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Studio Atao Co., Ltd. (JP:3550)
:3550
Japanese Market
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Studio Atao Co., Ltd. (3550) AI Stock Analysis

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JP:3550

Studio Atao Co., Ltd.

(3550)

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Neutral 64 (OpenAI - 5.2)
Rating:64Neutral
Price Target:
¥233.00
▲(16.50% Upside)
Action:Reiterated
Date:08/04/26
The score is driven primarily by improved fundamentals and a very strong balance sheet (zero debt), supporting resilience. However, thin margins, a track record of earnings/cash flow swings (including recent free cash flow decline), and currently weak-to-neutral technical momentum limit the upside despite a reasonable valuation and modest dividend yield.
Positive Factors
Balance sheet strength
Zero net debt by 2026 materially improves financial flexibility and resilience. With no interest burden the company can better fund working capital, capex, or strategic initiatives from internal resources, lowering refinancing risk and supporting stability over the coming months.
Negative Factors
Thin margins
Relatively low net margins leave limited buffer against cost inflation or pricing pressure typical in apparel. Even with recent improvement, small margin cushions constrain reinvestment capacity and make earnings sensitive to commodity, logistics, or promotional swings over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet strength
Zero net debt by 2026 materially improves financial flexibility and resilience. With no interest burden the company can better fund working capital, capex, or strategic initiatives from internal resources, lowering refinancing risk and supporting stability over the coming months.
Read all positive factors

Studio Atao Co., Ltd. (3550) vs. iShares MSCI Japan ETF (EWJ)

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

Company Description
STUDIO ATAO Co., Ltd. specializes in designing and distributing bags and wallets within the Japanese market. The company also manages a network of physical retail outlets and online stores, alongside developing and selling character-themed merchan...
How the Company Makes Money
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Studio Atao Co., Ltd. Financial Statement Overview

Summary
Financials show a clear recovery: revenue growth re-accelerated and profitability improved in 2024–2026, while the balance sheet is notably strong with debt reduced to zero by 2026. Offsetting positives, margins remain thin and the business has a history of earnings and cash flow volatility, including a sharp 2023 downturn and declining free cash flow in 2025–2026.
Income Statement
66
Positive
Balance Sheet
82
Very Positive
Cash Flow
63
Positive
BreakdownTTMFeb 2026Feb 2025Feb 2024Feb 2023Feb 2022
Income Statement
Total Revenue3.71B4.13B3.70B3.24B3.71B3.62B
Gross Profit2.44B2.81B2.42B2.14B2.39B2.29B
EBITDA-203.17M290.32M230.87M175.18M-203.17M40.69M
Net Income-229.16M151.54M68.45M50.78M-229.16M-21.88M
Balance Sheet
Total Assets3.79B3.18B3.18B3.54B3.79B3.76B
Cash, Cash Equivalents and Short-Term Investments1.79B1.82B1.83B1.92B1.79B2.12B
Total Debt916.44M0.00198.34M556.67M916.44M653.08M
Total Liabilities1.23B596.11M680.67M1.04B1.23B903.50M
Stockholders Equity2.55B2.59B2.50B2.50B2.55B2.86B
Cash Flow
Free Cash Flow0.00276.57M346.56M562.67M-417.77M62.04M
Operating Cash Flow0.00285.52M356.03M575.77M-239.55M86.03M
Investing Cash Flow0.00-29.40M-13.17M24.22M-236.40M-25.00M
Financing Cash Flow0.00-267.59M-430.72M-472.96M194.40M-293.09M

Studio Atao Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price200.00
Price Trends
50DMA
221.08
Negative
100DMA
221.80
Negative
200DMA
214.03
Positive
Market Momentum
MACD
-0.93
Positive
RSI
48.82
Neutral
STOCH
47.62
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 200 is below the 20-day moving average (MA) of 220.90, below the 50-day MA of 221.08, and below the 200-day MA of 214.03, indicating a neutral trend. The MACD of -0.93 indicates Positive momentum. The RSI at 48.82 is Neutral, neither overbought nor oversold. The STOCH value of 47.62 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
¥170.61B11.9810.37%2.39%7.59%9.69%
72
Outperform
¥117.63B19.991.79%9.28%21.28%
66
Neutral
¥49.45B12.275.23%-1.88%28.06%
64
Neutral
¥3.10B18.632.48%5.84%89.94%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
49
Neutral
¥3.93B2.54-10.13%61.04%
45
Neutral
¥8.54B-80.9844.06%-97.37%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3550
Studio Atao Co., Ltd.
219.00
0.96
0.44%
JP:3569
Seiren Co
3,435.00
692.33
25.24%
JP:3104
Fujibo Holdings, Inc.
3,710.00
1,711.71
85.66%
JP:8011
Sanyo Shokai Ltd.
5,100.00
1,993.75
64.19%
JP:8107
KIMURATAN Corporation
31.00
-25.00
-44.64%
JP:8166
Taka-Q Co., Ltd.
77.00
-28.00
-26.67%
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