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Transaction Co., Ltd. (JP:7818)
:7818
Japanese Market
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Transaction Co., Ltd. (7818) AI Stock Analysis

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JP:7818

Transaction Co., Ltd.

(7818)

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Outperform 74 (OpenAI - 5.2)
Rating:74Outperform
Price Target:
¥1,344.00
▲(22.40% Upside)
Action:Reiterated
Date:08/06/26
The score is driven primarily by strong financial performance (rising profitability and a very low-debt balance sheet) and a supportive valuation (moderate P/E and high dividend yield). These positives are tempered by weak technical momentum, with the stock trading below key moving averages and negative MACD/low RSI signals.
Positive Factors
Revenue Growth and Margin Expansion
Sustained revenue expansion alongside major operating-margin improvement indicates stronger demand and execution. If retained, the improved profitability can support earnings growth and provide greater resilience against moderate cost or demand pressure.
Negative Factors
Cash Flow Volatility
Uneven cash generation reduces confidence in the consistency of earnings conversion and can complicate investment or distribution planning. The 2025 recovery is encouraging, but recurring volatility could weaken financial flexibility during periods of softer demand.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth and Margin Expansion
Sustained revenue expansion alongside major operating-margin improvement indicates stronger demand and execution. If retained, the improved profitability can support earnings growth and provide greater resilience against moderate cost or demand pressure.
Read all positive factors

Transaction Co., Ltd. (7818) vs. iShares MSCI Japan ETF (EWJ)

Transaction Co., Ltd. Business Overview & Revenue Model

Company Description
TRANSACTION CO.,Ltd., founded in 1987 and headquartered in Tokyo, Japan, is a global company specializing in the planning, design, manufacturing, and distribution of a diverse range of consumer products. Their extensive catalog features merchandis...
How the Company Makes Money
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Transaction Co., Ltd. Financial Statement Overview

Summary
Strong fundamentals overall: accelerating revenue growth in the most recent years, meaningful margin expansion (EBIT margin improving to ~22% by 2025), and a very conservative balance sheet with minimal leverage and strong ROE (~20% in 2023–2025). The main offset is cash-flow variability, including a sharp dip in 2022 and a material free-cash-flow decline in 2024 despite a rebound in 2025.
Income Statement
88
Very Positive
Balance Sheet
92
Very Positive
Cash Flow
80
Positive
BreakdownTTMAug 2025Aug 2024Aug 2023Aug 2022Aug 2021
Income Statement
Total Revenue29.82B27.45B25.05B22.96B18.27B17.14B
Gross Profit11.87B10.79B9.81B9.04B7.16B6.65B
EBITDA6.58B5.94B5.41B4.79B3.35B2.94B
Net Income4.41B4.08B3.76B3.31B2.20B2.06B
Balance Sheet
Total Assets26.51B23.80B22.32B20.60B16.65B14.49B
Cash, Cash Equivalents and Short-Term Investments5.82B6.61B5.99B6.87B4.63B5.45B
Total Debt852.10M434.61M768.14M763.65M622.45M802.02M
Total Liabilities4.59B4.13B4.17B4.36B3.30B3.16B
Stockholders Equity21.92B19.66B18.15B16.24B13.35B11.33B
Cash Flow
Free Cash Flow3.95B4.01B2.31B3.58B190.44M2.28B
Operating Cash Flow4.25B4.25B3.02B3.77B239.58M2.31B
Investing Cash Flow-547.22M-547.22M-1.72B-1.48B-213.75M-465.36M
Financing Cash Flow-2.95B-2.95B-1.52B-555.70M-819.30M-709.84M

Transaction Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price1098.00
Price Trends
50DMA
1287.48
Negative
100DMA
1242.45
Negative
200DMA
1201.30
Positive
Market Momentum
MACD
-6.12
Negative
RSI
48.85
Neutral
STOCH
72.11
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7818, the sentiment is Neutral. The current price of 1098 is below the 20-day moving average (MA) of 1213.10, below the 50-day MA of 1287.48, and below the 200-day MA of 1201.30, indicating a neutral trend. The MACD of -6.12 indicates Negative momentum. The RSI at 48.85 is Neutral, neither overbought nor oversold. The STOCH value of 72.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7818.

Transaction 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
78
Outperform
¥103.34B19.308.32%3.53%6.47%75.47%
74
Outperform
¥70.68B15.372.57%10.80%10.93%
70
Outperform
¥26.35B11.750.91%13.71%-16.12%
67
Neutral
¥19.40B20.971.13%13.27%-10.06%
66
Neutral
¥36.54B23.781.81%2.42%5.27%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
38
Underperform
¥43.74B-55.051.23%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7818
Transaction Co., Ltd.
1,197.00
-9.90
-0.82%
JP:4919
Milbon Co
3,270.00
855.34
35.42%
JP:3180
Beauty Garage, Inc.
1,560.00
-168.59
-9.75%
JP:4923
Cota Co., Ltd.
1,255.00
-42.06
-3.24%
JP:4933
I-ne CO., LTD.
1,477.00
-128.11
-7.98%
JP:6630
YA-MAN Ltd.
801.00
7.82
0.99%

Transaction Co., Ltd. Corporate Events

Transaction Co. Deepens Shareholder Engagement With Practical Umbrella Benefit
Jul 31, 2026
Transaction Co., Ltd., a Prime Market-listed consumer goods company, focuses on highly practical lifestyle products that emphasize material quality and functionality for a broad customer base. Its strategy includes using shareholder-oriented produ...
Transaction Co. lifts nine-month profits, affirms full-year growth and dividend outlook
Jul 27, 2026
Transaction Co., Ltd. reported robust results for the nine months ended May 31, 2026, with net sales rising 11.4% year on year to ¥23,144 million and profit attributable to owners of parent climbing 11.1% to ¥3,377 million. Operating and...
Transaction Co. Posts Double-Digit Profit Growth and Confirms Full-Year Outlook
Jul 15, 2026
Transaction Co., Ltd. reported solid growth for the nine months ended May 31, 2026, with net sales rising 11.4% year on year to ¥23.1 billion and profit attributable to owners of parent increasing 11.1% to ¥3.38 billion. Basic earnings p...
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: Aug 06, 2026