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): 9.2
• 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): 5.57
• 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: 47 Neutral
• Price Target: ¥223.00 ▲(6.19% Upside)
• Action: Reiterated Date: 03/13/26
• Date: Action: Reiterated 03/13/26

The score is held back primarily by weak financial fundamentals (declining revenue, ongoing losses, and high leverage). Technicals provide partial support with price trading above key moving averages, but momentum is not strong (negative MACD). Valuation is also a headwind because losses make P/E less meaningful and there is no dividend yield data.

Positive Factors

Improved operating and free cash flow

Positive operating and free cash flows provide durable liquidity that supports debt servicing, targeted investment, or restructuring without immediate equity raises. This cash generation creates runway to implement efficiency measures and sustain operations while management works toward restoring profitability.

Negative Factors

Declining revenues

Sustained revenue decline reduces scale and weakens store economics, increasing the difficulty of covering fixed costs. Over a multi-month horizon, falling top-line undermines bargaining power, compresses margins, and forces either costly marketing and promotions or structural portfolio reductions to stabilize the business.

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 aud...

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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 aud...

How the Company Makes Money

The company makes money primarily through retail sales generated at its physical store network, where revenue is recognized from the sale of merchandise (e.g., books and media products) to end customers. Additional revenue may come from related st...

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The company makes money primarily through retail sales generated at its physical store network, where revenue is recognized from the sale of merchandise (e.g., books and media products) to end customers. Additional revenue may come from related st...

Top Culture Co., Ltd. Financial Statement Overview

Breakdown	Oct 2025	Oct 2024	Oct 2023	Oct 2022	Oct 2021
Income Statement
Total Revenue	17.33B	18.41B	18.95B	20.91B	26.41B
Gross Profit	5.63B	5.93B	5.57B	6.22B	7.40B
EBITDA	50.80M	-63.61M	-309.45M	189.08M	1.00B
Net Income	-731.18M	-717.62M	-1.38B	-272.85M	-1.94B
Balance Sheet
Total Assets	14.79B	15.78B	17.24B	18.18B	18.33B
Cash, Cash Equivalents and Short-Term Investments	1.20B	988.93M	1.57B	1.58B	1.32B
Total Debt	9.14B	9.79B	10.61B	10.90B	10.32B
Total Liabilities	14.02B	14.16B	14.73B	14.78B	14.52B
Stockholders Equity	737.14M	1.59B	2.48B	3.37B	3.78B
Cash Flow
Free Cash Flow	778.20M	732.24M	-239.60M	151.84M	-2.53B
Operating Cash Flow	898.87M	795.86M	-204.27M	220.12M	-2.41B
Investing Cash Flow	90.72M	117.92M	102.26M	-23.77M	204.95M
Financing Cash Flow	-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: Negative
• RSI: Neutral
• 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 210 is above the 20-day moving average (MA) of 201.15, above the 50-day MA of 202.22, and above the 200-day MA of 184.38, indicating a bullish trend. The MACD of 0.30 indicates Negative momentum. The RSI at 53.14 is Neutral, neither overbought nor oversold. The STOCH value of 35.56 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
2674	74 Outperform	¥28.52B	8.12	―	3.77%	7.88%	-5.92%
3179	66 Neutral	¥21.97B	10.52	―	3.53%	-2.73%	-51.48%
7685	65 Neutral	¥215.24B	27.65	―	0.64%	57.01%	91.03%
9278	64 Neutral	¥34.71B	11.19	―	1.73%	―	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
9270	59 Neutral	¥28.95B	3.19	―	0.95%	4.14%	―
7640	47 Neutral	¥3.22B	9.16	―	―	-5.87%	-2.90%