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

• Market Cap: ¥3.84B
• Dividend Yield: N/A
• Average Volume (3M): 493.97K
• Price to Earnings (P/E): 143.5
• Beta (1Y): 0.30
• 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: 15,279,292
• 10 Day Avg. Volume: 153,570
• 30 Day Avg. Volume: 493,970
• PEG Ratio: -0.08
• Price to Book (P/B): 1.37
• Price to Sales (P/S): 0.30
• P/FCF Ratio: -7.72
• 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: 41 Neutral
• Price Target: ¥266.00 ▲(50.28% Upside)
• Action: Reiterated Date: 03/05/26
• Date: Action: Reiterated 03/05/26

The score is driven down primarily by weak financial performance (declining revenue, ongoing losses, and negative operating/free cash flow). Technicals are also bearish with price below key moving averages and a negative MACD, only partly offset by oversold signals. Valuation provides limited support because the negative P/E reflects unprofitable operations and no dividend yield data is available.

Positive Factors

Niche e‑commerce model

TORICO's focused commerce and distribution model serving manga/anime fans creates durable demand and customer affinity. A niche content/merchandise platform supports repeat purchases, targeted assortment and cross‑sell potential, helping sustain revenue streams beyond short-term cycles.

Manageable leverage

Relatively low leverage gives TORICO financial flexibility to withstand operating losses and invest in inventory, fulfillment, or digital channels. Lower refinancing pressure reduces bankruptcy risk and supports medium-term strategic moves without immediate balance sheet strain.

Stable gross margins

Stable gross margins indicate core unit economics and supplier/pricing dynamics are intact despite top-line pressure. That durability means improvements in volume or operating efficiency could drive operating leverage and help the company move toward sustainable profitability over the medium term.

Negative Factors

Declining revenue & losses

A shrinking revenue base combined with persistent operating losses erodes scale benefits and limits reinvestment in assortment, marketing and fulfillment. Over several quarters this weakens competitive position and makes achieving durable profitability more challenging without a clear revenue recovery.

Negative operating and free cash flow

Consistent negative operating and free cash flows indicate the business is not converting sales into liquidity, forcing reliance on external financing or asset sales. This undermines the firm's ability to fund growth, sustain inventory needs, and absorb shocks over the medium term.

Eroding equity and assets

A decline in equity and total assets signals capital erosion and reduced financial resilience. Over time this can constrain strategic investments, increase the likelihood of dilution or asset disposals, and weaken counterparty confidence in partnerships or vendor terms.

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

Overall fundamentals are weak: revenue declined from 2024 to 2025, EBIT and net margins are negative, and operating/free cash flow have been negative. The balance sheet is comparatively steadier with low leverage, but declining equity and assets add sustainability 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	1.25B	1.33B	1.40B	1.74B	1.83B	1.77B
EBITDA	-216.93M	-221.65M	-186.81M	152.35M	218.72M	271.42M
Net Income	-418.88M	-445.56M	-272.65M	74.36M	152.78M	254.31M
Balance Sheet
Total Assets	1.60B	1.47B	1.98B	2.26B	1.95B	1.52B
Cash, Cash Equivalents and Short-Term Investments	824.96M	634.88M	606.61M	1.06B	737.26M	549.01M
Total Debt	535.43M	262.68M	416.11M	522.60M	179.68M	160.92M
Total Liabilities	860.61M	667.50M	1.08B	1.10B	875.87M	833.47M
Stockholders Equity	743.98M	805.92M	896.21M	1.16B	1.07B	689.21M
Cash Flow
Free Cash Flow	0.00	-142.85M	-252.59M	-5.50M	-22.51M	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: Negative
• Last Price: 177.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• 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 Negative. The current price of 177 is below the 20-day moving average (MA) of 278.85, below the 50-day MA of 316.96, and below the 200-day MA of 250.51, indicating a neutral trend. The MACD of -15.31 indicates Negative momentum. The RSI at 39.08 is Neutral, neither overbought nor oversold. The STOCH value of 39.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7138.

TORICO Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5136	73 Outperform	¥9.10B	15.99	―	―	37.82%	138.16%
7082	65 Neutral	¥7.02B	18.99	―	―	3.38%	47.24%
6054	64 Neutral	¥3.32B	-147.16	―	―	-5.08%	-180.19%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
2454	59 Neutral	¥5.46B	-13.71	―	0.77%	4.75%	―
7356	45 Neutral	¥2.11B	83.90	―	―	4.36%	―
7138	41 Neutral	¥3.84B	143.48	―	―	-17.90%	-26.75%