TAKARA & COMPANY LTD (7921) AI Stock Analysis

• Market Cap: ¥52.06B
• Dividend Yield: 2.92%
• Average Volume (3M): 23.42K
• Price to Earnings (P/E): 42.0
• Beta (1Y): 0.47
• Revenue Growth: 3.99%
• EPS Growth: 43.46%
• Country: JP
• Employees: 1,193
• Sector: Industrials
• Sector Strength: 72
• Industry: Financial - Capital Markets
• EPS (TTM): 92.33
• 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: ¥4,471.00 ▼(-5.07% 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

Balance sheet strength

Low leverage and a robust equity ratio provide durable financial flexibility for capital-intensive content production. A strong balance sheet supports multi-year investments in IP, absorbs box-office cycles, and reduces refinancing risk, preserving strategic optionality over 2-6 months.

Cash generation

Consistent operating cash flow and improving free cash flow enhance the company's ability to fund new productions, licensing deals, and merchandising without relying on external financing. This sustained cash generation supports reinvestment and shareholder returns over the medium term.

Diversified revenue & solid margins

A multi-stream revenue model (box office, licensing, streaming, merchandising) plus historically strong gross and EBIT margins reduce single-channel dependence. Diversification smooths cash flows across markets and channels, supporting margin resilience and stable earnings over coming quarters.

Negative Factors

Gross margin pressure

A downward trend in gross margin hints at rising content or distribution costs or mix shifts toward lower-margin projects. If persistent, margin erosion can compress operating profits and limit reinvestment capacity, posing a structural profitability risk over the next several quarters.

Free cash flow variability

Intermittent swings in free cash flow create uncertainty in capital allocation timing for productions and licensing. Variable FCF complicates budgeting for multi-year projects and may force reliance on short-term funding or deferred spending during weaker periods.

Hit-driven revenue cyclicality

Dependence on blockbusters and hit intellectual property creates structural revenue volatility. The hit-driven model requires continual investment in new content and IP management; missing a slate of successful releases can materially reduce revenues and stress planning over a 2-6 month horizon.

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 generates revenue through multiple streams. Primarily, the company earns money from the production and distribution of films and television series, receiving income from box office sales, television licensing fees, and streaming rights. Additionally, the company capitalizes on merchandising and licensing agreements related to its intellectual properties, allowing it to earn royalties from a variety of consumer products. Strategic partnerships with streaming platforms, broadcasters, and merchandise manufacturers further enhance its income potential, enabling TAKARA & COMPANY LTD to maximize the value of its content across different markets and demographics.

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: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 4120.75, above the 50-day MA of 4330.20, and above the 200-day MA of 3939.99, indicating a neutral trend. The MACD of -61.84 indicates Negative momentum. The RSI at 38.64 is Neutral, neither overbought nor oversold. The STOCH value of 37.78 is Neutral, 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	¥82.35B	23.15	―	4.32%	11.99%	-4.74%
2127	76 Outperform	¥218.31B	12.40	26.65%	4.00%	10.37%	18.68%
7921	76 Outperform	¥52.06B	42.03	―	2.92%	3.99%	43.46%
6080	69 Neutral	¥106.71B	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	¥36.46B	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.