Rococo Co. Ltd. (5868) AI Stock Analysis

• Market Cap: ¥3.71B
• Dividend Yield: 1.03%
• Average Volume (3M): 6.39K
• Price to Earnings (P/E): 8.0
• Beta (1Y): 0.46
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: JP
• Employees: 677
• Sector: Technology
• Sector Strength: 94
• Industry: Information Technology Services
• EPS (TTM): 14.24
• Shares Outstanding: 3,725,100
• 10 Day Avg. Volume: 10,970
• 30 Day Avg. Volume: 6,390
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: 6.70% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: ¥1,035.00 ▲(6.70% Upside)

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. demonstrates a strong financial position with solid revenue growth and robust cash flows. The balance sheet is stable with low leverage, although slight declines in some profit margins indicate potential operational challenges.

Income Statement

Rococo Co. Ltd. has shown a strong revenue growth rate of approximately 8.75% from 2023 to 2024, indicating robust business expansion. The gross profit margin stands at 36.4% for 2024, demonstrating solid profitability. However, the EBIT margin and net profit margin have slightly declined compared to the previous year, suggesting potential operational challenges or increased expenses.

Balance Sheet

The balance sheet is strong, with a low debt-to-equity ratio of 0.21 in 2024, indicating prudent financial leverage. The equity ratio is a healthy 63.3%, highlighting stability and strong equity backing. Return on equity has improved to 10.1%, reflecting efficient use of shareholders' funds.

Cash Flow

Rococo Co. Ltd. exhibits a favorable cash flow position, with a significant increase in free cash flow of 100% from 2023 to 2024. The operating cash flow to net income ratio is 1.23, indicating efficient cash generation relative to earnings. This strong cash flow performance enhances financial flexibility.

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

Rococo Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 970.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 970 is above the 20-day moving average (MA) of 940.25, above the 50-day MA of 940.50, and above the 200-day MA of 829.22, indicating a bullish trend. The MACD of 9.58 indicates Negative momentum. The RSI at 67.52 is Neutral, neither overbought nor oversold. The STOCH value of 93.02 is Negative, 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	¥3.80B	13.06		―	31.99%	35.59%
5868	72 Outperform	¥3.71B	8.02		1.03%	―	―
4335	69 Neutral	¥2.79B	9.78		3.26%	19.29%	19.76%
Sector *	61 Neutral	$36.28B	7.09	-7.27%	1.97%	7.76%	-8.56%
5618	56 Neutral	¥3.94B	―		―	―	―
5597	54 Neutral	¥10.13B	―		―	―	―
5255	51 Neutral	¥15.52B	―		―	-32.31%	-226.05%