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Top Culture Co., Ltd.
(7640)
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Rating:49Neutral
Price Target:
¥175.00
▼(-16.67% Downside)
Action:Reiterated
Date:06/13/26
The score is held back primarily by weak financial performance (ongoing losses, negative operating margins, and high leverage), despite some improvement in cash flow. Technicals are mixed—below key moving averages but supported by positive momentum signals. Valuation is a relative positive due to the low P/E, but it is not enough to outweigh the fundamental risks.
Positive Factors
Improved cash generation
The firm recorded positive operating and free cash flows in the most recent year, providing a durable liquidity cushion. That cash generation can fund working capital, service obligations, and small reinvestments while management pursues a path to profitability, lowering immediate solvency risk even as margins remain weak.
Negative Factors
Declining revenue trend
Revenue decline erodes scale and makes fixed-cost absorption harder for a physical retail operator. Persistent top-line weakness reduces bargaining power with suppliers, limits margin recovery potential, and increases reliance on cost cuts or cash reserves to restore profitability—a structural headwind until growth resumes.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved cash generation
The firm recorded positive operating and free cash flows in the most recent year, providing a durable liquidity cushion. That cash generation can fund working capital, service obligations, and small reinvestments while management pursues a path to profitability, lowering immediate solvency risk even as margins remain weak.
Read all positive factors
Top Culture Co., Ltd. (7640) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥2.84B
Dividend YieldN/A
Average Volume (3M)1.48M
Price to Earnings (P/E)8.6
Beta (1Y)0.78
Revenue Growth-2.76%
EPS GrowthN/A
CountryJP
Employees245
SectorGeneral
Sector StrengthN/A
IndustrySpecialty Retail
Share Statistics
EPS (TTM)21.98
Shares Outstanding16,214,400
10 Day Avg. Volume1,246,670
30 Day Avg. Volume1,480,513
Financial Highlights & Ratios
PEG Ratio-1.99
Price to Book (P/B)3.73
Price to Sales (P/S)0.16
P/FCF Ratio3.53
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
Top Culture Co., Ltd. Business Overview & Revenue Model
Company Description
TOP CULTURE Co., Ltd. is a Japanese retail company specializing in the sale and rental of books, stationery, music, and video content. Its diversified operations also encompass the management of soccer clubs and schools, along with the planning an...
How the Company Makes Money
Top Culture Co., Ltd. generates revenue primarily through retail sales made at its stores. Detailed disclosure on its revenue model (e.g., breakdown by product category or business segment), other material revenue streams (such as online sales, me...
Top Culture Co., Ltd. Financial Statement Overview
Summary
Income Statement
25
Negative
Balance Sheet
30
Negative
Cash Flow
40
Negative
| Breakdown | TTM | Oct 2025 | Oct 2024 | Oct 2023 | Oct 2022 | Oct 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 17.43B | 17.33B | 18.41B | 18.95B | 20.91B | 26.41B |
| Gross Profit | 6.24B | 5.63B | 5.93B | 5.57B | 6.22B | 7.40B |
| EBITDA | 262.47M | -102.56M | -133.24M | -745.59M | 200.26M | -1.16B |
| Net Income | 343.05M | -731.18M | -717.62M | -1.38B | -272.85M | -1.94B |
Balance Sheet | ||||||
| Total Assets | 17.73B | 14.79B | 15.78B | 17.24B | 18.18B | 18.33B |
| Cash, Cash Equivalents and Short-Term Investments | 560.94M | 1.20B | 988.93M | 1.57B | 1.58B | 1.32B |
| Total Debt | 8.58B | 9.14B | 9.79B | 10.61B | 10.90B | 10.32B |
| Total Liabilities | 16.20B | 14.02B | 14.16B | 14.73B | 14.78B | 14.52B |
| Stockholders Equity | 1.49B | 737.14M | 1.59B | 2.48B | 3.37B | 3.78B |
Cash Flow | ||||||
| Free Cash Flow | 778.20M | 778.20M | 732.24M | -239.60M | 151.84M | -2.53B |
| Operating Cash Flow | 898.87M | 898.87M | 795.86M | -204.27M | 220.12M | -2.41B |
| Investing Cash Flow | 90.72M | 90.72M | 117.92M | 102.26M | -23.77M | 204.95M |
| Financing Cash Flow | -773.75M | -773.75M | -1.50B | 89.10M | 62.64M | 1.31B |
Top Culture Co., Ltd. Technical Analysis
Positive
210.00
Price Trends
172.02
Positive
182.61
Positive
189.56
Positive
Market Momentum
2.99
Negative
68.56
Neutral
53.62
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7640, the sentiment is Positive. The current price of 210 is above the 20-day moving average (MA) of 178.35, above the 50-day MA of 172.02, and above the 200-day MA of 189.56, indicating a bullish trend. The MACD of 2.99 indicates Negative momentum. The RSI at 68.56 is Neutral, neither overbought nor oversold. The STOCH value of 53.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7640.
Top Culture Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | ¥22.66B | 18.67 | ― | 3.53% | 0.66% | -1.96% | |
71 Outperform | ¥37.80B | 10.94 | ― | 3.77% | 23.51% | 56.52% | |
68 Neutral | ¥52.04B | 18.92 | ― | 1.32% | 9.16% | 47.03% | |
62 Neutral | ¥203.25B | 23.80 | ― | 0.64% | 57.65% | 100.02% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
51 Neutral | ¥28.67B | 7.88 | ― | 0.95% | 22.26% | ― | |
49 Neutral | ¥2.84B | 8.64 | ― | ― | -2.76% | ― |
* General Sector Average
JP:7640
Top Culture Co., Ltd.
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17.28%
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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.