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

• Market Cap: ¥12.17B
• Dividend Yield: N/A
• Average Volume (3M): 11.97K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.13
• Revenue Growth: -7.16%
• EPS Growth: 40.05%
• Country: JP
• Employees: 888
• Sector: Consumer Cyclical
• Sector Strength: 56
• Industry: Apparel - Retail
• EPS (TTM): -8.28
• Shares Outstanding: 42,580,900
• 10 Day Avg. Volume: 13,320
• 30 Day Avg. Volume: 11,973
• PEG Ratio: 0.06
• Price to Book (P/B): 1.22
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 52.44
• 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: 45 Neutral
• Price Target: ¥267.00 ▼(-6.64%Downside)

GFOOT Co., Ltd. faces significant financial challenges with declining revenues and persistent losses, heavily impacting its stock score. Technical analysis indicates neutral momentum, but valuation metrics highlight unattractiveness due to negative earnings. Overall, the stock requires strategic improvements to enhance financial health and investor appeal.

GFOOT Co., Ltd. Business Overview & Revenue Model

Company Description

GFOOT Co., Ltd. (2686) primarily operates in the retail sector, focusing on the sale of footwear and related accessories. The company manages a variety of shoe retail stores across Japan, offering a wide range of products from casual to formal footwear for different age groups and occasions. Known for its diverse product lines, GFOOT Co., Ltd. aims to cater to a broad customer base by providing quality and fashionable footwear.

How the Company Makes Money

GFOOT Co., Ltd. generates revenue through the sale of footwear and accessories via its retail outlets and online platforms. The company's primary revenue stream comes from direct sales to consumers, leveraging its physical store presence across Japan to attract foot traffic and drive sales. Additionally, GFOOT Co., Ltd. may engage in partnerships with popular footwear brands, offering exclusive products that can draw more customers. Seasonal promotions, discounts, and loyalty programs are also employed to boost sales and maintain customer engagement. The company's earnings are significantly influenced by consumer trends, purchasing power, and market competition in the retail footwear industry.

GFOOT Co., Ltd. Financial Statement Overview

Summary

GFOOT Co., Ltd. is experiencing declining revenues and persistent losses. The balance sheet shows significant financial stress with high debt levels and negative equity. While there is some improvement in cash flow management, overall financial stability and profitability are major concerns.

Income Statement

GFOOT Co., Ltd. has been experiencing declining revenues over the past few years, with a notable revenue decrease of approximately 7.1% from 2024 to 2025. The company is struggling with profitability as reflected in negative EBIT and EBITDA margins, indicating operational inefficiencies. The net profit margin is also negative, highlighting persistent losses. Despite these challenges, the gross profit margin remains relatively strong, suggesting some ability to manage cost of goods sold effectively.

Balance Sheet

The balance sheet reveals significant financial stress, with a high debt-to-equity ratio due to negative stockholders' equity, indicating potential solvency concerns. The return on equity is negative, reflecting consistent losses. The equity ratio is severely low, pointing to a heavy reliance on debt financing. These factors indicate potential risks in financial stability and capital structure.

Cash Flow

Cash flow analysis shows some improvements in free cash flow from negative values in prior years to a positive free cash flow in 2025, indicating better cash management. However, the operating cash flow to net income ratio is concerning due to persistent negative net income. The improvement in free cash flow is a positive sign, but overall cash flow management remains challenging.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	62.23B	59.98B	64.60B	65.69B	66.27B	65.85B
Gross Profit	27.12B	26.42B	28.38B	26.81B	27.36B	23.13B
EBITDA	-610.50M	-485.00M	-897.00M	-4.63B	-6.33B	-11.71B
Net Income	-1.41B	-1.06B	-1.77B	-5.52B	-7.14B	-12.72B
Balance Sheet
Total Assets	33.48B	29.73B	32.64B	40.25B	43.32B	44.01B
Cash, Cash Equivalents and Short-Term Investments	541.00M	1.63B	583.00M	6.12B	5.84B	1.37B
Total Debt	21.39B	13.15B	20.69B	22.15B	21.99B	17.45B
Total Liabilities	38.93B	28.82B	37.40B	43.40B	41.04B	39.61B
Stockholders Equity	-5.45B	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: 286.00
• 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 286 is above the 20-day moving average (MA) of 282.45, above the 50-day MA of 278.02, and above the 200-day MA of 280.86, indicating a bullish trend. The MACD of 2.52 indicates Negative momentum. The RSI at 68.64 is Neutral, neither overbought nor oversold. The STOCH value of 72.70 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
7416	72 Outperform	¥11.48B	17.06		0.64%	0.61%	74.55%
Sector *	67 Neutral	¥252.06B	13.21	6.57%	2.79%	5.06%	-11.45%
8013	64 Neutral	¥2.41B	23.46		―	0.39%	-288.31%
7603	52 Neutral	¥7.97B	―		―	-14.86%	-27.89%
7445	51 Neutral	€10.68B	―	-180.01%	―	-21.09%	-165.71%
7494	50 Neutral	¥8.02B	―		2.07%	-9.83%	-371.31%
2686	45 Neutral	¥12.17B	―		―	-7.16%	40.05%