Rococo Co. Ltd. (5868) AI Stock Analysis

• Market Cap: ¥3.86B
• Dividend Yield: 0.96%
• Average Volume (3M): 12.24K
• Price to Earnings (P/E): 8.4
• Beta (1Y): 0.49
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: JP
• Employees: 677
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 14.24
• Shares Outstanding: 3,725,100
• 10 Day Avg. Volume: 13,100
• 30 Day Avg. Volume: 12,243
• 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: ¥1,035.00
• Price Target Upside: -0.19% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: ¥1,035.00 ▼(-0.19% Downside)

Rococo Co. Ltd. is well-positioned within the Information Technology Services industry, bolstered by strong financial health and an attractive valuation. However, the stock faces neutral to slightly bearish technical indicators, suggesting potential short-term challenges in stock price growth.

Rococo Co. Ltd. Business Overview & Revenue Model

Company Description

Rococo Co. Ltd. (5868) is a prominent company operating primarily in the technology and consumer electronics sectors. The firm specializes in the design, manufacturing, and distribution of innovative electronic products, including smart home devices, personal gadgets, and advanced consumer electronics. Rococo is recognized for its commitment to quality and innovation, catering to a diverse customer base that spans across both retail and commercial markets.

How the Company Makes Money

Rococo Co. Ltd. generates revenue through multiple streams, primarily focusing on the sale of its electronic products. The company earns money through direct sales to consumers via its retail stores and online platforms, as well as through wholesale partnerships with major distributors and retailers. Additionally, Rococo may engage in licensing agreements for its technology, allowing other manufacturers to produce products using its patented innovations. The company also benefits from service contracts and warranties associated with its products, which provide a recurring revenue stream. Strategic partnerships with technology firms and participation in joint ventures also contribute to its earnings, enhancing its product offerings and market reach.

Rococo Co. Ltd. Financial Statement Overview

Summary

Rococo Co. Ltd. exhibits strong financial health with consistent revenue growth and a robust balance sheet. However, there are slight pressures on profitability margins, despite effective cash flow management.

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	463.84M	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: Positive
• Last Price: 1037.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5868, the sentiment is Positive. The current price of 1037 is below the 20-day moving average (MA) of 1053.45, above the 50-day MA of 1013.10, and above the 200-day MA of 880.78, indicating a neutral trend. The MACD of 13.51 indicates Positive momentum. The RSI at 48.19 is Neutral, neither overbought nor oversold. The STOCH value of 12.90 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	76 Outperform	¥4.76B	16.38	―	―	30.92%	15.42%
5868	72 Outperform	¥3.86B	8.36	―	0.96%	―	―
4335	69 Neutral	¥2.76B	9.67	―	3.30%	19.29%	19.73%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
5618	41 Neutral	¥3.55B	―	―	―	―	―
5255	41 Neutral	¥11.38B	―	―	―	-34.51%	52.07%
5597	38 Underperform	¥7.78B	―	―	―	―	―