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 does not pay dividends at all, or it pays them sporadically. There have only been a few years with dividend payments in the past ten years. 

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.

The stock's performance has been mixed in the past six months, with growth following a decline. The stock has lagged its global peers from the same sector and industry (as shown above), underperforming then by 8ppts in total. This is largely true for peers from the same country and sector. With respect to the stock's valuation against its peers, its overall price performance is neutral.

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. 

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

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 mild. 

Based on key historical and expected multiples, the stock is slightly undervalued relative to its peers. In particular, the stock is underpriced on P/E, 'cheap' on EV/EBITDA, overvalued on P/FCF. 

Taka-Q Co., Ltd.

¥ 109

3

Taka-Q Co., Ltd.

¥ 109

3

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Profitability factor

Risk / Profitability

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Profitability factor

¥ 109

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