Takihyo Co., Ltd. (9982) AI Stock Analysis

• Market Cap: ¥19.13B
• Dividend Yield: 1.83%
• Average Volume (3M): 10.47K
• Price to Earnings (P/E): 5.6
• Beta (1Y): 0.40
• Revenue Growth: 7.83%
• EPS Growth: 108.92%
• Country: JP
• Employees: 715
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 92.20
• Shares Outstanding: 8,800,000
• 10 Day Avg. Volume: 13,330
• 30 Day Avg. Volume: 10,466
• PEG Ratio: 0.24
• Price to Book (P/B): 0.42
• Price to Sales (P/S): 0.21
• P/FCF Ratio: 5.18
• 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: 71 Outperform
• Price Target: ¥2,470.00 ▲(9.00% Upside)
• Action: Reiterated Date: 03/18/26
• Date: Action: Reiterated 03/18/26

The score is driven by a clear financial rebound with manageable leverage, supported by an attractive low P/E and a technically positive uptrend. The main constraints are the low-margin business profile, the ~10% TTM revenue decline, and volatile/weakening free cash flow versus the prior year.

Positive Factors

Integrated B2B wholesale model

Takihyo’s integrated wholesale model—product planning, domestic and overseas sourcing, and B2B distribution to brands and retailers—creates recurring corporatesales relationships. This structural role in the apparel supply chain supports predictable order streams, procurement scale and long-term customer stickiness that sustain baseline revenue over cycles.

Manageable leverage and solid equity

Low debt ratios and steady equity provide durable financial flexibility for a working-capital intensive wholesale business. Manageable leverage reduces refinancing risk, enables funding of seasonal inventory needs, and gives management room to invest in sourcing or absorb cyclical headwinds without threatening solvency.

Earnings and cashflow recovery

The transition from multi-year losses to positive earnings and operating/free cash flow indicates structural operational improvement. Positive cash generation supports reinvestment, working capital, and shareholder returns while demonstrating the firm can convert improved margins into liquidity—important for sustaining growth and covering seasonal financing needs.

Negative Factors

Structurally low margins

Thin operating and net margins leave little buffer against input cost inflation, pricing pressure from buyers, or sourcing disruptions common in textiles. Sustaining profitability requires continuous sourcing efficiency and volume discipline; otherwise small margin swings can materially erode returns and free cash generation over time.

TTM revenue decline

A ~10% trailing revenue decline signals weak end-market demand or lost volumes, undermining scale benefits in a low-margin business. Persistent top-line volatility raises inventory and markdown risk, pressures gross margin, and makes it harder to sustainably improve ROE and cashflow without demonstrable, sustained revenue stabilization.

Volatile cash conversion

Sharp FCF deterioration and low operating cash relative to business size point to working capital or conversion issues. In a wholesaler, volatile cash conversion increases reliance on external funding for seasonal buying, limits reinvestment capacity, and raises execution risk if margins slip or revenue weakens again.

Takihyo Co., Ltd. Business Overview & Revenue Model

Company Description

Takihyo Co., Ltd. engages in the apparel, retail, textile, lifestyle, real estate, and material businesses in Japan and internationally. The company plans, designs, produces, market researches, and ships ladies', babies/kids, men's, and home wear; and lifestyle goods, such as cushions and kitchen mats. It also operates the sportswear brand ZOY, the men's wear brand BOB, and the G/FORE and WAAC brands for golf gloves, shoes, accessories, and apparel for men and women; operates a boutique under the Melangetopand brand name; and produces and sells woolen fabric, synthetic cotton blends, and knits to apparel manufacturers and trading companies. In addition, the company operates Komeda Coffee Shop as a franchisee; operates Shina, an art gallery that offers traditional crafts, modern pops, and art and subculture; and rents and manages real estate properties. Further, it provides packaging films; synthetic resins for automobile, electronic equipment, electric appliances, and space and aviation instruments, as well as for food packaging materials and daily necessities items; and industrial materials to process interior furniture, miscellaneous goods, and building materials. Takihyo Co., Ltd. was founded in 1751 and is headquartered in Nagoya, Japan.

How the Company Makes Money

Takihyo’s earnings are primarily generated through the sale of textile materials and apparel-related products to corporate customers such as apparel makers, brands, and retailers. Its core revenue model is wholesale/trading: (1) it plans and develops products (e.g., selecting materials, designing specifications, coordinating production), (2) sources these goods from manufacturers (including through domestic and overseas procurement), and (3) sells them onward, earning a gross margin on the difference between procurement/manufacturing costs and selling prices. Revenue is therefore driven by sales volumes and unit pricing across its textile/fabric offerings and its apparel/product supply activities, while profitability depends on sourcing efficiency, inventory/markdown control, and the ability to match fashion demand and seasonal cycles. Information on specific major partnerships, customer concentration, or segment-level revenue breakdowns is null.

Takihyo Co., Ltd. Financial Statement Overview

Summary

Earnings have rebounded from the 2021–2023 downturn with positive profitability in 2024–2025 and improved TTM margins, and leverage remains manageable. Offsetting this, the business is structurally low-margin, TTM revenue declined ~10%, and free cash flow fell sharply versus the prior year, suggesting an uneven recovery.

Income Statement

Profitability has improved materially versus the loss-making period in 2021–2023, with positive earnings in 2024 and 2025 and stronger operating profitability in TTM (Trailing-Twelve-Months) (net margin ~2.3%, operating margin ~2.7%). However, the business remains structurally low-margin and TTM (Trailing-Twelve-Months) revenue declined ~10%, highlighting demand/volume volatility and limiting confidence in the durability of the recovery.

Balance Sheet

Leverage looks manageable with debt modest relative to equity (debt-to-equity ~0.19 in FY2025 and ~0.26 in TTM (Trailing-Twelve-Months)), and equity has remained solid through a volatile earnings cycle. Returns on equity have recovered to mid-single digits (about 3.7% in FY2025 and ~4.7% in TTM (Trailing-Twelve-Months)), but are still not high, reflecting thin margins and a business that needs consistent profitability to compound value.

Cash Flow

Cash generation has turned positive, with positive operating and free cash flow in FY2024–FY2025 and TTM (Trailing-Twelve-Months) free cash flow covering most of net income (~83%). That said, TTM (Trailing-Twelve-Months) operating cash flow is low relative to the scale of the business, and free cash flow dropped sharply versus the prior year (large negative growth rate), signaling weaker cash conversion and higher volatility than the income statement alone suggests.

Breakdown	TTM	Feb 2024	Feb 2023	Feb 2022	Feb 2021	Feb 2021
Income Statement
Total Revenue	63.98B	60.63B	57.74B	61.81B	53.75B	50.05B
Gross Profit	13.24B	12.66B	12.09B	11.65B	8.82B	9.94B
EBITDA	1.99B	1.58B	991.00M	388.00M	-1.95B	-749.00M
Net Income	1.45B	1.11B	769.00M	-282.00M	-2.03B	-1.12B
Balance Sheet
Total Assets	52.76B	47.21B	48.55B	47.12B	47.09B	44.67B
Cash, Cash Equivalents and Short-Term Investments	5.08B	4.32B	3.44B	3.33B	4.53B	3.88B
Total Debt	8.53B	5.73B	6.77B	9.26B	10.37B	4.15B
Total Liabilities	19.90B	16.94B	18.27B	19.25B	17.93B	13.27B
Stockholders Equity	32.86B	30.27B	30.29B	27.87B	29.15B	31.40B
Cash Flow
Free Cash Flow	730.00M	2.46B	2.75B	-1.60B	-5.43B	-988.00M
Operating Cash Flow	879.00M	2.62B	3.72B	-1.33B	-5.17B	-630.00M
Investing Cash Flow	146.00M	314.00M	-1.16B	1.57B	-118.00M	-111.00M
Financing Cash Flow	-432.00M	-1.96B	-2.81B	-1.36B	5.73B	1.22B

Takihyo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2266.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9982, the sentiment is Positive. The current price of 2266 is above the 20-day moving average (MA) of 2232.85, above the 50-day MA of 2173.25, and above the 200-day MA of 1914.12, indicating a bullish trend. The MACD of 26.55 indicates Positive momentum. The RSI at 53.03 is Neutral, neither overbought nor oversold. The STOCH value of 40.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9982.

Takihyo Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3109	72 Outperform	¥13.52B	4.54	―	4.80%	4.49%	26.84%
9982	71 Outperform	¥19.13B	5.55	―	1.83%	7.83%	108.92%
3501	68 Neutral	¥18.79B	150.48	―	3.46%	1.50%	241.33%
8118	68 Neutral	¥20.37B	18.76	―	1.99%	-3.60%	15.74%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
8107	46 Neutral	¥9.36B	-162.43	―	―	90.06%	-98.03%