Halows Co., Ltd. (JP:2742)
:2742
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Halows Co., Ltd.
(2742)
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Rating:71Outperform
Price Target:
¥4,201.00
▼(-8.57% Downside)
Action:Reiterated
Date:04/12/26
The score is primarily supported by solid financial performance (notably improved leverage and steady revenue/profitability) and an attractive valuation (low P/E). This is tempered by softer technicals, with the stock trading below key longer-term moving averages and only neutral momentum indicators.
Positive Factors
Stronger Balance Sheet
Material decline in debt-to-equity to very low levels in 2026 meaningfully reduces financial risk and interest burden. A stronger balance sheet increases strategic flexibility for targeted store investment, tenant development or opportunistic M&A, and improves resilience through demand cycles.
Negative Factors
Thin Net Margins
Net margins are narrow and recently declined, reflecting the structural low-margin nature of grocery retail and limited pricing power. Small earnings buffers make profitability highly sensitive to cost inflation, wage or supply shocks, constraining the company's ability to absorb input cost increases without eroding profits.
Read all positive and negative factors
Positive Factors
Negative Factors
Stronger Balance Sheet
Material decline in debt-to-equity to very low levels in 2026 meaningfully reduces financial risk and interest burden. A stronger balance sheet increases strategic flexibility for targeted store investment, tenant development or opportunistic M&A, and improves resilience through demand cycles.
Read all positive factors
Halows Co., Ltd. (2742) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥81.63B
Dividend Yield1.47%
Average Volume (3M)18.47K
Price to Earnings (P/E)9.0
Beta (1Y)0.50
Revenue Growth7.10%
EPS Growth0.95%
CountryJP
Employees1,305
SectorConsumer Defensive
Sector Strength42
IndustryGrocery Stores
Share Statistics
EPS (TTM)421.08
Shares Outstanding21,487,600
10 Day Avg. Volume14,120
30 Day Avg. Volume18,473
Financial Highlights & Ratios
PEG Ratio12.36
Price to Book (P/B)1.35
Price to Sales (P/S)0.46
P/FCF Ratio7.75
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Halows Co., Ltd. Business Overview & Revenue Model
Company Description
Operating a chain of supermarket stores, Halows Co.,Ltd. serves customers across several prefectures in Japan, specifically Hiroshima, Okayama, Kagawa, Ehime, Tokushima, and Hyogo. The company was founded in 1958 and initially operated as Fuchu Su...
How the Company Makes Money
Halows primarily generates revenue through retail sales to consumers at its supermarkets. Key revenue streams include (1) sales of food and grocery items (fresh foods, packaged foods, beverages, and household consumables), and (2) sales of non-foo...
Halows Co., Ltd. Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
86
Very Positive
Cash Flow
73
Positive
| Breakdown | TTM | Feb 2026 | Feb 2025 | Feb 2024 | Feb 2023 | Feb 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 219.01B | 225.72B | 210.75B | 195.44B | 174.11B | 163.37B |
| Gross Profit | 55.57B | 57.05B | 54.03B | 50.09B | 44.31B | 40.87B |
| EBITDA | 17.07B | 17.93B | 17.11B | 15.54B | 13.14B | 12.61B |
| Net Income | 9.00B | 8.99B | 8.91B | 8.59B | 6.20B | 5.93B |
Balance Sheet | ||||||
| Total Assets | 132.75B | 136.01B | 114.01B | 104.79B | 99.52B | 87.64B |
| Cash, Cash Equivalents and Short-Term Investments | 28.27B | 23.06B | 15.03B | 18.14B | 17.84B | 14.66B |
| Total Debt | 11.30B | 10.93B | 11.13B | 15.14B | 19.44B | 14.09B |
| Total Liabilities | 59.27B | 58.27B | 43.58B | 42.27B | 44.71B | 38.23B |
| Stockholders Equity | 73.48B | 77.74B | 70.43B | 62.51B | 54.81B | 49.40B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 13.51B | 3.88B | 6.35B | -176.00M | -4.33B |
| Operating Cash Flow | 0.00 | 26.20B | 15.89B | 13.15B | 10.62B | 3.28B |
| Investing Cash Flow | 0.00 | -14.02B | -13.76B | -7.25B | -11.52B | -7.82B |
| Financing Cash Flow | 0.00 | -2.51B | -5.25B | -5.60B | 4.08B | -4.05B |
Halows Co., Ltd. Technical Analysis
Negative
4595.00
Price Trends
3983.20
Negative
4259.96
Negative
4476.47
Negative
Market Momentum
-37.56
Negative
46.17
Neutral
46.62
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2742, the sentiment is Negative. The current price of 4595 is above the 20-day moving average (MA) of 3772.00, above the 50-day MA of 3983.20, and above the 200-day MA of 4476.47, indicating a neutral trend. The MACD of -37.56 indicates Negative momentum. The RSI at 46.17 is Neutral, neither overbought nor oversold. The STOCH value of 46.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2742.
Halows Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | ¥101.04B | 9.97 | ― | 1.92% | 2.00% | 9.17% | |
71 Outperform | ¥81.63B | 9.00 | ― | 1.47% | 7.10% | 0.95% | |
69 Neutral | ¥218.46B | 23.19 | ― | 2.43% | 3.62% | 11.00% | |
69 Neutral | ¥128.75B | 10.30 | ― | 1.64% | 9.19% | 2.45% | |
68 Neutral | ¥31.12B | 23.88 | ― | 2.22% | 19.03% | -8.80% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
62 Neutral | ¥53.61B | 9.24 | ― | 1.34% | 21.78% | 12.45% |
* Consumer Defensive Sector Average
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Halows Co., Ltd. Corporate Events
Halows Finalizes Stock Compensation-Type Options for Internal Directors
Jun 12, 2026
Halows Co., Ltd. has finalized the details of a stock compensation-type stock option program for its directors, following a board resolution made in late May 2026. The plan covers eight internal directors, excluding audit and outside members, and ...
Halows Director Resigns from Audit and Supervisory Committee Role
Jun 12, 2026
Halows Co., Ltd. announced the resignation of outside director Hitoshi Okamoto from his role as a director serving as an Audit and Supervisory Committee member, effective June 12, 2026. The company stated that the resignation was due to personal r...
Halows Introduces Long-Term Stock Options for Core Directors
May 28, 2026
Halows has approved the issuance of stock compensation-type stock options to eight of its directors, excluding audit committee and outside members, as part of a new incentive plan for the fiscal year ending February 28, 2027. The scheme grants 76 ...
Halows Keeps Management Lineup Steady Ahead of 68th Shareholders’ Meeting
Apr 23, 2026
Halows Co., Ltd. has announced the slate of director candidates to be presented at its 68th Annual General Meeting of Shareholders on May 28, 2026, confirming that President and CEO Toshiyuki Sato and the existing board members will be renominated...
Halows Lifts Year-End Dividend on Strong Earnings and Value-Driven Demand
Apr 10, 2026
Halows Co., Ltd. has approved an increase in its year-end dividend for the fiscal year ended February 28, 2026, raising the payment to ¥36 per share from the previously forecast ¥34, all as an ordinary dividend funded from retained earni...
Halows lifts sales and dividends as profits flatten, forecasts softer earnings ahead
Apr 10, 2026
Halows Co., Ltd. reported non-consolidated operating revenue of ¥225.7 billion for the fiscal year ended February 28, 2026, up 7.1% year on year, with operating profit rising 1.7% to ¥12.5 billion and net profit edging up 0.8% to ¥9...
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.