IK HOLDINGS Co.,Ltd. (2722) AI Stock Analysis

• Market Cap: ¥3.27B
• Dividend Yield: 1.92%
• Average Volume (3M): 114.01K
• Price to Earnings (P/E): 10.8
• Beta (1Y): 0.44
• Revenue Growth: 10.41%
• EPS Growth: -13.14%
• Country: JP
• Employees: 195
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Discount Stores
• EPS (TTM): 4.74
• Shares Outstanding: 8,308,000
• 10 Day Avg. Volume: 232,000
• 30 Day Avg. Volume: 114,013
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥461.00
• Price Target Upside: 10.82% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 62 Neutral
• Price Target: ¥461.00 ▲(10.82% Upside)

IK HOLDINGS Co.,Ltd. shows a solid financial recovery with strong cash flow and a healthier balance sheet, contributing significantly to the overall score. The technical analysis indicates mixed signals with short-term weakness but longer-term strength. The valuation is attractive, with a reasonable P/E ratio and a decent dividend yield, supporting the stock's appeal.

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

Company Description

IK HOLDINGS Co., Ltd. (2722) is a diversified holding company based in Japan that operates across various sectors including technology, manufacturing, and investment. The company focuses on developing innovative solutions and products that cater to a wide range of industries, enhancing operational efficiency and driving growth. With a portfolio that includes subsidiaries engaged in advanced manufacturing processes, software development, and strategic investments, IK HOLDINGS positions itself as a key player in the evolving market landscape.

How the Company Makes Money

IK HOLDINGS generates revenue through multiple streams, primarily by leveraging its subsidiaries' operations in various sectors. Key revenue sources include sales of manufactured goods and technological solutions, which are marketed to businesses and consumers alike. Additionally, the company earns income from strategic investments in emerging technologies and startups that promise significant growth potential. Partnerships with other firms in technology and manufacturing also contribute to revenue, as they enable IK HOLDINGS to expand its market reach and enhance product offerings. Furthermore, ongoing research and development initiatives allow the company to innovate and adapt to market demands, ultimately driving profitability.

IK HOLDINGS Co.,Ltd. Financial Statement Overview

Summary

IK HOLDINGS Co.,Ltd. demonstrates a solid recovery in revenue and cash flow, with improved profitability metrics. The balance sheet shows a healthier capital structure, though there is room for further leverage reduction. The company is well-positioned for future growth, but continued focus on enhancing net profit margins and operational efficiency will be crucial for sustained success.

Income Statement

IK HOLDINGS Co.,Ltd. has shown a significant recovery in revenue growth, with a 60.5% increase in the latest period. The gross profit margin is strong at 40.9%, indicating efficient cost management. However, the net profit margin remains low at 2.1%, suggesting challenges in translating revenue growth into net income. The EBIT and EBITDA margins are modest at 2.8% and 4.5%, respectively, indicating room for improvement in operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.70, reflecting a more balanced capital structure. Return on equity is positive at 13.7%, indicating effective use of equity to generate profits. However, the equity ratio is moderate at 38.0%, suggesting a reliance on debt financing. Overall, the balance sheet shows stability but highlights the need for continued focus on reducing leverage.

Cash Flow

Operating cash flow has improved significantly, with a positive free cash flow growth rate. The operating cash flow to net income ratio is strong at 2.7, indicating efficient cash generation relative to net income. The free cash flow to net income ratio is also healthy at 1.5, suggesting robust cash flow management. Overall, the cash flow position is strong, supporting the company's operational and financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	15.12B	15.21B	14.05B	14.18B	16.34B	20.73B
Gross Profit	6.21B	6.22B	5.85B	5.95B	7.40B	10.61B
EBITDA	671.40M	678.89M	455.90M	-303.97M	-441.35M	804.13M
Net Income	438.67M	321.37M	229.46M	-463.53M	-905.53M	321.32M
Balance Sheet
Total Assets	6.53B	6.08B	6.01B	6.79B	7.38B	7.23B
Cash, Cash Equivalents and Short-Term Investments	537.85M	474.10M	576.29M	971.92M	1.08B	967.14M
Total Debt	2.17B	1.67B	1.75B	2.74B	2.54B	1.31B
Total Liabilities	4.19B	3.69B	3.84B	4.82B	4.87B	3.67B
Stockholders Equity	2.34B	2.39B	2.17B	1.97B	2.50B	3.55B
Cash Flow
Free Cash Flow	0.00	27.90M	556.32M	-197.66M	-1.06B	352.22M
Operating Cash Flow	0.00	105.31M	940.88M	66.42M	-769.49M	636.54M
Investing Cash Flow	0.00	-28.63M	-340.85M	-279.31M	-319.78M	-220.79M
Financing Cash Flow	0.00	-185.36M	-987.65M	109.01M	1.14B	-258.71M

IK HOLDINGS Co.,Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 416.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2722, the sentiment is Negative. The current price of 416 is below the 20-day moving average (MA) of 483.75, below the 50-day MA of 443.90, and above the 200-day MA of 395.45, indicating a neutral trend. The MACD of -4.04 indicates Positive momentum. The RSI at 37.68 is Neutral, neither overbought nor oversold. The STOCH value of 6.52 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2722.

IK HOLDINGS Co.,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2735	75 Outperform	¥8.25B	9.70	―	3.59%	0.52%	-3.73%
3080	67 Neutral	¥9.07B	48.29	―	1.85%	-1.36%	-63.23%
8203	65 Neutral	¥26.36B	9.06	―	2.96%	6.70%	7.79%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2722	62 Neutral	¥3.27B	10.82	―	1.92%	10.41%	-13.14%
7646	61 Neutral	¥12.21B	37.82	―	4.71%	-1.53%	48.90%
3094	43 Neutral	¥8.17B	―	―	―	-10.64%	-13.47%

IK HOLDINGS Co.,Ltd. Corporate Events

IK HOLDINGS Co.,Ltd. Reports June 2025 Sales Decline

IK HOLDINGS Co.,Ltd. reported a decrease in total sales for June 2025, with a year-over-year decline to 1,013 million yen, marking a 98.3% performance compared to the previous year. The direct marketing segment saw a notable decrease in sales, while the sales marketing segment experienced a slight increase, indicating a shift in the company’s operational dynamics and potentially impacting its market strategy.

IK HOLDINGS Reports Mixed Sales Performance for April 2025

IK HOLDINGS Co., Ltd. reported its monthly sales for April 2025, showing a total sales value of 1,231 million yen, a slight decrease from the previous year. The direct marketing segment saw a decline in sales, while the sales marketing segment experienced growth, reflecting a shift in the company’s operational focus.