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Tay Two Co., Ltd. (7610) AI Stock Analysis

JP:7610

Tay Two Co., Ltd.

(TSE/TYO:7610)

Select Model
Rating:68Neutral
Price Target:JPY 136.00â–²(8.80% Upside)
Action:reiterated
Date:08/07/26

The score is driven primarily by good (but mixed) financial performance—strong revenue growth and improved leverage, tempered by weaker profitability and uneven cash-flow stability—alongside a clearly attractive valuation. These positives are partially offset by weak near-term technical momentum (below key moving averages with negative MACD and low RSI).

Positive Factors
Revenue GrowthRevenue has risen consistently from 2021 through 2026, with growth accelerating to about 15% in the latest year. This establishes a durable expansion trend and gives the company a larger operating base from which to reinvest and support future earnings, even though profitability remains uneven.
Negative Factors
Profitability VolatilityNet income peaked in 2022 and has been more volatile since, while 2026 operating profitability remains modest despite stronger revenue. This limits conversion of sales growth into durable earnings, can constrain reinvestment capacity, and makes results more sensitive to operating performance.

Tay Two Co., Ltd. (7610) vs. iShares MSCI Japan ETF (EWJ)

-5%0%5%10%15%20%25%JP:7610-4.84%EWJ+15.87%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 7.80B
Dividend Yield
3.20%
Average Volume (3M)
596.40K
Price to Earnings (P/E)
6.0
Beta (1Y)
0.61
Revenue Growth
17.46%
EPS Growth
98.54%
Country
Japan
Employees
443
Sector
Consumer Cyclical
Sector Strength
61
Industry
Leisure

Tay Two Co., Ltd. Business Overview & Revenue Model

Company Description

Tay Two Co., Ltd. operates stores that offer books, home video games, trading cards, hobbies, smartphones, CDs, DVDs, clothing, etc. The company was founded in 1989 and is headquartered in Okayama, Japan.

Tay Two Co., Ltd. Financial Statement Overview

Summary

Financial statements are solid but not outstanding: revenue has grown consistently and accelerated in the latest year, and leverage improved as debt-to-equity fell. Offsetting this, profitability has been more volatile since the 2022 peak, returns on equity have declined, and cash-flow/FCF consistency has been uneven despite a recent rebound.

Income Statement

74Positive

Balance Sheet

66Positive

Cash Flow

63Positive
Financial statement breakdown
BreakdownTTMFeb 2026Feb 2025Feb 2024Feb 2023Feb 2022
Income Statement
Total Revenue45.02B42.23B36.48B35.20B31.26B26.85B
Gross Profit14.81B13.54B11.90B3.92B10.74B9.04B
EBITDA2.55B1.84B1.33B1.71B1.82B1.54B
Net Income1.32B867.82M501.58M568.47M1.00B1.50B
Balance Sheet
Total Assets15.14B14.31B13.45B12.44B10.96B9.39B
Cash, Cash Equivalents and Short-Term Investments3.11B3.09B2.90B2.86B2.48B1.76B
Total Debt3.82B2.90B3.73B3.50B2.30B1.87B
Total Liabilities7.90B7.33B7.31B6.63B5.36B4.50B
Stockholders Equity7.24B6.98B6.15B5.81B5.60B4.89B
Cash Flow
Free Cash Flow01.15B467.55M-234.61M885.31M219.94M
Operating Cash Flow01.94B1.46B210.61M1.18B538.07M
Investing Cash Flow0-693.39M-1.44B-595.40M-562.30M-645.76M
Financing Cash Flow0-1.07B15.51M778.62M110.78M-197.38M

Tay Two Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative
Last Price125.00

Price Trends

50DMA135.80Negative
100DMA139.97Negative
200DMA140.77Negative

Market Momentum

MACD-3.21Positive
RSI30.11Neutral
STOCH6.73Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7610, the sentiment is Negative. The current price of 125.00 is below the 20-day moving average (MA) of 131.05, below the 50-day MA of 135.80, and below the 200-day MA of 140.77, indicating a bearish trend. The MACD of -3.21 indicates Positive momentum. The RSI at 30.11 is Neutral, neither overbought nor oversold. The STOCH value of 6.73 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7610.

Tay Two Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (61)

Financial Indicators

JP:7610 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:3560JP:356077OutperformJPY 11.98B14.71―1.94%23.56%81.61%
JP:2652JP:265271OutperformJPY 13.98B8.19―0.25%11.20%51.35%
JP:7610JP:761068NeutralJPY 8.28B6.00―3.20%17.46%98.54%
JP:2769JP:276964NeutralJPY 7.25B12.79――-5.16%―
Sector *61Neutral$18.38B12.79-2.54%3.03%1.52%-15.83%
JP:3134JP:313445NeutralJPY 3.85B6.70―9.34%-9.38%-52.30%
JP:8165JP:816543NeutralJPY 4.46B0.74――-7.63%-125.49%

* Consumer Cyclical Sector Average

Performance Comparison

-50%0%50%JP:7610JP:2652JP:2769JP:3134JP:3560JP:8165Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:7610 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:7610Tay Two Co., Ltd.125.00-5.38-4.12%
JP:2652Mandarake Inc.393.0018.905.05%
JP:2769Village Vanguard Co., Ltd.923.00-106.00-10.30%
JP:3134Hamee Corp.241.00-255.80-51.49%
JP:3560Hobonichi Co., Ltd.5160.002010.1063.81%
JP:8165Senshukai Co., Ltd.95.00-131.00-57.96%
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 06, 2026