TAKARA & COMPANY LTD (7921) AI Stock Analysis

• Market Cap: ¥51.20B
• Dividend Yield: 2.92%
• Average Volume (3M): 23.42K
• Price to Earnings (P/E): 42.0
• Beta (1Y): 0.51
• Revenue Growth: 3.99%
• EPS Growth: 43.46%
• Country: JP
• Employees: 1,193
• Sector: Industrials
• Sector Strength: 72
• Industry: Financial - Capital Markets
• EPS (TTM): N/A
• Shares Outstanding: 13,153,293
• 10 Day Avg. Volume: 18,000
• 30 Day Avg. Volume: 23,423
• PEG Ratio: 0.29
• Price to Book (P/B): 1.39
• Price to Sales (P/S): 1.42
• P/FCF Ratio: 12.33
• 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: 76 Outperform
• Price Target: ¥4,403.00 ▼(-6.52% Downside)
• Action: Reiterated Date: 11/22/25
• Date: Action: Reiterated 11/22/25

TAKARA & COMPANY LTD demonstrates strong financial performance with consistent growth and low leverage, which is the most significant factor in its overall score. The technical analysis indicates bullish momentum, though caution is advised due to overbought signals. Valuation is reasonable, providing a balanced investment opportunity.

Positive Factors

Low leverage and strong equity base

A low debt-to-equity ratio and robust equity ratio provide enduring financial flexibility. This reduces refinancing and solvency risk, allowing the firm to fund technology, client service investments and weather cyclical lulls without sacrificing operations or client support over the next several quarters.

Consistent operating cash generation

Sustained positive operating cash flow and recent FCF growth support internal funding for working capital, incremental digital investments and shareholder returns. Reliable cash generation enhances resilience to project timing variability and underpins durable capital allocation choices.

Recurring, specialized IR and communications business model

A service model anchored to recurring regulatory disclosure cycles and ongoing client communications creates predictable baseline demand and deep client relationships. Specialized skills and delivery capabilities raise switching costs and support repeat business across reporting cycles.

Negative Factors

Slight declining gross margin trend

A gradual reduction in gross margin signals emerging cost pressures or pricing compression in production and service delivery. If persistent, this trend can erode operating leverage and limit the company’s ability to expand EBIT margins without productivity gains or pricing power improvements.

Free cash flow volatility historically

Historical variability in free cash flow suggests timing sensitivity to project cycles and working capital swings. Such volatility can constrain consistent reinvestment, dividend policy or one-off strategic spends, making medium-term planning and smoothing of shareholder returns more challenging.

Moderate revenue growth rate

Mid-single-digit organic revenue growth indicates limited top-line momentum relative to higher-growth segments. Without expansion into adjacent services or geographies, moderate growth may cap long-term earnings upside and increase reliance on margin expansion for material profit improvement.

TAKARA & COMPANY LTD Business Overview & Revenue Model

Company Description

Takara & Company Ltd. produces, consults, prints, and translates disclosure and IR-related materials in Japan and internationally. The company offers planning proposal, design production, proofreading, printing, electronic, and other services for system disclosure documents that are required to be prepared based on the Financial Instruments and Exchange Act and the Companies Act; and voluntary disclosure documents created for shareholders and investors. It also provides support services for general shareholders' meetings, creation of "examples" and provision of various information, and seminars for persons in charge of disclosure, as well as for obtaining qualifications. In addition, the company offers advanced automation tools; Budget Accounting Express, a budget management support tool; and Websites creation services, as well as develops applications and systems, such as ER/SR tools. Further, it provides support services for the preparation of listing application documents required for initial public offering companies and support for examination response; and advisory services related to the creation of ESG and integrated reports that create corporate social value. Additionally, the company support services for the transition to IFRS disclosure, disclosure of corrections, and settlement of accounts and early settlement of accounts, as well as M&A support, and listing examinations services on the TOKYO PRO Market. In addition, it offers translation services covering a range of fields, including translation of confidential information and IR materials related to M&A; localization services; and support for customers' global business development, as well as develops and sells AI translations. The company was founded in 1952 and is based in Tokyo, Japan.

How the Company Makes Money

TAKARA & COMPANY LTD makes money mainly by providing outsourced investor-relations and corporate-communications services to corporate clients, earning fees for (1) planning and consulting around disclosure/IR communication needs, (2) producing content such as financial/annual reports and shareholder-facing materials, and (3) delivering these materials through printing, distribution, and increasingly digital channels (e.g., web or electronic disclosure-related content production and management). Revenue is therefore a mix of service/production fees tied to recurring disclosure cycles (e.g., annual and interim reporting, shareholder meeting communications) and project-based work for specific communication initiatives. null

TAKARA & COMPANY LTD Financial Statement Overview

Summary

TAKARA & COMPANY LTD exhibits strong financial health with consistent revenue and profit growth, low leverage, and robust cash flow generation. The company is well-positioned in the capital markets industry, with a solid balance sheet and efficient operations. While there are minor fluctuations in certain metrics, the overall trajectory remains positive.

Income Statement

TAKARA & COMPANY LTD has demonstrated consistent revenue growth over the years, with a notable increase in net income and EBIT margins. The gross profit margin remains strong, indicating efficient cost management. However, the slight decline in gross profit margin from 2022 to 2025 suggests potential cost pressures.

Balance Sheet

The company maintains a strong equity base with a low debt-to-equity ratio, reflecting financial stability and low leverage risk. Return on equity has shown a positive trend, indicating effective use of equity to generate profits. The equity ratio is robust, underscoring a solid financial structure.

Cash Flow

Operating cash flow has been consistently positive, supporting net income effectively. The free cash flow growth rate is strong, particularly in the latest period, indicating improved cash generation capabilities. However, fluctuations in free cash flow growth in previous years suggest some variability in cash management.

Breakdown	TTM	May 2024	May 2023	May 2022	May 2021	May 2020
Income Statement
Total Revenue	30.39B	29.68B	29.28B	27.57B	25.32B	24.78B
Gross Profit	12.66B	12.63B	12.22B	11.44B	10.90B	10.19B
EBITDA	7.25B	7.30B	5.71B	5.23B	4.81B	3.88B
Net Income	4.12B	4.08B	3.01B	2.60B	2.25B	1.64B
Balance Sheet
Total Assets	38.45B	40.06B	36.19B	33.44B	30.92B	30.97B
Cash, Cash Equivalents and Short-Term Investments	19.86B	19.15B	14.64B	13.14B	10.30B	9.74B
Total Debt	184.49M	208.89M	107.07M	291.96M	440.62M	702.27M
Total Liabilities	7.63B	9.33B	8.19B	8.36B	7.56B	8.50B
Stockholders Equity	30.44B	30.34B	27.65B	24.76B	23.07B	21.92B
Cash Flow
Free Cash Flow	0.00	3.41B	2.30B	3.90B	1.80B	1.35B
Operating Cash Flow	0.00	4.37B	3.36B	4.72B	2.74B	2.53B
Investing Cash Flow	0.00	1.27B	-832.52M	-691.95M	-898.63M	-1.36B
Financing Cash Flow	0.00	-1.13B	-1.37B	-1.19B	-1.23B	1.19B

TAKARA & COMPANY LTD Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4710.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7921, the sentiment is Negative. The current price of 4710 is above the 20-day moving average (MA) of 4024.00, above the 50-day MA of 4237.30, and above the 200-day MA of 3967.12, indicating a bearish trend. The MACD of -77.00 indicates Positive momentum. The RSI at 38.25 is Neutral, neither overbought nor oversold. The STOCH value of 16.74 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7921.

TAKARA & COMPANY LTD Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6196	82 Outperform	¥76.28B	23.15	―	4.32%	11.99%	-4.74%
2127	76 Outperform	¥209.21B	12.40	26.65%	4.00%	10.37%	18.68%
7921	76 Outperform	¥51.20B	42.03	―	2.92%	3.99%	43.46%
6080	69 Neutral	¥103.85B	15.70	―	1.54%	17.13%	23.53%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
9552	63 Neutral	¥34.03B	22.17	―	0.45%	0.32%	-48.88%

TAKARA & COMPANY LTD Corporate Events

Takara & Company Delivers Strong First-Half Earnings, Keeps Full-Year Outlook and Dividend Plan

TAKARA & COMPANY reported an 8.1% year-on-year increase in net sales to ¥16.1 billion for the six months ended November 30, 2025, with operating profit up 9.6% to ¥2.3 billion and profit attributable to owners of parent rising 5.0% to ¥1.53 billion, reflecting improved profitability and a stronger equity ratio of 79.2% as net assets climbed to ¥31.1 billion. The company maintained its full-year forecast for the fiscal year ending May 31, 2026, projecting double-digit sales growth but a 23.9% decline in full-year profit attributable to owners of parent, while signaling continued shareholder returns through a planned annual dividend of ¥120 per share, up via a higher interim payout, underscoring a balance between growth investment and stable capital policy.

The most recent analyst rating on (JP:7921) stock is a Buy with a Yen5154.00 price target. To see the full list of analyst forecasts on TAKARA & COMPANY LTD stock, see the JP:7921 Stock Forecast page.