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

• Market Cap: ¥24.25B
• Dividend Yield: 4.46%
• Average Volume (3M): 39.21K
• Price to Earnings (P/E): 10.5
• Beta (1Y): 0.53
• Revenue Growth: 11.38%
• EPS Growth: 10.56%
• Country: JP
• Employees: 731
• Sector: Consumer Cyclical
• Sector Strength: 64
• Industry: Specialty Retail
• EPS (TTM): 41.70
• Shares Outstanding: 13,954,000
• 10 Day Avg. Volume: 34,990
• 30 Day Avg. Volume: 39,206
• PEG Ratio: 2.18
• Price to Book (P/B): 1.51
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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

• Rating: 70 Outperform
• Price Target: ¥1,913.00 ▲(9.50%Upside)

Hard Off Corporation's high financial performance score is the most significant factor, showcasing strong growth and profitability. However, weak technical indicators and trading below moving averages present downside risks. The reasonable valuation and attractive dividend yield partially offset these concerns, leading to an overall score of 70.

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

Company Description

Hard Off Corporation Co., Ltd. is a Japanese company operating in the retail sector, specializing in the purchase and sale of second-hand goods. The company is known for its chain of stores that offer a wide variety of used merchandise, including electronics, musical instruments, furniture, and fashion items. Hard Off Corporation provides a platform for consumers to buy and sell pre-owned goods, promoting sustainable consumption and recycling practices.

How the Company Makes Money

Hard Off Corporation Co., Ltd. generates revenue primarily through the resale of second-hand goods. The company purchases used items from individuals, refurbishes or repairs them if necessary, and sells them at a profit through its retail outlets. The key revenue streams include sales from various store formats such as Hard Off (general second-hand goods), Off House (household items), and Book Off (books and media). The company's revenue is bolstered by its extensive store network across Japan, as well as its online sales platform, which expands its customer reach. Additionally, partnerships with other retail businesses and a strong brand presence contribute to the company's earnings.

Hard Off Corporation Co., Ltd. Financial Statement Overview

Summary

Hard Off Corporation Co., Ltd. shows strong revenue and profit growth with effective leverage management and a strong equity position. However, the absence of current cash flow data requires attention, as maintaining robust cash flow reporting will be crucial for future financial health.

Income Statement

The company demonstrates strong revenue growth with a TTM increase of 9.14% compared to the previous year. Gross profit margin is robust at 68.60%, and net profit margin is healthy at 7.53%. Both EBIT and EBITDA margins have shown improvement, indicating efficient operational management. Overall, the income statement reflects a positive growth trajectory and profitability.

Balance Sheet

The balance sheet is solid with a low debt-to-equity ratio of 0.20, showcasing prudent leverage management. The equity ratio stands at a high 70.55%, reflecting strong asset backing by equity. Return on equity is impressive at 13.98%, indicating effective use of shareholder funds. The financial stability is well-maintained with minimal financial risk.

Cash Flow

Cash flow from operations was not reported in the current TTM, making growth analysis challenging. Historically, the free cash flow has been positive, but the absence of current data poses a risk. The company needs to ensure consistent cash flow generation to support ongoing operations and strategic initiatives.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
32.86B	30.11B	27.04B	24.51B	21.27B	19.35B
	Gross Profit
22.54B	20.66B	18.59B	16.84B	14.57B	13.35B
	EBIT
3.31B	2.80B	2.31B	1.53B	795.59M	831.50M
	EBITDA
3.87B	3.59B	3.01B	2.14B	1.24B	1.17B
	Net Income Common Stockholders
2.47B	2.09B	1.65B	1.04B	348.12M	389.36M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.21B	3.02B	2.91B	2.60B	2.20B	1.53B
	Total Assets
25.08B	23.10B	20.72B	18.74B	18.11B	15.94B
	Total Debt
3.58B	2.43B	2.15B	2.25B	2.51B	989.74M
	Net Debt
374.40M	-597.20M	-756.24M	-356.29M	310.74M	-538.68M
	Total Liabilities
7.28B	6.10B	5.37B	4.99B	5.07B	3.11B
	Stockholders Equity
17.70B	16.90B	15.28B	13.69B	13.00B	12.83B
Cash Flow		Free Cash Flow
0.00	737.75M	903.41M	963.62M	670.60M	534.10M
	Operating Cash Flow
0.00	1.87B	1.77B	1.48B	1.13B	822.61M
	Investing Cash Flow
0.00	-1.20B	-820.75M	-219.54M	-312.63M	-528.66M
	Financing Cash Flow
0.00	-587.97M	-714.03M	-899.69M	-480.80M	-320.77M

Hard Off Corporation Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1747.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 1747 is above the 20-day moving average (MA) of 1744.10, below the 50-day MA of 1795.76, and below the 200-day MA of 1820.81, indicating a bearish trend. The MACD of -22.30 indicates Negative momentum. The RSI at 44.32 is Neutral, neither overbought nor oversold. The STOCH value of 47.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
3179	79 Outperform	¥21.65B	12.13		3.55%	7.81%	-15.36%
2674	70 Outperform	¥24.25B	10.49		4.46%	11.38%	10.56%
3093	67 Neutral	¥43.27B	15.62		2.01%	22.50%	20.53%
Sector *	62 Neutral	$6.84B	11.41	2.80%	3.87%	2.70%	-24.58%
9270	59 Neutral	¥12.33B	―		3.48%	1.15%	-14869.21%

Hard Off Corporation Co., Ltd. Corporate Events

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.

Hard Off Corporation Reports Strong Financial Growth for FY2025

Hard Off Corporation Co., Ltd. reported a significant improvement in its financial performance for the fiscal year ending March 31, 2025, compared to the previous year. The company experienced a notable increase in net sales, operating profit, ordinary profit, and net profit, attributed to strong sales performance in existing stores. This positive financial outcome underscores the company’s robust market positioning and its ability to capitalize on consumer demand for second-hand goods.

Hard Off Corporation Achieves Record Sales and Profits, Plans Further Expansion

Hard Off Corporation reported record-high net sales and profits for the fiscal year ended March 2025, driven by the growing integration of ‘reusing’ into consumer lifestyles and the expansion of its store network. The company opened 24 new stores in the fiscal year, contributing to an 11.4% increase in net sales. Looking ahead, Hard Off forecasts continued growth with a 7.4% rise in net sales and record-high profits for the fiscal year ending March 2026, supported by further store openings and stable dividend payments.

Hard Off Corporation Increases Dividend and Revises Shareholder Return Policy

Hard Off Corporation Co., Ltd. has announced a revision in its dividend forecast, increasing the dividend per share from 76 yen to 78 yen for the fiscal year ending March 2025. This decision reflects the company’s commitment to enhancing shareholder value by maintaining a stable dividend payout ratio of approximately 50% based on business performance. Additionally, the company is revising its shareholder return policy by introducing the Dividend on Equity (DOE) ratio as a new indicator, effective from the fiscal year ending March 2026, to ensure more stable and sustainable dividends while improving capital efficiency.

Hard Off Corporation Reports Strong Financial Growth and Dividend Increase

Hard Off Corporation Co., Ltd. reported a positive financial performance for the fiscal year ended March 31, 2025, with net sales increasing by 11.4% and operating profit rising by 14.8%. The company also announced an increase in its year-end dividend from 76 yen to 78 yen, reflecting a commitment to enhancing shareholder returns. The forecast for the fiscal year ending March 31, 2026, anticipates continued growth in net sales and profits, indicating a strong market position and potential for future expansion.