Studio Atao Co., Ltd. (3550) AI Stock Analysis

• Market Cap: ¥2.93B
• Dividend Yield: 2.39%
• Average Volume (3M): 13.43K
• Price to Earnings (P/E): 42.7
• Beta (1Y): 0.48
• Revenue Growth: 19.76%
• EPS Growth: 78.37%
• Country: JP
• Employees: 71
• Sector: Consumer Cyclical
• Sector Strength: 64
• Industry: Apparel - Manufacturers
• EPS (TTM): 3.72
• Shares Outstanding: 14,037,000
• 10 Day Avg. Volume: 7,130
• 30 Day Avg. Volume: 13,426
• PEG Ratio: -0.01
• Price to Book (P/B): 1.14
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -6.85
• 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: ¥233.00
• Price Target Upside: 10.43% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: ¥233.00 ▲(10.43%Upside)

Studio Atao Co., Ltd. demonstrates a strong financial position and bullish technical indicators, driving a positive outlook. However, the high P/E ratio suggests the stock could be overvalued, potentially limiting further price appreciation. The lack of earnings call and corporate event data does not impact the overall score.

Studio Atao Co., Ltd. Business Overview & Revenue Model

Company Description

Studio Atao Co., Ltd. (3550) is a Japan-based company primarily engaged in the design, manufacturing, and sale of fashion and lifestyle products. The company operates in the retail sector, offering a variety of high-quality, stylish handbags, accessories, and related products that cater to fashion-forward consumers. Studio Atao is known for its innovative designs and commitment to craftsmanship, providing products that combine functionality with aesthetic appeal.

How the Company Makes Money

Studio Atao Co., Ltd. generates revenue through the sale of its fashion and lifestyle products. The company's primary revenue streams include direct sales through its retail stores and e-commerce platform, as well as wholesale distribution to department stores and specialty shops. Studio Atao leverages its brand reputation and design expertise to attract a loyal customer base, enhancing sales through seasonal collections and limited edition releases. Strategic partnerships with fashion influencers and collaborations with other fashion brands also contribute to increased brand visibility and sales opportunities.

Studio Atao Co., Ltd. Financial Statement Overview

Summary

Studio Atao Co., Ltd. shows strong revenue growth and robust gross margins, indicating effective cost control. The balance sheet is solid with low leverage, but there is room for improvement in net profitability and return on equity, which are relatively modest.

Income Statement

Studio Atao Co., Ltd. has shown a positive trend in revenue growth from 2024 to 2025 with a 14% increase. The gross profit margin is robust at approximately 67%, indicating strong cost control. However, the net profit margin is relatively low at 1.85%, suggesting potential challenges in managing expenses or cost structure. The EBIT and EBITDA margins are moderate, reflecting some room for operational efficiency improvements.

Balance Sheet

The company maintains a healthy equity ratio of around 78.9% as of 2025, showcasing strong financial stability. The debt-to-equity ratio is low at 0.08, indicating low leverage and reduced financial risk. Return on equity is modest at 2.74%, suggesting opportunities for better asset utilization to enhance shareholder returns.

Cash Flow

Studio Atao Co., Ltd. has demonstrated a significant improvement in free cash flow from 2024 to 2025, with a growth rate of approximately 4.72%. The operating cash flow to net income ratio is strong at 5.2, highlighting efficient cash generation relative to net income. However, the free cash flow to net income ratio of 5.06 suggests potential for further enhancement in free cash flow relative to profit.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	2.49B	3.70B	3.24B	3.71B	3.62B	4.01B
Gross Profit	1.58B	2.47B	2.14B	2.44B	2.29B	2.53B
EBITDA	-339.58M	210.06M	169.91M	-186.31M	45.88M	122.14M
Net Income	-289.29M	68.45M	50.78M	-229.16M	-21.88M	35.01M
Balance Sheet
Total Assets	3.79B	3.17B	3.54B	3.79B	3.76B	4.26B
Cash, Cash Equivalents and Short-Term Investments	1.79B	1.83B	1.92B	1.79B	2.12B	2.35B
Total Debt	916.44M	198.34M	556.67M	916.44M	653.08M	877.30M
Total Liabilities	1.23B	670.14M	1.04B	1.23B	899.66M	1.33B
Stockholders Equity	2.55B	2.50B	2.50B	2.55B	2.86B	2.93B
Cash Flow
Free Cash Flow	0.00	346.56M	561.21M	-425.92M	62.04M	-214.88M
Operating Cash Flow	0.00	356.03M	575.77M	-239.55M	86.03M	-181.87M
Investing Cash Flow	0.00	-13.17M	24.22M	-236.40M	-25.00M	-50.61M
Financing Cash Flow	0.00	-430.72M	-472.96M	194.40M	-293.09M	667.56M

Studio Atao Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 211.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3550, the sentiment is Neutral. The current price of 211 is above the 20-day moving average (MA) of 207.15, above the 50-day MA of 201.52, and above the 200-day MA of 191.37, indicating a neutral trend. The MACD of 1.09 indicates Positive momentum. The RSI at 49.15 is Neutral, neither overbought nor oversold. The STOCH value of 22.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3550.

Studio Atao Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8040	75 Outperform	¥3.00B	5.78		5.08%	5.56%	32.10%
3550	71 Outperform	¥2.93B	42.67		2.39%	19.76%	78.37%
7112	69 Neutral	¥3.06B	42.34		―	0.13%	-43.10%
8123	69 Neutral	¥2.30B	5.58		3.97%	-2.29%	54.29%
Sector *	63 Neutral	$16.82B	11.32	-7.02%	2.91%	1.72%	-24.85%
8166	51 Neutral	¥2.66B	6.08		―	-3.47%	-70.84%
8105	42 Neutral	¥3.21B	―		―	-13.86%	-28.54%