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

• Market Cap: ¥9.07B
• Dividend Yield: 2.92%
• Average Volume (3M): 1.31M
• Price to Earnings (P/E): 17.3
• Beta (1Y): 0.83
• Revenue Growth: 3.64%
• EPS Growth: -9.17%
• Country: JP
• Employees: 391
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Specialty Retail
• EPS (TTM): 4.53
• Shares Outstanding: 68,664,340
• 10 Day Avg. Volume: 1,218,550
• 30 Day Avg. Volume: 1,314,063
• PEG Ratio: -0.35
• Price to Book (P/B): 1.92
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.69
• 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

• Rating: 75 Outperform
• Price Target: ¥161.00 ▲(12.59%Upside)

The company's strong financial performance and stable revenue growth are key strengths, while technical analysis provides a mixed view. Valuation metrics suggest the stock is fairly priced, but not significantly undervalued. There is room for improvement in profitability and efficiency.

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

Company Description

Tay Two Co., Ltd. (7610) is a Japanese company primarily engaged in the retail sector, focusing on the sale of new and used video games, gaming consoles, and related accessories. The company operates a chain of stores across Japan, providing a platform where customers can buy, sell, and trade gaming products. Tay Two Co., Ltd. also offers a range of entertainment-related merchandise, including toys and hobby goods, catering to a wide demographic of gaming enthusiasts.

How the Company Makes Money

Tay Two Co., Ltd. generates revenue through the sale of new and pre-owned video games and gaming consoles, as well as related accessories. By maintaining a diverse inventory, the company attracts a broad customer base interested in both current gaming trends and nostalgic products. Tay Two Co., Ltd. also capitalizes on the gaming community's interest in trading, allowing customers to trade in their used games and consoles for store credit or cash, which helps to maintain inventory turnover and attract repeat business. Additionally, the company benefits from partnerships with video game publishers and hardware manufacturers, enabling them to offer exclusive products and promotions that drive sales. The physical retail presence, combined with an online sales platform, ensures a steady stream of revenue from both in-store and e-commerce channels.

Tay Two Co., Ltd. Financial Statement Overview

Summary

Tay Two Co., Ltd. shows strong revenue growth with solid financial stability, as evidenced by a robust gross profit margin and strong balance sheet. However, the declining net profit margin and return on equity highlight areas needing 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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
36.01B	36.48B	35.20B	31.26B	26.85B	24.95B
	Gross Profit
11.77B	11.89B	11.84B	10.74B	9.04B	7.74B
	EBIT
618.05M	911.91M	1.33B	1.56B	1.30B	929.90M
	EBITDA
752.65M	1.21B	1.51B	1.87B	1.45B	1.09B
	Net Income Common Stockholders
74.70M	501.58M	568.47M	1.00B	1.50B	703.82M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.86B	2.90B	2.86B	2.48B	1.76B	2.04B
	Total Assets
13.96B	13.38B	12.41B	10.94B	9.37B	8.24B
	Total Debt
4.84B	3.73B	3.50B	2.30B	1.87B	1.89B
	Net Debt
1.98B	833.96M	643.15M	-182.01M	108.81M	-151.09M
	Total Liabilities
8.13B	7.23B	6.60B	5.34B	4.47B	4.67B
	Stockholders Equity
5.83B	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: 143.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 143 is below the 20-day moving average (MA) of 145.20, above the 50-day MA of 140.96, and above the 200-day MA of 114.91, indicating a neutral trend. The MACD of -0.63 indicates Positive momentum. The RSI at 49.75 is Neutral, neither overbought nor oversold. The STOCH value of 12.70 is Positive, 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	76 Outperform	¥12.01B	18.11		1.04%	18.54%	-20.77%
7610	75 Outperform	¥9.07B	17.26		2.92%	3.64%	-9.17%
2652	67 Neutral	¥10.21B	8.35		0.35%	8.04%	-19.57%
7636	66 Neutral	¥11.81B	12.39		3.62%	4.17%	28.46%
Sector *	62 Neutral	$6.86B	11.07	2.77%	4.27%	2.66%	-24.95%
8289	56 Neutral	¥9.53B	―		4.82%	8.47%	85.95%
2769	42 Neutral	¥8.21B	―		―	2.96%	-119.07%