Taka-Q Co., Ltd. (8166) AI Stock Analysis

• Market Cap: ¥3.93B
• Dividend Yield: N/A
• Average Volume (3M): 256.11K
• Price to Earnings (P/E): 2.0
• Beta (1Y): 0.46
• Revenue Growth: -5.25%
• EPS Growth: -77.53%
• Country: JP
• Employees: 635
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 13.40
• Shares Outstanding: 50,493,520
• 10 Day Avg. Volume: 517,640
• 30 Day Avg. Volume: 256,113
• PEG Ratio: >-0.01
• Price to Book (P/B): 2.83
• Price to Sales (P/S): 0.32
• P/FCF Ratio: 0.00
• 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: ¥77.00 ▼(-8.33% Downside)
• Action: Reiterated Date: 11/13/25
• Date: Action: Reiterated 11/13/25

The overall stock score of 47 reflects significant financial challenges and bearish technical indicators. While the stock is undervalued based on its P/E ratio, the lack of dividend yield and negative market momentum weigh heavily on its attractiveness. Financial performance issues, particularly in revenue and cash flow, are the most significant concerns.

Positive Factors

Profitability turnaround

Returning to a positive net income in 2025 signals meaningful operational improvement and cost control. A sustained profit provides a foundation for rebuilding reserves, servicing debt, funding strategic initiatives and restoring supplier and investor confidence, supporting long-term viability.

Balance sheet improvement

Equity turning positive reduces insolvency risk and expands financing options versus prior negative equity. A stronger capital base improves resilience to shocks, helps secure supplier credit and enables more strategic choices for reinvestment or deleveraging over the medium term.

Focused retail business model

A focused apparel retail model centered on men's businesswear and casualwear supports durable demand from working consumers. Owning merchandising, procurement and direct retail channels gives control over assortment and margins, enabling longer-term brand positioning and inventory management improvements.

Negative Factors

Declining revenue trend

Persistent top-line decline erodes scale and makes fixed retail costs like rent and staffing harder to absorb. Without a sustained recovery in revenue, margin improvements and profit gains are fragile, restricting the company's ability to reinvest in stores, marketing and product development.

High leverage

Elevated leverage increases interest and refinancing risk and constrains strategic flexibility. For a retail business with seasonal working capital needs, high debt magnifies vulnerability to sales shocks and limits capacity to fund transformation or inventory initiatives without costly capital raises.

Weak cash generation

Consistent negative operating and free cash flow undermines liquidity and forces reliance on external financing to fund operations and debt servicing. Even with recent net income, weak cash conversion limits sustainable investment in stores, inventory and growth, risking recurrence of past instability.

Taka-Q Co., Ltd. Business Overview & Revenue Model

Company Description

Taka-Q Co., Ltd. plans and sells men's and women's clothing, and related goods. As of February 28, 2019, it operated through 272 stores. The company was founded in 1922 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Taka-Q makes money mainly by selling apparel and related fashion goods to end customers. Its core revenue stream is retail sales generated through its owned/operated stores (and any other direct-to-consumer channels it operates), where it earns gross profit as the spread between the selling price and the cost of merchandise (procurement/production costs), after which operating profit depends on store-related expenses such as rent, staffing, logistics, and marketing. Additional earnings typically come from selling higher-margin complementary items (e.g., accessories) alongside core apparel, seasonal product launches, and promotional campaigns that drive store traffic and conversion. Specific disclosures on revenue breakdown by channel, major partnerships, or material non-retail income sources were not available in the provided context; therefore, details such as significant partner arrangements, wholesale/licensing income, or channel mix are null.

Taka-Q Co., Ltd. Financial Statement Overview

Summary

Taka-Q Co., Ltd. faces significant financial challenges, marked by declining revenue, high leverage, and unstable cash flow. While there are signs of improvement in profitability, the company must address its revenue growth and balance sheet stability to ensure financial health.

Income Statement

Taka-Q Co., Ltd.'s income statement shows a concerning trend with declining total revenue over recent years. The company reported a substantial net income of 1.97 billion yen in 2025, a significant improvement from prior losses, indicating a turnaround in profitability. However, the company's revenue and gross profit have consistently declined, impacting gross profit margins negatively. EBIT and EBITDA margins have fluctuated, reflecting operational challenges.

Balance Sheet

The balance sheet presents several areas of concern, particularly with high leverage. The debt-to-equity ratio remains elevated, indicating significant reliance on debt financing. Although stockholders' equity turned positive in 2025, the company previously experienced negative equity, suggesting financial instability. The equity ratio improved but remains weak, highlighting potential risks in financial structure.

Cash Flow

Cash flow analysis reveals inconsistent performance. Operating cash flow remains negative, reflecting ongoing operational challenges. Free cash flow has been negative over recent periods, indicating cash management issues. The company shows some recovery in 2025, but sustained improvements are necessary to ensure long-term cash flow stability.

Breakdown	TTM	Feb 2025	Feb 2024	Feb 2023	Feb 2022	Feb 2021
Income Statement
Total Revenue	10.65B	9.48B	10.03B	11.98B	12.14B	14.60B
Gross Profit	6.43B	5.56B	5.98B	7.17B	7.06B	8.21B
EBITDA	4.93M	2.05B	219.31M	-657.79M	-1.62B	-2.77B
Net Income	-346.25M	1.97B	-102.17M	-1.05B	-2.15B	-3.14B
Balance Sheet
Total Assets	5.78B	5.88B	5.61B	6.41B	8.01B	9.38B
Cash, Cash Equivalents and Short-Term Investments	967.45M	1.38B	1.13B	1.49B	1.59B	631.09M
Total Debt	4.05B	1.99B	4.03B	4.12B	4.32B	1.64B
Total Liabilities	7.62B	4.81B	7.53B	8.34B	8.89B	8.04B
Stockholders Equity	-1.85B	1.08B	-1.92B	-1.93B	-876.93M	1.34B
Cash Flow
Free Cash Flow	0.00	0.00	-348.66M	-42.57M	-2.31B	-1.64B
Operating Cash Flow	0.00	0.00	-333.28M	149.53M	-2.22B	-1.46B
Investing Cash Flow	0.00	-72.75M	59.61M	45.77M	653.28M	112.38M
Financing Cash Flow	0.00	465.19M	-84.85M	-292.21M	2.52B	1.18B

Taka-Q Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 84.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8166, the sentiment is Negative. The current price of 84 is above the 20-day moving average (MA) of 80.55, below the 50-day MA of 84.12, and below the 200-day MA of 95.77, indicating a bearish trend. The MACD of -1.83 indicates Negative momentum. The RSI at 39.27 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:8166.

Taka-Q Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3608	68 Neutral	¥50.65B	7.26	18.28%	6.12%	-6.22%	679.61%
3002	66 Neutral	¥138.87B	17.53	2.80%	3.38%	>-0.01%	-49.83%
8011	66 Neutral	¥39.16B	13.45	―	5.23%	―	―
2685	64 Neutral	¥128.50B	9.43	11.70%	3.59%	3.96%	-36.24%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3591	59 Neutral	¥211.89B	39.72	5.31%	2.29%	-6.04%	146.54%
8166	47 Neutral	¥3.93B	1.99	―	―	-5.25%	-77.53%