Tokyo Lifestyle Co., Ltd. (NASDAQ: TKLF)

Sector: Consumer Cyclical Industry: Specialty Retail CIK: 0001836242
Market Cap 11.59 Mn
P/B 0.27
P/E 2.61
P/S 0.04
ROIC (Qtr) 0.00
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 78.11 Mn
Debt/Equity (Qtr) 1.85
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About

Investment thesis

Bull case

  • Operating cash flow of (6.69M) provides exceptional 164.61x coverage of minority interest expenses (40612), showing strong core operations.
  • Strong tangible asset base of 197.28M provides 2.53x coverage of total debt 78.11M, indicating robust asset backing and low credit risk.
  • Tangible assets of 197.28M provide exceptional 26.12x coverage of deferred revenue 7.55M, showing strong service capability backing.
  • Tangible assets of 197.28M provide robust 15.66x coverage of other current liabilities 12.60M, indicating strong asset backing.
  • Robust tangible asset base of 197.28M provides 5.76x coverage of working capital 34.27M, indicating strong operational backing.

Bear case

  • Cash reserves of 2.18M provide limited coverage of acquisition spending of (9587), which is -227.15x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating cash flow of (6.69M) provides insufficient coverage of deferred revenue obligations of 7.55M, which is -0.89x, raising concerns about future service delivery capabilities.
  • High receivables of 148.57M relative to inventory of 5.34M (27.82 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Free cash flow of (7.12M) provides weak coverage of capital expenditures of 431266, with a -16.50 ratio suggesting additional external financing needs for growth initiatives.
  • Operating cash flow of (6.69M) provides minimal -28.37x coverage of tax expenses of 235672, suggesting potential tax planning inefficiencies or unsustainable tax positions.

Product and Service Breakdown of Revenue (2025)

Related and Nonrelated Parties Breakdown of Revenue (2025)

Peer comparison

Companies in the Specialty Retail
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ULTA Ulta Beauty, Inc. 32.20 Bn 27.06 2.69 2.57 Bn
2 WSM Williams Sonoma Inc 29.62 Bn 25.19 3.40 1.47 Bn
3 TSCO Tractor Supply Co /De/ 28.42 Bn 25.23 1.93 5.72 Bn
4 DKS Dick'S Sporting Goods, Inc. 24.98 Bn 88.10 4.64 7.70 Bn
5 CASY Caseys General Stores Inc 24.65 Bn 59.49 1.65 2.92 Bn
6 BBY Best Buy Co Inc 17.85 Bn 11.66 0.41 4.09 Bn
7 MUSA Murphy USA Inc. 15.91 Bn 61.33 1.35 2.75 Bn
8 FIVE Five Below, Inc 11.68 Bn 37.94 2.64 2.01 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.40 2.23
EV to Cash from Ops. EV/CFO -11.70 14.70
EV to Debt EV to Debt 1.00 79.39
EV to EBIT EV/EBIT 12.20 -40.16
EV to EBITDA EV/EBITDA 8.89 11.51
EV to Free Cash Flow [EV/FCF] EV/FCF -10.99 -286.14
EV to Market Cap EV to Market Cap 6.75 6.33
EV to Revenue EV/Rev 0.26 2.39
Price to Book Value [P/B] P/B 0.27 32.78
Price to Earnings [P/E] P/E 2.61 -36.32
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -4.05
Dividend Payout Ratio % Dividend Payout Ratio % 0.00 14.19
Dividend per Basic Share Div per Share (Qtr) 0.00 0.71
FCF Dividend Payout Ratio % FCF Dividend Payout Ratio % 0.00 18.58
Interest Coverage Interest Coverage 3.70 4.43
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex Growth (1y) % -125.03 13.87
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -29.23 33.75
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.00
EBIAT Growth (1y) % EBIAT Growth (1y) % -26.17 -272.99
EBITDA Growth (1y) % EBITDA Growth (1y) % -23.69 588.45
EBIT Growth (1y) % EBIT Growth (1y) % -25.10 29.27
EBT Growth (1y) % EBT Growth (1y) % -34.31 -92.23
EPS Growth (1y) % EPS Growth (1y) % -38.89 -121.86
FCF Growth (1y) % FCF Growth (1y) % -247.58 71.80
Gross Profit Growth (1y) % Gross Profit Growth (1y) % 5.64 2.50
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Utilization Ratio 1.53 1.24
Cash Payout Ratio Cash Payout Ratio 0.00 0.04
Cash Ratio Cash Ratio (Qtr) 0.02 0.74
Current Ratio Curr Ratio (Qtr) 1.24 3.56
Debt to Equity Ratio Debt/Equity (Qtr) 1.85 25.92
Interest Cover Ratio Interest Cover Ratio 3.70 4.43
Times Interest Earned Times Interest Earned 3.70 4.43
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % 3.30 -42.64
EBIT Margin % EBIT Margin % 2.12 -131.12
EBT Margin % EBT Margin % 1.55 -64.70
Gross Margin % Gross Margin % 9.10 30.93
Net Profit Margin % Net Profit Margin % 1.50 -65.71