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People Co., Ltd.
(7865)
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Rating:44Neutral
Price Target:
¥327.00
▼(-2.97% Downside)
Action:Reiterated
Date:08/06/26
The score is driven primarily by deteriorating profitability and negative/free cash flow in 2025–2026, which outweigh the benefit of a zero-debt balance sheet. Technically, the stock remains below key longer-term moving averages with negative MACD, reinforcing a weak trend. Valuation is also constrained by loss-making results (negative P/E) and no provided dividend yield.
Positive Factors
Zero-debt balance sheet
A zero-debt capital structure materially lowers financial risk and preserves optionality. Over the next 2–6 months this provides flexibility to fund operations, absorb losses, and prioritize strategic investments or product rollouts without near-term refinancing pressure.
Negative Factors
Revenue declines in 2025–2026
Sustained top-line contraction undermines economies of scale, reduces gross profit potential, and strains retail relationships. If declines persist over the next several quarters, product investment and marketing effectiveness will be impaired, prolonging recovery time.
Read all positive and negative factors
Positive Factors
Negative Factors
Zero-debt balance sheet
A zero-debt capital structure materially lowers financial risk and preserves optionality. Over the next 2–6 months this provides flexibility to fund operations, absorb losses, and prioritize strategic investments or product rollouts without near-term refinancing pressure.
Read all positive factors
People Co., Ltd. (7865) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥1.29B
Dividend YieldN/A
Average Volume (3M)5.17K
Price to Earnings (P/E)―
Beta (1Y)0.16
Revenue Growth-12.81%
EPS Growth-417.78%
CountryJP
Employees48
SectorGeneral
Sector StrengthN/A
IndustryLeisure
Share Statistics
EPS (TTM)-17.02
Shares Outstanding4,437,500
10 Day Avg. Volume3,150
30 Day Avg. Volume5,166
Financial Highlights & Ratios
PEG Ratio5.22
Price to Book (P/B)0.98
Price to Sales (P/S)1.02
P/FCF Ratio-8.41
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
People Co., Ltd. Business Overview & Revenue Model
Company Description
People Co., Ltd. operates within Japan, specializing in the complete lifecycle of early childhood playthings and outdoor play structures, from their initial design and development through to contract manufacturing and ultimate distribution. Their ...
How the Company Makes Money
People Co., Ltd. makes money primarily by selling its own-branded toys and baby/children’s products. Revenue is generated through product sales into retail channels (e.g., toy stores and mass retailers) and via other distribution routes where its ...
People Co., Ltd. Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
72
Positive
Cash Flow
29
Negative
| Breakdown | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.61B | 1.92B | 5.35B | 7.44B | 5.48B |
| Gross Profit | 705.05M | 907.66M | 1.64B | 1.81B | 1.84B |
| EBITDA | -114.10M | -15.11M | 495.56M | 700.97M | 576.85M |
| Net Income | -61.08M | -72.00M | 312.88M | 355.68M | 343.48M |
Balance Sheet | |||||
| Total Assets | 1.81B | 2.30B | 2.80B | 3.05B | 2.82B |
| Cash, Cash Equivalents and Short-Term Investments | 1.15B | 1.44B | 1.82B | 1.31B | 1.30B |
| Total Debt | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total Liabilities | 129.95M | 171.54M | 408.63M | 717.79M | 505.37M |
| Stockholders Equity | 1.68B | 2.13B | 2.39B | 2.33B | 2.31B |
Cash Flow | |||||
| Free Cash Flow | -195.80M | -173.78M | 755.49M | 346.01M | 148.01M |
| Operating Cash Flow | -156.07M | -93.19M | 773.83M | 478.61M | 264.60M |
| Investing Cash Flow | 173.32M | -80.59M | -8.23M | -132.60M | -116.59M |
| Financing Cash Flow | -303.60M | -208.58M | -254.72M | -339.90M | -262.53M |
People Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | ¥3.64T | 23.72 | 16.78% | 1.99% | 9.12% | 16.20% | |
72 Outperform | ¥332.25B | 26.30 | ― | 1.81% | 7.38% | -27.18% | |
71 Outperform | ¥38.96B | 16.39 | ― | 3.63% | 5.23% | 37.68% | |
57 Neutral | ¥57.13B | 15.47 | ― | 0.55% | 8.13% | ― | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
55 Neutral | ¥146.18B | 53.19 | ― | ― | 53.43% | 1.83% | |
44 Neutral | ¥1.29B | -6.27 | ― | ― | -12.81% | -417.78% |
* General Sector Average
JP:7865
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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.