3.33 USD
+0.26 (+8.47%)
TKLF gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 122 industry peers in the Specialty Retail industry. TKLF has a medium profitability rating, but doesn't score so well on its financial health evaluation. TKLF does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
- In the past year TKLF was profitable.
- In the past year TKLF has reported a negative cash flow from operations.
- Of the past 5 years TKLF 4 years were profitable.
- In the past 5 years TKLF reported 4 times negative operating cash flow.
1.2 Ratios
- TKLF has a better Return On Assets (5.05%) than 69.67% of its industry peers.
- TKLF's Return On Equity of 18.54% is amongst the best of the industry. TKLF outperforms 80.33% of its industry peers.
- With a Return On Invested Capital value of 5.49%, TKLF perfoms like the industry average, outperforming 57.38% of the companies in the same industry.
- TKLF had an Average Return On Invested Capital over the past 3 years of 2.77%. This is significantly below the industry average of 12.24%.
- The 3 year average ROIC (2.77%) for TKLF is below the current ROIC(5.49%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.05% | ||
| ROE | 18.54% | ||
| ROIC | 5.49% |
ROA(3y)1.34%
ROA(5y)2.3%
ROE(3y)2.96%
ROE(5y)8.03%
ROIC(3y)2.77%
ROIC(5y)4.46%
1.3 Margins
- Looking at the Profit Margin, with a value of 2.59%, TKLF is in the better half of the industry, outperforming 64.75% of the companies in the same industry.
- In the last couple of years the Profit Margin of TKLF has declined.
- Looking at the Operating Margin, with a value of 2.58%, TKLF is in line with its industry, outperforming 51.64% of the companies in the same industry.
- TKLF's Operating Margin has declined in the last couple of years.
- With a Gross Margin value of 11.70%, TKLF is not doing good in the industry: 89.34% of the companies in the same industry are doing better.
- In the last couple of years the Gross Margin of TKLF has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.58% | ||
| PM (TTM) | 2.59% | ||
| GM | 11.7% |
OM growth 3Y-10.27%
OM growth 5Y-19.72%
PM growth 3Y23.9%
PM growth 5Y-2.08%
GM growth 3Y-15.12%
GM growth 5Y-10.39%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TKLF is creating some value.
- The number of shares outstanding for TKLF has been increased compared to 1 year ago.
- Compared to 5 years ago, TKLF has more shares outstanding
- Compared to 1 year ago, TKLF has an improved debt to assets ratio.
2.2 Solvency
- TKLF has an Altman-Z score of 2.94. This is not the best score and indicates that TKLF is in the grey zone with still only limited risk for bankruptcy at the moment.
- TKLF has a better Altman-Z score (2.94) than 66.39% of its industry peers.
- A Debt/Equity ratio of 1.50 is on the high side and indicates that TKLF has dependencies on debt financing.
- Looking at the Debt to Equity ratio, with a value of 1.50, TKLF is doing worse than 63.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.5 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.94 |
ROIC/WACC1.6
WACC3.44%
2.3 Liquidity
- A Current Ratio of 1.35 indicates that TKLF should not have too much problems paying its short term obligations.
- TKLF has a Current ratio (1.35) which is in line with its industry peers.
- A Quick Ratio of 1.31 indicates that TKLF should not have too much problems paying its short term obligations.
- With an excellent Quick ratio value of 1.31, TKLF belongs to the best of the industry, outperforming 81.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.31 |
3. Growth
3.1 Past
- The earnings per share for TKLF have decreased strongly by -82.07% in the last year.
- Looking at the last year, TKLF shows a quite strong growth in Revenue. The Revenue has grown by 14.18% in the last year.
- Measured over the past years, TKLF shows a quite strong growth in Revenue. The Revenue has been growing by 8.52% on average per year.
EPS 1Y (TTM)-82.07%
EPS 3Y5.27%
EPS 5Y0%
EPS Q2Q%-93.02%
Revenue 1Y (TTM)14.18%
Revenue growth 3Y-3.63%
Revenue growth 5Y8.52%
Sales Q2Q%7.38%
3.2 Future
- No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
- No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
- No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
- No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 0.69, the valuation of TKLF can be described as very cheap.
- Based on the Price/Earnings ratio, TKLF is valued cheaply inside the industry as 99.18% of the companies are valued more expensively.
- TKLF is valuated cheaply when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 0.69 | ||
| Fwd PE | N/A |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, TKLF is valued cheaply inside the industry as 98.36% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 1.76 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
- TKLF has a Yearly Dividend Yield of 2.61%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 2.15, TKLF pays a better dividend. On top of this TKLF pays more dividend than 84.43% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, TKLF pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.61% |
5.2 History
- TKLF does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2YN/A
EPS Next 3YN/A
TOKYO LIFESTYLE CO LTD / TKLF FAQ
What is the fundamental rating for TKLF stock?
ChartMill assigns a fundamental rating of 3 / 10 to TKLF.
What is the valuation status of TOKYO LIFESTYLE CO LTD (TKLF) stock?
ChartMill assigns a valuation rating of 3 / 10 to TOKYO LIFESTYLE CO LTD (TKLF). This can be considered as Overvalued.
What is the profitability of TKLF stock?
TOKYO LIFESTYLE CO LTD (TKLF) has a profitability rating of 4 / 10.
How financially healthy is TOKYO LIFESTYLE CO LTD?
The financial health rating of TOKYO LIFESTYLE CO LTD (TKLF) is 3 / 10.