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Rococo Co. Ltd. (JP:5868)
:5868
Japanese Market
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Rococo Co. Ltd. (5868) AI Stock Analysis

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JP:5868

Rococo Co. Ltd.

(5868)

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Neutral 65 (OpenAI - 5.2)
Rating:65Neutral
Price Target:
¥1,085.00
▲(8.94% Upside)
Action:Reiterated
Date:06/09/26
The score is driven primarily by solid fundamentals—growth, improved balance sheet risk, and strong cash generation—partly offset by clear technical weakness (bearish trend signals despite oversold readings). Valuation is reasonable and supported by the dividend yield, but not compelling enough to override the current negative momentum.
Positive Factors
Revenue Growth
Sustained top-line momentum and a clear step-up in 2025 indicate durable demand for Rococo's services. A recurring improvement in revenue provides a broader base to fund investment, supports operating leverage over time, and reduces reliance on one‑off gains.
Negative Factors
Margin Compression
A durable decline in gross, operating and net margins erodes the firm's ability to convert revenue into profits. If structural, persistent margin pressure could limit cash flow growth, constrain returns on equity, and reduce room for pricing flexibility.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Sustained top-line momentum and a clear step-up in 2025 indicate durable demand for Rococo's services. A recurring improvement in revenue provides a broader base to fund investment, supports operating leverage over time, and reduces reliance on one‑off gains.
Read all positive factors

Rococo Co. Ltd. (5868) vs. iShares MSCI Japan ETF (EWJ)

Rococo Co. Ltd. Business Overview & Revenue Model

Company Description
Rococo Co. Ltd. operates as a comprehensive provider of information technology consulting solutions. Its extensive service portfolio includes IT outsourcing, which covers end-to-end PC lifecycle management, helpdesk support, kitting, complex infra...
How the Company Makes Money
null...

Rococo Co. Ltd. Financial Statement Overview

Summary
Strong revenue trajectory with a notable step-up in 2025 and consistently positive earnings. Balance sheet leverage has improved materially versus 2021–2022 and cash conversion is strong (FCF covering ~90%+ of net income). Key watch items are margin compression versus 2022 peaks and some cash flow volatility.
Income Statement
72
Positive
Balance Sheet
78
Positive
Cash Flow
70
Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue8.34B9.19B7.80B7.18B6.93B6.30B
Gross Profit3.10B3.14B2.84B2.67B2.66B2.16B
EBITDA744.60M576.59M506.77M540.21M820.29M550.32M
Net Income461.51M317.73M278.02M289.00M453.13M322.75M
Balance Sheet
Total Assets4.28B5.00B4.35B4.39B3.27B3.05B
Cash, Cash Equivalents and Short-Term Investments1.63B1.94B1.93B2.14B1.28B1.18B
Total Debt463.84M758.45M580.42M1.21B1.32B1.54B
Total Liabilities1.46B2.04B1.60B2.08B2.20B2.44B
Stockholders Equity2.82B2.96B2.75B2.31B1.07B611.32M
Cash Flow
Free Cash Flow0.00648.32M325.98M173.83M424.05M330.52M
Operating Cash Flow0.00665.99M341.56M185.31M443.09M353.19M
Investing Cash Flow0.00-615.00M-83.57M-146.95M-54.02M-48.39M
Financing Cash Flow0.00-70.34M-519.45M775.57M-287.55M-280.12M

Rococo Co. Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price996.00
Price Trends
50DMA
989.74
Positive
100DMA
992.07
Positive
200DMA
1006.46
Positive
Market Momentum
MACD
12.41
Negative
RSI
64.90
Neutral
STOCH
77.09
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5868, the sentiment is Positive. The current price of 996 is below the 20-day moving average (MA) of 1012.75, above the 50-day MA of 989.74, and below the 200-day MA of 1006.46, indicating a bullish trend. The MACD of 12.41 indicates Negative momentum. The RSI at 64.90 is Neutral, neither overbought nor oversold. The STOCH value of 77.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5868.

Rococo Co. Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
¥4.60B9.421.28%5.28%-2.20%
65
Neutral
¥3.91B28.023.79%15.03%-69.84%
62
Neutral
¥3.73B34.431.69%6.01%-18.52%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
55
Neutral
¥4.18B23.210.53%15.49%56.64%
52
Neutral
¥4.49B25.610.90%-3.16%
44
Neutral
¥6.66B-2.36-63.60%-447.65%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5868
Rococo Co. Ltd.
1,048.00
72.35
7.42%
JP:2338
Quantum Solutions Co.,Ltd.
125.00
-353.00
-73.85%
JP:2375
GiG Works, Inc.
219.00
-61.61
-21.96%
JP:2493
E-SUPPORTLINK, Ltd.
945.00
15.98
1.72%
JP:3625
Techfirm Holdings, Inc.
652.00
-46.80
-6.70%
JP:5250
Prime Strategy Co., Ltd.
1,045.00
60.26
6.12%
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: Jun 09, 2026