Festaria Holdings Company Limited (2736) AI Stock Analysis

• Market Cap: ¥2.13B
• Dividend Yield: 1.18%
• Average Volume (3M): 2.59K
• Price to Earnings (P/E): 12.0
• Beta (1Y): 0.17
• Revenue Growth: 1.04%
• EPS Growth: -66.56%
• Country: JP
• Employees: 515
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Luxury Goods
• EPS (TTM): 16.46
• Shares Outstanding: 3,630,600
• 10 Day Avg. Volume: 2,210
• 30 Day Avg. Volume: 2,586
• PEG Ratio: 0.09
• Price to Book (P/B): 1.10
• Price to Sales (P/S): 0.18
• P/FCF Ratio: 4.86
• 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: 62 Neutral
• Price Target: ¥659.00 ▲(16.84% Upside)

Festaria Holdings' overall stock score is driven by its strong financial performance, particularly in cash flow generation and profitability improvements. However, technical indicators suggest bearish momentum, and the high leverage remains a concern. The valuation is reasonable, offering moderate income potential.

Positive Factors

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, enabling Festaria Holdings to invest in growth opportunities and manage debt effectively.

Revenue Growth

Consistent revenue growth indicates expanding market presence and effective sales strategies, supporting long-term business sustainability.

Profitability Improvements

Improved profitability margins reflect operational efficiency and cost management, contributing to stronger financial health and shareholder value.

Negative Factors

High Leverage

Significant leverage can increase financial risk, potentially impacting the company's ability to weather economic downturns and invest in growth.

Earnings Volatility

Negative EPS growth indicates earnings volatility, which may undermine investor confidence and affect the company's ability to attract capital.

Equity Ratio

A moderate equity ratio implies a reliance on debt, which can limit financial flexibility and increase vulnerability to interest rate fluctuations.

Festaria Holdings Company Limited Business Overview & Revenue Model

Company Description

Festaria Holdings Company Limited (2736) is a Japan-based company primarily engaged in the operation of jewelry retail stores. The company specializes in the design, manufacture, and sale of high-quality jewelry products, including engagement rings, wedding bands, and other luxury accessories. With a focus on elegance and craftsmanship, Festaria Holdings caters to a diverse clientele seeking premium jewelry items for special occasions and daily wear.

How the Company Makes Money

Festaria Holdings Company Limited generates revenue through the sale of its jewelry products across its network of retail stores. The company offers a wide range of products, from diamond rings to bespoke jewelry pieces, attracting a broad customer base. Additionally, Festaria Holdings benefits from strategic partnerships with suppliers and manufacturers that enable it to maintain high-quality standards while optimizing production costs. The company may also leverage its brand reputation and marketing strategies to enhance customer loyalty and drive sales growth.

Festaria Holdings Company Limited Financial Statement Overview

Summary

Festaria Holdings shows strong financial health with a revenue growth rate of 7.47% and a gross profit margin of 62.92%. The net profit margin improved to 1.49%, and cash flow metrics are robust with a significant free cash flow growth of 2409.17%. However, the high debt-to-equity ratio of 2.24 indicates significant leverage.

Income Statement

Festaria Holdings has shown a positive revenue growth rate of 7.47% year-over-year. The gross profit margin stands at 62.92%, indicating strong profitability. Net profit margin improved to 1.49%, showing a turnaround from previous losses. Both EBIT margin (2.91%) and EBITDA margin (5.24%) have increased, reflecting operational efficiency improvements.

Balance Sheet

The debt-to-equity ratio is high at 2.24, indicating significant leverage. The return on equity has improved to 9.05%, showcasing better returns for shareholders. The equity ratio is 20.91%, suggesting moderate equity relative to total assets, pointing to a balanced, yet leveraged, financial structure.

Cash Flow

Free cash flow has grown significantly by 2409.17%, indicating strong cash generation capabilities. The operating cash flow to net income ratio is robust at 3.50, suggesting efficient cash conversion. The free cash flow to net income ratio is 2.49, highlighting strong cash flow relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.48B	9.31B	8.66B	8.78B	8.72B	8.43B
Gross Profit	5.91B	5.86B	5.49B	5.58B	5.53B	5.15B
EBITDA	541.92M	487.86M	415.08M	680.80M	489.90M	-735.80M
Net Income	188.84M	139.05M	57.81M	259.08M	128.14M	-806.62M
Balance Sheet
Total Assets	7.34B	7.35B	6.72B	6.95B	7.10B	8.03B
Cash, Cash Equivalents and Short-Term Investments	1.24B	1.19B	966.46M	984.86M	1.04B	950.57M
Total Debt	3.55B	3.44B	3.51B	3.50B	4.00B	5.24B
Total Liabilities	5.73B	5.81B	5.31B	5.66B	6.09B	7.17B
Stockholders Equity	1.62B	1.54B	1.41B	1.29B	1.01B	860.81M
Cash Flow
Free Cash Flow	0.00	346.58M	10.16M	539.12M	1.19B	-185.31M
Operating Cash Flow	0.00	487.20M	245.96M	707.68M	1.34B	12.86M
Investing Cash Flow	0.00	-177.70M	-264.78M	-155.49M	-7.22M	-180.24M
Financing Cash Flow	0.00	-89.37M	-18.24M	-583.28M	-1.24B	417.26M

Festaria Holdings Company Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 564.00
• 50DMA: Positive
• 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:2736, the sentiment is Positive. The current price of 564 is below the 20-day moving average (MA) of 582.55, below the 50-day MA of 583.48, and below the 200-day MA of 598.44, indicating a neutral trend. The MACD of 1.57 indicates Negative momentum. The RSI at 58.77 is Neutral, neither overbought nor oversold. The STOCH value of 75.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2736.

Festaria Holdings Company Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9904	75 Outperform	¥10.18B	21.51	―	5.26%	6.89%	-1.46%
7638	72 Outperform	¥26.01B	10.11	―	2.97%	34.99%	211.99%
7937	64 Neutral	$35.40B	22.54	2.46%	3.43%	22.68%	-9.41%
2736	62 Neutral	¥2.13B	11.96	―	1.18%	1.04%	-66.56%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7872	50 Neutral	¥6.19B	―	―	4.64%	-0.68%	46.43%
7810	41 Neutral	¥2.56B	115.72	―	0.23%	10.06%	-22.67%