TORICO Co., Ltd. (7138) AI Stock Analysis

• Market Cap: ¥4.55B
• Dividend Yield: N/A
• Average Volume (3M): 493.97K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.27
• Revenue Growth: -17.90%
• EPS Growth: -26.75%
• Country: JP
• Employees: 66
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): -2.00
• Shares Outstanding: 13,799,000
• 10 Day Avg. Volume: 153,570
• 30 Day Avg. Volume: 493,970
• PEG Ratio: -0.02
• Price to Book (P/B): 0.27
• Price to Sales (P/S): 0.06
• P/FCF Ratio: -1.54
• 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: 49 Neutral
• Price Target: ¥457.00 ▲(158.19% Upside)

The score is held down primarily by weak financial performance (declining revenue, ongoing losses, and negative operating/free cash flow). Strong technical momentum provides meaningful support, but valuation remains constrained by loss-making status and lack of dividend yield data.

Positive Factors

Diversified end-market exposure

TORICO’s product mix across automotive, telecom and consumer electronics supports durable demand diversity. Exposure to these structural end markets reduces reliance on any single cycle and preserves multiple revenue channels for long-term growth if product competitiveness is maintained.

Manageable leverage

A relatively low debt-to-equity ratio indicates the company has room to access capital or withstand downturns without immediate solvency pressure. This financial flexibility supports investment in R&D and product development, key for sustaining semiconductor competitiveness over months.

Stable gross profit margins

Stable gross margins imply the core product cost structure and pricing power are intact, providing a base to absorb operating improvements. If revenue stabilizes or grows, maintaining gross margins would accelerate recovery to operating profitability without needing drastic restructuring.

Negative Factors

Declining revenue and persistent losses

A consecutive revenue decline and sustained negative EBIT/net margins signal structural demand or execution issues. Continued losses erode retained earnings and make it harder to fund growth internally, increasing reliance on external financing and raising long-term viability concerns if trends persist.

Weak cash generation

Persistent negative operating and free cash flows indicate difficulty converting sales into cash, limiting ability to fund R&D, capex or working capital organically. Over months, poor cash generation forces dependence on financing or asset sales, constraining strategic flexibility and execution.

Erosion of equity and asset base

Declining equity and total assets reflect capital erosion and shrinking scale, which can impair credit capacity and limit investments in product development. Over time this undermines competitive positioning in capital-intensive semiconductor markets and reduces resilience to industry cycles.

TORICO Co., Ltd. Business Overview & Revenue Model

Company Description

TORICO Co., Ltd. (7138) is a Japanese company primarily engaged in the development and provision of advanced technology solutions in the semiconductor and electronics sectors. The company specializes in the design and manufacturing of high-performance semiconductor devices and related applications, catering to a diverse range of industries including automotive, telecommunications, and consumer electronics. With a strong focus on innovation and quality, TORICO aims to enhance the capabilities and efficiencies of electronic systems through its cutting-edge products and services.

How the Company Makes Money

TORICO Co., Ltd. generates revenue primarily through the sale of semiconductor devices and components, which are crucial for various electronic applications. Key revenue streams include direct sales to manufacturers in the automotive and telecommunications sectors, as well as partnerships with other technology firms for co-development projects. Additionally, the company may benefit from licensing agreements and the provision of technical support services, which contribute to its earnings. Strategic alliances with key players in the electronics industry further enhance TORICO's market presence and open up new revenue opportunities.

TORICO Co., Ltd. Financial Statement Overview

Summary

TORICO Co., Ltd. faces significant financial challenges, particularly in sustaining revenue growth and achieving profitability. The balance sheet offers some stability with low leverage, but declining equity and asset levels are concerning. Cash flow issues further exacerbate financial weaknesses, suggesting a need for strategic adjustments to improve financial health.

Income Statement

TORICO Co., Ltd. has faced challenges in maintaining revenue growth and profitability. The company experienced a decline in revenue from 2024 to 2025, accompanied by negative EBIT and net income margins, indicating operational inefficiencies. Gross profit margins have remained relatively stable, but the consistent net losses highlight significant profitability issues.

Balance Sheet

The balance sheet shows a moderate level of financial stability. The debt-to-equity ratio is relatively low, suggesting manageable leverage, while the equity ratio indicates a reasonable proportion of assets financed by equity. However, declining stockholders' equity and total assets raise concerns about long-term sustainability.

Cash Flow

Cash flow performance has been weak, with negative operating and free cash flows over recent periods, indicating cash generation issues. The operating cash flow to net income ratio is unfavorable, underscoring difficulties in converting revenue into cash. Despite some positive financing activities, the company struggles to maintain healthy cash flows.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.42B	3.68B	3.90B	5.00B	5.39B	4.99B
Gross Profit	1.24B	1.33B	1.40B	1.74B	1.83B	1.77B
EBITDA	-377.09M	-394.84M	-188.75M	136.43M	229.00M	287.13M
Net Income	-418.81M	-445.56M	-272.65M	74.36M	152.78M	254.31M
Balance Sheet
Total Assets	1.60B	1.47B	1.85B	2.25B	1.93B	1.50B
Cash, Cash Equivalents and Short-Term Investments	824.96M	634.88M	606.61M	1.06B	737.26M	549.01M
Total Debt	535.43M	259.68M	416.11M	522.60M	179.68M	160.92M
Total Liabilities	860.61M	667.50M	957.61M	1.08B	858.91M	814.35M
Stockholders Equity	743.98M	805.92M	896.21M	1.16B	1.07B	689.21M
Cash Flow
Free Cash Flow	0.00	-142.85M	-275.38M	-35.20M	-32.20M	261.67M
Operating Cash Flow	0.00	-140.02M	-187.49M	14.15M	24.21M	288.60M
Investing Cash Flow	0.00	-26.88M	-136.52M	-50.73M	-78.08M	-29.31M
Financing Cash Flow	0.00	195.24M	-134.71M	361.39M	242.12M	-9.11M

TORICO Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 177.00
• 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:7138, the sentiment is Positive. The current price of 177 is below the 20-day moving average (MA) of 343.00, below the 50-day MA of 236.06, and below the 200-day MA of 205.39, indicating a neutral trend. The MACD of 53.02 indicates Positive momentum. The RSI at 51.04 is Neutral, neither overbought nor oversold. The STOCH value of 4.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7138.

TORICO Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9467	78 Outperform	¥48.45B	23.21	―	0.83%	31.91%	27.35%
3981	74 Outperform	¥7.62B	6.58	―	1.76%	-10.62%	44.02%
3662	70 Outperform	¥22.62B	19.59	―	1.85%	0.63%	-1.84%
3930	61 Neutral	¥2.86B	15.99	―	―	7.20%	47.54%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
3845	52 Neutral	¥5.72B	-46.55	―	―	-32.32%	-69.96%
7138	49 Neutral	¥4.55B	-6.69	―	―	-17.90%	-26.75%