Village Vanguard Co., Ltd. (2769) AI Stock Analysis

• Market Cap: ¥8.02B
• Dividend Yield: N/A
• Average Volume (3M): 7.73K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.07
• Revenue Growth: 0.66%
• EPS Growth: -236.09%
• Country: JP
• Employees: 404
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): -393.61
• Shares Outstanding: 7,861,700
• 10 Day Avg. Volume: 6,950
• 30 Day Avg. Volume: 7,730
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥970.00
• Price Target Upside: -5.00% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 0

• Rating: 40 Underperform
• Price Target: ¥970.00 ▼(-5.00% Downside)

The overall stock score is primarily impacted by the company's poor financial performance, characterized by declining revenues, high leverage, and weak cash flow generation. Technical analysis indicates a bearish trend, further weighing on the score. The negative P/E ratio and lack of dividend yield also contribute to a low valuation score, reinforcing the stock's unattractiveness.

Village Vanguard Co., Ltd. Business Overview & Revenue Model

Company Description

Village Vanguard CO.,LTD. engages in the retail of books, miscellaneous goods, and CDs and DVDs. It operates approximately 334 stores. The company was founded in 1986 and is headquartered in Nagoya, Japan.

How the Company Makes Money

Village Vanguard generates revenue primarily through the sale of books and lifestyle products in its retail stores across Japan. The company's revenue model is diversified, with key revenue streams including direct sales from physical stores, online sales through its e-commerce platform, and partnerships with publishers and product manufacturers for exclusive merchandise. Additionally, Village Vanguard often curates themed events and promotions, attracting customers and boosting sales. Collaborations with various brands and limited-edition product launches also contribute significantly to its earnings, enhancing customer interest and driving foot traffic to its stores.

Village Vanguard Co., Ltd. Financial Statement Overview

Summary

Village Vanguard Co., Ltd. faces significant financial challenges across all verticals. The income statement shows declining revenues and profitability, the balance sheet is burdened with high leverage, and cash flow generation is weak. These factors combined suggest a need for strategic restructuring to improve financial health.

Income Statement

The income statement reveals significant challenges, with negative net income and declining revenue growth. The gross profit margin has decreased over the years, and the company is experiencing negative EBIT and EBITDA margins, indicating operational inefficiencies. The revenue growth rate is negative, reflecting a downward trend in sales.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio, indicating a leveraged position which could pose financial risks. The return on equity is negative, reflecting poor profitability relative to shareholder equity. The equity ratio is low, suggesting limited financial stability.

Cash Flow

Cash flow analysis indicates a negative free cash flow growth rate, highlighting cash generation issues. The operating cash flow to net income ratio is low, suggesting that earnings are not translating into cash flow effectively. The free cash flow to net income ratio is high due to negative net income, which is not sustainable.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	25.35B	24.96B	24.80B	25.28B	26.76B	28.29B
Gross Profit	9.26B	9.15B	9.68B	10.45B	10.93B	10.66B
EBITDA	-1.17B	-3.80B	-666.00M	438.00M	592.00M	517.00M
Net Income	-1.65B	-4.25B	-1.14B	23.00M	116.00M	-23.00M
Balance Sheet
Total Assets	20.36B	17.54B	22.91B	23.63B	24.72B	24.70B
Cash, Cash Equivalents and Short-Term Investments	2.14B	2.09B	2.31B	3.99B	5.07B	3.85B
Total Debt	9.64B	9.51B	9.77B	9.89B	10.53B	10.27B
Total Liabilities	15.44B	15.66B	16.69B	16.02B	16.99B	16.94B
Stockholders Equity	4.92B	1.87B	6.22B	7.50B	7.62B	7.76B
Cash Flow
Free Cash Flow	-193.00M	365.00M	-1.23B	-213.00M	1.26B	2.06B
Operating Cash Flow	-151.00M	494.00M	-936.00M	-53.00M	1.45B	2.22B
Investing Cash Flow	-43.00M	-272.00M	-406.00M	-158.00M	-242.00M	-214.00M
Financing Cash Flow	-889.00M	-446.00M	-341.00M	-863.00M	4.00M	-1.55B

Village Vanguard Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1021.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2769, the sentiment is Negative. The current price of 1021 is below the 20-day moving average (MA) of 1024.40, below the 50-day MA of 1025.58, and below the 200-day MA of 1027.44, indicating a bearish trend. The MACD of -1.36 indicates Positive momentum. The RSI at 44.35 is Neutral, neither overbought nor oversold. The STOCH value of 17.78 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2769.

Village Vanguard Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2652	75 Outperform	11.17B	10.00	12.67%	0.32%	5.33%	-26.18%
3135	74 Outperform	10.07B	20.74	35.60%	―	30.32%	―
7610	71 Outperform	10.13B	18.30	8.16%	2.61%	4.55%	50.97%
7442	69 Neutral	8.24B	10.22	2.35%	2.39%	6.03%	―
8289	46 Neutral	9.46B	-23.84	-0.27%	4.85%	6.19%	21.85%
2769	40 Underperform	¥8.02B	―	―	―	0.66%	-236.09%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%