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SK Japan Co., Ltd. (JP:7608)
:7608
Japanese Market

SK Japan Co., Ltd. (7608) AI Stock Analysis

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JP:7608

SK Japan Co., Ltd.

(7608)

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Outperform 82 (OpenAI - 5.2)
Rating:82Outperform
Price Target:
¥1,730.00
▲(16.03% Upside)
The score is driven primarily by strong financial quality (especially the conservative balance sheet and improved profitability) and supportive technical trends (price above key moving averages with positive MACD). Valuation further strengthens the outlook with a low P/E and moderate dividend yield, while the key risk to monitor is cash-flow volatility and softer cash conversion in the most recent period.

SK Japan Co., Ltd. (7608) vs. iShares MSCI Japan ETF (EWJ)

SK Japan Co., Ltd. Business Overview & Revenue Model

Company DescriptionSK Japan Co.,Ltd. plans, manufactures, and sells character stuffed animals, key chains, household goods, mobile phone accessory goods, prize products, etc. The company was founded in 1989 and is headquartered in Osaka, Japan.
How the Company Makes Money

SK Japan Co., Ltd. Financial Statement Overview

Summary
Strong overall financial quality supported by rapid revenue growth and improving operating profit/net income through 2025, plus a very conservative, near debt-free balance sheet. The main offset is uneven cash-flow consistency (negative in 2023 and weaker cash conversion in 2025) and some gross margin compression versus earlier years.
Income Statement
78
Positive
Revenue has expanded strongly over the last few years (from ~¥6.5B in 2022 to ~¥13.3B in 2025), with a particularly large step-up in 2023–2025 and positive growth again in 2025. Profitability has also improved versus 2022–2023, with operating profit and net income rising materially through 2025. Offsetting this, margins are still below the company’s earlier peak (notably 2020 gross and net margins), and gross margin has drifted down from 2022 to 2025 even as scale improved.
Balance Sheet
92
Very Positive
The balance sheet is very conservative, with essentially no debt in recent years and a near-zero debt-to-equity profile. Equity has grown steadily (from ~¥3.3B in 2020 to ~¥5.6B in 2025), supporting asset growth while maintaining a strong capital cushion. Returns on equity are solid and improving versus 2022–2023, though not consistently at the highest level seen earlier (e.g., around 2020).
Cash Flow
67
Positive
Cash generation is generally positive, with operating cash flow and free cash flow positive in most years and free cash flow tracking net income reasonably well in 2024–2025. However, cash flow has been volatile: operating and free cash flow turned negative in 2023, and in 2025 operating cash flow covered a notably smaller share of net income than the prior year, pointing to weaker cash conversion in the most recent period.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue13.96B13.27B10.61B9.73B6.50B5.36B
Gross Profit3.81B3.56B2.95B2.32B1.98B1.65B
EBITDA1.41B1.34B1.06B627.26M495.30M275.60M
Net Income989.22M929.14M755.99M379.38M334.38M285.31M
Balance Sheet
Total Assets7.08B6.77B5.98B4.84B4.33B4.07B
Cash, Cash Equivalents and Short-Term Investments3.53B3.78B3.41B2.57B2.79B2.61B
Total Debt0.000.000.000.000.00966.00K
Total Liabilities1.36B1.20B1.22B789.11M596.21M510.00M
Stockholders Equity5.72B5.58B4.76B4.05B3.74B3.56B
Cash Flow
Free Cash Flow0.00538.78M997.98M-138.85M361.64M404.58M
Operating Cash Flow0.00657.11M1.07B-87.76M389.81M427.23M
Investing Cash Flow0.00-117.76M-134.56M-53.52M-30.46M-25.93M
Financing Cash Flow0.00-166.66M-108.47M-89.38M-188.49M-84.93M

SK Japan Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
¥12.20B9.942.37%
78
Outperform
¥10.45B3.593.96%7.77%247.26%
75
Outperform
¥4.36B24.004.78%-11.24%-48.52%
70
Outperform
¥12.46B9.542.70%9.10%27.73%
66
Neutral
¥11.22B14.653.31%3.14%-40.34%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
42
Neutral
¥1.61B202.00
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7608
SK Japan Co., Ltd.
1,485.00
734.32
97.82%
JP:7809
KOTOBUKIYA CO., LTD.
1,487.00
90.51
6.48%
JP:7841
Endo Manufacturing Co., Ltd.
1,283.00
2.84
0.22%
JP:7847
Graphite Design Inc.
674.00
-84.54
-11.15%
JP:7865
People Co., Ltd.
421.00
-96.00
-18.57%
JP:8135
ZETT CORP.
534.00
144.28
37.02%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jan 04, 2026