Top Culture Co., Ltd. (7640) AI Stock Analysis

• Market Cap: ¥3.61B
• Dividend Yield: 2.08%
• Average Volume (3M): 470.89K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.76
• Revenue Growth: -4.21%
• EPS Growth: 43.38%
• Country: JP
• Employees: 198
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): -9.32
• Shares Outstanding: 16,214,400
• 10 Day Avg. Volume: 1,381,220
• 30 Day Avg. Volume: 470,893
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• 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: ¥241.00
• Price Target Upside: 7.11% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 59 Neutral
• Price Target: ¥241.00 ▲(7.11% Upside)

The stock's overall score is primarily influenced by strong technical indicators suggesting bullish momentum, despite significant financial challenges and a negative valuation outlook. The lack of earnings call data and corporate events means these factors did not influence the score.

Top Culture Co., Ltd. Business Overview & Revenue Model

Company Description

TOP 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 Money

Top 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.

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.

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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	18.41B	18.95B	20.91B	26.41B	30.13B
Gross Profit	6.32B	6.00B	6.52B	8.00B	9.05B
EBITDA	-133.25M	-745.59M	200.26M	-1.16B	1.27B
Net Income	-717.62M	-1.38B	-271.57M	-1.94B	371.31M
Balance Sheet
Total Assets	15.78B	17.24B	18.18B	18.33B	20.18B
Cash, Cash Equivalents and Short-Term Investments	988.93M	1.57B	1.58B	1.32B	2.22B
Total Debt	9.76B	10.60B	10.89B	10.29B	11.01B
Total Liabilities	14.16B	14.73B	14.78B	14.52B	16.54B
Stockholders Equity	1.59B	2.48B	3.37B	3.78B	3.62B
Cash Flow
Free Cash Flow	731.54M	-241.60M	150.44M	-2.54B	3.18B
Operating Cash Flow	795.86M	-204.27M	220.12M	-2.41B	3.36B
Investing Cash Flow	117.92M	102.26M	-23.77M	204.95M	124.82M
Financing Cash Flow	-1.50B	89.10M	62.64M	1.31B	-2.52B

Top Culture Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 225.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 225 is above the 20-day moving average (MA) of 171.15, above the 50-day MA of 161.44, and above the 200-day MA of 146.57, indicating a bullish trend. The MACD of 12.77 indicates Negative momentum. The RSI at 73.63 is Negative, neither overbought nor oversold. The STOCH value of 67.40 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3375	79 Outperform	2.40B	7.49	10.12%	4.24%	-2.05%	-2.94%
2666	71 Outperform	2.37B	8.08	6.49%	1.81%	9.21%	24.86%
8225	71 Outperform	2.38B	6.74	13.69%	1.35%	12.28%	-13.20%
7640	59 Neutral	¥3.61B	―		2.08%	-4.21%	43.38%
7477	58 Neutral	1.77B	27.66	3.38%	2.44%	1.86%	-49.27%
9978	47 Neutral	2.45B	-97.24	3.27%	―	-3.19%	-123.83%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%