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

• Market Cap: ¥12.00B
• Dividend Yield: N/A
• Average Volume (3M): 12.40K
• 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: 11,130
• 30 Day Avg. Volume: 12,396
• 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: ¥269.00
• Price Target Upside: -4.61% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 41 Neutral
• Price Target: ¥269.00 ▼(-4.61% Downside)

GFOOT Co., Ltd. receives a low overall stock score due to significant financial challenges, including declining revenues and persistent losses. Technical indicators also show bearish momentum, and the valuation is unattractive with a negative P/E ratio. These factors collectively suggest a high-risk investment with limited upside potential.

GFOOT Co., Ltd. Business Overview & Revenue Model

Company Description

Gfoot Co.,Ltd. sells footwear in Japan. It offers men's shoes, ladies' shoes, sports shoes, and imported goods. The company was founded in 1931 and is headquartered in Tokyo, Japan.

How the Company Makes Money

GFOOT Co., Ltd. generates revenue primarily through the sale of footwear and related products in its retail stores. The company earns money by purchasing shoes and accessories from manufacturers or suppliers and selling them at a markup to customers. Key revenue streams include direct retail sales from physical store locations, as well as any online sales channels the company may operate. Additionally, partnerships with popular footwear brands can enhance product offerings and attract more customers, contributing to increased sales and revenue. The company's ability to maintain a diverse and appealing product range, along with effective marketing and customer service, plays a crucial role in its profitability.

GFOOT Co., Ltd. Financial Statement Overview

Summary

GFOOT Co., Ltd. is facing significant financial challenges with declining revenues, persistent losses, and a heavily leveraged balance sheet. The negative EBIT and net income, along with a high debt-to-equity ratio, indicate financial instability and potential solvency issues. Despite some improvement in cash flow, the overall financial health remains precarious.

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	58.70B	59.98B	64.60B	65.69B	66.27B	65.85B
Gross Profit	25.72B	26.42B	28.38B	26.81B	27.36B	23.13B
EBITDA	-932.50M	-485.00M	-897.00M	-4.63B	-6.33B	-11.71B
Net Income	-1.28B	-1.06B	-1.77B	-5.52B	-7.14B	-12.72B
Balance Sheet
Total Assets	32.89B	29.73B	32.64B	40.25B	43.32B	44.01B
Cash, Cash Equivalents and Short-Term Investments	1.17B	1.63B	583.00M	6.12B	5.84B	1.37B
Total Debt	14.20B	13.15B	20.69B	22.15B	21.99B	17.45B
Total Liabilities	32.00B	28.82B	37.40B	43.40B	41.04B	39.61B
Stockholders Equity	889.00M	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: Negative
• Last Price: 282.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2686, the sentiment is Negative. The current price of 282 is below the 20-day moving average (MA) of 283.35, below the 50-day MA of 286.12, and above the 200-day MA of 281.83, indicating a neutral trend. The MACD of -0.58 indicates Negative momentum. The RSI at 46.03 is Neutral, neither overbought nor oversold. The STOCH value of 6.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	55 Neutral	¥11.78B	113.83	―	2.15%	0.77%	-69.77%
8013	53 Neutral	¥2.22B	23.46	―	―	0.58%	-2526.19%
7494	45 Neutral	¥8.42B	―	―	3.95%	-10.02%	-37.15%
2686	41 Neutral	¥12.00B	―	―	―	-9.54%	-53.85%
7603	40 Underperform	¥4.97B	―	―	―	-7.88%	-11.22%
7445	39 Underperform	¥9.16B	―	-111.30%	―	-27.51%	96.34%