Tokyo Soir Co., Ltd. (8040) AI Stock Analysis

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Tokyo Soir Co., Ltd.

(TSE/TYO:8040)

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Rating:50Neutral

Price Target:JPY 962.00▼(-0.62% Downside)

Action:reiterated

Date:11/10/26

The score is held back mainly by weakened operating performance (near break-even EBIT, very low net margin, and slightly negative free cash flow) and bearish technical momentum (price below major moving averages with negative MACD). A key support is the strong balance sheet with low leverage, while valuation is pressured by a very high P/E despite an attractive dividend yield.

Positive Factors

Low leverageThe very low debt burden reduces financial risk and gives Tokyo Soir greater flexibility to manage weak trading conditions. A conservative capital structure can preserve funding capacity for product planning, distribution, and other business needs while limiting exposure to refinancing pressure.

Negative Factors

Revenue contractionDeclining revenue signals weaker demand or volume momentum in Tokyo Soir’s formalwear business after prior growth. Persistent top-line contraction can reduce operating leverage, limit the benefits of the company’s stable gross margin, and make a durable earnings recovery more difficult.

Tokyo Soir Co., Ltd. (8040) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 3.37B
Dividend Yield: 4.65%
Average Volume (3M): 2,138
Price to Earnings (P/E): 95.9
Beta (1Y): 0.26
Revenue Growth: -4.73%
EPS Growth: -80.47%
Country: Japan
Employees: 235
Sector: General
Sector Strength: 55
Industry: Apparel - Manufacturers

Tokyo Soir Co., Ltd. Business Overview & Revenue Model

Company Description

Tokyo Soir Co., Ltd. is a Japanese firm dedicated to the manufacturing and wholesale supply of women's formal apparel and related accessories. Their offerings comprise formal attire in both black and various colors, alongside specific ceremonial suit...

How the Company Makes Money

Tokyo Soir primarily makes money by selling formalwear and related products. The core revenue stream comes from the sale of formal apparel (notably women’s formal dresses/suits for ceremonial occasions) under its own brands and product lines, with sa...

Tokyo Soir Co., Ltd. Financial Statement Overview

Summary

Financial performance is mixed: a strong, low-leverage balance sheet (debt-to-equity ~0.05 TTM) reduces financial risk, but operating results have deteriorated. TTM revenue is slightly down (growth rate -1.429) and profitability has compressed sharply (EBIT margin ~0.2%, net margin ~0.6%), with free cash flow slightly negative in TTM after a stronger 2025.

Income Statement

42Neutral

Balance Sheet

78Positive

Cash Flow

47Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	15.53B	16.11B	15.70B	15.03B	14.24B	11.84B
Gross Profit	8.28B	8.43B	8.05B	7.57B	6.99B	5.41B
EBITDA	357.05M	531.49M	540.09M	821.95M	609.00M	-969.98M
Net Income	34.50M	236.53M	500.57M	798.58M	519.01M	299.35M
Balance Sheet
Total Assets	14.21B	13.93B	14.58B	14.85B	14.07B	14.12B
Cash, Cash Equivalents and Short-Term Investments	1.96B	2.06B	1.86B	2.76B	2.35B	1.56B
Total Debt	565.36M	675.05M	791.23M	933.24M	1.14B	2.21B
Total Liabilities	3.36B	3.45B	4.42B	5.49B	5.59B	6.24B
Stockholders Equity	10.85B	10.49B	10.16B	9.36B	8.49B	7.88B
Cash Flow
Free Cash Flow	-1.10M	342.22M	-182.20M	-124.31M	1.54B	641.88M
Operating Cash Flow	142.71M	430.02M	-68.32M	-93.97M	1.62B	671.70M
Investing Cash Flow	-109.35M	62.66M	-535.28M	767.70M	279.06M	3.00B
Financing Cash Flow	-266.49M	-296.16M	-294.75M	-264.37M	-1.10B	-2.90B

Tokyo Soir Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price968.00

Price Trends

50DMA1030.98Negative

100DMA1031.51Negative

200DMA1046.82Negative

Market Momentum

MACD-18.77Positive

RSI31.67Neutral

STOCH32.10Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8040, the sentiment is Negative. The current price of 968.00 is below the 20-day moving average (MA) of 1007.25, below the 50-day MA of 1030.98, and below the 200-day MA of 1046.82, indicating a bearish trend. The MACD of -18.77 indicates Positive momentum. The RSI at 31.67 is Neutral, neither overbought nor oversold. The STOCH value of 32.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:8040.

Tokyo Soir Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:8040 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:2685	70Outperform	JPY 148.19B	15.98	11.39%	2.75%	2.97%	9.44%
JP:8011	68Neutral	JPY 38.57B	10.41	―	7.85%	-3.87%	24.45%
JP:3608	67Neutral	JPY 70.67B	19.48	3.79%	3.30%	28.66%	-75.08%
JP:3591	58Neutral	JPY 208.19B	40.69	2.27%	2.50%	4.97%	-52.98%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:8040	50Neutral	JPY 3.28B	95.94	―	4.65%	-4.73%	-80.47%
JP:8107	45Neutral	JPY 7.16B	-78.27	―	―	-2.28%	-68.74%

* General Sector Average

Performance Comparison

JP:8040 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:8040	Tokyo Soir Co., Ltd.	968.00	-59.89	-5.83%
JP:3608	TSI Holdings Co	1213.00	263.05	27.69%
JP:3591	WACOAL HOLDINGS CORP	3999.00	-951.92	-19.23%
JP:2685	Adastria Co.,Ltd.	3275.00	532.52	19.42%
JP:8011	Sanyo Shokai Ltd.	1265.00	187.72	17.43%
JP:8107	KIMURATAN Corporation	26.00	-7.00	-21.21%

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: Nov 10, 2026

Tokyo Soir Co., Ltd. AI Stock Analysis