Rococo Co. Ltd. (5868) AI Stock Analysis

• Market Cap: ¥3.34B
• Dividend Yield: 1.16%
• Average Volume (3M): 17.50K
• Price to Earnings (P/E): 8.1
• Beta (1Y): 0.59
• Revenue Growth: 14.35%
• EPS Growth: 105.59%
• Country: JP
• Employees: 677
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 24.90
• Shares Outstanding: 3,726,300
• 10 Day Avg. Volume: 41,010
• 30 Day Avg. Volume: 17,496
• PEG Ratio: -0.30
• Price to Book (P/B): 0.97
• Price to Sales (P/S): 0.34
• P/FCF Ratio: 8.36
• 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): 24,691.55
• Revenue Forecast (FY): ¥1.28T

• Rating: 68 Neutral
• Price Target: ¥955.00 ▼(-4.12% Downside)

Rococo Co. Ltd. scores well on valuation due to its low P/E ratio and reasonable dividend yield, making it attractive for value investors. However, technical indicators suggest bearish momentum, which could pose short-term risks. Financial performance remains solid, providing a stable foundation for potential growth.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion and stability.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial stability, providing flexibility for strategic investments and resilience against economic downturns.

Cash Flow Management

Effective cash flow management ensures liquidity and the ability to fund operations and growth initiatives, supporting long-term business sustainability.

Negative Factors

Profit Margin Pressure

Decreasing profit margins can impact profitability and limit reinvestment capacity, posing a challenge to maintaining competitive positioning.

Operational Efficiency

Moderate operational efficiency suggests room for improvement in cost management and productivity, which is crucial for enhancing profitability.

Free Cash Flow Volatility

While strong cash flow growth is positive, volatility can pose risks to financial planning and stability, affecting long-term strategic initiatives.

Rococo Co. Ltd. Business Overview & Revenue Model

Company Description

Rococo Co. Ltd. (5868) is a diversified company primarily operating in the consumer electronics and technology sector. The company specializes in the design, manufacturing, and distribution of innovative electronic products, catering to both retail and commercial markets. With a focus on quality and cutting-edge technology, Rococo Co. Ltd. offers a range of products including smart devices, home automation systems, and consumer electronics accessories.

How the Company Makes Money

Rococo Co. Ltd. generates revenue through multiple channels, including direct sales of its electronic products to consumers and businesses, as well as through partnerships with major retailers and e-commerce platforms. The company also benefits from recurring revenue streams through subscription services associated with its smart devices, providing users with software updates and premium features. Additionally, Rococo Co. Ltd. engages in collaborations with technology firms, enhancing its product offerings and expanding its market reach. The combination of product sales, subscription services, and strategic partnerships forms the core of the company's revenue model.

Rococo Co. Ltd. Financial Statement Overview

Summary

Rococo Co. Ltd. exhibits strong financial health with consistent revenue growth and a solid balance sheet. While profitability margins show some pressure, the company maintains effective cash flow management. Overall, Rococo is well-positioned in the Information Technology Services industry, with a stable financial foundation and growth potential.

Income Statement

Rococo Co. Ltd. has demonstrated consistent revenue growth with a 8.76% increase from 2023 to 2024. The gross profit margin stands at 36.42%, indicating strong profitability. However, the net profit margin decreased slightly to 3.56%, reflecting challenges in controlling costs or increased expenses. The EBIT margin is at 5.47%, showing moderate operational efficiency.

Balance Sheet

The company's balance sheet is robust with a debt-to-equity ratio of 0.21, indicating low leverage and financial stability. The equity ratio is 63.34%, suggesting a strong equity base relative to total assets. Return on equity is 10.11%, showing effective use of equity to generate profits.

Cash Flow

Rococo Co. Ltd. has a strong free cash flow to net income ratio of 1.15, indicating good cash generation relative to profits. The operating cash flow to net income ratio is 1.23, showing efficient cash flow management. However, free cash flow growth was 91.14%, reflecting significant improvement but with potential volatility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	8.34B	7.80B	7.18B	6.93B	6.30B
Gross Profit	3.10B	2.84B	2.67B	2.66B	2.16B
EBITDA	744.60M	494.00M	540.21M	820.29M	550.32M
Net Income	462.18M	278.02M	289.46M	453.13M	322.75M
Balance Sheet
Total Assets	4.28B	4.34B	4.38B	3.26B	3.03B
Cash, Cash Equivalents and Short-Term Investments	1.63B	1.93B	2.14B	1.28B	1.18B
Total Debt	479.84M	574.80M	1.19B	1.28B	1.54B
Total Liabilities	1.46B	1.59B	2.07B	2.19B	2.42B
Stockholders Equity	2.82B	2.75B	2.31B	1.07B	611.32M
Cash Flow
Free Cash Flow	0.00	319.44M	167.09M	415.35M	321.88M
Operating Cash Flow	0.00	341.56M	185.31M	443.09M	353.19M
Investing Cash Flow	0.00	-83.57M	-146.95M	-54.02M	-48.39M
Financing Cash Flow	0.00	-519.45M	775.57M	-287.55M	-280.12M

Rococo Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 996.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5868, the sentiment is Neutral. The current price of 996 is above the 20-day moving average (MA) of 955.80, below the 50-day MA of 1008.36, and above the 200-day MA of 926.47, indicating a bearish trend. The MACD of -34.48 indicates Positive momentum. The RSI at 41.85 is Neutral, neither overbought nor oversold. The STOCH value of 40.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:5868.

Rococo Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4261	70 Outperform	¥4.15B	14.26	―	―	27.60%	-15.54%
4335	69 Neutral	¥2.77B	9.15	―	3.28%	9.68%	25.15%
5868	68 Neutral	¥3.34B	8.14	―	1.16%	14.35%	105.59%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
5255	51 Neutral	¥10.47B	-1.39	―	―	-29.41%	79.74%
5618	46 Neutral	¥3.07B	―	―	―	23.63%	64.65%
5597	37 Underperform	¥5.70B	―	―	―	-0.02%	-12.19%