SK Japan Co., Ltd. (7608) AI Stock Analysis

0 Followers

SK Japan Co., Ltd.

(TSE/TYO:7608)

Select Model

Rating:74Outperform

Price Target:JPY 774.00▲(13.49% Upside)

Action:reiterated

Date:10/16/26

The score is driven by strong financial performance (growth, improving profitability, and a near debt-free balance sheet) and supportive valuation (low P/E and solid dividend yield). These positives are partially offset by weak technicals, with price trading below key moving averages despite oversold momentum readings.

Positive Factors

Strong revenue growthThe multi-year revenue expansion indicates growing demand for SK Japan’s character and entertainment merchandise rather than reliance on a single reporting period. Continued top-line growth can support greater operating scale, broaden market reach, and provide a durable base for reinvestment in product development and licensing.

Negative Factors

Uneven cash conversionCash generation has not been as consistent as reported earnings, with a prior year of negative operating and free cash flow and weaker conversion in 2026. This can reduce the reliability of internally generated funding and make working-capital or inventory management more important to sustained financial performance.

SK Japan Co., Ltd. (7608) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 11.33B
Dividend Yield: 3.89%
Average Volume (3M): 98.56K
Price to Earnings (P/E): 8.6
Beta (1Y): 0.92
Revenue Growth: 28.28%
EPS Growth: 9.94%
Country: Japan
Employees: 145
Sector: General
Sector Strength: 55
Industry: Leisure

SK Japan Co., Ltd. Business Overview & Revenue Model

Company Description

SK Japan Co.,Ltd. plans, manufactures, and sells character stuffed toys, key chains, household goods, mobile phone accessories, sarees, electronic toys, etc in Japan and internationally. It operates through two segments, Furniture Business and Custom...

How the Company Makes Money

SK Japan’s earnings are primarily driven by selling character and novelty merchandise into downstream channels that monetize consumer demand for entertainment and licensed properties. Key revenue streams typically include: (1) sales of prize/merchand...

SK Japan Co., Ltd. Financial Statement Overview

Summary

Strong overall fundamentals: rapid revenue growth through 2026 with improved operating and net margins, plus a very conservative (near debt-free) balance sheet. The main offset is cash-flow consistency, with prior volatility (notably negative operating/free cash flow in 2023) and softer cash conversion in 2026.

Income Statement

86Very Positive

Balance Sheet

92Very Positive

Cash Flow

72Positive

Financial statement breakdown
Breakdown	TTM	Feb 2026	Feb 2025	Feb 2024	Feb 2023	Feb 2022
Income Statement
Total Revenue	18.67B	16.23B	13.27B	10.61B	9.73B	6.50B
Gross Profit	4.82B	4.50B	3.56B	2.95B	2.32B	1.98B
EBITDA	1.92B	1.96B	1.34B	1.06B	627.26M	495.30M
Net Income	1.35B	1.33B	929.14M	755.99M	379.38M	334.38M
Balance Sheet
Total Assets	9.53B	8.54B	6.82B	6.03B	4.88B	4.36B
Cash, Cash Equivalents and Short-Term Investments	3.91B	4.18B	3.78B	3.41B	2.57B	2.79B
Total Debt	0	0	0	0	0	0
Total Liabilities	2.34B	1.88B	1.24B	1.27B	826.42M	625.17M
Stockholders Equity	7.19B	6.66B	5.58B	4.76B	4.05B	3.74B
Cash Flow
Free Cash Flow	0	733.77M	538.78M	997.98M	-138.85M	361.64M
Operating Cash Flow	0	835.93M	657.11M	1.07B	-87.76M	389.81M
Investing Cash Flow	0	-174.32M	-117.76M	-134.56M	-53.52M	-30.46M
Financing Cash Flow	0	-293.11M	-166.66M	-108.47M	-89.38M	-188.49M

SK Japan Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price682.00

Price Trends

50DMA855.83Negative

100DMA810.15Negative

200DMA798.10Negative

Market Momentum

MACD-51.78Positive

RSI20.76Positive

STOCH9.46Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7608, the sentiment is Negative. The current price of 682.00 is below the 20-day moving average (MA) of 818.00, below the 50-day MA of 855.83, and below the 200-day MA of 798.10, indicating a bearish trend. The MACD of -51.78 indicates Positive momentum. The RSI at 20.76 is Positive, neither overbought nor oversold. The STOCH value of 9.46 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7608.

SK Japan Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:7608 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:7832	79Outperform	JPY 3.99T	28.44	17.83%	1.20%	9.12%	16.20%
JP:4680	77Outperform	JPY 366.80B	20.93	20.75%	1.43%	―	―
JP:7608	74Outperform	JPY 11.56B	8.56	―	3.89%	28.28%	9.94%
JP:9166	67Neutral	JPY 114.61B	39.79	―	0.64%	47.16%	21.05%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:6425	51Neutral	JPY 50.05B	-0.23	-120.77%	―	9.25%	-752.93%
JP:4343	45Neutral	JPY 54.28B	18.34	―	0.91%	10.11%	―

* General Sector Average

Performance Comparison

JP:7608 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:7608	SK Japan Co., Ltd.	682.00	45.47	7.14%
JP:7832	BANDAI NAMCO Holdings	6238.00	1841.47	41.88%
JP:4680	ROUND ONE Corporation	1260.00	220.13	21.17%
JP:6425	Universal Entertainment Corporation	645.00	-210.00	-24.56%
JP:4343	AEON Fantasy Co., Ltd.	2754.00	-44.79	-1.60%
JP:9166	GENDA Inc.	622.00	-37.48	-5.68%

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: Oct 16, 2026

SK Japan Co., Ltd. AI Stock Analysis