KAITORI OKOKU CO., LTD. (3181) AI Stock Analysis

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KAITORI OKOKU CO., LTD.

(TSE/TYO:3181)

Select Model

Rating:68Neutral

Price Target:JPY 1,145.00▲(9.05% Upside)

Action:downgraded

Date:11/05/26

The score is driven primarily by strong multi-year revenue growth and a generally solid balance sheet profile, but is held back by meaningful cash-flow/free-cash-flow volatility. Valuation is a positive (low P/E), while technicals are mixed with near-term weakness versus 20/50-day averages despite longer-term support above 100/200-day levels.

Positive Factors

Sustained Revenue GrowthRevenue has nearly doubled across the reported period, indicating sustained demand and effective execution rather than dependence on a single short-term uplift. Continued top-line expansion can broaden operating scale, support reinvestment, and strengthen the company’s position in the reuse and secondhand-goods market.

Negative Factors

Volatile Cash GenerationUneven conversion of earnings into cash is a meaningful execution risk because it can constrain internally funded expansion and make financial performance more dependent on working-capital movements or investment timing. Repeated free-cash-flow weakness would reduce flexibility across several reporting periods.

KAITORI OKOKU CO., LTD. (3181) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 3.86B
Dividend Yield: 0.95%
Average Volume (3M): 8,495
Price to Earnings (P/E): 8.6
Beta (1Y): 0.10
Revenue Growth: 11.84%
EPS Growth: 46.54%
Country: Japan
Employees: 175
Sector: Consumer Cyclical
Sector Strength: 61
Industry: Specialty Retail

KAITORI OKOKU CO., LTD. Business Overview & Revenue Model

Company Description

Kaitori Okoku Co., Ltd. engages in the retail business in Japan. It sells second-hand goods, including clothing accessories, hobby products, trading cards, luxury brand products, precious metals, luxury watches, tickets, antiques, stamps, miscellaneo...

How the Company Makes Money

KAITORI OKOKU CO., LTD. generates revenue primarily by acquiring used goods from customers (paying a purchase price), then reselling those goods at a higher price through its own retail channels and/or wholesale/auction channels, capturing the gross...

KAITORI OKOKU CO., LTD. Financial Statement Overview

Summary

Strong and consistent revenue growth (about ¥4.9B in 2021 to ~¥9.3B in 2026) supports a solid operating backdrop. Profitability remains positive but margins have softened from 2024 into 2025, and cash generation is the key weakness: operating cash flow and free cash flow have been volatile with negative free cash flow in 2022 and 2025, raising execution/working-capital risk despite an expanding equity base and moderate leverage.

Income Statement

78Positive

Balance Sheet

72Positive

Cash Flow

58Neutral

Financial statement breakdown
Breakdown	TTM	Feb 2026	Feb 2025	Feb 2024	Feb 2023	Feb 2022
Income Statement
Total Revenue	9.75B	9.33B	7.82B	6.74B	5.87B	4.95B
Gross Profit	5.10B	4.84B	4.03B	3.39B	3.01B	2.74B
EBITDA	785.48M	689.94M	594.30M	596.89M	491.82M	276.23M
Net Income	449.13M	358.06M	328.35M	360.40M	273.92M	122.81M
Balance Sheet
Total Assets	6.30B	5.96B	5.25B	4.46B	3.96B	3.46B
Cash, Cash Equivalents and Short-Term Investments	1.58B	1.46B	1.18B	1.26B	1.02B	909.32M
Total Debt	1.76B	1.65B	1.34B	987.62M	957.95M	923.60M
Total Liabilities	2.69B	2.56B	2.18B	1.71B	1.57B	1.34B
Stockholders Equity	3.61B	3.40B	3.06B	2.75B	2.40B	2.12B
Cash Flow
Free Cash Flow	0	77.83M	-137.83M	307.23M	100.87M	-117.66M
Operating Cash Flow	0	463.96M	107.40M	354.60M	191.51M	-54.19M
Investing Cash Flow	0	-250.09M	-758.91M	-109.61M	-103.28M	-188.82M
Financing Cash Flow	0	267.23M	318.87M	725.00K	21.73M	63.64M

KAITORI OKOKU CO., LTD. Technical Analysis

Technical Analysis SentimentPositive

Last Price1050.00

Price Trends

50DMA1057.80Negative

100DMA1043.06Positive

200DMA978.47Positive

Market Momentum

MACD-5.76Positive

RSI49.19Neutral

STOCH63.14Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3181, the sentiment is Positive. The current price of 1050.00 is below the 20-day moving average (MA) of 1055.90, below the 50-day MA of 1057.80, and above the 200-day MA of 978.47, indicating a neutral trend. The MACD of -5.76 indicates Positive momentum. The RSI at 49.19 is Neutral, neither overbought nor oversold. The STOCH value of 63.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3181.

KAITORI OKOKU CO., LTD. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

JP:3181 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:2674	82Outperform	JPY 35.07B	10.13	―	3.31%	28.72%	58.69%
JP:3093	72Outperform	JPY 45.17B	12.91	―	2.38%	15.52%	22.34%
JP:7685	72Outperform	JPY 158.11B	18.68	―	0.49%	57.65%	100.02%
JP:3181	68Neutral	JPY 3.90B	8.57	―	0.95%	11.84%	46.54%
JP:9270	63Neutral	JPY 19.38B	5.94	―	3.25%	25.71%	349.09%
Sector *	61Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
JP:9278	61Neutral	JPY 45.78B	14.74	―	1.40%	10.64%	96.47%

* Consumer Cyclical Sector Average

Performance Comparison

JP:3181 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:3181	KAITORI OKOKU CO., LTD.	1050.00	219.49	26.43%
JP:2674	Hard Off Corporation Co., Ltd.	2566.00	734.34	40.09%
JP:3093	Treasure Factory Co., Ltd.	1889.00	256.74	15.73%
JP:7685	BuySell Technologies Co., Ltd.	2556.00	879.69	52.48%
JP:9270	Valuence Holdings, Inc.	1386.00	437.52	46.13%
JP:9278	BOOKOFF GROUP HOLDINGS LIMITED	2575.00	1207.57	88.31%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Nov 05, 2026

KAITORI OKOKU CO., LTD. AI Stock Analysis