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Top Culture Co., Ltd.
(7640)
Select Model
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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)
Market Cap
¥3.32B
Dividend Yield3.39%
Average Volume (3M)30.49K
Price to Earnings (P/E)2.2
Beta (1Y)0.78
Revenue Growth6.11%
EPS GrowthN/A
CountryJP
Employees192
SectorGeneral
Sector StrengthN/A
IndustrySpecialty Retail
Share Statistics
EPS (TTM)85.76
Shares Outstanding17,972,551
10 Day Avg. Volume28,930
30 Day Avg. Volume30,493
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 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
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 | 18.70B | 17.33B | 18.41B | 18.95B | 20.91B | 26.41B |
| Gross Profit | 6.68B | 5.63B | 5.93B | 5.57B | 6.22B | 7.40B |
| EBITDA | 354.65M | -102.56M | -133.24M | -745.59M | 200.26M | -1.16B |
| Net Income | 1.34B | -731.18M | -717.62M | -1.38B | -272.85M | -1.94B |
Balance Sheet | ||||||
| Total Assets | 17.43B | 14.79B | 15.78B | 17.24B | 18.18B | 18.33B |
| Cash, Cash Equivalents and Short-Term Investments | 1.88B | 1.20B | 988.93M | 1.57B | 1.58B | 1.32B |
| Total Debt | 7.92B | 9.14B | 9.79B | 10.61B | 10.90B | 10.32B |
| Total Liabilities | 15.10B | 14.02B | 14.16B | 14.73B | 14.78B | 14.52B |
| Stockholders Equity | 2.27B | 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
181.28
Positive
180.78
Positive
191.81
Negative
Market Momentum
2.32
Positive
55.17
Neutral
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
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | ¥47.13B | 17.35 | ― | 1.32% | 9.16% | 47.03% | |
72 Outperform | ¥22.66B | 19.19 | ― | 3.73% | 0.66% | -1.96% | |
71 Outperform | ¥36.02B | 10.52 | ― | 3.28% | 23.51% | 56.52% | |
62 Neutral | ¥179.55B | 22.44 | ― | 0.41% | 57.65% | 100.02% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
51 Neutral | ¥3.32B | 2.23 | ― | 3.39% | 6.11% | ― | |
49 Neutral | ¥26.62B | 7.51 | ― | 2.28% | 22.26% | ― |
* General Sector Average
JP:7640
Top Culture Co., Ltd.
191.00
-35.00
-15.49%
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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.