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

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

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JP:3550

Studio Atao Co., Ltd.

(3550)

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Neutral 68 (OpenAI - 5.2)
Rating:68Neutral
Price Target:
¥250.00
▲(25.00% Upside)
Action:DowngradedDate:04/12/26
The score is driven primarily by improved operating performance and a notably strengthened balance sheet (zero debt), which support stability. Trend and momentum indicators are generally positive, but the stock’s elevated P/E and near-overbought signal (high Stochastic) meaningfully limit the overall rating.
Positive Factors
Debt-free balance sheet
Zero net debt by 2026 and a conservatively positioned balance sheet give the company durable financial flexibility. This reduces solvency risk, supports investment or working-capital needs, and improves resilience to industry cyclicality over the next several quarters.
Negative Factors
Thin net margins
Net margins are still low for an apparel manufacturer, leaving profitability sensitive to input-cost swings, pricing pressure and channel mix. Thin margins constrain retained earnings for reinvestment and amplify downside from any demand softness over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Debt-free balance sheet
Zero net debt by 2026 and a conservatively positioned balance sheet give the company durable financial flexibility. This reduces solvency risk, supports investment or working-capital needs, and improves resilience to industry cyclicality over the next several quarters.
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. (3550) is a creative studio specializing in digital content production, including animation, video production, and multimedia design. The company operates in the entertainment and advertising sectors, providing innovative sol...
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, with a stronger net margin in 2026. The balance sheet is a major strength with debt reduced to zero by 2026, but overall margins are still thin and historical earnings/cash-flow volatility remains a key risk.
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
Positive
Last Price200.00
Price Trends
50DMA
221.87
Positive
100DMA
210.52
Positive
200DMA
211.42
Positive
Market Momentum
MACD
1.29
Negative
RSI
61.89
Neutral
STOCH
92.37
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3550, the sentiment is Positive. The current price of 200 is below the 20-day moving average (MA) of 220.80, below the 50-day MA of 221.87, and below the 200-day MA of 211.42, indicating a bullish trend. The MACD of 1.29 indicates Negative momentum. The RSI at 61.89 is Neutral, neither overbought nor oversold. The STOCH value of 92.37 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
83
Outperform
¥140.61B15.301.79%10.76%54.82%
78
Outperform
¥173.29B9.7810.24%2.43%6.08%8.55%
68
Neutral
¥3.21B33.232.48%16.51%35.70%
66
Neutral
¥40.52B13.455.23%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
53
Neutral
¥4.08B1.99-5.25%-77.53%
46
Neutral
¥9.09B-162.4390.06%-98.03%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3550
Studio Atao Co., Ltd.
229.00
42.25
22.62%
JP:3569
Seiren Co
3,230.00
1,115.68
52.77%
JP:3104
Fujibo Holdings, Inc.
4,160.00
2,691.54
183.29%
JP:8011
Sanyo Shokai Ltd.
4,015.00
1,412.49
54.27%
JP:8107
KIMURATAN Corporation
33.00
-17.00
-34.00%
JP:8166
Taka-Q Co., Ltd.
81.00
-24.00
-22.86%
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: Apr 12, 2026