Takasho Co., Ltd. (7590) AI Stock Analysis

• Market Cap: ¥6.75B
• Dividend Yield: 1.19%
• Average Volume (3M): 38.86K
• Price to Earnings (P/E): 34.1
• Beta (1Y): 0.62
• Revenue Growth: 6.36%
• EPS Growth: 96.61%
• Country: JP
• Employees: 901
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Home Improvement
• EPS (TTM): 14.53
• Shares Outstanding: 17,590,115
• 10 Day Avg. Volume: 46,120
• 30 Day Avg. Volume: 38,863
• PEG Ratio: -0.19
• Price to Book (P/B): 0.53
• Price to Sales (P/S): 0.33
• P/FCF Ratio: 34.14
• 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): 48.4
• Revenue Forecast (FY): ¥24.74B

• Rating: 51 Neutral
• Price Target: ¥406.00 ▼(-3.79% Downside)
• Action: Reiterated Date: 03/06/26
• Date: Action: Reiterated 03/06/26

The score is primarily driven by improving but still inconsistent financial performance (recent return to profitability, but volatile cash flows). Technical indicators are weak (below key moving averages with negative MACD), and valuation support is limited due to a negative P/E and only a modest dividend yield.

Positive Factors

Revenue Recovery

A sharp rebound in 2026 revenue indicates demand resilience in Takasho's core outdoor-living market. Sustained top-line improvement over several quarters supports production planning, scale benefits and the potential to rebuild margins if cost control continues, improving long-term cash generation.

Manageable Leverage

Debt remaining below equity and stable equity versus assets gives Takasho financial flexibility to invest in product development or working capital. A sound balance sheet reduces bankruptcy risk and supports sustained operations through cyclical downturns in home-improvement spending.

Structural Market Position

Takasho's specialization in outdoor-living and garden products targets long-term homeowner and commercial landscaping demand. Niche focus enables product expertise, distribution relationships and brand recognition that can sustain steady demand and support incremental product-margin improvements.

Negative Factors

Volatile Cash Flow

Material swings in operating and free cash flow indicate working-capital and execution risk. Irregular cash conversion constrains the firm's ability to fund capex, dividends or inventory build without external financing, reducing resilience to demand shocks and hampering steady investment.

Profitability Volatility

Earnings swings and thin operating profits despite recent revenue recovery signal inconsistent cost absorption and margin pressure. Without durable margin recovery, earnings quality remains weak, making cash flow and return forecasts uncertain over a multi-quarter horizon.

Weak Returns on Capital

Negative returns on shareholder capital during recent loss years show capital is not consistently generating acceptable returns. This weakens the case for reinvestment and raises the bar for management to restore sustainable ROIC above cost of capital to justify growth investments.

Takasho Co., Ltd. Business Overview & Revenue Model

Company Description

Takasho Co.,Ltd. engages in import and export of garden supplies in Japan and internationally. The company is also involved in the planning, design, and development of exterior products, such as indoor and outdoor garden and greening related products. In addition, it provides and processes CAD and CG software. The company was founded in 1935 and is headquartered in Kainan, Japan.

How the Company Makes Money

Takasho generates revenue through multiple streams including direct sales of its outdoor living products to consumers and businesses, as well as through partnerships with retailers and distributors. The company benefits from a robust distribution network that allows it to reach a wide customer base, both domestically and internationally. Additionally, Takasho may engage in custom projects and collaborations with landscaping firms, further enhancing its income sources. Seasonal demand for gardening and outdoor products also plays a significant role in its revenue fluctuations, contributing to earnings during peak periods such as spring and summer.

Takasho Co., Ltd. Financial Statement Overview

Summary

Financials show a rebound but remain uneven: profitability turned to losses in 2024–2025 before returning to a small profit in 2026, while revenue improved sharply. The balance sheet is reasonably resilient with manageable leverage, but cash flow has been volatile with periods of negative operating and free cash flow, which keeps the score moderate.

Income Statement

Profitability has been volatile: the company moved from solid profits in 2021–2023 (net income positive) to losses in 2024–2025, then returned to a small profit in 2026 (annual). Revenue has trended up recently, with 2026 showing a sharp rebound in sales growth, but operating profit remains thin versus the stronger margin profile seen in 2021–2022. Overall, the trajectory suggests a recovery underway, but earnings quality and margin stability are still a key weakness.

Balance Sheet

Leverage looks manageable with debt below equity in recent years (debt-to-equity improved from 2021 levels and has generally stayed moderate since). Equity has remained relatively stable versus total assets, which supports balance-sheet resilience. The main concern is that returns on shareholder capital turned negative during the loss years (2024–2025), indicating the balance sheet is sound but not consistently generating strong profitability.

Cash Flow

Cash generation has been inconsistent. Operating cash flow swung from strong positive in 2021–2022 to negative in 2023 and 2025, then improved to positive again in 2024 and 2026 (annual). Free cash flow followed a similar pattern, including large deficits in 2023 and 2025, which raises execution and working-capital risk despite the more recent improvement. Overall, cash flow volatility meaningfully weakens the profile.

Breakdown	TTM	Jan 2026	Jan 2025	Jan 2024	Jan 2023	Jan 2022
Income Statement
Total Revenue	20.12B	20.25B	19.89B	19.41B	20.35B	20.78B
Gross Profit	8.58B	8.59B	8.39B	8.34B	9.01B	9.06B
EBITDA	1.33B	218.74M	1.03B	1.20B	1.79B	2.25B
Net Income	-184.85M	198.62M	-242.93M	-75.58M	518.96M	1.00B
Balance Sheet
Total Assets	24.59B	23.47B	23.81B	23.13B	23.64B	23.67B
Cash, Cash Equivalents and Short-Term Investments	5.03B	3.51B	3.65B	3.80B	4.21B	5.60B
Total Debt	5.78B	4.73B	5.79B	5.04B	4.70B	4.27B
Total Liabilities	12.37B	10.60B	11.06B	10.63B	10.25B	10.60B
Stockholders Equity	12.09B	12.72B	12.62B	12.38B	13.28B	12.96B
Cash Flow
Free Cash Flow	0.00	198.53M	-773.30M	373.04M	-1.09B	827.80M
Operating Cash Flow	0.00	641.33M	-266.49M	1.13B	-465.65M	1.48B
Investing Cash Flow	0.00	-392.60M	-884.18M	-599.27M	-615.95M	-708.13M
Financing Cash Flow	0.00	-310.56M	599.95M	-701.89M	-470.62M	741.86M

Takasho Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 422.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7590, the sentiment is Negative. The current price of 422 is above the 20-day moving average (MA) of 398.60, above the 50-day MA of 408.12, and above the 200-day MA of 419.02, indicating a bearish trend. The MACD of -2.71 indicates Positive momentum. The RSI at 35.99 is Neutral, neither overbought nor oversold. The STOCH value of 29.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7590.

Takasho Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9976	65 Neutral	¥5.61B	33.89	―	3.56%	4.17%	10.59%
9835	62 Neutral	¥4.16B	-5.47	―	2.04%	-0.69%	-64.22%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
9903	55 Neutral	¥6.00B	2,084.89	―	2.33%	-1.54%	―
7590	51 Neutral	¥6.75B	34.12	―	1.19%	6.36%	96.61%
7450	48 Neutral	¥13.63B	-23.95	―	0.50%	-0.60%	-386.40%

Takasho Co., Ltd. Corporate Events

Takasho Boosts Profits on Pro-Use Strength and Cost Controls Despite Economic Headwinds

Takasho reported that for the fiscal year ended January 20, 2026, non-consolidated net sales rose 1.9% year on year to ¥15.7 billion, driven by a 6.3% increase in its Pro-use business to ¥11.5 billion. In a gradually recovering but still uncertain Japanese economy marked by higher raw material costs and a weak yen, this expansion in professional demand helped offset macro headwinds.

Operating profit surged 227.7% to ¥409 million as the company secured higher gross profit from Pro-use sales and sharply cut selling, general and administrative expenses, including advertising, personnel and shipping costs. Ordinary profit jumped to ¥482 million on sizable foreign exchange gains and dividends from an overseas subsidiary, while net income climbed to ¥196 million despite higher taxes tied to additional provisions for doubtful accounts at its overseas units, reflecting both improved profitability and a cautious stance toward future risks.

The most recent analyst rating on (JP:7590) stock is a Sell with a Yen400.00 price target. To see the full list of analyst forecasts on Takasho Co., Ltd. stock, see the JP:7590 Stock Forecast page.

Takasho Misses Sales Forecast but Swings to Profit on Cost Cuts and FX Gains

Takasho reported consolidated net sales of 20.25 billion yen for the fiscal year ended January 20, 2026, falling 6.9% short of its prior forecast due mainly to weak home-use sales via home improvement centers and a temporary slowdown in overseas operations during a shift from online to in-store sales. Nonetheless, strong Pro-use business growth and solid performance at subsidiary Takasho Digitec, combined with company-wide cost controls, turned last year’s operating loss into a profit and lifted profit attributable to owners of the parent above guidance.

Operating income came in at 218 million yen, down more than half versus forecasts but a 369 million yen improvement from the previous year’s loss, signaling a recovery in underlying operations. Ordinary profit surged to 717 million yen, far exceeding projections and jumping 856.6% year on year, aided by 419 million yen in foreign exchange gains from yen depreciation, which also helped push earnings per share above expectations and improve returns for shareholders.

The most recent analyst rating on (JP:7590) stock is a Sell with a Yen400.00 price target. To see the full list of analyst forecasts on Takasho Co., Ltd. stock, see the JP:7590 Stock Forecast page.

Takasho Returns to Profit on Modest Sales Growth and Maintains Dividend

Takasho Co., Ltd. reported a modest 1.8% year-on-year increase in net sales to ¥20.25 billion for the fiscal year ended January 20, 2026, while swinging from an operating loss to operating income of ¥218 million and from a net loss to net income attributable to owners of the parent of ¥198 million. Profitability ratios also improved, with ROE rising to 1.6% and the operating margin turning positive, although comprehensive income fell and overall earnings levels remain low.

The company’s financial position stayed solid, as total assets held nearly flat at ¥23.47 billion, shareholders’ equity ratio improved to 54.2%, and cash and cash equivalents ended the period at ¥3.39 billion despite net cash outflows from financing activities. Takasho maintained its annual dividend at ¥5 per share with a consolidated payout ratio of 42.4%, and it plans to keep the same dividend level in the next fiscal year, signaling a continued commitment to shareholder returns even as it works to strengthen profitability.

The most recent analyst rating on (JP:7590) stock is a Sell with a Yen400.00 price target. To see the full list of analyst forecasts on Takasho Co., Ltd. stock, see the JP:7590 Stock Forecast page.

Takasho books substantial foreign exchange gains for FY ending January 2026

Takasho Co., Ltd. reported a significant increase in non-operating income driven by foreign exchange gains for the fiscal year ending January 20, 2026. The gains stemmed mainly from foreign currency‑denominated accounts receivable and loans arising from existing transactions, highlighting the company’s sensitivity to currency market fluctuations.

The company’s foreign exchange gains rose from ¥33.1 million recorded in the first nine months to a total of ¥419.3 million for the full year, after an additional ¥386.1 million was realized due to subsequent rate movements. Takasho has directed investors to its consolidated financial results for detailed disclosure of how these foreign exchange gains have affected overall earnings and financial performance.

The most recent analyst rating on (JP:7590) stock is a Sell with a Yen400.00 price target. To see the full list of analyst forecasts on Takasho Co., Ltd. stock, see the JP:7590 Stock Forecast page.