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IK HOLDINGS Co.,Ltd. (JP:2722)
:2722
Japanese Market
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IK HOLDINGS Co.,Ltd. (2722) AI Stock Analysis

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JP:2722

IK HOLDINGS Co.,Ltd.

(2722)

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Neutral 58 (OpenAI - 5.2)
Rating:58Neutral
Price Target:
¥371.00
▼(-7.25% Downside)
Action:Reiterated
Date:07/15/26
The score is driven primarily by mid-level financial performance: a clear return to profitability and improved leverage are positives, but thin and recently compressed margins plus volatile cash flow limit confidence. Valuation is a key support (low P/E and a reasonable dividend yield), while technical signals are weaker with the stock below its longer-term moving averages and a negative MACD.
Positive Factors
Profitability turnaround
IK HOLDINGS moved from losses in 2022–2023 to sustained positive net income and free cash flow across 2024–2026. Multi-year profitability supports reinvestment, credit profile improvement and strategic flexibility, increasing the durability of the business if margins hold.
Negative Factors
Thin profit margins
Margins are very thin, leaving only a small buffer against cost increases or revenue shortfalls. With operating margin near 0.8% and net margin ~1.5%, even modest adverse trends could erase profits, making long-term earnings durability highly sensitive to efficiency and pricing execution.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability turnaround
IK HOLDINGS moved from losses in 2022–2023 to sustained positive net income and free cash flow across 2024–2026. Multi-year profitability supports reinvestment, credit profile improvement and strategic flexibility, increasing the durability of the business if margins hold.
Read all positive factors

IK HOLDINGS Co.,Ltd. (2722) vs. iShares MSCI Japan ETF (EWJ)

IK HOLDINGS Co.,Ltd. Business Overview & Revenue Model

Company Description
IK HOLDINGS Co.,Ltd., together with its subsiadiries, engages in the direct marketing, sales marketing, and IT solution businesses in Japan. The company sells miscellaneous goods and foods, as well as cosmetics through TV shopping, internet shoppi...
How the Company Makes Money
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IK HOLDINGS Co.,Ltd. Financial Statement Overview

Summary
Financials show a turnaround from losses (2022–2023) to positive net income and positive free cash flow (2024–2026), and leverage has improved with debt now well below equity. Offsetting this, the latest year saw modest revenue decline (~2.1%) and notable margin compression (thin ~0.8% operating margin, ~1.5% net margin), while cash flow has been volatile year-to-year, keeping overall quality in the mid range.
Income Statement
52
Neutral
Balance Sheet
60
Neutral
Cash Flow
55
Neutral
BreakdownTTMMay 2025May 2024May 2023May 2022May 2021
Income Statement
Total Revenue14.88B14.57B15.21B14.05B14.18B16.34B
Gross Profit5.74B5.48B6.22B5.85B5.95B7.40B
EBITDA354.05M242.46M678.89M455.90M-303.97M-441.35M
Net Income312.52M214.29M321.37M229.46M-463.53M-905.53M
Balance Sheet
Total Assets6.12B5.84B6.09B6.02B6.80B7.40B
Cash, Cash Equivalents and Short-Term Investments610.61M393.66M474.10M576.29M971.92M1.08B
Total Debt1.79B1.50B1.67B1.75B2.74B2.54B
Total Liabilities3.53B3.29B3.70B3.85B4.83B4.89B
Stockholders Equity2.59B2.55B2.39B2.17B1.97B2.50B
Cash Flow
Free Cash Flow0.00255.01M44.20M818.69M-79.58M-1.03B
Operating Cash Flow0.00302.76M105.31M940.88M66.42M-769.49M
Investing Cash Flow0.00-144.35M-28.63M-340.85M-279.31M-319.78M
Financing Cash Flow0.00-238.85M-185.36M-987.65M109.01M1.14B

IK HOLDINGS Co.,Ltd. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price400.00
Price Trends
50DMA
363.30
Negative
100DMA
371.32
Negative
200DMA
386.67
Negative
Market Momentum
MACD
-1.45
Negative
RSI
48.19
Neutral
STOCH
69.84
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2722, the sentiment is Neutral. The current price of 400 is above the 20-day moving average (MA) of 354.95, above the 50-day MA of 363.30, and above the 200-day MA of 386.67, indicating a neutral trend. The MACD of -1.45 indicates Negative momentum. The RSI at 48.19 is Neutral, neither overbought nor oversold. The STOCH value of 69.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:2722.

IK HOLDINGS Co.,Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
¥273.50B16.1212.03%1.96%8.20%52.27%
68
Neutral
¥32.20B24.532.22%19.03%-8.79%
62
Neutral
$20.33B14.63-3.31%3.23%1.93%-12.26%
61
Neutral
¥25.49B9.062.89%8.71%4.02%
58
Neutral
¥2.82B8.632.06%-4.23%-33.18%
51
Neutral
¥8.68B8.203.67%3.10%46.66%
50
Neutral
¥375.30B40.060.56%55.84%-10.10%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:2722
IK HOLDINGS Co.,Ltd.
357.00
-18.86
-5.02%
JP:2782
Seria Co
3,645.00
742.28
25.57%
JP:141A
Trial Holdings Inc.
3,045.00
610.27
25.07%
JP:2735
Watts Co., Ltd.
672.00
2.31
0.34%
JP:7596
Uoriki Co., Ltd.
2,290.00
-94.28
-3.95%
JP:8203
MrMax Holdings Ltd.
783.00
32.77
4.37%

IK HOLDINGS Co.,Ltd. Corporate Events

IK HOLDINGS Posts Profit Decline but Strengthens Balance Sheet for FY2026
Jul 14, 2026
IK HOLDINGS Co., Ltd., a general business company listed on the Tokyo Standard and Nagoya Premier markets, reported a year ended May 2026 with modestly lower sales but improved balance sheet strength. The company maintains a solid capital base, wi...
IK HOLDINGS Sees June Sales Dip Amid Ongoing Direct Marketing Weakness
Jul 6, 2026
IK HOLDINGS Co.,Ltd. reported consolidated sales of ¥976 million for June 2026, down 3.7% year-on-year, indicating a modest overall slowdown in monthly revenue. The cumulative sales for the current fiscal year continue to trail the previous y...
IK HOLDINGS Posts May Sales Decline as Direct Marketing Slump Deepens
Jun 4, 2026
IK HOLDINGS Co., Ltd. reported consolidated sales of ¥1,144 million for May 2026, a 14.2% decline year over year, with cumulative sales for the fiscal year to date down to 95.3% of the prior-year level. The latest figures underscore ongoing p...
IK HOLDINGS’ April Sales Rise 4% as Sales Marketing Growth Offsets Direct Marketing Slump
May 11, 2026
IK HOLDINGS reported consolidated April 2026 sales of ¥1,281 million, a 4.0% year-on-year increase, driven primarily by its Sales Marketing Business, which grew 14.1% to ¥1,072 million, while Direct Marketing revenue declined 28.6% to &#...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 15, 2026