. However, its financial performance lags behind some competitors, with recent losses indicating operational inefficiencies or high costs. The company's beta of 1.094 suggests higher volatility compared to the market, reflecting sector-specific risks. teno.'s ability to scale operations and improve profitability will be critical in competing against larger, more established players. Its focus on in-hospital and institutional childcare services differentiates it from competitors, but execution risks remain given its relatively recent establishment in 2015.