Improving Cash GenerationMaterial improvement in operating and free cash flow in 2025 provides durable funding for capex, dividends, debt reduction, and strategic investment. Free cash flow tracking net income (~0.97) suggests earnings quality, reducing reliance on external financing and improving financial flexibility.

Steady Revenue GrowthConsistent top-line growth indicates sustained demand for products and services across retail, commercial, and subscription channels. This steady growth supports scale advantages, recurring revenue expansion from subscriptions, and a more predictable revenue base for multi‑year planning and investment.

Improved Balance-sheet LeverageLower debt-to-equity and rising equity indicate stronger balance-sheet resilience versus prior years. Manageable leverage increases strategic optionality, lowers refinancing risk, and supports investment or dividend policies without materially raising financial stress during cyclical downturns.

Bears Say

Compressing Gross MarginsA multi-year decline in gross margin signals structural pressure from pricing, input costs, or product mix shifts. Persistent margin erosion reduces operating leverage, limits incremental profit from revenue growth, and makes sustainable margin recovery necessary for materially stronger cash generation.

Thin Net ProfitabilityLow net margins leave limited buffer against cost shocks and reduce retained earnings available for reinvestment. With net margin in the low single digits, the company is more sensitive to revenue volatility and less able to self-fund large strategic initiatives without improving operating efficiency.

Modest And Volatile Cash ConversionOCF under 10% of revenue implies modest cash conversion; prior volatility indicates earnings-to-cash reliability risks. Durable plans depend on consistent cash generation; variability could constrain capital allocation, force tradeoffs between capex, dividends, and debt paydown in weaker periods.

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 ¥4.33B.

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 81 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.