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

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JP:7610

Tay Two Co., Ltd.

(TSE/TYO:7610)

Select Model
Rating:75Outperform
Price Target:JPY 127.00â–²(4.96% Upside)
Action:reiterated
Date:11/08/26

The stock's score is heavily anchored by its exceptional financial health and a highly attractive valuation, though offset by severe short-term technical weakness. While steady revenue growth, robust free cash flow, and a low P/E ratio present a compelling fundamental value case, the price action remains in a sharp technical downtrend despite flashing deep oversold signals.

Positive Factors
Consistent Revenue GrowthSustained revenue expansion indicates continuing demand and improving scale across the business. The acceleration in the latest year strengthens the growth profile and can support reinvestment, operating leverage, and a larger competitive position over the next several quarters if maintained.
Negative Factors
Modest ProfitabilityModest operating profitability means revenue growth is not yet translating fully into earnings power. This can limit the cash available for reinvestment and reduce resilience if growth slows, while also making future results more dependent on improving margins rather than sales expansion alone.

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

-20%-10%0%10%20%30%JP:7610-5.79%EWJ+16.06%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 7.55B
Dividend Yield
3.31%
Average Volume (3M)
635.52K
Price to Earnings (P/E)
5.8
Beta (1Y)
0.73
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

Robust overall financial health driven by steady revenue growth and an impressive earnings recovery. A conservative balance sheet with active debt reduction and phenomenal cash generation highlights highly efficient operations.

Income Statement

82Very Positive

Balance Sheet

85Very Positive

Cash Flow

88Very Positive
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 Price121.00

Price Trends

50DMA131.96Negative
100DMA138.19Negative
200DMA139.77Negative

Market Momentum

MACD-3.85Negative
RSI38.87Neutral
STOCH65.48Neutral

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 121.00 is below the 20-day moving average (MA) of 124.40, below the 50-day MA of 131.96, and below the 200-day MA of 139.77, indicating a bearish trend. The MACD of -3.85 indicates Negative momentum. The RSI at 38.87 is Neutral, neither overbought nor oversold. The STOCH value of 65.48 is Neutral, 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 11.89B14.65―1.95%23.56%81.61%
JP:7610JP:761075OutperformJPY 8.01B5.81―3.31%17.46%98.54%
JP:2652JP:265271OutperformJPY 13.09B7.79―0.27%12.63%22.90%
JP:2769JP:276964NeutralJPY 7.13B12.64――-5.16%―
Sector *61Neutral$18.38B12.79-2.54%3.03%1.52%-15.83%
JP:3134JP:313453NeutralJPY 3.56B6.20―10.09%-9.38%-52.30%
JP:8165JP:816540UnderperformJPY 3.42B-4.31――-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 '26Nov '26
JP:7610 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:7610Tay Two Co., Ltd.121.00-8.41-6.50%
JP:2652Mandarake Inc.374.0040.8112.25%
JP:2769Village Vanguard Co., Ltd.912.00-116.00-11.28%
JP:3134Hamee Corp.223.00-291.03-56.62%
JP:3560Hobonichi Co., Ltd.5140.002102.7769.23%
JP:8165Senshukai Co., Ltd.71.00-151.00-68.02%
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: Nov 07, 2026