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

• Market Cap: $10.07M
• Dividend Yield: N/A
• Average Volume (3M): 114.41K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.62
• 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: 7.64
• Enterprise Value/Revenue: 0.37
• Enterprise Value/Gross Profit: 3.22
• Enterprise Value/Ebitda: 8.11
• 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: $2.00 ▼(-37.50% Downside)
• Action: Reiterated Date: 03/19/26
• Date: Action: Reiterated 03/19/26

The score is held down primarily by weak financial quality (high leverage and negative operating/free cash flow) and bearish technical momentum (price below all key moving averages, negative MACD). A relatively attractive dividend yield provides some support, but valuation is difficult to assess with the provided P/E data.

Positive Factors

Revenue Growth

Sustained and very strong reported revenue growth indicates expanding product demand and market penetration. Durable top-line expansion gives management scope to invest in inventory, channel expansion and supplier terms, supporting scale economies and longer-term resilience if growth persists.

Improving Margins

Improving operating margins reflect better cost control and operational efficiency. If margin gains are driven by mix shifts toward higher-margin beauty items and fixed-cost leverage across stores and e-commerce, these trends can sustainably lift profitability and cash generation over the medium term.

Multi‑channel Sales Model

A diversified sales model across retail, e-commerce and wholesale reduces reliance on any single channel and supports stable revenue streams. Channel diversity helps capture different customer cohorts, smooths seasonal volatility and enables cross‑selling and margin optimization over time.

Negative Factors

High Leverage

Significant leverage and a low equity base constrain financial flexibility and increase refinancing and interest-rate sensitivity. Elevated debt levels limit capacity to fund growth or absorb shocks, raising solvency risk and complicating long-term capital allocation decisions.

Negative Operating Cash Flow

Persistent negative operating and free cash flows undermine self-funded growth and force reliance on external financing. Over months, weak cash generation risks inventory/working capital strain and increases vulnerability to funding squeezes unless operations convert to positive cash flow.

Reliance on Related‑Party Financing

Use of insider and subordinated loans to shore up liquidity raises governance and refinancing concentration risks. While providing near-term funding, related‑party financing can signal limited market access and creates long‑dated maturity concentration that may pressure minority holders and creditors.

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 primarily makes money by selling products it sources from Japanese manufacturers and brand owners, generating revenue from (1) retail sales through its own stores, where it earns gross profit on the spread between selling prices and product procurement/operating costs; (2) e-commerce sales via online storefronts, where revenue is recognized per order and margins depend on product mix, pricing, shipping/fulfillment costs, and platform fees; and (3) wholesale/distribution sales to third-party retailers or resellers, typically at lower per-unit margins but higher volume, where it earns a distributor/wholesaler margin. Additional contributors to earnings can include merchandising and product mix decisions (higher-margin beauty and specialty items), geographic/customer channel mix (domestic vs. cross-border demand), and supplier terms (purchase discounts and promotional support); specific partnership details are null.

Yoshitsu Co. Ltd. Sponsored ADR Financial Statement Overview

Summary

Income statement strength is offset by balance sheet and cash flow weakness: strong reported revenue growth and some margin improvement (Income Statement Score 65), but high leverage/low equity stability (Balance Sheet Score 40) and negative operating/free cash flow (Cash Flow Score 30) increase financial risk.

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

Yoshitsu Co. Ltd. Sponsored ADR Technical Analysis

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

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 3.2 is above the 20-day moving average (MA) of 2.82, above the 50-day MA of 2.98, and below the 200-day MA of 3.31, indicating a bearish trend. The MACD of -0.13 indicates Positive momentum. The RSI at 35.06 is Neutral, neither overbought nor oversold. The STOCH value of 15.97 is Positive, 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
EWCZ	64 Neutral	$314.68M	17.43	15.38%	―	-5.47%	13.42%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
TANH	56 Neutral	$5.13M	2.65	3.65%	―	-14.59%	-135.25%
GROV	48 Neutral	$58.83M	-3.67	-130.15%	―	-15.42%	7.12%
TKLF	47 Neutral	$10.07M	―	16.79%	―	7.75%	-21.61%
SKIN	47 Neutral	$144.38M	-5.47	-19.78%	―	-13.14%	57.98%
MTEX	46 Neutral	$12.83M	2.46	-19.54%	―	-9.17%	-4.64%

Yoshitsu Co. Ltd. Sponsored ADR Corporate Events

Tokyo Lifestyle Secures HK$7.5 Million and JPY300 Million Insider Loans to Support Operations

On February 19, 2026, Tokyo Lifestyle Limited, a wholly owned subsidiary of Tokyo Lifestyle Co., Ltd., entered into a related-party loan agreement under which representative director and controlling shareholder Mei Kanayama will lend HK$7.5 million at 4.35% interest, with annual interest payments and a lump-sum principal and interest repayment due by January 31, 2031. On February 24, 2026, the company executed a subordinated loan agreement with Tokushin G.K., an entity owned by Kanayama and his family, for a JPY300 million loan at 2.0% interest, ranking junior to other debt and payable in full in 2031, moves that bolster the group’s long-term funding while increasing reliance on insider financing and highlighting governance considerations for investors.

Both the HK$7.5 million loan and the JPY300 million subordinated facility, dated with effect from early 2026 and approved by the respective boards as related-party transactions, feature interest-only periods with bullet repayments, which can support near- to medium-term liquidity at the cost of concentrated maturity risk at the 2031 due date. Because the subordinated loan sits below other obligations in the capital structure, it may strengthen the company’s ability to raise or service senior financing, but the use of shareholder- and family-controlled vehicles as lenders underscores the importance of oversight on terms, conflicts of interest and future refinancing plans for minority shareholders and creditors.

The most recent analyst rating on (TKLF) stock is a Hold with a $3.00 price target. To see the full list of analyst forecasts on Yoshitsu Co. Ltd. Sponsored ADR stock, see the TKLF Stock Forecast page.

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.