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

• Market Cap: ¥26.93B
• Dividend Yield: 3.92%
• Average Volume (3M): 26.12K
• Price to Earnings (P/E): 12.2
• Beta (1Y): 0.57
• Revenue Growth: 7.88%
• EPS Growth: -5.92%
• Country: JP
• Employees: 731
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 27.43
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: ¥2,022.00 ▲(3.80% Upside)

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

Business Model Strength

Hard Off's consignment model reduces inventory costs, enabling competitive pricing and maintaining high profit margins, which supports long-term profitability.

Market Position

As a leader in the secondhand market, Hard Off benefits from growing consumer interest in sustainability, enhancing its market position and potential for revenue growth.

Cash Generation Ability

Strong cash generation supports operational flexibility and growth initiatives, ensuring the company can invest in expansion and weather economic fluctuations.

Negative Factors

Earnings Growth

Negative EPS growth indicates challenges in increasing profitability, which could hinder future earnings potential and investor confidence if not addressed.

Debt Levels

While currently manageable, vigilance on debt levels is crucial to prevent financial strain, which could impact the company's ability to fund operations and growth.

Profitability Challenges

Lack of recent earnings call data limits visibility into management's strategies for addressing profitability challenges, potentially affecting investor confidence.

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

Company Description

Hard Off Corporation Co., Ltd. (2674) is a Japanese retail company specializing in the sale of secondhand goods. Founded in 1993, the company operates a chain of stores across Japan under various brand names, including Hard Off, Off House, and Hobby Off. It focuses on the resale of a diverse range of products, including electronics, musical instruments, household items, and fashion apparel. The company's commitment to promoting reuse and sustainability has positioned it as a leader in the secondhand market.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: 1948.00
• 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 1948 is above the 20-day moving average (MA) of 1903.65, above the 50-day MA of 1862.14, and above the 200-day MA of 1799.51, indicating a bullish trend. The MACD of 24.26 indicates Negative momentum. The RSI at 58.52 is Neutral, neither overbought nor oversold. The STOCH value of 73.69 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	¥26.93B	12.16	―	3.92%	7.88%	-5.92%
3179	66 Neutral	¥21.36B	19.06	―	3.59%	-2.73%	-51.48%
3093	65 Neutral	¥39.27B	13.70	―	2.26%	17.90%	14.14%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
9270	58 Neutral	¥12.62B	17.92	―	1.07%	4.14%	―

Hard Off Corporation Co., Ltd. Corporate Events

Hard Off Corporation Expands Reuse Business with New Thai Subsidiary

Hard Off Corporation Co., Ltd. has announced plans to establish a new company in Thailand, aiming to enhance its reuse business by purchasing and selling locally. This move aligns with their medium-term vision of expanding to 1,300 stores by 2030 and their long-term goal of 3,000 stores globally. The new entity, Hard Off (Thailand) Co., Ltd., will be based in Bangkok and is scheduled to be established in March 2026, with a local company holding a majority stake. The financial impact on the company’s results for the fiscal year ending March 31, 2026, is expected to be minimal.

Hard Off Corporation Reports Record Sales Amid Rising Costs

Hard Off Corporation reported record-high net sales for the second quarter of FY2026/3, driven by the opening of new stores and increased sales at existing locations. Despite this, operating and ordinary profits decreased due to higher expenses related to store openings and personnel costs. The company forecasts continued growth in net sales and profits for the full fiscal year, with expectations of achieving record highs for four consecutive fiscal terms.

Hard Off Corporation Reports Mixed Interim Financial Results

Hard Off Corporation reported a 6.8% increase in net sales for the interim period ending September 30, 2025, compared to the previous year. However, the company faced declines in operating profit, ordinary profit, and profit attributable to owners of the parent, indicating challenges in maintaining profitability despite sales growth. The company’s financial position showed a slight decrease in net assets and equity-to-asset ratio, reflecting potential concerns for stakeholders. Despite these challenges, the company maintains its forecast for the fiscal year ending March 31, 2026, with expected growth in net sales and profits.

Hard Off Corporation Acquires ECONOS Co., Ltd.

Hard Off Corporation Co., Ltd. has successfully completed a tender offer to acquire shares of ECONOS Co., Ltd., resulting in ECONOS becoming a consolidated subsidiary. This strategic acquisition, finalized on September 25, 2025, is expected to enhance Hard Off’s market position and expand its operational capabilities.