Taka-Q Co., Ltd. plans and sells men's and women's clothing, and related goods. As of February 28, 2019, it operated through 272 stores. The company was founded in 1922 and is headquartered in Tokyo, Japan.

Japan

Taka-Q Co., Ltd.

Consumer Cyclical

The company pays dividends irregularly. There have only been a few years with dividend payments in the past ten years. Dividend per share (DPS) has grown yearly, and there is a clear trend. In the past 12 months, the dividend yield has barely been above zero and was substantially below that of its peers. 

8166.T reported revenue of JPY 9 650mn in the last 12 months, down 0% from FY24. At the same time, the dynamics of cash flow, as measured by free cash flow (FCF), were drastically different. EPS grew 21% from FY24 to JPY 80.18.

Over the last six months, the stock performance has varied, with an increase following a drop. The stock's price trend wasn't definitive when matched against its global counterparts from the same sector and industry (as depicted above). Within the past six months, its performance has trailed this peer group's by 4ppts and its growth accelerated by 4ppts in the past month. This is equally valid for peers from the same country and industry. Given the stock's valuation versus its peers, its total price movement is neither favourable nor unfavourable.

The company has reported modest EBITDA margins compared to its global peers in recent years. EBITDA margin amounted to 21.2% in the last 12 months, up from 19.6% in FY24. 

Historically, 8166.T has reported good net margins compared to its global peers. Specifically, in the last 12 months, this metric equalled 20.4%, a growth from 16.7% in FY24. 

Another important profitability metric, return on assets (RoA), amounted to 33.7% in the last 12 months, an increase from 27.4% in FY24. 

Taka-Q Co., Ltd. reported a return on equity (RoE) of 205.7% in the last 12 months, up from -320.1% in FY24. 

In the last 12 months, the return on capital employed (RoCE) declined to 50.8%, above the peers. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been 7.5 in the past several years. This ratio implies a excellent shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are minimal. In combination with stringent business standards, shareholder rights are very highly protected.

8166.T has very poor trading liquidity. It will take at least a day or two for the average private investor to sell a common position under normal market conditions. Liquidity is very unstable and is somewhat unfavourable on the days with the lowest activity. The trading volume mostly stays the same even under highly turbulent market conditions. The stock has a tiny market capitalisation, which usually makes its trading liquidity erratic and unpredictable. 

No other major risks have been identified.

The risk of default is high. Among the negative credit factors, we point to weak positions in its industry, slow historical revenue growth, negligible return on capital, poor cash flow generation, and an unfavourable capital structure. We note adequate interest coverage, among the positive credit factors. 

In highly turbulent market conditions, 8166.T is volatile. In other words, the stock will fall much more than the index in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be large. 

In normal market circumstances, 8166.T is volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will move much wider than the index. The stock's losses on its worst days (less than 1-5% of the time) will range from limited to average. 

Considering past and projected metrics, the stock is slightly 'cheaper' than its peers. Specifically, the stock is 'cheap' on P/E, undervalued on EV/EBITDA, overpriced on P/FCF. 

Taka-Q Co., Ltd.

¥ 115

3

Taka-Q Co., Ltd.

¥ 115

3

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

¥ 115

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