Tose Co., Ltd. (4728) AI Stock Analysis

• Market Cap: ¥5.03B
• Dividend Yield: 3.95%
• Average Volume (3M): 9.35K
• Price to Earnings (P/E): 22.5
• Beta (1Y): 0.19
• Revenue Growth: 43.78%
• EPS Growth: N/A
• Country: JP
• Employees: 653
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 24.61
• Shares Outstanding: 7,763,040
• 10 Day Avg. Volume: 7,850
• 30 Day Avg. Volume: 9,353
• PEG Ratio: -0.11
• Price to Book (P/B): 0.84
• Price to Sales (P/S): 0.78
• P/FCF Ratio: 18.43
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: ¥712.00 ▲(11.25% Upside)
• Action: Reiterated Date: 12/30/25
• Date: Action: Reiterated 12/30/25

The score is driven primarily by solid financial strength (notably the debt-free balance sheet) offset by volatile earnings and cash-flow consistency. Technicals are moderately positive with strengthening momentum but near-stretched indicators, while valuation is supported by a strong dividend yield alongside a mid-range P/E.

Positive Factors

Debt-Free Balance Sheet

A debt-free balance sheet enhances financial resilience, reducing risk and providing flexibility during economic downturns.

Revenue Growth

Consistent revenue growth and margin improvement indicate a strengthening market position and operational efficiency.

Profitability Rebound

The rebound in profitability suggests effective cost management and potential for sustained earnings growth.

Negative Factors

Volatile Cash Flow

Volatile cash flow can strain liquidity and limit the ability to invest in growth opportunities, impacting long-term stability.

Earnings Volatility

Earnings volatility reflects potential operational challenges and market risks, affecting predictability of future performance.

Modest Net Margin

A modest net margin indicates limited profitability, which may hinder reinvestment and shareholder returns over time.

Tose Co., Ltd. Business Overview & Revenue Model

Company Description

Tose Co., Ltd. plans, develops, and operates home video game consoles, mobile, and smart devices. It also develops packaged software and downloadable content for home video game consoles and develop software for pachinko/pachislot machines. In addition, the company offers smartphone games for various digital stores and social game platforms, as well as provides smartphone game, application ,and website development. Further, the company is involved in operational system development, including proposing, creating, and operating IT infrastructure. Additionally, the company offers content development of games, characters, and licensing sales, as well as develops game backgrounds, graphic designs of characters, background music, sound effects and other audio-related areas. Tose Co., Ltd. was founded in 1979 and is headquartered in Kyoto, Japan.

How the Company Makes Money

Tose Co., Ltd. makes money primarily through its game development services, where it collaborates with major game publishers to develop video games for various platforms. The company earns revenue by charging fees for its development services, which can be structured as fixed-price contracts or based on milestones achieved during the development process. Tose also generates income from licensing its intellectual property and technology to other companies. Significant partnerships with large gaming companies contribute to its financial performance, as these collaborations often involve long-term projects that provide a steady stream of revenue.

Tose Co., Ltd. Financial Statement Overview

Summary

Strong financial resilience from a debt-free balance sheet (high balance-sheet score), but operating results and cash generation have been volatile. Profitability rebounded in 2025 with improved margins, yet net margin remains modest and prior-year cash outflows highlight inconsistency.

Income Statement

Profitability rebounded sharply in 2025 after a loss year in 2024: revenue grew 6.4% in 2025 and margins improved meaningfully (gross margin ~27%, EBIT margin ~10%, net margin ~3.8%). However, results have been volatile across the period (2024 posted negative operating and net margins), and the current net margin remains modest versus stronger years like 2023 (~8.6%), indicating earnings power is improving but not yet consistently durable.

Balance Sheet

The balance sheet is conservatively positioned with zero debt across all reported years and a steady equity base (roughly ¥6.0–¥6.5B) supporting asset growth. This low-leverage profile reduces financial risk and provides flexibility through downturns. The main weakness is that shareholder returns fluctuate with profitability (ROE swung from negative in 2024 to ~4.1% in 2025 and ~7.6% in 2023), reflecting earnings cyclicality rather than balance-sheet strain.

Cash Flow

Cash generation is uneven: operating cash flow and free cash flow turned positive again in 2025 (¥332M and ¥280M), but 2024 saw a large cash outflow (operating cash flow -¥1.29B; free cash flow -¥1.33B). In stronger years (2022–2023), free cash flow generally tracked net income reasonably well, yet the swing to deeply negative cash flow in 2024 highlights working-capital and/or project timing risk that can pressure liquidity even when profitability later recovers.

Breakdown	Aug 2025	Aug 2024	Aug 2023	Aug 2022	Aug 2021
Income Statement
Total Revenue	6.64B	4.62B	5.78B	5.66B	5.96B
Gross Profit	1.79B	517.67M	1.56B	1.40B	1.18B
EBITDA	796.00M	-433.89M	807.75M	592.21M	340.78M
Net Income	250.00M	-260.92M	499.10M	310.04M	148.19M
Balance Sheet
Total Assets	7.84B	7.23B	7.63B	7.28B	7.09B
Cash, Cash Equivalents and Short-Term Investments	1.70B	1.61B	3.12B	2.19B	1.71B
Total Debt	0.00	0.00	0.00	0.00	0.00
Total Liabilities	1.68B	1.15B	1.07B	1.08B	1.04B
Stockholders Equity	6.12B	6.04B	6.53B	6.18B	6.03B
Cash Flow
Free Cash Flow	280.00M	-1.33B	1.07B	601.48M	-139.81M
Operating Cash Flow	332.00M	-1.29B	1.18B	684.22M	-95.31M
Investing Cash Flow	-51.90M	196.41M	-70.73M	200.67M	154.88M
Financing Cash Flow	-188.00M	-189.96M	-189.77M	-188.71M	-189.74M

Tose Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 640.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4728, the sentiment is Positive. The current price of 640 is below the 20-day moving average (MA) of 645.83, below the 50-day MA of 642.68, and above the 200-day MA of 639.98, indicating a bullish trend. The MACD of 2.25 indicates Negative momentum. The RSI at 59.23 is Neutral, neither overbought nor oversold. The STOCH value of -10.53 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4728.

Tose Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4728	69 Neutral	¥5.03B	22.53	―	3.95%	43.78%	―
3904	66 Neutral	¥7.47B	10.88	―	0.75%	12.70%	2207.66%
3911	62 Neutral	¥9.71B	8.98	―	―	11.15%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
3851	51 Neutral	¥4.17B	-14.18	―	0.64%	-13.35%	-258.79%
3903	46 Neutral	¥17.21B	5.65	―	―	-37.68%	―
3793	42 Neutral	¥11.70B	-5.92	―	―	93.85%	-216.24%