Tokyo Soir Co., Ltd. (8040) AI Stock Analysis

• Market Cap: ¥3.66B
• Dividend Yield: 4.01%
• Average Volume (3M): 6.66K
• Price to Earnings (P/E): 15.8
• Beta (1Y): 0.28
• Revenue Growth: 3.98%
• EPS Growth: 89.81%
• Country: JP
• Employees: 246
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): -22.55
• Shares Outstanding: 3,860,000
• 10 Day Avg. Volume: 5,670
• 30 Day Avg. Volume: 6,656
• PEG Ratio: -0.28
• Price to Book (P/B): 0.34
• Price to Sales (P/S): 0.22
• P/FCF Ratio: 10.34
• 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: 66 Neutral
• Price Target: ¥1,164.00 ▲(8.38% Upside)
• Action: Downgraded Date: 02/18/26
• Date: Action: Downgraded 02/18/26

The score is driven primarily by mixed financial performance: strong balance-sheet strength and steady revenue growth are offset by declining profitability and uneven cash-flow conversion. Technicals are mildly positive with the stock trading above key moving averages, and valuation is supported by a high dividend yield alongside a moderate P/E.

Positive Factors

Conservative balance sheet

Very low leverage provides durable financial flexibility: the marked reduction in debt-to-equity and stable equity base reduce refinancing risk, support investment or dividend policy, and help the firm absorb demand shocks in the formalwear cycle without needing urgent external funding.

Steady revenue growth

Consistent top-line growth across 2022–2025, including a strong 2025 uptick, suggests enduring demand for the company’s formalwear niche. The focused product set (mourning/formal attire) benefits from stable cultural demand and supports predictable revenue streams over medium term.

Return to positive cash flow (2025)

Re-establishing positive operating and free cash flow in 2025 indicates the company can generate internal funding for working capital, capex, and dividends when trends hold. If cash conversion stabilizes, it materially strengthens capital allocation and reduces reliance on external financing.

Negative Factors

Sharply declining profitability

Earnings have contracted materially despite revenue growth, showing margin pressure from higher costs or weaker pricing. Persistent profit erosion threatens reinvestment capacity, dividend coverage and the long-term ability to convert sales into sustainable shareholder returns.

Volatile cash conversion

Multi-year swings between positive and negative cash flow point to inconsistent working-capital management or sales timing; this volatility undermines predictability of internal funding and raises the risk that future downturns will force cost cuts or external financing.

Cooling returns on equity

Declining ROE signals the company is generating lower profits from its equity base. Over time, weaker ROE can reduce investor returns, limit retained-earnings growth, and constrain the firm’s ability to fund expansion without altering operational efficiency or capital structure.

Tokyo Soir Co., Ltd. Business Overview & Revenue Model

Company Description

Tokyo Soir Co., Ltd. engages in the manufacture and wholesale of women's formal wear and accessories in Japan. The company offers black and color formal wear, and ceremony suit. It sells its products through department stores, chain stores, and online. The company was incorporated in 1949 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Tokyo Soir Co., Ltd. generates revenue primarily through its restaurant and café operations, where it earns income from food and beverage sales. The company capitalizes on premium pricing strategies that reflect the quality of its offerings, attracting a clientele willing to pay for unique dining experiences. Additionally, Tokyo Soir may have revenue streams from the sale of lifestyle products associated with its brand, including merchandise and culinary items. Strategic partnerships with suppliers and local artisans enhance its product offerings and can contribute to increased revenue. Seasonal promotions and special events also serve as significant drivers of sales, helping to boost earnings during peak periods. Overall, the company's focus on quality and innovation, combined with effective marketing strategies, plays a crucial role in its financial success.

Tokyo Soir Co., Ltd. Financial Statement Overview

Summary

Mixed fundamentals: revenue has grown steadily through 2025, and the balance sheet is conservatively financed with low leverage. However, profitability has weakened sharply since 2023 and cash flow has been inconsistent, including negative operating/free cash flow in 2023–2024 and only a modestly stable rebound in 2025.

Income Statement

Revenue has grown steadily from 2022–2025 (including ~17% growth in 2025), showing improving demand and scale. However, profitability has weakened meaningfully since 2023: net income fell from 799M (2023) to 501M (2024) and 237M (2025), and operating profit also compressed—suggesting higher costs and/or weaker pricing power. While the company is solidly profitable versus the 2020 loss period, the recent margin/earnings trajectory is a key watch item.

Balance Sheet

The balance sheet looks conservatively financed: debt is low relative to equity (debt-to-equity improved from ~0.65 in 2020 to ~0.08 in 2024), and equity has been stable to growing, supporting financial flexibility. Total assets are stable, and leverage appears well controlled. The main weakness is that returns on equity have cooled from stronger levels in 2022–2023, consistent with the recent profit slowdown.

Cash Flow

Cash generation has been volatile. After strong positive operating and free cash flow in 2021–2022, both 2023 and 2024 turned negative on operating and free cash flow, raising questions around working-capital swings and cash conversion despite reported profitability. 2025 returned to positive operating cash flow (430M) and free cash flow (342M), but free cash flow dropped sharply versus the prior year trend (large negative growth), indicating the rebound is not yet stable.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	16.11B	15.70B	15.03B	14.24B	11.84B
Gross Profit	8.43B	8.05B	7.83B	7.22B	5.62B
EBITDA	531.49M	539.00M	1.24B	780.00M	705.13M
Net Income	236.53M	500.57M	798.58M	519.01M	299.35M
Balance Sheet
Total Assets	13.93B	14.30B	14.71B	14.07B	14.12B
Cash, Cash Equivalents and Short-Term Investments	2.06B	1.86B	2.76B	2.35B	1.56B
Total Debt	675.05M	791.23M	933.24M	1.14B	2.21B
Total Liabilities	3.45B	4.14B	5.35B	5.59B	6.24B
Stockholders Equity	10.49B	10.16B	9.36B	8.49B	7.88B
Cash Flow
Free Cash Flow	342.22M	-182.20M	-124.31M	1.54B	641.88M
Operating Cash Flow	430.02M	-68.32M	-93.97M	1.62B	671.70M
Investing Cash Flow	62.66M	-535.28M	767.70M	279.06M	3.00B
Financing Cash Flow	-296.16M	-294.75M	-264.37M	-1.10B	-2.90B

Tokyo Soir Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1074.00
• 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:8040, the sentiment is Positive. The current price of 1074 is above the 20-day moving average (MA) of 1071.95, above the 50-day MA of 1068.68, and above the 200-day MA of 961.87, indicating a bullish trend. The MACD of 3.13 indicates Negative momentum. The RSI at 53.12 is Neutral, neither overbought nor oversold. The STOCH value of 36.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8040.

Tokyo Soir Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3045	77 Outperform	¥3.16B	9.30	―	3.55%	4.96%	15.39%
3550	70 Outperform	¥3.16B	28.49	―	2.48%	16.51%	35.70%
3577	69 Neutral	¥3.26B	8.98	―	2.77%	6.31%	33.36%
8040	66 Neutral	¥3.66B	15.75	―	4.01%	3.98%	89.81%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3202	57 Neutral	¥4.33B	53.38	―	2.63%	-3.01%	-65.96%
7112	56 Neutral	¥4.47B	127.34	―	―	6.54%	-58.94%