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

Halows Co., Ltd. (2742) AI Stock Analysis

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JP:2742

Halows Co., Ltd.

(2742)

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Outperform 71 (OpenAI - 5.2)
Rating:71Outperform
Price Target:
¥4,845.00
▲(5.44% Upside)
Action:ReiteratedDate: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
Balance Sheet Health
Material deleveraging has meaningfully reduced financial risk and increased flexibility. A very low debt load supports resilience through cyclical retail swings, enables capacity for selective store investment or remodels, and lowers refinancing pressure, improving long-term stability.
Negative Factors
Thin Net Margins
Low single-digit net margins leave limited buffer against cost inflation, supplier or wage pressures, and competitive price moves. Persistent thin profitability constrains retained earnings, limits investment runway, and makes long-term earnings growth sensitive to small margin shocks.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Health
Material deleveraging has meaningfully reduced financial risk and increased flexibility. A very low debt load supports resilience through cyclical retail swings, enables capacity for selective store investment or remodels, and lowers refinancing pressure, improving long-term stability.
Read all positive factors

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

Halows Co., Ltd. Business Overview & Revenue Model

Company Description
Halows 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. Halo...
How the Company Makes Money
Halows makes money mainly through retail sales to end customers in its physical stores. Its core revenue stream is the sale of food products (including fresh foods such as produce, meat, and seafood, as well as packaged foods) and non-food daily n...

Halows Co., Ltd. Financial Statement Overview

Summary
Strong balance sheet improvement (materially lower leverage) and steady multi-year revenue growth support a solid fundamental profile. Profitability is stable for grocery retail, but net margins are thin and cash flow has been volatile historically, with 2026 free cash flow notably below net income.
Income Statement
78
Positive
Balance Sheet
86
Very Positive
Cash Flow
73
Positive
BreakdownTTMFeb 2026Feb 2025Feb 2024Feb 2023Feb 2022
Income Statement
Total Revenue219.01B225.72B210.75B195.44B174.11B163.37B
Gross Profit55.57B57.05B54.03B50.09B44.31B40.87B
EBITDA17.07B12.47B17.11B15.54B13.14B12.61B
Net Income9.00B8.99B8.91B8.59B6.20B5.93B
Balance Sheet
Total Assets132.75B136.01B114.01B104.79B99.52B87.64B
Cash, Cash Equivalents and Short-Term Investments28.27B23.06B15.03B18.14B17.84B14.66B
Total Debt11.30B10.93B11.13B15.14B19.44B14.09B
Total Liabilities59.27B58.27B43.58B42.27B44.71B38.23B
Stockholders Equity73.48B77.74B70.43B62.51B54.81B49.40B
Cash Flow
Free Cash Flow0.0013.51B3.88B6.35B-176.00M-4.33B
Operating Cash Flow0.0026.20B15.89B13.15B10.62B3.28B
Investing Cash Flow0.00-14.02B-13.76B-7.25B-11.52B-7.82B
Financing Cash Flow0.00-2.51B-5.25B-5.60B4.08B-4.05B

Halows Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price4595.00
Price Trends
50DMA
4524.22
Negative
100DMA
4551.53
Negative
200DMA
4691.21
Negative
Market Momentum
MACD
-8.28
Negative
RSI
47.57
Neutral
STOCH
71.82
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 4364.25, above the 50-day MA of 4524.22, and below the 200-day MA of 4691.21, indicating a neutral trend. The MACD of -8.28 indicates Negative momentum. The RSI at 47.57 is Neutral, neither overbought nor oversold. The STOCH value of 71.82 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

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
¥114.08B11.711.92%2.30%26.52%
71
Outperform
¥94.15B11.651.47%7.75%-1.68%
71
Outperform
¥72.45B11.401.34%20.50%10.77%
69
Neutral
¥228.58B19.902.43%4.48%13.17%
69
Neutral
¥160.05B13.261.64%10.13%23.77%
66
Neutral
¥32.34B14.622.22%7.94%-8.55%
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.
4,310.00
-40.55
-0.93%
JP:7596
Uoriki Co., Ltd.
2,299.00
-47.11
-2.01%
JP:8194
Life Corporation
2,629.00
626.65
31.30%
JP:8198
Maxvalu Tokai Co., Ltd.
3,525.00
548.38
18.42%
JP:9823
Mammy Mart Corporation
1,303.00
282.21
27.65%
JP:9974
BELC Co., Ltd.
7,580.00
535.28
7.60%

Halows Co., Ltd. Corporate Events

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...
Halows Reports Change in Major Shareholding With No Expected Impact
Mar 10, 2026
Halows Co., Ltd. disclosed a change in its shareholder structure based on the filing of a Large Shareholding Report (Change Report) dated February 27, 2026. The company stated that the impact of this change on its future outlook is negligible and ...
Halows Restructures Director Duties to Strengthen Administrative Governance
Jan 15, 2026
Halows Co., Ltd. announced a change in the duties of Director Hidenori Hanaoka following a Board of Directors resolution on January 15, 2026. Hanaoka, previously Senior Managing Director and General Manager of Administrative Groups with responsibi...
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: Apr 12, 2026