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

• Market Cap: ¥3.07B
• Dividend Yield: 2.05%
• Average Volume (3M): 34.02K
• Price to Earnings (P/E): 10.2
• Beta (1Y): 0.49
• 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: 25,430
• 30 Day Avg. Volume: 34,023
• PEG Ratio: 0.21
• Price to Book (P/B): 1.21
• Price to Sales (P/S): 0.19
• P/FCF Ratio: 103.37
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: ¥439.00 ▲(12.28% Upside)

IK HOLDINGS Co.,Ltd. has a solid financial performance with strong revenue and cash flow recovery, though there is room for improvement in net profit margins. The technical analysis indicates a bearish trend, but the valuation metrics suggest the stock is reasonably priced. The absence of recent earnings call insights and corporate events limits additional context for the stock's outlook.

Positive Factors

Revenue Growth

Strong revenue growth indicates effective market strategies and product demand, positioning the company for continued expansion and market penetration.

Cash Flow Management

Efficient cash flow management enhances financial flexibility, supporting operational needs and strategic investments, crucial for long-term growth.

Balance Sheet Health

Improved debt-to-equity ratio indicates better financial stability, reducing risk and enhancing the company's ability to finance future growth.

Negative Factors

Net Profit Margin

Low net profit margins highlight inefficiencies in cost management, potentially limiting profitability and affecting long-term financial performance.

Operational Efficiency

Modest EBIT and EBITDA margins suggest room for improvement in operational efficiency, which is crucial for enhancing profitability and competitive positioning.

Leverage Concerns

Moderate equity ratio indicates potential over-reliance on debt, which could limit financial flexibility and increase vulnerability to economic downturns.

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

Company Description

I.K Co.,Ltd. provides marketing services in Japan. It operates Prime Direct that offers product directly to customers through websites and television shopping slots; SKINFOOD, which provides food cosmetics of a South Korean cosmetic brand through shops. The company also offers cosmetics, apparel goods, shoes, bags, beauty and health products, and other products through co-op stores, mail-order companies, shops, and overseas channels. In addition, it provides IT solutions, including the sale of systems related to the development of contact centers, such as Voistore, a voice call recording system; LINE WORKS, a voice call recording system for businesses; and M-Talk, a chat system. The company operates 22 directly managed shops and 4 franchised stores. I.K Co.,Ltd. was founded in 1982 and is headquartered in Nagoya, Japan.

How the Company Makes Money

IK HOLDINGS generates revenue through multiple streams, primarily from the sale of consumer electronics and household products. The company leverages its extensive distribution network to reach a wide customer base, including both retail and online channels. Key revenue streams include direct sales of its core products, as well as potential licensing agreements for its patented technologies. Additionally, strategic partnerships with major retailers and e-commerce platforms enhance its market presence and drive sales. The company also invests in marketing initiatives to boost brand awareness and attract new customers, contributing to its overall financial performance.

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	15.63B	15.21B	14.05B	14.18B	16.34B	20.73B
Gross Profit	6.26B	6.22B	5.85B	5.95B	7.40B	10.61B
EBITDA	618.62M	678.89M	455.90M	-303.97M	-441.35M	804.13M
Net Income	290.46M	321.37M	229.46M	-463.53M	-905.53M	321.32M
Balance Sheet
Total Assets	6.41B	6.08B	6.01B	6.79B	7.38B	7.23B
Cash, Cash Equivalents and Short-Term Investments	518.00M	474.10M	576.29M	971.92M	1.08B	967.14M
Total Debt	2.02B	1.67B	1.75B	2.74B	2.54B	1.31B
Total Liabilities	4.04B	3.69B	3.84B	4.82B	4.87B	3.67B
Stockholders Equity	2.36B	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: 391.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 391 is above the 20-day moving average (MA) of 390.95, below the 50-day MA of 402.34, and below the 200-day MA of 402.82, indicating a bearish trend. The MACD of -4.00 indicates Negative momentum. The RSI at 44.29 is Neutral, neither overbought nor oversold. The STOCH value of 72.86 is Neutral, 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
7646	73 Outperform	¥14.33B	9.59	―	4.01%	-0.83%	367.39%
8203	66 Neutral	¥26.26B	9.03	―	2.91%	6.70%	7.79%
3080	64 Neutral	¥9.84B	52.38	―	1.69%	-1.36%	-63.23%
2735	63 Neutral	¥8.29B	9.74	―	3.67%	0.52%	-3.78%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2722	61 Neutral	¥3.07B	10.17	―	2.05%	10.41%	-13.14%
3094	49 Neutral	¥10.01B	-5.72	―	―	-12.69%	22.75%

IK HOLDINGS Co.,Ltd. Corporate Events

IK HOLDINGS Co.,Ltd. Reports Decline in October 2025 Sales

IK HOLDINGS Co.,Ltd. reported a decline in total sales for October 2025, with a year-over-year decrease to 1,197 million yen, reflecting an 80.4% performance compared to the previous year. The direct marketing business saw a significant drop to 226 million yen, marking a 64.1% year-over-year decrease, while the sales marketing business also experienced a decline to 971 million yen, representing an 85.5% year-over-year performance. These results indicate challenges in maintaining sales growth, impacting the company’s market positioning and potentially affecting stakeholder confidence.

IK HOLDINGS Reports Mixed Sales Performance for September 2025

IK HOLDINGS Co.,Ltd. reported a slight decline in total sales for September 2025, with a year-over-year decrease of 1.4%. The direct marketing segment experienced a significant drop, while the sales marketing segment saw a modest increase, indicating a shift in business dynamics. This mixed performance may impact the company’s strategic direction and stakeholder interests.