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Transaction Co., Ltd.
(7818)
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Rating:81Outperform
Price Target:
¥1,380.00
▲(25.68% Upside)
Action:Reiterated
Date:10/17/26
The score is driven primarily by strong financial performance—steady growth, resilient margins, and an exceptionally low-leverage balance sheet—partially offset by volatility in cash flow and a recent free cash flow decline. Technicals are positive but look overextended, while valuation is reasonable with a supportive dividend yield.
Positive Factors
Sustained Revenue Growth
Revenue increased from about ¥17.1B in 2021 to ¥31.5B in 2026 across five annual periods, indicating durable demand and execution. Continued expansion gives the company a broader base for scaling payment-security services and supporting future earnings growth.
Negative Factors
Volatile Cash Conversion
Free cash flow fell about 16% year over year in 2026, and operating cash flow was weaker in several years despite solid profits. This uneven conversion can make internally generated funding less predictable and warrants monitoring of cash realization as the business grows.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained Revenue Growth
Revenue increased from about ¥17.1B in 2021 to ¥31.5B in 2026 across five annual periods, indicating durable demand and execution. Continued expansion gives the company a broader base for scaling payment-security services and supporting future earnings growth.
Read all positive factors
Transaction Co., Ltd. (7818) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥70.63B
Dividend Yield2.64%
Average Volume (3M)131.56K
Price to Earnings (P/E)15.4
Beta (1Y)0.21
Revenue Growth14.81%
EPS Growth12.95%
CountryJP
Employees495
SectorGeneral
Sector StrengthN/A
IndustryHousehold & Personal Products
Share Statistics
EPS (TTM)80.04
Shares Outstanding57,550,800
10 Day Avg. Volume187,030
30 Day Avg. Volume131,563
Financial Highlights & Ratios
PEG Ratio1.15
Price to Book (P/B)2.91
Price to Sales (P/S)2.13
P/FCF Ratio20.22
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)86.3
Revenue Forecast (FY)¥34.00B
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
Transaction Co., Ltd. generates revenue mainly by selling and operating payment-security and fraud-prevention services used in online commerce and digital payment processing. Its earnings are typically driven by (1) service fees charged to merchan...
Transaction Co., Ltd. Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
92
Very Positive
Cash Flow
74
Positive
| Breakdown | Aug 2026 | Aug 2025 | Aug 2024 | Aug 2023 | Aug 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 31.52B | 27.45B | 25.05B | 22.96B | 18.27B |
| Gross Profit | 12.27B | 10.79B | 9.81B | 9.04B | 7.16B |
| EBITDA | 6.68B | 5.94B | 5.41B | 4.79B | 3.35B |
| Net Income | 4.53B | 4.08B | 3.76B | 3.31B | 2.20B |
Balance Sheet | |||||
| Total Assets | 28.37B | 23.80B | 22.32B | 20.60B | 16.65B |
| Cash, Cash Equivalents and Short-Term Investments | 7.36B | 6.61B | 5.99B | 6.87B | 4.63B |
| Total Debt | 642.25M | 434.61M | 768.14M | 763.65M | 622.45M |
| Total Liabilities | 5.31B | 4.13B | 4.17B | 4.36B | 3.30B |
| Stockholders Equity | 23.05B | 19.66B | 18.15B | 16.24B | 13.35B |
Cash Flow | |||||
| Free Cash Flow | 3.32B | 4.01B | 2.31B | 3.58B | 190.44M |
| Operating Cash Flow | 3.43B | 4.25B | 3.02B | 3.77B | 239.58M |
| Investing Cash Flow | -1.15B | -547.22M | -1.72B | -1.48B | -213.75M |
| Financing Cash Flow | -1.84B | -2.95B | -1.52B | -555.70M | -819.30M |
Transaction Co., Ltd. Technical Analysis
Positive
1098.00
Price Trends
1209.60
Positive
1239.60
Negative
1206.32
Positive
Market Momentum
9.57
Positive
49.88
Neutral
9.56
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7818, the sentiment is Positive. The current price of 1098 is below the 20-day moving average (MA) of 1235.95, below the 50-day MA of 1209.60, and below the 200-day MA of 1206.32, indicating a neutral trend. The MACD of 9.57 indicates Positive momentum. The RSI at 49.88 is Neutral, neither overbought nor oversold. The STOCH value of 9.56 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7818.
Transaction Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | ¥70.63B | 15.40 | ― | 2.64% | 14.81% | 12.95% | |
78 Outperform | ¥104.77B | 19.51 | 11.17% | 2.66% | 6.47% | 75.47% | |
67 Neutral | ¥19.73B | 18.69 | ― | 1.09% | 13.15% | 9.31% | |
67 Neutral | ¥44.10B | 19.72 | ― | 0.89% | 13.71% | -16.12% | |
66 Neutral | ¥29.88B | 18.75 | ― | 1.84% | 2.00% | 11.65% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
48 Neutral | ¥40.55B | -51.00 | ― | 1.80% | ― | ― |
* General Sector Average
JP:7818
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Transaction Co., Ltd. Corporate Events
Transaction Co., Ltd. Maintains Leadership Lineup Across Group Companies
Oct 23, 2026
Transaction Co., Ltd. has announced a slate of officer candidates for the parent company and its consolidated subsidiary TRANS Co., Ltd., following resolutions passed at the board meeting on October 23, 2026. The nominations, which largely maintai...
Transaction Co. Extends 15-Year Dividend Growth, Sets Higher Payout Targets
Oct 23, 2026
Transaction Co., Ltd. has approved a year-end dividend of ¥32.50 per share for the fiscal year ended August 31, 2026, with a total payout of ¥1,844 million sourced from retained earnings and an effective payment date of November 6, 2026....
Transaction Co., Ltd. Delivers Double-Digit Growth and Projects Further Gains for FY2027
Oct 15, 2026
Transaction Co., Ltd. reported strong results for the fiscal year ended August 31, 2026, with net sales rising 14.8% year on year to ¥31.5 billion and profit attributable to owners of parent increasing 11.1% to ¥4.53 billion. Profitabili...
Transaction lifts earnings outlook and hikes dividend on strong lifestyle and eco-product sales
Oct 8, 2026
Transaction Co., Ltd. has raised its full-year forecast for the fiscal year ended August 31, 2026, reflecting strong sales growth and early benefits from its fifth Medium-term Management Plan. Net sales are now projected at ¥31.5 billion and ...
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...
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.