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Halows Co., Ltd. (JP:2742)
:2742
Japanese Market
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Halows Co., Ltd. (2742) AI Stock Analysis

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JP:2742

Halows Co., Ltd.

(2742)

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Outperform 72 (OpenAI - 4o)
Rating:72Outperform
Price Target:
¥5,506.00
▲(13.53% Upside)
Halows Co., Ltd. has a strong financial foundation with robust revenue growth and profitability. The technical analysis indicates some short-term weakness, but the stock is not oversold. The valuation is reasonable, offering a fair P/E ratio and a modest dividend yield. The absence of earnings call and corporate events data limits additional insights.

Halows Co., Ltd. (2742) vs. iShares MSCI Japan ETF (EWJ)

Halows Co., Ltd. Business Overview & Revenue Model

Company DescriptionHalows Co.,Ltd. operates a network of supermarket stores in Hiroshima, Okayama, Kagawa, Ehime, Tokushima, and Hyogo of Japan. The company was formerly known as Fuchu Supermarket Co., Ltd. and changed its name to Halows Co.,Ltd. in March 1988. Halows Co.,Ltd. was incorporated in 1958 and is headquartered in Tsukubo, Japan.
How the Company Makes MoneyHalows Co., Ltd. generates revenue primarily through the sale of consumer goods in its supermarket chain. The company earns money by purchasing products from suppliers and selling them at a markup to customers in its retail stores. A significant portion of its revenue comes from groceries, fresh produce, and household essentials, which are staples for regular consumers. Additionally, Halows benefits from economies of scale due to its extensive network of stores, allowing for cost efficiencies in procurement and distribution. The company may also have partnerships with local producers and suppliers to offer exclusive products, further driving foot traffic and sales. Seasonal promotions and loyalty programs can contribute to increasing customer retention and spending, thereby boosting overall revenue.

Halows Co., Ltd. Financial Statement Overview

Summary
Halows Co., Ltd. demonstrates strong revenue growth and profitability with effective cost management. The company has a solid equity base and conservative leverage, though there are challenges in managing capital expenditures affecting free cash flow.
Income Statement
85
Very Positive
Halows Co., Ltd. has demonstrated strong revenue growth, with a consistent increase in total revenue over the past years, culminating in a 7.86% growth from 2024 to 2025. The company maintains a healthy gross profit margin of 25.64% and a net profit margin of 4.23% in 2025, indicating effective cost management and profitability. EBIT and EBITDA margins are also solid at 5.82% and 7.94%, respectively, showing operational efficiency. Overall, the income statement reflects a robust growth trajectory and profitability.
Balance Sheet
78
Positive
The balance sheet of Halows Co., Ltd. reveals a strong equity base with a rising stockholders' equity, reaching 62.40% of total assets in 2025, which enhances financial stability. The debt-to-equity ratio has been decreasing over the years, currently at 0.16, which signifies a conservative leverage approach. Return on equity is at 12.65%, indicating good returns for shareholders. However, the high total liabilities to equity ratio still suggests some level of financial risk, albeit well-managed.
Cash Flow
72
Positive
The cash flow statement shows a positive trend in operating cash flow, which increased to ¥15.89 billion in 2025, supporting business operations and growth. However, free cash flow decreased significantly due to a high capital expenditure, impacting the free cash flow to net income ratio. The operating cash flow to net income ratio is favorable at 1.78, reflecting strong cash generation from operations. Despite healthy operational cash flows, the decline in free cash flow suggests potential challenges in managing capital investments effectively.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue213.55B210.75B195.44B174.11B163.37B151.94B
Gross Profit55.33B54.03B54.35B48.00B44.40B41.35B
EBITDA17.00B16.73B15.71B13.32B12.73B11.41B
Net Income8.99B8.91B8.59B6.20B5.93B5.50B
Balance Sheet
Total Assets125.70B112.87B104.28B99.15B87.27B90.84B
Cash, Cash Equivalents and Short-Term Investments22.89B15.03B18.14B17.84B14.66B23.25B
Total Debt10.16B11.13B15.14B19.44B14.09B16.89B
Total Liabilities53.85B42.44B41.77B44.34B37.87B46.63B
Stockholders Equity71.85B70.43B62.51B54.80B49.40B44.21B
Cash Flow
Free Cash Flow0.003.88B5.75B-562.00M-4.38B5.00B
Operating Cash Flow0.0015.89B13.15B10.62B3.28B11.59B
Investing Cash Flow0.00-13.76B-7.25B-11.52B-7.82B-7.56B
Financing Cash Flow0.00-5.25B-5.60B4.08B-4.05B4.68B

Halows Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price4850.00
Price Trends
50DMA
5058.85
Negative
100DMA
4892.39
Negative
200DMA
4469.47
Positive
Market Momentum
MACD
-38.62
Positive
RSI
33.08
Neutral
STOCH
12.08
Positive
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 4850 is below the 20-day moving average (MA) of 5030.25, below the 50-day MA of 5058.85, and above the 200-day MA of 4469.47, indicating a neutral trend. The MACD of -38.62 indicates Positive momentum. The RSI at 33.08 is Neutral, neither overbought nor oversold. The STOCH value of 12.08 is Positive, 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

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
¥71.64B13.2112.50%3.93%17.13%-6.33%
76
Outperform
¥155.87B12.4511.27%1.61%9.83%21.58%
75
Outperform
¥53.99B10.3915.16%3.26%12.94%5.50%
74
Outperform
¥59.71B10.816.17%3.23%5.39%14.57%
73
Outperform
¥108.52B11.3910.61%2.05%3.09%10.80%
72
Outperform
¥103.83B11.761.37%7.75%-1.68%
62
Neutral
$20.33B14.63-3.31%3.23%1.93%-12.26%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:2742
Halows Co., Ltd.
4,825.00
526.06
12.24%
JP:7508
G-7 Holdings Inc.
1,228.00
-425.20
-25.72%
JP:8167
RETAIL PARTNERS CO., LTD.
1,362.00
51.41
3.92%
JP:8198
Maxvalu Tokai Co., Ltd.
3,415.00
302.93
9.73%
JP:9823
Mammy Mart Corporation
1,331.00
485.55
57.43%
JP:9974
BELC Co., Ltd.
7,540.00
1,116.20
17.38%

Halows Co., Ltd. Corporate Events

Halows Co., Ltd. Completes Allotment of New Shares for Director Compensation
Jun 27, 2025

Halows Co., Ltd. has completed the allotment of new shares as restricted stock compensation, a decision made by the Board of Directors on May 29, 2025. This issuance involves 5,600 common shares at a price of 4,720 yen per share, intended as remuneration for its directors, excluding certain committee members and part-time directors. This move is aimed at aligning the interests of the directors with the company’s performance, potentially impacting the company’s governance and stakeholder relations.

Halows Co., Ltd. Completes Strategic Share Repurchase
Jun 27, 2025

Halows Co., Ltd. has completed the repurchase of 75,000 of its own shares through the Tokyo Stock Exchange’s off-auction trading system, as part of a strategic move to adapt to changing business environments. This acquisition, valued at 359,625,000 yen, reflects the company’s commitment to executing flexible capital policies, potentially impacting its financial strategy and shareholder value.

Halows Co., Ltd. Announces Share Repurchase Plan
Jun 26, 2025

Halows Co., Ltd. announced a decision by its Board of Directors to repurchase up to 75,000 of its own shares through the Tokyo Stock Exchange’s off-auction trading system. This move is intended to allow the company to implement flexible capital policies in response to changing business conditions, potentially impacting its market positioning and shareholder value.

Halows Co., Ltd. Reports Growth in Q1 2025 Financial Results and Announces Dividend Increase
Jun 26, 2025

Halows Co., Ltd. reported an increase in its non-consolidated financial results for the three months ended May 31, 2025, with operating revenues rising by 8.6% year-on-year. The company also announced a forecasted increase in annual dividends for the fiscal year ending February 28, 2026, indicating a positive outlook for stakeholders.

Halows Finalizes Stock Compensation Options for Directors
Jun 13, 2025

Halows Co., Ltd. has finalized the issuance details of stock compensation-type stock options for its directors, excluding those on the Audit and Supervisory Committee and outside directors. This decision, made by the Board of Directors, involves 66 stock acquisition rights, with a total of 6,600 common shares underlying these rights. The move is part of the company’s strategy to align director incentives with shareholder interests.

Halows Co., Ltd. Announces New Share Issuance for Director Compensation
May 29, 2025

Halows Co., Ltd. has announced the issuance of new shares as part of a restricted stock compensation plan aimed at enhancing corporate value and aligning the interests of its directors with those of shareholders. The plan involves issuing 5,600 common shares to eight eligible directors, with a transfer restriction period set for 50 years, to incentivize long-term commitment and shared value creation.

Halows Co., Ltd. Finalizes Stock Options for Directors
May 29, 2025

Halows Co., Ltd. has announced the finalization of issuing stock compensation-type stock options to its directors, excluding those on the Audit and Supervisory Committee and outside directors. This move aims to enhance the directors’ motivation to improve the company’s medium- and long-term performance and corporate value, potentially impacting the company’s operational efficiency and stakeholder confidence.

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: Oct 01, 2025