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Top Culture Co., Ltd. (JP:7640)
:7640
Japanese Market
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Top Culture Co., Ltd. (7640) AI Stock Analysis

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JP:7640

Top Culture Co., Ltd.

(7640)

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Neutral 51 (OpenAI - Gpt-5.6Sol)
Rating:51Neutral
Price Target:
¥187.00
▼(-10.95% Downside)
Action:Reiterated
Date:09/13/26
The score is primarily held back by weak financial performance (declining revenue, ongoing losses, and high leverage). Valuation is a relative positive due to a very low P/E, while technical indicators are neutral-to-mixed and do not strongly confirm a sustained uptrend.
Positive Factors
Positive cash generation
Positive operating and free cash flow provide some internal funding capacity even while reported earnings remain negative. This can help sustain store operations and necessary investment over the next several quarters, although the pack notes that cash generation is not yet sufficient to fully offset net losses.
Negative Factors
Revenue decline
The latest annual revenue decline signals pressure on the scale of the core retail business and weakens operating leverage across the store network. If this trend persists, the company may have less capacity to absorb fixed costs, invest in its offering, or return to sustainable profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Positive cash generation
Positive operating and free cash flow provide some internal funding capacity even while reported earnings remain negative. This can help sustain store operations and necessary investment over the next several quarters, although the pack notes that cash generation is not yet sufficient to fully offset net losses.
Read all positive factors

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

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 mainly through retail sales of physical entertainment and media products sold through its store network, including books, music/CDs, video/DVD titles, and video game-related merchandise. Additional revenue i...

Top Culture Co., Ltd. Financial Statement Overview

Summary
Weak fundamentals: declining revenue (-1.65% most recent year), persistent net losses with negative EBIT/EBITDA margins, and a leveraged balance sheet with negative ROE and low equity ratio. Positive operating and free cash flow provide some support, but not enough to offset ongoing profitability and solvency concerns.
Income Statement
25
Negative
Balance Sheet
30
Negative
Cash Flow
40
Negative
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 Sentiment
Positive
Last Price210.00
Price Trends
50DMA
181.28
Positive
100DMA
180.78
Positive
200DMA
191.81
Negative
Market Momentum
MACD
2.32
Positive
RSI
55.17
Neutral
STOCH
36.95
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 191.65, above the 50-day MA of 181.28, and above the 200-day MA of 191.81, indicating a neutral trend. The MACD of 2.32 indicates Positive momentum. The RSI at 55.17 is Neutral, neither overbought nor oversold. The STOCH value of 36.95 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

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
¥47.13B17.351.32%9.16%47.03%
72
Outperform
¥22.66B19.193.73%0.66%-1.96%
71
Outperform
¥36.02B10.523.28%23.51%56.52%
62
Neutral
¥179.55B22.440.41%57.65%100.02%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
51
Neutral
¥3.32B2.233.39%6.11%
49
Neutral
¥26.62B7.512.28%22.26%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7640
Top Culture Co., Ltd.
191.00
-35.00
-15.49%
JP:2674
Hard Off Corporation Co., Ltd.
2,595.00
832.57
47.24%
JP:3179
Syuppin Co., Ltd.
1,260.00
57.20
4.76%
JP:7685
BuySell Technologies Co., Ltd.
3,070.00
1,164.87
61.14%
JP:9270
Valuence Holdings, Inc.
1,973.00
1,064.61
117.20%
JP:9278
BOOKOFF GROUP HOLDINGS LIMITED
2,732.00
1,219.75
80.66%
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: Sep 13, 2026