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Top Culture Co., Ltd. (7640) AI Stock Analysis

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JP:7640

Top Culture Co., Ltd.

(TSE/TYO:7640)

Select Model
Rating:42Neutral
Price Target:JPY 139.00â–¼(-4.79% Downside)
Action:reiterated
Date:11/03/26

The score is primarily held down by weak financial performance (ongoing losses, declining revenue, and high leverage) and bearish technicals (price below major moving averages with negative MACD). Valuation is the main offset due to a very low P/E, but it is not enough to counter the fundamental and trend-related risks.

Positive Factors
Positive Operating and Free Cash FlowPositive operating and free cash flow provide an internal source of liquidity despite reported losses. This supports the company’s ability to fund routine operations and maintain its retail network, although the cash conversion is not strong enough to fully offset weak earnings.
Negative Factors
Declining Revenue TrendRecent revenue contraction signals that the company is facing difficulty expanding its sales base in its existing operations. If this trend persists, weaker scale can make fixed retail costs harder to absorb and reduce the resources available for investment, recovery, or service development.

Top Culture Co., Ltd. (7640) vs. iShares MSCI Japan ETF (EWJ)

-20%-10%0%10%20%30%40%50%60%JP:7640-13.61%EWJ+15.75%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 2.54B
Dividend Yield
―
Average Volume (3M)
47.02K
Price to Earnings (P/E)
1.7
Beta (1Y)
0.94
Revenue Growth
6.11%
EPS Growth
―
Country
Japan
Employees
192
Sector
General
Sector Strength
55
Industry
Specialty Retail

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 and o...

Top Culture Co., Ltd. Financial Statement Overview

Summary

Weak fundamentals: declining revenue, persistent net losses with negative EBIT/EBITDA margins, and high leverage with negative ROE and low equity ratio. Positive operating and free cash flow provide some support but are not strong enough to offset ongoing profitability and solvency concerns.

Income Statement

25Negative

Balance Sheet

30Negative

Cash Flow

40Negative
Financial statement breakdown
BreakdownTTMOct 2025Oct 2024Oct 2023Oct 2022Oct 2021
Income Statement
Total Revenue18.70B17.33B18.41B18.95B20.91B26.41B
Gross Profit6.68B5.63B5.93B5.57B6.22B7.40B
EBITDA354.65M-102.56M-133.24M-745.59M200.26M-1.16B
Net Income1.34B-731.18M-717.62M-1.38B-272.85M-1.94B
Balance Sheet
Total Assets17.43B14.79B15.78B17.24B18.18B18.33B
Cash, Cash Equivalents and Short-Term Investments1.88B1.20B988.93M1.57B1.58B1.32B
Total Debt7.92B9.14B9.79B10.61B10.90B10.32B
Total Liabilities15.10B14.02B14.16B14.73B14.78B14.52B
Stockholders Equity2.27B737.14M1.59B2.48B3.37B3.78B
Cash Flow
Free Cash Flow778.20M778.20M732.24M-239.60M151.84M-2.53B
Operating Cash Flow898.87M898.87M795.86M-204.27M220.12M-2.41B
Investing Cash Flow90.72M90.72M117.92M102.26M-23.77M204.95M
Financing Cash Flow-773.75M-773.75M-1.50B89.10M62.64M1.31B

Top Culture Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative
Last Price146.00

Price Trends

50DMA185.78Negative
100DMA178.90Negative
200DMA188.47Negative

Market Momentum

MACD-13.63Positive
RSI29.73Positive
STOCH18.81Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7640, the sentiment is Negative. The current price of 146.00 is below the 20-day moving average (MA) of 171.95, below the 50-day MA of 185.78, and below the 200-day MA of 188.47, indicating a bearish trend. The MACD of -13.63 indicates Positive momentum. The RSI at 29.73 is Positive, neither overbought nor oversold. The STOCH value of 18.81 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7640.

Top Culture Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

JP:7640 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:2674JP:267482OutperformJPY 34.92B10.12―3.36%28.72%58.69%
JP:7685JP:768572OutperformJPY 160.76B19.04―0.49%57.65%100.02%
JP:9270JP:927063NeutralJPY 17.05B6.06―3.19%25.71%349.09%
JP:9278JP:927861NeutralJPY 45.94B14.74―1.38%10.64%96.47%
JP:3179JP:317959NeutralJPY 19.14B21.20―4.63%0.85%-16.30%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
JP:7640JP:764042NeutralJPY 2.50B1.73――6.11%―

* General Sector Average

Performance Comparison

0%50%100%150%JP:7640JP:2674JP:3179JP:7685JP:9270JP:9278Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:7640 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:7640Top Culture Co., Ltd.146.00-20.00-12.05%
JP:2674Hard Off Corporation Co., Ltd.2527.00717.4639.65%
JP:3179Syuppin Co., Ltd.1016.00-150.29-12.89%
JP:7685BuySell Technologies Co., Ltd.2566.00909.5854.91%
JP:9270Valuence Holdings, Inc.1411.00446.8846.35%
JP:9278BOOKOFF GROUP HOLDINGS LIMITED2609.001254.3892.60%
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 03, 2026