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

• Market Cap: ¥7.63B
• Dividend Yield: N/A
• Average Volume (3M): 7.79K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.06
• Revenue Growth: -4.54%
• EPS Growth: -261.55%
• Country: JP
• Employees: 404
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 21.39
• Shares Outstanding: 7,861,700
• 10 Day Avg. Volume: 10,060
• 30 Day Avg. Volume: 7,793
• PEG Ratio: >-0.01
• Price to Book (P/B): 4.35
• Price to Sales (P/S): 0.33
• P/FCF Ratio: 22.32
• 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: Moderate Sell
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: ¥999.00 ▲(2.78% Upside)

The overall stock score is primarily impacted by the company's poor financial performance, which is the most significant factor. Technical analysis provides mixed signals, offering some support but not enough to offset financial weaknesses. Valuation metrics are unfavorable due to negative earnings and lack of dividends.

Positive Factors

Diverse Revenue Streams

Village Vanguard's diverse revenue streams, including e-commerce and partnerships, provide resilience against market fluctuations and enhance long-term stability.

Unique Market Position

The company's unique product offerings and engaging shopping experience create a niche market position, fostering customer loyalty and competitive advantage.

Brand Collaborations

Strategic collaborations and exclusive product launches drive customer interest and foot traffic, supporting sustained revenue growth and market presence.

Negative Factors

Declining Revenue Growth

The negative revenue growth trend indicates challenges in maintaining sales momentum, which could impact long-term profitability and market share.

High Leverage

High leverage increases financial risk and limits flexibility, potentially affecting the company's ability to invest in growth opportunities and weather economic downturns.

Weak Cash Flow Generation

Poor cash flow generation limits the company's ability to fund operations and invest in strategic initiatives, posing a threat to long-term financial health.

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, magazines, and lifestyle products in its brick-and-mortar stores and online. The company's revenue model is driven by a mix of direct sales and merchandise offerings that appeal to niche markets. Key revenue streams include the sale of books, which include both mainstream and indie titles, as well as the sale of unique, often imported, lifestyle products that cater to specific interests. Village Vanguard also benefits from strategic partnerships with publishers and product vendors, which allow for exclusive merchandise and promotional events that help drive traffic to their stores. Additionally, the company may engage in seasonal promotions and collaborations that enhance customer engagement and boost sales during peak shopping periods.

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	24.20B	24.96B	24.80B	25.28B	26.76B	28.29B
Gross Profit	9.31B	9.15B	9.68B	10.45B	10.93B	10.66B
EBITDA	-1.11B	-3.80B	-666.00M	509.00M	592.00M	517.00M
Net Income	-3.97B	-4.25B	-1.14B	23.00M	116.00M	-23.00M
Balance Sheet
Total Assets	17.49B	17.54B	22.91B	23.63B	24.72B	24.70B
Cash, Cash Equivalents and Short-Term Investments	2.02B	2.09B	2.31B	3.99B	5.07B	3.85B
Total Debt	9.51B	9.51B	9.77B	9.89B	10.53B	10.27B
Total Liabilities	15.43B	15.66B	16.69B	16.02B	16.99B	16.94B
Stockholders Equity	2.06B	1.87B	6.22B	7.50B	7.62B	7.76B
Cash Flow
Free Cash Flow	0.00	365.00M	-1.23B	-213.00M	1.26B	2.06B
Operating Cash Flow	0.00	494.00M	-936.00M	-53.00M	1.45B	2.22B
Investing Cash Flow	0.00	-272.00M	-406.00M	-158.00M	-242.00M	-214.00M
Financing Cash Flow	0.00	-446.00M	-341.00M	-863.00M	4.00M	-1.55B

Village Vanguard Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 972.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Negative

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 972 is below the 20-day moving average (MA) of 984.55, below the 50-day MA of 1010.28, and below the 200-day MA of 1025.14, indicating a bearish trend. The MACD of -12.76 indicates Negative momentum. The RSI at 28.05 is Positive, neither overbought nor oversold. The STOCH value of 81.48 is Negative, 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
7610	71 Outperform	¥9.27B	13.35	―	2.86%	7.21%	411.30%
2652	66 Neutral	¥11.88B	9.72	―	0.30%	5.03%	-17.66%
7442	64 Neutral	¥8.26B	10.97	―	2.40%	3.93%	3458.02%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3135	61 Neutral	¥8.84B	20.74	―	―	25.60%	―
8289	53 Neutral	¥10.54B	-5.74	―	4.27%	3.14%	-183.07%
2769	45 Neutral	¥7.63B	-1.92	―	―	-4.54%	-261.55%