Tokyo Lifestyle Co. Ltd. (TKLF) — RQD Stock Rating Cockpit

Per the Roarable RQD rating, TKLF scores 40 out of 100 with a letter grade of D-, labeled "Roarable Sell — Vulnerable Balance Sheet & Flow." The five pillars are:

• Fundamental Cash Engine: 8 / 20 (ROIC 0%; FCF yield 0%). The cash-generation pillar is the weakest contributor. Per the market data, ROIC is 0% and FCF yield is 0%, meaning the company is not currently converting capital into returns at the rate the rating framework favors.
• Whale 13F Flow: 5 / 20 (institutional accumulation and options positioning). This is the lowest pillar score. The holders section contains no 13F data, so the low score cannot be traced to specific filings in the source data.
• Insider Conviction: 11 / 20 (SEC Form 4 and Congressional PTR cluster flow). Per the RQD rating, this is a moderate score; no individual insider transactions are itemized in the source data.
• Macro Regime Fit: 6 / 20 (Beta 1.0; sector sensitivity). Per the market data, beta is 1.0, meaning the stock is in line with the broader market, with the rating penalizing sector sensitivity.
• Forensic Balance Sheet: 10 / 20 (Altman Z 2.5; Piotroski F 2/9; Debt/Equity 0.5). Per the RQD rating, the Altman Z of 2.5 sits in a middle zone, the Piotroski F-Score of 2/9 is weak, and Debt/Equity of 0.5 is moderate.

For a prospective investor, the implications are as follows. The upside case rests on a low-multiple valuation: per the market data, the trailing P/E is 11.9 and the forward P/E is 10, and the stock trades at a 6.22% dividend yield. Those are the main reasons a value-oriented reader might look closer. The valuation tradeoff is that the earnings base is thin: EPS (TTM) is 0.13, and net margin is 0.2%, so small changes in profit move the multiple sharply. The rating's verdict reflects weak cash flow (FCF of $-10.6M in FY 2025), a low Piotroski score, and very small institutional participation. This analysis is educational and is not personalized financial advice.

Tokyo Lifestyle Co. Ltd. (NASDAQ: TKLF) is classified in the Consumer Discretionary sector and the Other Specialty Stores industry, per the company profile. Per the recent news wire, the company opened a store at Westfield Chatswood in Australia, described as its third Australian store, and is described as a Japanese beauty retailer. The source data does not describe its product mix, customer base, or detailed revenue model beyond these references.

Per the SEC financials, revenue rose from $195.7M in FY 2023 to $373.2M in FY 2025, while net income fell from $7.5M to $0.7M over the same period. Operating margin is 0.9% and net margin is 0.2%, with gross margin at 0% per the market data. ROIC is 0%. Per the RQD rating, the Altman Z-Score is 2.5 and the Piotroski F-Score is 2/9. Debt/Equity is 0.5, but the source data lists cash and debt balances as N/A for each period, so the balance sheet cannot be fully characterized.

Per the recent news and catalysts feed, the headlines cluster around store expansion and market-activity reports:

• Multiple reports, from Stock Titan, Moomoo, and GlobeNewswire, cover the opening of a third Australian store at Westfield Chatswood as part of retail expansion.
• TradingView and TradingKey items cover market action and price-decline lists that reference TKLF.
• All items are tagged with a YELLOW light and MARKET WIRE impact label.

Per the Butterfly Supply-Chain Graph, the supply chain is listed as NONE, and no butterfly links or proprietary signals are provided.

Risk watch items: the expansion headlines are not accompanied by financial disclosures in the source data, and the 52-week range ($1.3 - $3.49) with a price of 1.53 indicates a sharp drawdown from the high.

Per the Butterfly Supply-Chain Graph, the supply chain is listed as NONE, and butterfly links are empty. Not available in source data for upstream or downstream dependencies. Sector and industry correlations are limited to the Consumer Discretionary / Other Specialty Stores classification. Second-order items to watch are the store-expansion pace in Australia relative to the FCF trend (FY 2025 FCF of $-10.6M), since the revenue gain has not translated to cash generation in the source data.

• What drove the revenue increase from $210.1M in FY 2024 to $373.2M in FY 2025, and is it organic or acquisition-related?
• What are the cash and debt balances, since the source data lists them as N/A?
• Why did net income fall to $0.7M in FY 2025 despite the revenue increase, and what drove the FCF deterioration?
• Who are the institutional and insider holders, since the holders section contains no data?
• What is the Australian expansion's contribution to revenue and margin, and what capital is required?