Yoshitsu Co. Ltd. Sponsored ADR (TKLF) AI Stock Analysis

• Market Cap: $13.42M
• Dividend Yield: N/A
• Average Volume (3M): 114.41K
• Price to Earnings (P/E): 2.1
• Beta (1Y): 0.50
• Revenue Growth: 7.75%
• EPS Growth: -21.61%
• Country: US
• Employees: 140
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Household & Personal Products
• EPS (TTM): -0.02
• Shares Outstanding: 4,232,780
• 10 Day Avg. Volume: 301,850
• 30 Day Avg. Volume: 114,405
• PEG Ratio: <0.01
• Price to Book (P/B): 0.03
• Price to Sales (P/S): 0.00671
• P/FCF Ratio: >-0.01
• Enterprise Value/Market Cap: 5.76
• Enterprise Value/Revenue: 0.37
• Enterprise Value/Gross Profit: 3.23
• Enterprise Value/Ebitda: 8.15
• 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: 55 Neutral
• Price Target: $3.00 ▼(-6.25% Downside)

The score is held back primarily by financial quality concerns—high leverage and negative operating/free cash flows—despite strong revenue growth. Technicals are mildly constructive in the short term, and the very low P/E plus a ~3.1% dividend yield provide meaningful valuation support.

Positive Factors

Consistent Revenue Growth

Sustained top-line growth indicates underlying demand and effectiveness of sales channels. Over the next 2–6 months, steady revenue expansion supports investments in distribution and product development, reducing execution risk and providing runway to improve margins if cost controls follow.

Geographic & Store Expansion

Expanding physical presence in multiple international markets diversifies revenue sources and builds brand recognition. Durable store growth supports omnichannel customer acquisition, strengthens wholesale/franchise leverage, and creates a platform for sustained market share gains over several quarters.

Improving Operating Margins

Improving EBIT/EBITDA margins reflect operational leverage and better cost management, which materially boosts cash generation potential. If maintained, higher operating efficiency can offset revenue cyclicality and support deleveraging or reinvestment in product and distribution capabilities.

Negative Factors

High Leverage

Elevated leverage constrains financial flexibility and increases refinancing and interest risks across economic cycles. Over the medium term, high debt limits the company’s ability to fund capex, marketing, or acquisitions, and magnifies earnings volatility if cash generation fails to improve.

Negative Operating Cash Flow

Persistent negative operating and free cash flow undermines sustainability, forcing reliance on external financing or asset sales. Without durable improvement in cash conversion, working capital strains and debt servicing pressures could impede growth initiatives and heighten solvency risk over months ahead.

Profitability Pressure & Rising Costs

Declining net income combined with rising payroll and lease costs compresses margins and limits reinvestment capacity. Structural cost inflation or FX losses can persist, making margin recovery dependent on sustained revenue growth or material cost discipline, which remains uncertain in the near term.

Yoshitsu Co. Ltd. Sponsored ADR Business Overview & Revenue Model

Company Description

Tokyo Lifestyle Co., Ltd. engages in the retail and wholesale of beauty, health, sundry, and other products in Japan, China, Hong Kong, the United States, Canada, Thailand, and the United Kingdom. The company sells its products under its flagship brand, Tokyo Lifestyle. It offers cosmetics comprising foundation, powder, concealer, makeup remover, eyeliner, eye shadow, brow powder, brow pencil, mascara, lip gloss, lipstick, and nail polish; skin care, consisting of facial cleanser, whitening products, sun block, moisturizer, facial mask, eye mask, eye gel, and exfoliating; and cosmetic applicators, including brush, puff, curler, hair iron, and shaver products. The company also provides shampoo, conditioner, and body wash; fragrance products consisting of perfume and cologne for women and men. In addition, the company provides facial wash, firming lotion, astringent, and moisturizer products for men; and lip balm, lotion, shampoo, soap, and essence oil for baby and children. Further, the company offers OTC drugs for the treatment of colds, headaches, stomach pain, cough, and eye strains, and others, as well as medical supplies and devices, including bandages, masks, thermometers, disinfectant sprays, eye masks, contact lens, and contact lens cleaners and solutions. Additionally, the company provides vitamins, minerals, fiber supplements, nutritional yeast, dietary products, and other nutritional supplements; bedding and bath, home décor, dining and tabletop, storage containers, car supplies, cleaning agent, and laundry supplies; spa supplies, clothing, formula milk, and diapers; and food, alcoholic beverages, and miscellaneous products. It also offers branded watches, perfumes, handbags, clothes, and jewelries, as well as Nintendo switch and Xbox series products. The company was formerly known as Yoshitsu Co., Ltd and changed its name to Tokyo Lifestyle Co., Ltd. in October 2024. Tokyo Lifestyle Co., Ltd. was incorporated in 2006 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Yoshitsu generates revenue primarily through the sale of its health and wellness products, which include dietary supplements, herbal medicines, and personal care items. The company utilizes a multi-channel distribution strategy, selling products directly to consumers via its e-commerce platform as well as through partnerships with various retail outlets. Key revenue streams also include wholesale distributions to other businesses and collaborations with health practitioners. Additionally, the company may benefit from strategic partnerships that enhance its market reach and product offerings, thereby contributing to its overall earnings.

Yoshitsu Co. Ltd. Sponsored ADR Financial Statement Overview

Summary

Despite exceptional reported revenue growth, profitability remains weak and the company shows elevated financial risk: a highly leveraged balance sheet (low equity stability) and negative operating/free cash flows. These factors materially constrain financial quality and sustainability.

Income Statement

Yoshitsu Co. Ltd. has demonstrated significant revenue growth, particularly in the most recent year, with a remarkable increase of over 14,000%. However, the company's profit margins, including gross and net profit margins, remain relatively low. The EBIT and EBITDA margins have shown improvement, indicating better operational efficiency, but still need further enhancement to match industry standards.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio, indicating significant leverage and potential financial risk. While the return on equity has improved, it remains volatile. The equity ratio is low, suggesting limited financial stability. These factors highlight the need for better capital management and risk mitigation strategies.

Cash Flow

Cash flow analysis shows negative operating and free cash flows, which is concerning. The free cash flow growth rate is positive, but the operating cash flow to net income ratio is negative, indicating cash flow challenges. The company needs to focus on improving cash generation from operations to ensure long-term sustainability.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	210.12M	210.12M	195.68M	169.72M	234.75M	224.76M
Gross Profit	23.92M	23.92M	23.38M	29.43M	43.71M	43.26M
EBITDA	9.48M	9.48M	1.89B	-1.90M	12.55M	11.34M
Net Income	6.64M	6.64M	1.13B	-8.05M	3.92M	4.95M
Balance Sheet
Total Assets	159.02M	159.02M	142.92M	146.68M	127.47M	112.94M
Cash, Cash Equivalents and Short-Term Investments	4.82M	4.82M	2.48M	1.77M	18.27M	16.38M
Total Debt	71.47M	71.47M	65.05M	77.48M	68.16M	75.50M
Total Liabilities	115.98M	115.98M	106.87M	117.39M	83.02M	90.71M
Stockholders Equity	43.03M	43.03M	36.06M	29.28M	44.45M	22.64M
Cash Flow
Free Cash Flow	-238.05M	-238.05M	148.72M	-26.67M	-10.04M	-6.18M
Operating Cash Flow	-89.60M	-89.60M	1.91M	-25.74M	-7.01M	-3.24M
Investing Cash Flow	-144.28M	-144.28M	2.71M	-743.27K	-3.11M	1.78M
Financing Cash Flow	593.72M	593.72M	-1.78M	12.75M	13.76M	11.04M

Yoshitsu Co. Ltd. Sponsored ADR Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TKLF, the sentiment is Positive. The current price of 3.2 is above the 20-day moving average (MA) of 3.13, above the 50-day MA of 2.84, and below the 200-day MA of 3.44, indicating a neutral trend. The MACD of 0.09 indicates Negative momentum. The RSI at 54.63 is Neutral, neither overbought nor oversold. The STOCH value of 54.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TKLF.

Yoshitsu Co. Ltd. Sponsored ADR Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
EWCZ	61 Neutral	$213.64M	15.07	15.38%	―	-5.47%	13.42%
TANH	56 Neutral	$5.37M	-0.05	4.57%	―	-14.59%	-135.25%
TKLF	55 Neutral	$13.42M	2.14	16.79%	―	7.75%	-21.61%
SKIN	51 Neutral	$191.25M	-6.79	-18.73%	―	-13.14%	57.98%
MTEX	46 Neutral	$14.16M	-8.65	-19.54%	―	-9.17%	-4.64%
GROV	43 Neutral	$60.84M	-2.31	-130.15%	―	-15.42%	7.12%

Yoshitsu Co. Ltd. Sponsored ADR Corporate Events

Tokyo Lifestyle Files Form 6-K With First-Half Fiscal 2026 Financials

On December 18, 2025, Tokyo Lifestyle Co., Ltd. filed a Form 6-K in the United States to furnish its unaudited condensed consolidated financial statements for the six months ended September 30, 2025, along with comparative figures for the same period in 2024. The interim results, including balance sheets, statements of operations, cash flows and changes in shareholders’ equity, as well as related XBRL data, were also incorporated by reference into the company’s existing Form F-3 shelf registration statements, maintaining the effectiveness of its U.S. fundraising framework and providing investors and other stakeholders with up-to-date financial information midway through its fiscal year 2026.

The most recent analyst rating on (TKLF) stock is a Hold with a $2.50 price target. To see the full list of analyst forecasts on Yoshitsu Co. Ltd. Sponsored ADR stock, see the TKLF Stock Forecast page.