Tay Two Co., Ltd. (7610) AI Stock Analysis

• Market Cap: ¥10.13B
• Dividend Yield: 2.61%
• Average Volume (3M): 1.12M
• Price to Earnings (P/E): 18.3
• Beta (1Y): 0.84
• Revenue Growth: 4.55%
• EPS Growth: 50.97%
• Country: JP
• Employees: 391
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 1.44
• Shares Outstanding: 68,664,340
• 10 Day Avg. Volume: 865,240
• 30 Day Avg. Volume: 1,118,396
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥159.00
• Price Target Upside: 3.92% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: ¥159.00 ▲(3.92% Upside)

Tay Two Co., Ltd. has a stable financial position with strong revenue growth and a healthy balance sheet. However, the lack of strong market momentum and areas for improvement in profitability and efficiency slightly temper the overall score. The stock's fair valuation and moderate dividend yield add to its appeal.

Tay Two Co., Ltd. Business Overview & Revenue Model

Company Description

Tay Two Co., Ltd. purchases and sells books, home video games, trading cards, hobbies, smartphones, CDs, DVDs, clothing, etc. The company was founded in 1989 and is headquartered in Okayama, Japan.

How the Company Makes Money

Tay Two Co., Ltd. generates revenue primarily through the sale of used goods. The company acquires products either through direct purchases from individuals or through trade-in programs, allowing customers to exchange their items for store credit or cash. These acquired items are then resold through Tay Two's physical retail stores and online platforms. The company benefits from a cost-effective inventory model, as it typically purchases items at a lower cost and sells them at a markup. Additionally, Tay Two may engage in partnerships with other businesses or platforms to expand its reach and enhance its product offerings. The company's focus on sustainability and offering affordable alternatives to new products also contributes to its appeal and customer base.

Tay Two Co., Ltd. Financial Statement Overview

Summary

Tay Two Co., Ltd. shows strong revenue growth and solid financial stability, supported by a healthy balance sheet and improving cash flow. However, declining net profit margins and a decrease in return on equity suggest areas for improvement.

Income Statement

Tay Two Co., Ltd. demonstrates strong revenue growth with a consistent increase over the past five years, culminating in a solid 3.64% growth from 2024 to 2025. The company's gross profit margin remains robust at 32.6% in 2025, indicating effective cost management. However, the net profit margin has seen a decline to 1.38%, reflecting a drop in profitability, which could be a concern if not addressed.

Balance Sheet

The balance sheet is strong with a healthy equity ratio of 45.9% in 2025, suggesting solid financial stability. The debt-to-equity ratio is modest at 0.61, indicating a manageable level of debt. However, the return on equity has decreased to 8.16%, which may suggest efficiency improvements are needed to enhance shareholder returns.

Cash Flow

The company shows a positive trend in free cash flow, with significant growth from a negative position in 2024 to a positive $467 million in 2025. The operating cash flow to net income ratio is strong, reflecting efficient cash generation from operations. However, the free cash flow to net income ratio indicates room for improvement in translating income into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	36.48B	36.48B	35.20B	31.26B	26.85B	24.95B
Gross Profit	12.10B	11.89B	11.84B	10.74B	9.04B	7.74B
EBITDA	1.19B	1.21B	1.51B	1.87B	1.45B	1.09B
Net Income	501.77M	501.58M	568.47M	1.00B	1.50B	703.82M
Balance Sheet
Total Assets	13.38B	13.38B	12.41B	10.94B	9.37B	8.24B
Cash, Cash Equivalents and Short-Term Investments	2.90B	2.90B	2.86B	2.48B	1.76B	2.04B
Total Debt	3.73B	3.73B	3.50B	2.30B	1.87B	1.89B
Total Liabilities	7.23B	7.23B	6.60B	5.34B	4.47B	4.67B
Stockholders Equity	6.15B	6.15B	5.81B	5.60B	4.89B	3.58B
Cash Flow
Free Cash Flow	0.00	467.55M	-343.88M	645.26M	-45.77M	1.00B
Operating Cash Flow	0.00	1.46B	210.61M	1.18B	538.07M	1.22B
Investing Cash Flow	0.00	-1.44B	-595.40M	-562.30M	-645.76M	-440.12M
Financing Cash Flow	0.00	15.51M	778.62M	110.78M	-197.38M	-223.84M

Tay Two Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 153.00
• 50DMA: Positive
• 100DMA: Positive
• 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:7610, the sentiment is Positive. The current price of 153 is above the 20-day moving average (MA) of 148.20, above the 50-day MA of 146.22, and above the 200-day MA of 133.02, indicating a bullish trend. The MACD of 1.89 indicates Negative momentum. The RSI at 58.67 is Neutral, neither overbought nor oversold. The STOCH value of 69.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7610.

Tay Two Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7110	78 Outperform	16.67B	23.28	―	1.64%	21.07%	-8.86%
2652	75 Outperform	11.28B	10.00	12.67%	0.32%	5.33%	-26.18%
7636	73 Outperform	11.94B	11.28	5.67%	3.58%	2.27%	33.92%
7610	71 Outperform	¥10.13B	18.30	―	2.61%	4.55%	50.97%
8289	46 Neutral	9.44B	-23.78	-0.27%	4.87%	6.19%	21.85%
2769	40 Underperform	8.00B	-1.88	-226.87%	―	0.66%	-236.09%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%