GFOOT Co., Ltd. (2686) AI Stock Analysis

• Market Cap: ¥12.26B
• Dividend Yield: N/A
• Average Volume (3M): 12.14K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.11
• Revenue Growth: -9.54%
• EPS Growth: -53.85%
• Country: JP
• Employees: 888
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): -19.31
• Shares Outstanding: 42,580,900
• 10 Day Avg. Volume: 10,680
• 30 Day Avg. Volume: 12,136
• PEG Ratio: 0.28
• Price to Book (P/B): 12.95
• Price to Sales (P/S): 0.20
• P/FCF Ratio: 22.30
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 42 Neutral
• Price Target: ¥273.00 ▼(-5.21% Downside)

The overall stock score is primarily impacted by the company's poor financial performance, characterized by declining revenues and high financial risk. Technical analysis and valuation also contribute to the low score, with mixed market signals and a negative P/E ratio indicating challenges in profitability and market perception.

Positive Factors

Product Diversity

A diverse product range allows GFOOT Co., Ltd. to cater to various customer preferences, potentially enhancing market reach and customer retention over time.

Cash Flow Improvements

Improvements in operating cash flow indicate better cash management, which can enhance financial stability and support future investments.

Market Presence

A broad network of retail locations strengthens GFOOT Co., Ltd.'s market presence, potentially increasing brand visibility and customer access.

Negative Factors

Declining Revenues

Consistent revenue decline suggests challenges in maintaining sales growth, which can impact long-term profitability and market competitiveness.

High Leverage

High leverage limits financial flexibility and increases risk, potentially affecting the company's ability to invest in growth opportunities.

Negative Profit Margins

Sustained negative profit margins indicate operational inefficiencies and the need for strategic changes to improve financial performance.

GFOOT Co., Ltd. Business Overview & Revenue Model

Company Description

GFOOT Co., Ltd. (2686) is a prominent player in the sporting goods industry, specializing in the design, manufacture, and distribution of high-quality footwear and apparel. The company operates primarily in the athletic and casual wear sectors, focusing on innovative products that enhance performance and comfort for consumers. With a commitment to sustainability, GFOOT develops eco-friendly materials and practices in its production processes, catering to a growing market of environmentally conscious consumers.

How the Company Makes Money

GFOOT Co., Ltd. generates revenue through multiple streams, primarily from the sale of its footwear and apparel products through both retail and online channels. The company has established a strong brand presence, allowing it to charge premium prices for its high-performance products. Additionally, GFOOT benefits from strategic partnerships with various retailers and e-commerce platforms, expanding its market reach. Seasonal promotions and collaborations with athletes and influencers further boost sales, creating a robust revenue model that capitalizes on both direct-to-consumer and wholesale channels.

GFOOT Co., Ltd. Financial Statement Overview

Summary

GFOOT Co., Ltd. faces significant financial challenges, including declining revenues, persistent losses, and a heavily leveraged balance sheet. The negative net profit margin and high debt-to-equity ratio indicate financial instability and risk.

Income Statement

GFOOT Co., Ltd. has experienced declining revenues over the past few years, with a significant decrease from 2020 to 2025. The gross profit margin has been decreasing, indicating pressure on profitability. The company has consistently reported negative EBIT and net income, reflecting ongoing operational challenges and inefficiencies. The net profit margin remains negative, highlighting the company's struggle to achieve profitability.

Balance Sheet

The balance sheet reveals a concerning financial structure, with a high debt-to-equity ratio due to negative stockholders' equity in recent years. This indicates potential solvency issues and financial instability. The equity ratio is also negative, further emphasizing the company's reliance on debt financing. These factors suggest significant financial risk and limited capacity to absorb further losses.

Cash Flow

Cash flow analysis shows some improvement in operating cash flow in 2025, but the company still faces challenges in generating consistent positive free cash flow. The operating cash flow to net income ratio is volatile, reflecting inconsistent cash generation relative to reported losses. Despite recent positive free cash flow, historical trends indicate ongoing cash flow management issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	57.18B	59.98B	64.60B	65.69B	66.27B	65.85B
Gross Profit	25.18B	26.42B	28.38B	26.81B	27.36B	23.13B
EBITDA	-1.35B	-485.00M	-897.00M	-4.63B	-6.33B	-11.71B
Net Income	-1.73B	-1.06B	-1.77B	-5.52B	-7.14B	-12.72B
Balance Sheet
Total Assets	33.42B	29.73B	32.64B	40.25B	43.32B	44.01B
Cash, Cash Equivalents and Short-Term Investments	970.00M	1.63B	583.00M	6.12B	5.84B	1.37B
Total Debt	14.08B	13.15B	20.69B	22.15B	21.99B	17.45B
Total Liabilities	33.45B	28.82B	37.40B	43.40B	41.04B	39.61B
Stockholders Equity	-35.00M	904.00M	-4.76B	-3.15B	2.28B	4.39B
Cash Flow
Free Cash Flow	0.00	525.00M	-4.48B	-619.00M	-5.91B	-6.23B
Operating Cash Flow	0.00	648.00M	-4.26B	-555.00M	-5.54B	-5.67B
Investing Cash Flow	0.00	136.00M	189.00M	672.00M	710.00M	1.05B
Financing Cash Flow	0.00	261.00M	-1.46B	157.00M	9.34B	4.44B

GFOOT Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 288.00
• 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:2686, the sentiment is Positive. The current price of 288 is above the 20-day moving average (MA) of 285.70, above the 50-day MA of 284.54, and above the 200-day MA of 281.64, indicating a bullish trend. The MACD of 0.60 indicates Negative momentum. The RSI at 64.50 is Neutral, neither overbought nor oversold. The STOCH value of 47.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2686.

GFOOT Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7416	54 Neutral	¥11.27B	-27.99	―	2.25%	0.49%	-169.64%
8013	53 Neutral	¥2.27B	140.42	―	―	2.54%	―
7494	47 Neutral	¥7.99B	16.88	―	4.17%	-10.82%	―
2686	42 Neutral	¥12.26B	-7.07	―	―	-9.54%	-53.85%
7445	39 Underperform	¥10.72B	-19.38	-111.30%	―	-27.51%	96.20%
7603	38 Underperform	¥3.89B	-1.71	―	―	-7.88%	-11.22%