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Studio Atao Co., Ltd. (3550) AI Stock Analysis

JP:3550

Studio Atao Co., Ltd.

(TSE/TYO:3550)

Select Model
Rating:74Outperform
Price Target:JPY 256.00â–²(23.08% Upside)
Action:upgraded
Date:04/12/26

Studio Atao exhibits robust financial health with consistent revenue growth, a debt-free balance sheet, and positive cash generation. The stock is in a strong uptrend, though overbought signals suggest near-term caution. Valuation appears somewhat stretched, tempering enthusiasm. Overall, the company presents a moderately attractive investment profile.

Positive Factors
Strong balance sheet (zero debt)Zero net debt by 2026 gives durable financial flexibility: it lowers fixed financial obligations, increases resilience to demand cyclicality, and allows management to fund working capital, product investment or dividends from operating flows rather than external financing.
Negative Factors
Thin profit marginsLow net margins leave limited room to absorb cost inflation or pricing pressure common in apparel. Sustained thin margins constrain retained earnings available for reinvestment and make long-term returns sensitive to small revenue or cost shocks.

Studio Atao Co., Ltd. (3550) vs. iShares MSCI Japan ETF (EWJ)

-5%0%5%10%15%20%25%JP:3550+5.31%EWJ+15.87%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 2.88B
Dividend Yield
2.40%
Average Volume (3M)
10.35K
Price to Earnings (P/E)
18.9
Beta (1Y)
0.38
Revenue Growth
6.83%
EPS Growth
65.02%
Country
Japan
Employees
62
Sector
Consumer Cyclical
Sector Strength
61
Industry
Apparel - Footwear & Accessories

Studio Atao Co., Ltd. Business Overview & Revenue Model

Company Description

STUDIO ATAO Co., Ltd. specializes in designing and distributing bags and wallets within the Japanese market. The company also manages a network of physical retail outlets and online stores, alongside developing and selling character-themed merchandis...

How the Company Makes Money

null

Studio Atao Co., Ltd. Financial Statement Overview

Summary

Revenue grew 11.6% with margin expansion, and the balance sheet is debt-free, indicating strong financial health. Cash flow remains positive but has declined slightly, tempering the outlook. Overall, a solid financial performance.

Income Statement

78Positive

Balance Sheet

88Very Positive

Cash Flow

72Positive
Financial statement breakdown
BreakdownTTMFeb 2026Feb 2025Feb 2024Feb 2023Feb 2022
Income Statement
Total Revenue3.71B4.13B3.70B3.24B3.71B3.62B
Gross Profit2.44B2.81B2.42B2.14B2.39B2.29B
EBITDA-203.17M290.32M230.87M175.18M-203.17M40.69M
Net Income-229.16M151.54M68.45M50.78M-229.16M-21.88M
Balance Sheet
Total Assets3.79B3.18B3.18B3.54B3.79B3.76B
Cash, Cash Equivalents and Short-Term Investments1.79B1.82B1.83B1.92B1.79B2.12B
Total Debt916.44M0198.34M556.67M916.44M653.08M
Total Liabilities1.23B596.11M680.67M1.04B1.23B903.50M
Stockholders Equity2.55B2.59B2.50B2.50B2.55B2.86B
Cash Flow
Free Cash Flow0276.57M346.56M562.67M-417.77M62.04M
Operating Cash Flow0285.52M356.03M575.77M-239.55M86.03M
Investing Cash Flow0-29.40M-13.17M24.22M-236.40M-25.00M
Financing Cash Flow0-267.59M-430.72M-472.96M194.40M-293.09M

Studio Atao Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative
Last Price208.00

Price Trends

50DMA215.66Negative
100DMA218.24Negative
200DMA219.05Negative

Market Momentum

MACD-2.64Positive
RSI33.12Neutral
STOCH23.33Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3550, the sentiment is Negative. The current price of 208.00 is below the 20-day moving average (MA) of 213.65, below the 50-day MA of 215.66, and below the 200-day MA of 219.05, indicating a bearish trend. The MACD of -2.64 indicates Positive momentum. The RSI at 33.12 is Neutral, neither overbought nor oversold. The STOCH value of 23.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3550.

Studio Atao Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (61)

Financial Indicators

JP:3550 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:3569JP:356975OutperformJPY 181.88B12.3310.34%2.24%11.57%10.78%
JP:3550JP:355074OutperformJPY 2.92B18.86―2.40%6.83%65.02%
JP:8011JP:801168NeutralJPY 37.04B10.00―8.18%-3.87%24.45%
JP:3104JP:310463NeutralJPY 110.36B18.76―2.36%14.36%22.61%
Sector *61Neutral$18.38B12.79-2.54%3.03%1.52%-15.83%
JP:8166JP:816649NeutralJPY 3.08B2.37――-10.79%54.05%
JP:8107JP:810748NeutralJPY 7.99B-72.00――27.52%-52.04%

* Consumer Cyclical Sector Average

Performance Comparison

0%50%JP:3550JP:3569JP:3104JP:8011JP:8107JP:8166Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:3550 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:3550Studio Atao Co., Ltd.208.0011.475.83%
JP:3569Seiren Co 3390.00294.499.51%
JP:3104Fujibo Holdings, Inc.3265.001035.3746.44%
JP:8011Sanyo Shokai Ltd.1215.00186.2518.10%
JP:8107KIMURATAN Corporation29.00-13.00-30.95%
JP:8166Taka-Q Co., Ltd.74.00-24.00-24.49%
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: Aug 04, 2026