Conservative Capital StructureNAFCO's low debt-to-equity and high equity ratio provide durable financial flexibility. With limited leverage the company can better absorb operating shortfalls, access financing on reasonable terms if needed, and avoid heavy interest burdens that impair long-term investment and store upkeep.

Healthy Gross MarginA gross margin near 34% gives a persistent earnings buffer versus peers in home improvement retail. This margin provides structural room to cover SG&A and markdown risk, supporting profitability recovery efforts as revenue stabilizes or the company refines product mix and private-label strategy.

Essential, Diversified Retail AssortmentNAFCO's focus on home improvement, household goods and furniture targets essential, recurring categories. A broad in-store assortment diversifies sales across categories and seasons, supporting steady foot traffic and cross-selling opportunities that underpin medium-term revenue resilience.

Bears Say

Sustained Revenue DeclineA multi-year drop in revenue erodes scale economies and supplier negotiating power, making merchandising and margin recovery harder. Continued top-line contraction pressures fixed-cost absorption across stores, risks underutilized retail capacity, and weakens competitive positioning over the medium term.

Negative Operating And Free Cash FlowNegative operating and free cash flow indicate the core business fails to fund working capital and maintenance capex. Persisting cash deficits can force reliance on reserves or external funding, limiting reinvestment in stores, IT or logistics and raising long-term execution and liquidity risk.

Very Low Profitability / Falling ROEROE near zero and declining net margins signal weak returns on shareholder capital and poor operational efficiency. Low profitability constrains reinvestment, reduces strategic options, and may pressure management to cut costs or dividends, undermining long-term growth and shareholder value creation.

NAFCO Co., Ltd. News

NAFCO Boosts Quarterly Profit Despite Revenue Decline, Keeps Dividend Outlook Unchanged

The latest update is out from NAFCO Co., Ltd. ( ($JP:2790) ). NAFCO Co., Ltd. reported consolidated operating...

17d ago

NAFCO Co., Ltd. Reports Significant Financial Decline for FY 2025

NAFCO Co., Ltd. ( ($JP:2790) ) has issued an update. NAFCO Co., Ltd. has reported a significant decline...

10M ago

2790 FAQ

What was NAFCO Co., Ltd.’s price range in the past 12 months?

NAFCO Co., Ltd. lowest stock price was ¥1555.00 and its highest was ¥2350.00 in the past 12 months.

What is NAFCO Co., Ltd.’s market cap?

NAFCO Co., Ltd.’s market cap is ¥64.41B.

When is NAFCO Co., Ltd.’s upcoming earnings report date?

NAFCO Co., Ltd.’s upcoming earnings report date is Apr 24, 2026 which is in 60 days.

How were NAFCO Co., Ltd.’s earnings last quarter?

NAFCO Co., Ltd. released its earnings results on Feb 06, 2026. The company reported ¥28.14 earnings per share for the quarter, beating the consensus estimate of N/A by ¥28.14.

Is NAFCO Co., Ltd. overvalued?

According to Wall Street analysts NAFCO Co., Ltd.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does NAFCO Co., Ltd. pay dividends?

NAFCO Co., Ltd. pays a Semiannually dividend of ¥29 which represents an annual dividend yield of 2.78%. See more information on NAFCO Co., Ltd. dividends here

What is NAFCO Co., Ltd.’s EPS estimate?

NAFCO Co., Ltd.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does NAFCO Co., Ltd. have?

NAFCO Co., Ltd. has 29,784,400 shares outstanding.

What happened to NAFCO Co., Ltd.’s price movement after its last earnings report?

NAFCO Co., Ltd. reported an EPS of ¥28.14 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went up 1.961%.

Which hedge fund is a major shareholder of NAFCO Co., Ltd.?

Currently, no hedge funds are holding shares in JP:2790

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

NAFCO Co., Ltd.

NAFCO Co., Ltd. operates a chain of home and furniture retail outlets in Japan. The company's furniture/home fashion stores offer kitchen and dining, living room, bed and bedroom, study room, and wedding gift furniture; and bedding products, small furniture, and other items. It also operates home centers that offer DIY hardware, gardening products, exterior and interior furnishings, automobile accessories, and pet goods. In addition, the company operates combination stores that provide general furniture, interior and furnishings, DIY hardware, gardening merchandise, automobile and car accessories, and pet goods. As of March 31, 2022, it operated 359 stores. The company was founded in 1947 and is headquartered in Kitakyushu, Japan.