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Top Culture Co., Ltd. (JP:7640)
:7640
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Top Culture Co., Ltd.
(7640)
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Rating:53Neutral
Price Target:
¥211.00
▲(4.46% Upside)
The overall stock score of 53 reflects significant financial challenges, including persistent losses and high leverage, which weigh heavily on the company's outlook. However, positive technical indicators suggest potential for short-term gains, partially offsetting the negative valuation metrics.
Top Culture Co., Ltd. (7640) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥3.25B
Dividend Yield2.08%
Average Volume (3M)1.48M
Price to Earnings (P/E)―
Beta (1Y)0.72
Revenue Growth-4.21%
EPS Growth43.38%
CountryJP
Employees198
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)-9.32
Shares Outstanding16,214,400
10 Day Avg. Volume1,246,670
30 Day Avg. Volume1,480,513
Financial Highlights & Ratios
PEG Ratio0.05
Price to Book (P/B)1.42
Price to Sales (P/S)0.12
P/FCF Ratio3.09
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥211.00Price Target Upside4.46% Upside
Rating ConsensusHold
Number of Analyst Covering0
Top Culture Co., Ltd. Business Overview & Revenue Model
Company DescriptionTOP CULTURE Co.,Ltd. operates retail stores in Japan. It engages in selling and renting of books, stationery, music, and video software. The company is also involved in the operation of soccer clubs and soccer schools, as well as planning and management of sports facilities; buying and selling of used books, music/video software, game consoles/game software, etc.; operation of a home-visit nursing station for the mental illness and dementia; and operation of coworking space. As of September 1, 2020, it operated 75 stores in 1 metropolitan area and 9 prefectures. The company was incorporated in 1975 and is based in Niigata, Japan.
How the Company Makes MoneyTop Culture Co., Ltd. generates revenue primarily through the sales of books and the rental of videos and other media products. The company's retail outlets serve as the main revenue stream, where customers purchase physical books and magazines. Additionally, their video rental services contribute to earnings, as customers rent DVDs and CDs for a specified duration. The company may also engage in partnerships with publishers and media companies to expand their product offerings and enhance their market presence. These strategic collaborations can lead to promotional opportunities and exclusive content, further driving sales and rentals. Furthermore, Top Culture Co., Ltd. may explore online sales channels to reach a broader audience and adapt to changing consumer preferences in the digital age.
Top Culture Co., Ltd. Financial Statement Overview
Summary
Top Culture Co., Ltd. faces significant financial challenges across income, balance sheet, and cash flow statements. Persistent losses and high leverage levels highlight the need for strategic restructuring to improve operational efficiency and financial stability. Despite these challenges, recent improvements in free cash flow offer a glimmer of hope for recovery.Income Statement
The income statement reveals significant challenges with consistent revenue decline over the years. Gross profit margin is declining, and the company is experiencing persistent EBIT and net income losses, indicating operational inefficiencies and potential market challenges.45
Neutral
Balance Sheet
The balance sheet shows a high debt-to-equity ratio, reflecting significant leverage which could pose a risk in times of financial distress. The declining equity ratio suggests increasing liabilities relative to assets, and the negative return on equity signals the company isn't generating returns for shareholders.50
Neutral
Cash Flow
The cash flow statement demonstrates some improvement with positive free cash flow in the latest year. However, fluctuations in operating cash flow and significant financing outflows suggest instability in cash management. Positive recent free cash flow growth is a redeeming factor.55
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 17.62B | 18.41B | 18.95B | 20.91B | 26.41B | 30.13B |
| Gross Profit | 6.22B | 6.32B | 6.00B | 6.52B | 8.00B | 9.05B |
| EBITDA | -139.23M | -133.25M | -745.59M | 200.26M | -1.16B | 1.27B |
| Net Income | -739.44M | -717.62M | -1.38B | -271.57M | -1.94B | 371.31M |
Balance Sheet | ||||||
| Total Assets | 14.48B | 15.78B | 17.24B | 18.18B | 18.33B | 20.18B |
| Cash, Cash Equivalents and Short-Term Investments | 952.00M | 988.93M | 1.57B | 1.58B | 1.32B | 2.22B |
| Total Debt | 9.38B | 9.76B | 10.60B | 10.89B | 10.29B | 11.01B |
| Total Liabilities | 13.39B | 14.16B | 14.73B | 14.78B | 14.52B | 16.54B |
| Stockholders Equity | 1.06B | 1.59B | 2.48B | 3.37B | 3.78B | 3.62B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 731.54M | -241.60M | 150.44M | -2.54B | 3.18B |
| Operating Cash Flow | 0.00 | 795.86M | -204.27M | 220.12M | -2.41B | 3.36B |
| Investing Cash Flow | 0.00 | 117.92M | 102.26M | -23.77M | 204.95M | 124.82M |
| Financing Cash Flow | 0.00 | -1.50B | 89.10M | 62.64M | 1.31B | -2.52B |
Top Culture Co., Ltd. Technical Analysis
Positive
202.00
Price Trends
177.10
Positive
165.11
Positive
152.18
Positive
Market Momentum
6.26
Positive
55.82
Neutral
29.23
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7640, the sentiment is Positive. The current price of 202 is above the 20-day moving average (MA) of 196.80, above the 50-day MA of 177.10, and above the 200-day MA of 152.18, indicating a bullish trend. The MACD of 6.26 indicates Positive momentum. The RSI at 55.82 is Neutral, neither overbought nor oversold. The STOCH value of 29.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7640.
Top Culture Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | ¥2.43B | 7.57 | ― | 4.18% | -2.05% | -2.94% | |
74 Outperform | ¥2.47B | 7.01 | ― | 1.29% | 12.28% | -13.20% | |
69 Neutral | ¥2.28B | 7.78 | ― | 1.90% | 9.21% | 24.86% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | ¥1.70B | 26.64 | ― | 2.71% | 1.86% | -49.27% | |
53 Neutral | ¥3.25B | ― | ― | 2.08% | -4.21% | 43.38% | |
48 Neutral | ¥2.02B | 78.94 | ― | ― | -3.14% | -462.01% |
* Consumer Cyclical Sector Average
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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.