Hard Off Corporation Co., Ltd. (2674) AI Stock Analysis

• Market Cap: ¥24.86B
• Dividend Yield: 4.24%
• Average Volume (3M): 40.65K
• Price to Earnings (P/E): 11.4
• Beta (1Y): 0.51
• Revenue Growth: 8.63%
• EPS Growth: -3.75%
• Country: JP
• Employees: 731
• Sector: Consumer Cyclical
• Sector Strength: 81
• Industry: Specialty Retail
• EPS (TTM): 39.15
• Shares Outstanding: 13,954,000
• 10 Day Avg. Volume: 43,920
• 30 Day Avg. Volume: 40,653
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥2,014.00
• Price Target Upside: 12.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 81 Outperform
• Price Target: ¥2,014.00 ▲(12.45% Upside)

Hard Off Corporation's stock score is primarily driven by its strong financial performance and attractive valuation. The company's robust financial metrics and efficient cash management contribute significantly to its high score. The stock's valuation is appealing with a low P/E ratio and high dividend yield, offering potential value to investors. Technical analysis suggests moderate momentum, supporting a positive outlook, though longer-term caution is advised.

Hard Off Corporation Co., Ltd. Business Overview & Revenue Model

Company Description

Hard Off Corporation Co., Ltd. (2674) is a Japan-based company primarily engaged in the operation of second-hand retail stores. The company operates through several segments including Hard Off, which focuses on used audio and visual products, furniture, and home appliances; Off House, which deals with used clothing, sporting goods, and outdoor products; and Hobby Off, which specializes in used toys, games, and musical instruments. Through its network of franchise and directly managed stores, Hard Off Corporation provides a platform for customers to buy and sell a wide range of pre-owned goods, promoting sustainable consumption and recycling.

How the Company Makes Money

Hard Off Corporation generates revenue primarily through the buying and selling of second-hand goods. The company purchases pre-owned items at a discounted rate from individuals and resells them at a markup through its extensive network of retail stores. The revenue model is supported by a combination of directly managed stores and franchise operations, which allows for an expanded market reach and reduced operational risk. Franchisees pay fees to Hard Off Corporation, contributing to its income. The company's earnings are influenced by consumer demand for second-hand goods, efficient inventory management, and strategic location of stores. Additionally, Hard Off benefits from cost savings associated with the resale of used products, as compared to the production and distribution costs of new items.

Hard Off Corporation Co., Ltd. Financial Statement Overview

Summary

Hard Off Corporation exhibits a robust financial profile across all key metrics. The company shows strong growth and profitability in the income statement, stable leverage and equity ratios in the balance sheet, and effective cash management in the cash flow statement. While the company is well-positioned for continued success, monitoring debt levels is recommended to maintain financial health.

Income Statement

Hard Off Corporation has demonstrated a strong revenue growth trend, with a consistent increase over the years. The company shows healthy gross and net profit margins, indicating efficient cost management and profitability. EBIT and EBITDA margins are robust, supporting operational efficiency. Overall, the company exhibits strong financial performance in the income statement.

Balance Sheet

The balance sheet reveals a stable financial position with a manageable debt-to-equity ratio, suggesting prudent leverage. The equity ratio is healthy, indicating solid financial stability. Return on equity is strong, showcasing effective use of shareholders' equity to generate profits. The overall balance sheet strength is commendable, though vigilance on debt levels is advisable.

Cash Flow

The company's cash flow statement reflects solid cash generation capabilities. There is a positive trend in free cash flow growth, indicating effective cash management. The operating cash flow to net income ratio is favorable, highlighting efficient conversion of profits into cash. Free cash flow to net income ratio further supports the company's strong cash position.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	33.53B	33.53B	30.11B	27.04B	24.51B	21.27B
Gross Profit	23.00B	23.00B	20.66B	18.59B	16.84B	14.57B
EBITDA	4.11B	4.11B	3.59B	3.01B	2.14B	1.24B
Net Income	2.31B	2.31B	2.09B	1.65B	1.04B	348.12M
Balance Sheet
Total Assets	25.62B	25.62B	23.10B	20.72B	18.74B	18.11B
Cash, Cash Equivalents and Short-Term Investments	3.01B	3.01B	3.02B	2.91B	2.60B	2.20B
Total Debt	3.18B	3.18B	2.43B	2.15B	2.25B	2.51B
Total Liabilities	7.24B	7.24B	6.10B	5.37B	4.99B	5.07B
Stockholders Equity	18.27B	18.27B	16.90B	15.28B	13.69B	13.00B
Cash Flow
Free Cash Flow	0.00	822.66M	737.75M	1.13B	963.62M	670.60M
Operating Cash Flow	0.00	2.06B	1.87B	1.77B	1.48B	1.13B
Investing Cash Flow	0.00	-1.84B	-1.20B	-820.75M	-219.54M	-312.63M
Financing Cash Flow	0.00	-334.41M	-587.97M	-714.03M	-899.69M	-480.80M

Hard Off Corporation Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1791.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2674, the sentiment is Positive. The current price of 1791 is above the 20-day moving average (MA) of 1771.30, above the 50-day MA of 1729.84, and above the 200-day MA of 1774.66, indicating a bullish trend. The MACD of 20.62 indicates Negative momentum. The RSI at 59.19 is Neutral, neither overbought nor oversold. The STOCH value of 59.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2674.

Hard Off Corporation Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2674	81 Outperform	¥24.86B	11.42		4.24%	8.63%	-3.75%
3093	73 Outperform	¥43.23B	15.19		2.01%	19.76%	11.62%
3179	67 Neutral	¥23.51B	18.32		3.26%	-0.24%	-45.59%
Sector *	61 Neutral	$17.60B	14.14	-5.40%	3.04%	1.49%	-15.29%
9270	55 Neutral	¥13.15B	―		3.48%	-0.79%	-107.47%
9278	―	¥26.51B	13.89		1.65%	―	―

Hard Off Corporation Co., Ltd. Corporate Events

Hard Off Corporation Announces Tender Offer for ECONOS Co., Ltd.

Hard Off Corporation Co., Ltd. has announced its decision to initiate a tender offer to acquire ECONOS Co., Ltd., a company involved in the secondhand product market. This strategic move, approved by Hard Off’s Board of Directors, aims to strengthen its market position by increasing its stake in ECONOS, where it already holds a significant share. The acquisition is expected to impact the company’s operations by potentially leading to the delisting of ECONOS from the Sapporo Stock Exchange, which could have implications for stakeholders and the market dynamics in the secondhand retail sector.

Hard Off Corporation Introduces Employee Shareholding Incentive Plan

Hard Off Corporation Co., Ltd. has announced a resolution to dispose of treasury shares as part of a restricted stock incentive plan for its employee shareholding association. This initiative aims to align employee interests with corporate goals by offering them a stake in the company’s future success, thereby enhancing corporate value and supporting employee asset-building efforts.

Hard Off Corporation Reports Record Sales Amid Expansion

Hard Off Corporation reported record-high net sales for the first quarter of FY2026/3, driven by the contribution of newly opened stores. Despite increased sales, operating and ordinary profits decreased due to higher SG&A expenses from opening new stores. The company forecasts continued growth in net sales and profits for the full fiscal year, expecting record highs for the fourth consecutive term. They plan to maintain stable dividends and continue expanding their store network.

Hard Off Corporation Reports Decline in Q1 Profits Despite Sales Growth

Hard Off Corporation Co., Ltd. reported a decrease in profits for the first quarter of the fiscal year ending March 2026, with operating profit down by 18.7% compared to the previous year. Despite a slight increase in net sales, the company’s comprehensive income also fell significantly. The company forecasts modest growth in net sales and profits for the full fiscal year, indicating a cautious outlook amid challenging market conditions.

Hard Off Corporation Announces Dividend Payout

Hard Off Corporation Co., Ltd. has announced a resolution to pay dividends of surplus with a record date of March 31, 2025, as approved by its Board of Directors. The dividend per share is set at ¥78, reflecting the company’s commitment to returning profits to shareholders while maintaining a stable dividend policy based on business performance. This decision underscores the company’s strategic focus on enhancing corporate value through improved earnings per share and financial stability.

Hard Off Corporation Maintains Independence Amidst Significant Shareholder Ownership

Hard Off Corporation Co., Ltd. has announced that Yamamoto Asset Co., Ltd., an affiliated company, holds 33.61% of its voting rights as of March 31, 2025. Despite this significant ownership, Hard Off Corporation maintains its operational independence, with no restrictions on its business activities, ensuring its autonomy within the corporate group.

Hard Off Corporation Reports Record Sales and Profits Amid Market Expansion

Hard Off Corporation Co., Ltd. announced a correction to its supplementary materials for the fiscal year ended March 2025, specifically regarding the number of secondhand stores. The company reported record-high net sales and profits, driven by the growing integration of ‘reusing’ into consumer lifestyles and the expansion of the secondhand market. The opening of new stores contributed to a significant increase in net sales, marking the 29th consecutive fiscal term of revenue growth. This financial performance underscores Hard Off’s strong positioning in the secondhand retail market.