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Top Culture Co., Ltd. (JP:7640)
:7640
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Top Culture Co., Ltd.
(7640)
Select Model
Select Model
Rating:52Neutral
Price Target:
¥177.00
▲(5.36% Upside)
The overall stock score is primarily influenced by financial performance challenges, including high leverage and persistent losses. Technical analysis provides some positive signals, but valuation concerns due to a negative P/E ratio weigh heavily. Recent improvements in free cash flow offer a glimmer of hope.
Positive Factors
Free Cash Flow Improvement
Positive free cash flow indicates better cash management and potential for reinvestment in growth opportunities, aiding long-term stability.
Strategic Partnerships
Strategic partnerships can enhance market presence and drive sales, providing a competitive edge and supporting long-term revenue growth.
Adaptation to Digital Trends
Expanding into online sales helps capture digital-savvy consumers, aligning with market trends and potentially boosting future revenue streams.
Negative Factors
Revenue Decline
Ongoing revenue decline suggests market challenges and operational inefficiencies, potentially impacting long-term financial health.
High Leverage
High leverage increases financial risk, limiting flexibility and potentially affecting the company's ability to withstand economic downturns.
Declining Profit Margins
Declining profit margins indicate cost pressures or pricing challenges, which can erode profitability and hinder long-term competitiveness.
Top Culture Co., Ltd. (7640) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥2.59B
Dividend YieldN/A
Average Volume (3M)1.48M
Price to Earnings (P/E)―
Beta (1Y)0.66
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 TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Top Culture Co., Ltd. Business Overview & Revenue Model
Company DescriptionTop Culture Co., Ltd. (7640) is a dynamic company engaged primarily in the cultural and entertainment sectors. The company specializes in the production and distribution of music, films, and various entertainment content, catering to a diverse audience both domestically and internationally. With a focus on enhancing cultural experiences, Top Culture also invests in talent development and collaborates with various artists and creators to produce high-quality content that resonates with consumers.
How the Company Makes MoneyTop Culture Co., Ltd. generates revenue through multiple streams. The primary revenue source comes from the sale and licensing of music and film content, where the company earns income from physical and digital sales, streaming services, and licensing agreements with media platforms. Additionally, the company profits from concert and event ticket sales, merchandise sales related to its artists, and sponsorship deals. Strategic partnerships with other entertainment entities, media distributors, and advertising firms also contribute significantly to its earnings, helping to expand its market reach and enhance brand visibility.
Top Culture Co., Ltd. Financial Statement Overview
Summary
Top Culture Co., Ltd. faces significant financial challenges with declining revenue, high leverage, and persistent losses. However, recent improvements in free cash flow provide a slight positive outlook.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
Neutral
168.00
Price Trends
186.80
Negative
172.09
Negative
158.40
Positive
Market Momentum
-5.18
Negative
46.52
Neutral
53.57
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7640, the sentiment is Neutral. The current price of 168 is below the 20-day moving average (MA) of 168.30, below the 50-day MA of 186.80, and above the 200-day MA of 158.40, indicating a neutral trend. The MACD of -5.18 indicates Negative momentum. The RSI at 46.52 is Neutral, neither overbought nor oversold. The STOCH value of 53.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | ¥2.42B | 7.56 | ― | 4.30% | 4.14% | 31.98% | |
73 Outperform | ¥2.49B | 7.06 | ― | 1.30% | 14.90% | -8.27% | |
67 Neutral | ¥2.24B | 7.63 | ― | 1.89% | 11.96% | 30.75% | |
67 Neutral | ¥1.81B | 28.23 | ― | 2.83% | 1.41% | -39.47% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
52 Neutral | ¥2.59B | -3.47 | ― | ― | -4.21% | 43.38% | |
48 Neutral | ¥2.02B | -13.01 | ― | ― | -3.14% | -462.00% |
* 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.