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

• Market Cap: ¥8.06B
• Dividend Yield: N/A
• Average Volume (3M): 7.37K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.08
• Revenue Growth: 0.66%
• EPS Growth: -236.09%
• Country: JP
• Employees: 404
• Sector: Consumer Cyclical
• Sector Strength: 80
• Industry: Specialty Retail
• EPS (TTM): -393.61
• Shares Outstanding: 7,861,700
• 10 Day Avg. Volume: 8,790
• 30 Day Avg. Volume: 7,373
• 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: ¥969.00
• Price Target Upside: -5.46% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1

• Rating: 39 Underperform
• Price Target: ¥969.00 ▼(-5.46% Downside)

The overall stock score is heavily influenced by poor financial performance, with significant challenges in revenue, profitability, and cash flow. Technical analysis indicates bearish trends, and valuation metrics suggest the stock is overvalued. These factors combined result in a low overall score.

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

Company Description

Village Vanguard Co., Ltd. (2769) is a prominent Japanese retailer specializing in books, lifestyle products, and unique merchandise. Established as a bookstore chain, Village Vanguard has expanded its offerings to include a diverse range of items, such as quirky gifts, home goods, and pop culture merchandise, catering to a wide demographic. The company operates primarily in the retail sector, focusing on creating an engaging shopping experience that blends literature with lifestyle and novelty products.

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. is experiencing financial difficulties, with declining revenues and profitability issues reflected in negative margins. The high leverage on the balance sheet poses potential risk, although the equity ratio indicates some stability. Cash flow challenges further compound these issues, necessitating strategic adjustments to improve financial health.

Income Statement

Village Vanguard Co., Ltd. has experienced a decline in revenue over the past few years, with a 1.92% decrease in the last year alone. The company has faced challenges in maintaining profitability, evidenced by the negative EBIT and net income in the latest period, leading to negative profit margins. This indicates operational struggles and a need for cost management improvements.

Balance Sheet

The company's balance sheet reflects high leverage with a debt-to-equity ratio of 1.57, indicating significant reliance on debt financing. However, the equity ratio stands at 27.14%, which shows a cautious balance in asset financing. The negative return on equity of -18.39% suggests inefficiencies in generating shareholder value.

Cash Flow

Village Vanguard Co., Ltd. has faced negative free cash flow growth, with a significant decline in operating cash flow in the current period. The free cash flow to net income ratio is negative, signaling challenges in converting earnings to cash flows, which might impact future growth investments.

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: 1025.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• 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 1025 is above the 20-day moving average (MA) of 1024.70, below the 50-day MA of 1033.62, and below the 200-day MA of 1032.85, indicating a neutral trend. The MACD of -1.84 indicates Negative momentum. The RSI at 47.20 is Neutral, neither overbought nor oversold. The STOCH value of 85.71 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
2652	75 Outperform	¥12.16B	10.79		0.29%	5.33%	-26.18%
3135	74 Outperform	¥10.06B	20.13		―	30.32%	―
7610	71 Outperform	¥9.54B	17.22		2.78%	4.55%	50.97%
7442	62 Neutral	¥8.18B	10.27		2.40%	6.03%	―
Sector *	61 Neutral	$17.67B	14.34	-5.25%	3.04%	1.27%	-14.70%
8289	51 Neutral	¥9.49B	―		4.87%	6.19%	21.85%
2769	39 Underperform	¥8.06B	―		―	0.66%	-236.09%