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

• Market Cap: $15.53M
• Dividend Yield: N/A
• Average Volume (3M): 18.60K
• Price to Earnings (P/E): 2.5
• Beta (1Y): 0.07
• Revenue Growth: 7.75%
• EPS Growth: -21.61%
• Country: US
• Employees: 140
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Household & Personal Products
• EPS (TTM): 1.16
• Shares Outstanding: 4,232,780
• 10 Day Avg. Volume: 36,114
• 30 Day Avg. Volume: 18,598
• PEG Ratio: <0.01
• Price to Book (P/B): 0.03
• Price to Sales (P/S): 0.00673
• P/FCF Ratio: -0.89
• Enterprise Value/Market Cap: 5.27
• Enterprise Value/Revenue: <0.01
• Enterprise Value/Gross Profit: 0.02
• Enterprise Value/Ebitda: 0.06
• 1Y Price Target: $3.50
• Price Target Upside: -3.85% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 54 Neutral
• Price Target: $3.50 ▼(-3.85% Downside)

Yoshitsu Co. Ltd.'s overall stock score is driven by strong revenue growth and an attractive valuation. However, financial risks due to high leverage and negative cash flows, along with mixed technical indicators, limit the score. The earnings call provided a balanced view with both growth and operational challenges.

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 Co. Ltd. generates revenue through multiple channels, primarily by selling beauty and personal care products to retailers and distributors, both in Japan and overseas. The company benefits from a diverse revenue model that includes wholesale distribution, retail sales, and e-commerce platforms. A significant portion of its earnings comes from partnerships with established beauty brands, which allow Yoshitsu to offer exclusive products and capitalize on brand loyalty. Additionally, the company's strategic focus on expanding its product lines and enhancing its online presence contributes to its revenue growth. Factors such as effective marketing strategies, a growing demand for beauty products, and the increasing popularity of e-commerce in the beauty industry further bolster its earnings potential.

Yoshitsu Co. Ltd. Sponsored ADR Financial Statement Overview

Summary

Yoshitsu Co. Ltd. shows strong revenue growth but struggles with profitability and financial stability. High leverage and negative cash flows are concerning, requiring strategic improvements in cost management and debt reduction.

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	31.44B	31.44B	195.68M	169.72M	234.75M	224.76M
Gross Profit	3.58B	3.58B	23.38M	29.43M	43.71M	43.26M
EBITDA	1.42B	1.42B	1.89B	-1.90M	12.55M	11.34M
Net Income	993.40M	993.40M	1.13B	-8.05M	3.92M	4.95M
Balance Sheet
Total Assets	23.62B	23.62B	142.92M	146.68M	127.47M	112.94M
Cash, Cash Equivalents and Short-Term Investments	721.22M	721.22M	2.48M	1.77M	18.27M	16.38M
Total Debt	10.69B	10.69B	65.05M	77.48M	68.16M	75.50M
Total Liabilities	17.18B	17.18B	106.87M	117.39M	83.02M	90.71M
Stockholders Equity	6.44B	6.44B	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: Negative
• Last Price: 3.64
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TKLF, the sentiment is Negative. The current price of 3.64 is below the 20-day moving average (MA) of 3.72, below the 50-day MA of 3.68, and above the 200-day MA of 3.62, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 47.20 is Neutral, neither overbought nor oversold. The STOCH value of 42.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
SPB	62 Neutral	$1.25B	19.24	2.98%	3.65%	-2.78%	-17.38%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
TANH	55 Neutral	$2.58M	1.82	-1.68%	―	-9.25%	-109.49%
TKLF	54 Neutral	$15.53M	2.55	16.79%	―	7.75%	-21.61%
SKIN	50 Neutral	$215.60M	―	-26.54%	―	-15.33%	75.52%
MTEX	48 Neutral	$15.97M	8.92	-55.19%	―	-7.69%	-220.31%
GROV	48 Neutral	$62.75M	―	-197.15%	―	-18.44%	37.92%

Yoshitsu Co. Ltd. Sponsored ADR Corporate Events

Tokyo Lifestyle Co., Ltd. Reports Strong Fiscal Year 2025 Financial Results

Tokyo Lifestyle Co., Ltd. reported a 7.4% increase in total revenue for the fiscal year ending March 31, 2025, reaching $210.1 million. The company expanded its global footprint by opening new stores in the US, Canada, and Hong Kong, and added franchise stores and wholesale customers, leading to a 14.4% increase in revenue from directly operated physical stores. Despite an 8.1% rise in the cost of revenue, Tokyo Lifestyle maintained a strong financial position with a net income of $6.6 million, supported by disciplined cost management and strategic growth initiatives. The company also expanded into new product categories and established a subsidiary in Australia, with plans for further expansion in Vietnam, Australia, and the Middle East.