Cash Generation QualityMaterial improvement in operating and free cash flow and near-1.0 FCF-to-net-income ratio indicate higher earnings quality and durable internal funding. This strengthens capacity to fund investment, dividends, or debt reduction without relying on external financing over the next several quarters.

Steady Revenue GrowthConsistent top-line expansion through 2023–2025 demonstrates persistent demand and business momentum. Sustained revenue growth supports operating leverage, scale benefits and strategic reinvestment, providing a durable foundation for margin recovery and long-term profitability improvement.

Improving Balance SheetMarkedly lower leverage and rising equity improve financial resilience and reduce refinancing risk. A healthier balance sheet increases strategic optionality—funding M&A, R&D, or shareholder returns—and provides a buffer through downturns over the medium term.

Bears Say

Gross Margin ErosionDeclining gross margins signal either rising input costs or pricing/competitive pressure that reduce operating leverage. If structural, this compresses operating profits per revenue and limits long-term EPS upside absent cost restructuring or higher-value offerings to restore margin levels.

Thin Net MarginsPersistently low net margins leave limited room to absorb shocks, invest, or expand shareholder returns. Modest bottom-line conversion makes earnings vulnerable to modest revenue slowdowns and constrains the company's ability to self-fund larger strategic initiatives without materially raising returns.

Low Cash Conversion And Past VolatilityWhile cash generation improved in 2025, low cash flow relative to revenue and prior-year volatility indicate limited margin for funding growth or dividends in weaker periods. Structurally low cash conversion constrains capital flexibility and heightens sensitivity to working-capital swings.

5868 FAQ

What was Rococo Co. Ltd.’s price range in the past 12 months?

Rococo Co. Ltd. lowest stock price was ¥703.00 and its highest was ¥1223.00 in the past 12 months.

What is Rococo Co. Ltd.’s market cap?

Rococo Co. Ltd.’s market cap is ¥3.90B.

When is Rococo Co. Ltd.’s upcoming earnings report date?

Rococo Co. Ltd.’s upcoming earnings report date is May 14, 2026 which is in 58 days.

How were Rococo Co. Ltd.’s earnings last quarter?

Rococo Co. Ltd. released its earnings results on Feb 13, 2026. The company reported ¥7.99 earnings per share for the quarter, beating the consensus estimate of N/A by ¥7.99.

Is Rococo Co. Ltd. overvalued?

According to Wall Street analysts Rococo Co. Ltd.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Rococo Co. Ltd. pay dividends?

Rococo Co. Ltd. pays a Annually dividend of ¥35 which represents an annual dividend yield of 0.94%. See more information on Rococo Co. Ltd. dividends here

What is Rococo Co. Ltd.’s EPS estimate?

Rococo Co. Ltd.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Rococo Co. Ltd. have?

Rococo Co. Ltd. has 3,727,100 shares outstanding.

What happened to Rococo Co. Ltd.’s price movement after its last earnings report?

Rococo Co. Ltd. reported an EPS of ¥7.99 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went down -1.647%.

Which hedge fund is a major shareholder of Rococo Co. Ltd.?

Currently, no hedge funds are holding shares in JP:5868

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

Rococo Co. Ltd.

Rococo Co. Ltd. is an IT consulting services company. The company provides IT outsourcing services, including PC-life cycle management support, helpdesk, kitting, infrastructure and network configuration, and resident engineer services; DX promotion support services; BPO services; and system development, maintenance, and introduction support services. It also offers AUTH thru, a face recognition access control system; AUTH thru KEY, a system that links an electric lock to the facial recognition entrance and exit control system; RocoTime, an attendance management system; tike-series, a ticketing system; and Re-tass LIVE for one-to-one online streaming services. The company was founded in 1994 and is based in Osaka, Japan.