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

• Market Cap: ¥9.14B
• Dividend Yield: 2.9%
• Average Volume (3M): 2.09M
• Price to Earnings (P/E): 16.3
• Beta (1Y): 0.81
• Revenue Growth: 4.55%
• EPS Growth: 50.97%
• Country: JP
• Employees: 391
• Sector: Consumer Cyclical
• Sector Strength: 65
• Industry: Specialty Retail
• EPS (TTM): 1.44
• Shares Outstanding: 68,664,340
• 10 Day Avg. Volume: 2,958,860
• 30 Day Avg. Volume: 2,087,023
• PEG Ratio: 0.03
• Price to Book (P/B): 1.57
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥173.00
• Price Target Upside: 13.07% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 66 Neutral
• Price Target: ¥149.00 ▼(-2.61%Downside)

Tay Two Co., Ltd. maintains a stable financial position with strong revenue growth and a solid balance sheet, despite facing challenges in profitability. Technical analysis reflects mixed signals with potential short-term weakness, while valuation metrics indicate fair pricing. Overall, the stock is moderately attractive with opportunities for improvement in profitability.

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. exhibits strong revenue growth and solid financial stability, supported by a healthy balance sheet and improving cash flow. However, declining net profit margins and reduced return on equity indicate 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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	36.48B	35.20B	31.26B	26.85B	24.95B
Gross Profit	11.89B	11.84B	10.74B	9.04B	7.74B
EBITDA	1.21B	1.51B	1.87B	1.45B	1.09B
Net Income	501.58M	568.47M	1.00B	1.50B	703.82M
Balance Sheet
Total Assets	13.38B	12.41B	10.94B	9.37B	8.24B
Cash, Cash Equivalents and Short-Term Investments	2.90B	2.86B	2.48B	1.76B	2.04B
Total Debt	3.73B	3.50B	2.30B	1.87B	1.89B
Total Liabilities	7.23B	6.60B	5.34B	4.47B	4.67B
Stockholders Equity	6.15B	5.81B	5.60B	4.89B	3.58B
Cash Flow
Free Cash Flow	467.55M	-343.88M	645.26M	-45.77M	1.00B
Operating Cash Flow	1.46B	210.61M	1.18B	538.07M	1.22B
Investing Cash Flow	-1.44B	-595.40M	-562.30M	-645.76M	-440.12M
Financing Cash Flow	15.51M	778.62M	110.78M	-197.38M	-223.84M

Tay Two Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 153.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• 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 Negative. The current price of 153 is above the 20-day moving average (MA) of 150.10, above the 50-day MA of 146.42, and above the 200-day MA of 120.75, indicating a neutral trend. The MACD of 1.56 indicates Positive momentum. The RSI at 39.80 is Neutral, neither overbought nor oversold. The STOCH value of 42.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥11.21B	17.01		1.12%	18.54%	-20.77%
2652	75 Outperform	¥11.49B	9.28		0.31%	8.04%	-19.57%
7610	66 Neutral	¥9.14B	16.27		2.90%	4.55%	50.97%
7636	66 Neutral	¥11.36B	11.91		3.76%	4.17%	28.46%
Sector *	63 Neutral	$16.78B	10.88	-7.08%	3.04%	1.73%	-25.15%
8289	53 Neutral	¥9.44B	―		4.87%	6.19%	21.85%
2769	42 Neutral	¥7.90B	―		―	2.96%	-119.07%