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

• Market Cap: ¥4.50B
• 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): 1.97
• Shares Outstanding: 14,942,292
• 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: 53 Neutral
• Price Target: ¥310.00 ▲(75.14% Upside)
• Action: Reiterated Date: 01/21/26
• Date: Action: Reiterated 01/21/26

The score is held back primarily by weak financial performance (losses, declining revenue, and negative operating/free cash flow). Technicals are a clear offset with strong trend and positive momentum, while valuation is mixed due to a negative P/E and no dividend yield data.

Positive Factors

Niche content-driven commerce

TORICO's focused business model serving manga/anime fans creates durable demand niches and high customer relevance. Specialized product assortment, fan-driven repeat purchases and content tie-ins support stickiness, enabling stable unit economics and targeted marketing over months.

Manageable leverage

A relatively low debt burden gives TORICO financial flexibility to fund inventory and fulfillment needs and to absorb periodic losses. Manageable leverage reduces refinancing risk and preserves capacity to invest in operations or partnerships over a multi-month horizon.

Commerce + fulfillment margin capture

Owning both commerce and distribution allows TORICO to capture procurement-to-sale margins and fulfillment fees. Stable gross margins noted historically imply the firm can sustain unit profitability if volumes recover, making margin improvement a structural pathway to cash generation.

Negative Factors

Declining revenue and losses

Falling top line combined with persistent operating losses undermines scale economics and reduces resources for merchandising and platform investment. Continued revenue contraction makes achieving sustained profitability harder and pressures long-term competitive positioning.

Weak cash generation

Persistent negative operating and free cash flows indicate the company struggles to convert sales into cash. This forces reliance on external financing, constrains working capital for inventory and fulfillment, and limits the ability to fund growth or weather downside scenarios.

Eroding equity and asset base

Shrinking equity and assets reduce solvency buffers and borrowing capacity, signaling cumulative losses or write-downs. A deteriorating asset base limits investment in platform upgrades and inventory, increasing vulnerability to competitive shifts and longer-term structural risk.

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

Income statement and cash flow are weak: revenue declined from 2024 to 2025, margins are negative (EBIT and net income), and operating/free cash flows are negative. The balance sheet is comparatively steadier with manageable leverage, but declining equity and assets add longer-term risk.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: Neutral
• Last Price: 177.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7138, the sentiment is Neutral. The current price of 177 is below the 20-day moving average (MA) of 314.80, below the 50-day MA of 356.86, and below the 200-day MA of 240.77, indicating a neutral trend. The MACD of -11.20 indicates Positive momentum. The RSI at 46.05 is Neutral, neither overbought nor oversold. The STOCH value of 22.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	¥38.83B	17.31	―	0.83%	31.91%	27.35%
3662	70 Outperform	¥18.55B	16.07	―	1.85%	0.63%	-1.84%
3981	67 Neutral	¥7.91B	10.67	―	1.76%	-10.62%	44.02%
3930	61 Neutral	¥2.90B	16.19	―	―	7.20%	47.54%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
7138	53 Neutral	¥4.50B	-7.94	―	―	-17.90%	-26.75%
3845	52 Neutral	¥5.83B	-83.56	―	―	-32.32%	-69.96%