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

• Market Cap: ¥3.22B
• Dividend Yield: N/A
• Average Volume (3M): 1.48M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.87
• Revenue Growth: -5.87%
• EPS Growth: -2.90%
• Country: JP
• Employees: 198
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): -20.72
• Shares Outstanding: 16,214,400
• 10 Day Avg. Volume: 1,246,670
• 30 Day Avg. Volume: 1,480,513
• PEG Ratio: -1.99
• Price to Book (P/B): 3.73
• Price to Sales (P/S): 0.16
• P/FCF Ratio: 3.53
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: ¥210.00 ▲(0.00% Upside)

The overall stock score is primarily impacted by the company's weak financial performance, characterized by declining revenues and high leverage. While technical analysis shows positive momentum, the poor valuation due to negative earnings and lack of dividends weighs heavily on the stock's attractiveness.

Positive Factors

Cash Flow Improvement

Improved cash flow indicates better operational efficiency, providing the company with more resources to manage debts and invest in growth.

Diverse Revenue Streams

Multiple revenue streams reduce dependency on any single source, enhancing stability and resilience against market fluctuations.

Strategic Partnerships

Strategic partnerships expand market reach and brand visibility, potentially leading to increased revenue and competitive advantage.

Negative Factors

Declining Revenues

Continued revenue decline suggests challenges in maintaining market share and competitiveness, impacting long-term growth prospects.

High Leverage

High leverage increases financial risk and limits flexibility, potentially affecting the company's ability to invest in growth opportunities.

Negative Profit Margins

Negative profit margins highlight operational inefficiencies and the need for strategic changes to achieve profitability and sustainable growth.

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

Company Description

Top 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 Money

Top 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 revenues, persistent losses, and high leverage. Despite some improvement in cash flow generation, the company's financial health remains weak, requiring strategic measures to improve profitability and reduce debt levels.

Income Statement

Top Culture Co., Ltd. has experienced declining revenues over the past years, with a negative revenue growth rate of -1.65% in the most recent year. The company has consistently reported negative net income, leading to a negative net profit margin. The EBIT and EBITDA margins are also negative, indicating operational challenges. The gross profit margin remains relatively stable but is insufficient to offset the overall losses.

Balance Sheet

The company's balance sheet shows a high debt-to-equity ratio, indicating significant leverage and potential financial risk. The return on equity is negative, reflecting ongoing losses. The equity ratio is low, suggesting limited shareholder equity relative to total assets. These factors point to financial instability and potential solvency concerns.

Cash Flow

Cash flow analysis reveals some improvement, with positive operating and free cash flows in the latest year. However, the operating cash flow to net income ratio is low, indicating that cash generation from operations is not sufficient to cover net losses. The free cash flow to net income ratio is relatively better, suggesting some ability to generate cash despite losses.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	17.62B	17.33B	18.41B	18.95B	20.91B	26.41B
Gross Profit	6.22B	6.04B	6.32B	6.00B	6.52B	8.00B
EBITDA	-139.23M	-102.56M	-133.25M	-745.59M	200.26M	-1.16B
Net Income	-739.44M	-731.18M	-717.62M	-1.38B	-271.57M	-1.94B
Balance Sheet
Total Assets	14.48B	14.79B	15.78B	17.24B	18.18B	18.33B
Cash, Cash Equivalents and Short-Term Investments	952.00M	1.20B	988.93M	1.57B	1.58B	1.32B
Total Debt	9.38B	9.14B	9.76B	10.60B	10.89B	10.29B
Total Liabilities	13.39B	14.02B	14.16B	14.73B	14.78B	14.52B
Stockholders Equity	1.06B	737.14M	1.59B	2.48B	3.37B	3.78B
Cash Flow
Free Cash Flow	0.00	778.20M	731.54M	-241.60M	150.44M	-2.54B
Operating Cash Flow	0.00	898.87M	795.86M	-204.27M	220.12M	-2.41B
Investing Cash Flow	0.00	90.72M	117.92M	102.26M	-23.77M	204.95M
Financing Cash Flow	0.00	-773.75M	-1.50B	89.10M	62.64M	1.31B

Top Culture Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 210.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

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 210 is below the 20-day moving average (MA) of 210.20, above the 50-day MA of 204.90, and above the 200-day MA of 174.08, indicating a neutral trend. The MACD of -1.17 indicates Positive momentum. The RSI at 47.47 is Neutral, neither overbought nor oversold. The STOCH value of 82.58 is Negative, 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	76 Outperform	¥2.69B	7.06	―	3.71%	4.14%	31.98%
8225	73 Outperform	¥2.35B	6.31	―	1.29%	14.90%	-8.27%
7477	70 Outperform	¥2.70B	40.87	―	2.19%	1.41%	-39.47%
2666	67 Neutral	¥2.51B	8.30	―	1.92%	11.96%	30.75%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7640	50 Neutral	¥3.22B	-4.33	―	―	-5.87%	-2.90%
9978	44 Neutral	¥2.28B	-14.91	―	―	-3.14%	-462.00%