Tokyo Lifestyle Co. Ltd. American Depositary Shares (TKLF)

FairStock Score: 55/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a Graham-style investor, I start with the balance sheet and the price. At the 2026-10-13 close of $1.58, FairStock calculations put Tokyo Lifestyle at a P/B of 0.16 and a P/E of 7.88. The Graham Number is $2.09, implying a 24.64% margin of safety. That is the kind of statistic that makes me look twice. But quality matters. FairStock calculations show ROE of 1.55% and ROCE of 0.33%, so the asset base is barely earning. Debt-to-equity is 1.82, the Altman Z-Score is 0.46, and the Piotroski F-Score is 3/9. Those are not comforting numbers. A 13.77% dividend yield may be generous, or it may signal distress; without filed growth figures, I cannot judge its sustainability. The company retails beauty, health, and sundry products under the Tokyo Lifestyle brand across Japan, China, Hong Kong, the U.S., Canada, Thailand, and the U.K., with 160 employees. Consumer cyclical specialty retail usually has little moat unless brand or scale creates one. The Tokyo Lifestyle name may have some niche appeal, but the returns do not show pricing power. The FairStock Score is 55/100. There is no Lynch category because only 0 years of filed annual results are available and three are needed. With a market cap of only $9.3M, this is a tiny, high-risk situation. A low P/B is attractive only if book value is real and earnings improve. Given weak returns and high leverage, the discount looks warranted. I would need several years of filed results and evidence of durable earnings before calling it a bargain.

In plain English: Tokyo Lifestyle sells beauty, health, and household products in Japan and several other countries. The business looks weak: it earns very little on its money, carries a lot of debt, and has poor financial-health scores. The stock price looks cheap compared with its accounting value and a simple value measure, but the low quality makes that cheapness risky.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer