Taka-Q Co., Ltd. (8166) AI Stock Analysis

Taka-Q Co., Ltd.

(TSE/TYO:8166)

Select Model

Rating:57Neutral

Price Target:JPY 81.00▲(9.46% Upside)

Action:reiterated

Date:08/05/26

The stock's extremely low P/E (2.5) is a strong positive, suggesting undervaluation. However, financial performance is concerning due to persistent revenue declines and negative cash flows, and technicals indicate a bearish trend. The overall score of 57 reflects a cautious outlook with some upside potential from valuation.

Positive Factors

Gross margin stabilitySustained gross margins in the high-50% range indicate durable sourcing, pricing discipline and product mix advantages that support unit economics even as sales ebb. This margin base provides structural cushion for profitability if the company stabilizes volumes and controls operating costs.

Negative Factors

Multi-year revenue declinePersistent top-line contraction erodes scale, weakens bargaining power with suppliers, and pressures fixed-cost absorption in retail. Continued revenue decline makes sustaining margins and store economics harder, raising execution risk for any turnaround and limiting long-term growth prospects.

Taka-Q Co., Ltd. (8166) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 1.80B
Dividend Yield: ―
Average Volume (3M): 46.62K
Price to Earnings (P/E): 2.4
Beta (1Y): 0.44
Revenue Growth: -10.79%
EPS Growth: 54.05%
Country: Japan
Employees: 273
Sector: General
Sector Strength: 55
Industry: Apparel - Manufacturers

Taka-Q Co., Ltd. Business Overview & Revenue Model

Company Description

Taka-Q Co., Ltd. is involved in the development, marketing, and sale of apparel for both men and women, along with related merchandise. As of February 28, 2019, the company managed a network of 272 retail locations. Founded in 1922, its corporate hea...

How the Company Makes Money

Taka-Q generates revenue primarily from the retail sale of apparel and related fashion goods. Its core revenue stream is merchandise sales to end customers through its store network (and any additional sales channels the company operates, if applicab...

Taka-Q Co., Ltd. Financial Statement Overview

Summary

Revenue has declined for six years, with latest drop of -10.2%. Profitability returned in last two years, but operating margins collapsed to 0.2%. Balance sheet strengthened with reduced debt and positive equity, but cash flow remains negative, raising sustainability concerns. Overall financial health is mixed with significant risks.

Income Statement

52Neutral

Balance Sheet

62Positive

Cash Flow

28Negative

Financial statement breakdown
Breakdown	TTM	Feb 2026	Feb 2025	Feb 2024	Feb 2023	Feb 2022
Income Statement
Total Revenue	10.65B	8.51B	9.48B	10.03B	11.98B	12.14B
Gross Profit	6.43B	5.08B	5.56B	5.98B	7.17B	7.06B
EBITDA	4.93M	132.99M	2.05B	219.31M	-657.79M	-1.62B
Net Income	-346.25M	1.12B	1.97B	-102.17M	-1.05B	-2.15B
Balance Sheet
Total Assets	5.78B	6.06B	5.88B	5.61B	6.41B	8.01B
Cash, Cash Equivalents and Short-Term Investments	967.45M	2.04B	1.38B	1.13B	1.49B	1.59B
Total Debt	4.05B	1.62B	1.99B	4.03B	4.12B	4.32B
Total Liabilities	7.62B	4.07B	4.81B	7.53B	8.34B	8.89B
Stockholders Equity	-1.85B	1.99B	1.08B	-1.92B	-1.93B	-876.93M
Cash Flow
Free Cash Flow	0	-220.36M	0	-348.66M	-42.57M	-2.31B
Operating Cash Flow	0	-198.02M	0	-333.28M	149.53M	-2.22B
Investing Cash Flow	0	1.11B	-72.75M	59.61M	45.77M	653.28M
Financing Cash Flow	0	-245.93M	465.19M	-84.85M	-292.21M	2.52B

Taka-Q Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price74.00

Price Trends

50DMA77.24Negative

100DMA77.87Negative

200DMA79.63Negative

Market Momentum

MACD-1.02Positive

RSI20.20Positive

STOCH-0.00Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8166, the sentiment is Negative. The current price of 74.00 is below the 20-day moving average (MA) of 75.60, below the 50-day MA of 77.24, and below the 200-day MA of 79.63, indicating a bearish trend. The MACD of -1.02 indicates Positive momentum. The RSI at 20.20 is Positive, neither overbought nor oversold. The STOCH value of -0.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:8166.

Taka-Q Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:8166 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:2685	72Outperform	JPY 141.17B	15.22	11.39%	2.88%	2.97%	9.44%
JP:8011	68Neutral	JPY 37.04B	10.00	―	8.18%	-3.87%	24.45%
JP:3002	59Neutral	JPY 121.80B	28.27	4.18%	3.58%	-4.36%	49.85%
JP:8166	57Neutral	JPY 3.08B	2.37	―	―	-10.79%	54.05%
JP:3608	56Neutral	JPY 66.77B	18.40	3.79%	3.49%	28.66%	-75.08%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:3591	40Underperform	JPY 188.20B	162.25	0.49%	2.77%	1.78%	-93.82%

* General Sector Average

Performance Comparison

JP:8166 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:8166	Taka-Q Co., Ltd.	74.00	-24.00	-24.49%
JP:3002	Gunze	4110.00	504.73	14.00%
JP:3608	TSI Holdings Co	1146.00	222.12	24.04%
JP:3591	WACOAL HOLDINGS CORP	3615.00	-1634.32	-31.13%
JP:2685	Adastria Co.,Ltd.	3120.00	586.61	23.16%
JP:8011	Sanyo Shokai Ltd.	1215.00	186.25	18.10%

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 04, 2026

Taka-Q Co., Ltd. AI Stock Analysis