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Rococo Co. Ltd.
(5868)
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Rating:74Outperform
Price Target:
¥1,177.00
▲(18.17% Upside)
Action:Upgraded
Date:09/09/26
The score is driven primarily by solid financial quality—top-line growth, a strengthened balance sheet, and strong free cash flow coverage—supported by clear bullish technicals (price above major moving averages and positive MACD). The main offsets are a relatively expensive P/E multiple and evidence of margin compression, while the high dividend yield partially mitigates valuation concerns.
Positive Factors
Revenue Growth
A generally rising revenue base, reinforced by the pronounced 2025 step-up, indicates continued business expansion and demand for the company’s services. Sustained top-line growth can support operating scale, strengthen market position, and provide a foundation for earnings improvement over the coming quarters.
Negative Factors
Margin Compression
Profitability has weakened materially from earlier highs despite positive and fairly stable earnings. Persistent margin compression could limit operating leverage from revenue growth, reduce reinvestment capacity, and make future earnings more sensitive to changes in business conditions.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
A generally rising revenue base, reinforced by the pronounced 2025 step-up, indicates continued business expansion and demand for the company’s services. Sustained top-line growth can support operating scale, strengthen market position, and provide a foundation for earnings improvement over the coming quarters.
Read all positive factors
Rococo Co. Ltd. (5868) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥3.96B
Dividend Yield5.15%
Average Volume (3M)4.95K
Price to Earnings (P/E)28.5
Beta (1Y)0.61
Revenue Growth15.03%
EPS Growth-69.84%
CountryJP
Employees712
SectorGeneral
Sector StrengthN/A
IndustryInformation Technology Services
Share Statistics
EPS (TTM)124.00
Shares Outstanding3,728,700
10 Day Avg. Volume4,350
30 Day Avg. Volume4,953
Financial Highlights & Ratios
PEG Ratio0.90
Price to Book (P/B)1.32
Price to Sales (P/S)0.42
P/FCF Ratio6.02
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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...
Rococo Co. Ltd. Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
78
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.34B | 9.19B | 7.80B | 7.18B | 6.93B | 6.30B |
| Gross Profit | 3.10B | 3.14B | 2.84B | 2.67B | 2.66B | 2.16B |
| EBITDA | 744.60M | 576.59M | 506.77M | 540.21M | 820.29M | 550.32M |
| Net Income | 461.51M | 317.73M | 278.02M | 289.00M | 453.13M | 322.75M |
Balance Sheet | ||||||
| Total Assets | 4.28B | 5.00B | 4.35B | 4.39B | 3.27B | 3.05B |
| Cash, Cash Equivalents and Short-Term Investments | 1.63B | 1.94B | 1.93B | 2.14B | 1.28B | 1.18B |
| Total Debt | 463.84M | 758.45M | 580.42M | 1.21B | 1.32B | 1.54B |
| Total Liabilities | 1.46B | 2.04B | 1.60B | 2.08B | 2.20B | 2.44B |
| Stockholders Equity | 2.82B | 2.96B | 2.75B | 2.31B | 1.07B | 611.32M |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 648.32M | 325.98M | 173.83M | 424.05M | 330.52M |
| Operating Cash Flow | 0.00 | 665.99M | 341.56M | 185.31M | 443.09M | 353.19M |
| Investing Cash Flow | 0.00 | -615.00M | -83.57M | -146.95M | -54.02M | -48.39M |
| Financing Cash Flow | 0.00 | -70.34M | -519.45M | 775.57M | -287.55M | -280.12M |
Rococo Co. Ltd. Technical Analysis
Positive
996.00
Price Trends
994.66
Positive
991.36
Positive
1008.01
Positive
Market Momentum
17.02
Negative
67.66
Neutral
89.07
Negative
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 1021.65, above the 50-day MA of 994.66, and below the 200-day MA of 1008.01, indicating a bullish trend. The MACD of 17.02 indicates Negative momentum. The RSI at 67.66 is Neutral, neither overbought nor oversold. The STOCH value of 89.07 is Negative, 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
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | ¥4.46B | 9.67 | ― | 1.20% | 5.28% | -2.20% | |
74 Outperform | ¥3.96B | 28.53 | ― | 5.15% | 15.03% | -69.84% | |
62 Neutral | ¥3.91B | 38.81 | ― | 1.87% | 6.01% | -18.52% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
55 Neutral | ¥4.20B | 23.21 | ― | 0.53% | 15.49% | 56.64% | |
48 Neutral | ¥4.80B | 41.30 | ― | 1.00% | 0.53% | ― | |
43 Neutral | ¥6.44B | -2.23 | ― | ― | -63.60% | -447.65% |
* General Sector Average
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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.