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

• Market Cap: ¥29.15B
• Dividend Yield: 3.77%
• Average Volume (3M): 26.12K
• Price to Earnings (P/E): 12.4
• Beta (1Y): 0.54
• Revenue Growth: 7.88%
• EPS Growth: -5.92%
• Country: JP
• Employees: 731
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 61.65
• Shares Outstanding: 13,954,000
• 10 Day Avg. Volume: 23,860
• 30 Day Avg. Volume: 26,123
• PEG Ratio: 1.03
• Price to Book (P/B): 1.38
• Price to Sales (P/S): 0.75
• P/FCF Ratio: 30.69
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: ¥2,352.00 ▲(17.42% Upside)
• Action: Reiterated Date: 10/30/25
• Date: Action: Reiterated 10/30/25

Hard Off Corporation's strong financial performance is the most significant factor, supported by a robust income statement and effective cash management. The valuation is attractive with a reasonable P/E ratio and a high dividend yield. Technical analysis indicates a neutral to slightly bearish trend, which slightly tempers the overall score.

Positive Factors

Diversified reuse retail model

Hard Off's multi-brand reuse retail model across many product categories creates durable competitive advantages: diversified inventory and customer segments, higher footfall across formats, and inventory turnover flexibility. This breadth reduces single-category dependence and supports steady resale margins over time.

Sustained revenue growth

Consistent revenue growth near double digits signals expanding store performance and healthy demand for pre-owned goods. Sustained top-line expansion allows incremental operating leverage, funds reinvestment in stores and processing, and underpins long-term margin and cash generation resilience.

Strong cash generation

Robust operating cash conversion and rising free cash flow provide durable financial flexibility: funds for capex, store refurbishment, working capital smoothing, and shareholder returns. Reliable cash generation reduces refinancing risk and supports execution of strategic initiatives over months.

Negative Factors

Declining EPS

Negative EPS growth indicates profit per share contraction that can reflect margin pressure, higher costs, or capital structure effects. If persistent, declining EPS undermines earnings power, limits reinvestment or payout capacity, and signals operational or financial headwinds needing remediation.

Reliance on customer-sourced inventory

The core model depends on retail customers supplying sellable used goods; this creates structural supply variability and quality risk tied to consumer replacement cycles. Reduced inflows or lower-quality trade-ins would squeeze resale margins and inventory turnover over the medium term.

Leverage vigilance needed

Although leverage is currently manageable, explicit caution on debt levels signals potential sensitivity to rising obligations. If debt grows or interest rates rise, financial flexibility and capacity for store investments or buybacks could be constrained, impacting long-term growth execution.

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

Company Description

Hard Off Corporation Co.,Ltd. operates reuse shops in Japan. It operates through Secondhand Business and FC Business segments. The company's shops offer TVs, audio and video products, computers, games, watches, cameras, smartphones, tablets, air and manual tools, sets and power tools, and musical instruments; CDs and DVDs; furniture and interior, and home appliances; women, men, and kids and baby clothing; shoes, bags, accessories, and towels; gold and platinum jewelry; fashion accessories; sports goods and camping outdoors; gifts and toys; trading cards, figures, mini cars and railroad models, plastic models, radio control products, and gun military goods; car audio, seats, car parts, tire and wheel products, and bicycles; books, comics, novels, and magazines; and wine, champagne, brandy, whiskey, beer, sake, and shochu products, as well as glassware. It operates its shops under the Hard Off, Off House, Hobby Off, Garage Off, Mode Off, Liquor Off, Book ON, and Book Off brand names. The company also franchises its shops. It operates 914 secondhand stores which include 396 directly operated stores and 518 franchised stores. The company was formerly known as Sound Hokuetsu Co., Ltd. and changed its name to Hard Off Corporation Co.,Ltd. in 1995. Hard Off Corporation Co.,Ltd. was incorporated in 1972 and is headquartered in Shibata, Japan.

How the Company Makes Money

Hard Off Corporation generates revenue primarily through the retail sales of secondhand goods in its physical stores and online platforms. The company acquires inventory through customer consignment, where individuals can sell their unwanted items in exchange for cash or store credit. This low-cost inventory model allows Hard Off to maintain competitive pricing while maximizing profit margins. Key revenue streams include sales from its various store brands, including Hard Off for electronics, Off House for household goods, and Hobby Off for hobby-related items. Additionally, Hard Off has established partnerships with manufacturers and other retailers, which enhance its product offerings and help attract more customers. The company also benefits from increasing consumer awareness of sustainability, driving demand for secondhand products.

Hard Off Corporation Co., Ltd. Financial Statement Overview

Summary

Hard Off Corporation exhibits a robust financial profile with 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. 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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	33.90B	33.53B	30.11B	27.04B	24.51B	21.27B
Gross Profit	23.27B	23.00B	20.66B	18.59B	16.84B	14.57B
EBITDA	4.07B	4.11B	3.59B	3.01B	2.14B	1.24B
Net Income	2.19B	2.31B	2.09B	1.65B	1.04B	348.12M
Balance Sheet
Total Assets	25.93B	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	5.07B	3.18B	2.43B	2.15B	2.25B	2.51B
Total Liabilities	8.19B	7.24B	6.10B	5.37B	4.99B	5.07B
Stockholders Equity	17.63B	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	2.14B	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: 2003.00
• 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 2003 is below the 20-day moving average (MA) of 2066.75, below the 50-day MA of 2047.08, and above the 200-day MA of 1855.59, indicating a bullish trend. The MACD of 17.12 indicates Negative momentum. The RSI at 56.30 is Neutral, neither overbought nor oversold. The STOCH value of 66.94 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	74 Outperform	¥29.15B	12.36	―	3.77%	7.88%	-5.92%
3179	66 Neutral	¥24.99B	17.26	―	3.53%	-2.73%	-51.48%
3093	65 Neutral	¥45.48B	14.84	―	2.19%	17.90%	14.14%
7685	65 Neutral	¥180.42B	33.64	―	0.64%	57.01%	91.03%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
9270	59 Neutral	¥25.59B	12.89	―	0.95%	4.14%	―

Hard Off Corporation Co., Ltd. Corporate Events

Hard Off lifts sales and profit to record highs as store network expands

Hard Off Corporation reported that consolidated net sales for the third quarter of FY2026/3 rose 13.7% year on year to a record ¥28.2 billion, driven by 24 store openings last year, 22 new stores this year, and the consolidation of 69 ECONOS stores, with domestic existing-store sales up 3.6%. Despite higher personnel, depreciation and store-opening costs, and a one-off TOB expense for ECONOS that pushed operating and ordinary profit slightly lower, quarterly profit attributable to owners of parent increased 2.8% to a record level, supported by a gain on step acquisition.

The company left its full-year FY2026/3 forecast unchanged, expecting net sales to climb 7.4% to a 30th consecutive record and all profit lines to reach record highs for a fourth straight year, underpinned by higher sales from its expanding store base. Hard Off plans to maintain an annual dividend of ¥78 per share, targeting a stable dividend on equity of around 6%, while its total secondhand store network grew to 1,078 outlets as directly operated stores increased, franchise stores were partially internalized through ECONOS, and international locations continued to expand, reinforcing its scale and presence in the reuse retail market.

The most recent analyst rating on (JP:2674) stock is a Buy with a Yen2359.00 price target. To see the full list of analyst forecasts on Hard Off Corporation Co., Ltd. stock, see the JP:2674 Stock Forecast page.

Hard Off Posts Higher Sales but Softer Profits, Keeps FY2026 Outlook and Dividend Plan

Hard Off Corporation reported consolidated net sales of ¥28.20 billion for the nine months to December 31, 2025, up 13.7% year on year, while operating and ordinary profit slipped 4.5% and 6.1% respectively, reflecting higher costs even as quarterly profit attributable to owners edged up 2.8% to ¥1.78 billion. Total assets increased to ¥31.18 billion with equity rising but the equity ratio declined to 60.7%, the company kept its dividend forecast unchanged at ¥78 per share for the year, reaffirmed its full-year outlook for ¥36.0 billion in sales and ¥2.45 billion in profit, and reported a change in consolidation scope with ECONOS Co., Ltd. added and HARDOFF Family Co., Ltd. removed.

The most recent analyst rating on (JP:2674) stock is a Buy with a Yen2359.00 price target. To see the full list of analyst forecasts on Hard Off Corporation Co., Ltd. stock, see the JP:2674 Stock Forecast page.

Hard Off Boosts Direct Store Network as Monthly Sales Continue to Grow

Hard Off Corporation Co., Ltd., a Japan-based reuse retailer listed on the Tokyo Stock Exchange Prime Market, operates a multi-brand portfolio of secondhand chains including HARD OFF, OFF HOUSE, HOBBY OFF, GARAGE OFF, LIQUOR OFF, and BOOK OFF. Its business centers on buying and selling pre-owned consumer goods and continues to scale both directly operated and franchised outlets in Japan and abroad.

The company reported year-on-year monthly sales growth for directly operated stores, with all-store and existing-store sales generally exceeding 100%, indicating steady demand across its reuse formats. Store count rose notably after Econos Co., Ltd. became a subsidiary, triggering the shift of multiple HARD OFF, OFF HOUSE, GARAGE OFF, and HOBBY OFF outlets from franchise to direct operation and bringing additional BOOK OFF stores under direct control, which should enhance consolidation of revenues and operational leverage across the chain network.

The most recent analyst rating on (JP:2674) stock is a Buy with a Yen2285.00 price target. To see the full list of analyst forecasts on Hard Off Corporation Co., Ltd. stock, see the JP:2674 Stock Forecast page.

Hard Off Corporation Expands Direct Operations Post-Ekonos Acquisition

Hard Off Corporation has transitioned several franchised stores to directly operated ones following its acquisition of Ekonos Co., Ltd., impacting its store count and operations. This strategic move is likely to enhance its market presence and operational efficiency, potentially benefiting stakeholders by increasing the company’s control over its retail operations.

The most recent analyst rating on (JP:2674) stock is a Buy with a Yen2022.00 price target. To see the full list of analyst forecasts on Hard Off Corporation Co., Ltd. stock, see the JP:2674 Stock Forecast page.