Komehyo Holdings Co., Ltd. (2780) AI Stock Analysis

• Market Cap: ¥52.21B
• Dividend Yield: 3.69%
• Average Volume (3M): 80.22K
• Price to Earnings (P/E): 12.1
• Beta (1Y): 0.97
• Revenue Growth: 36.03%
• EPS Growth: -27.99%
• Country: JP
• Employees: 1,405
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 228.71
• Shares Outstanding: 11,257,000
• 10 Day Avg. Volume: 106,010
• 30 Day Avg. Volume: 80,220
• PEG Ratio: -1.32
• Price to Book (P/B): 0.95
• Price to Sales (P/S): 0.20
• P/FCF Ratio: -3.98
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 361.9
• Revenue Forecast (FY): ¥207.79B

• Rating: 69 Neutral
• Price Target: ¥5,064.00 ▲(76.88% Upside)
• Action: Reiterated Date: 02/28/26
• Date: Action: Reiterated 02/28/26

The score is driven primarily by solid financial performance from strong revenue growth and stable profitability, tempered by leverage and negative free cash flow. Technicals are supportive due to a strong uptrend, but overbought signals reduce the technical score. Valuation is a positive contributor with a moderate P/E and a reasonable dividend yield.

Positive Factors

Revenue Growth

Komehyo's ~39% revenue growth shows durable demand expansion in pre-owned luxury goods and effective multi-channel distribution. Sustained top-line momentum supports scale benefits in sourcing, merchandising and online/retail operations, enabling reinvestment and stronger inventory management.

Stable Gross & Net Margins

Consistent gross and net margins indicate effective cost control and pricing power within the recommerce model. Margin stability supports long-term profitability as revenue scales, reflecting operational discipline in appraisal, pricing and markdown management that protects unit economics.

Proprietary Recommerce Capabilities

Specialized appraisal, authentication and refurbishment capabilities create a durable competitive moat in luxury recommerce. These skills preserve inventory value, reduce counterfeit risk, improve sell-through and enable premium pricing versus less-specialized resellers, strengthening long-term margins.

Negative Factors

High Leverage

A relatively high debt-to-equity ratio raises financial risk and reduces flexibility to fund inventory, capex or weather demand slowdowns. Elevated leverage increases interest burden and dependence on capital markets, making strategic investments or payout stability more constrained over time.

Weak Cash Conversion / Negative FCF

Negative free cash flow and poor operating cash conversion indicate difficulty turning profits into internal funding. This forces reliance on external financing for working capital and growth, heightening liquidity and refinancing risk and limiting the company's ability to self-fund strategic initiatives.

Weakening EBIT Margin

A declining EBIT margin suggests rising operating expenses or deteriorating operating leverage despite revenue gains. Persistent EBIT compression could erode returns on invested capital, reduce reinvestment capacity and make earnings more sensitive to cost inflation or demand variability.

Komehyo Holdings Co., Ltd. Business Overview & Revenue Model

Company Description

Komehyo Holdings Co.,Ltd. engages in the purchase and sale of used and new products through stores in Japan. The company offers jewelry, metals, clocks, bags, cloths, cameras, musical instruments, and other stocks, as well as car tire, aluminum wheel, and auto equipment. It is also involved in the lease of real estate properties. Komehyo Holdings Co.,Ltd. was founded in 1947 and is headquartered in Nagoya, Japan.

How the Company Makes Money

Komehyo generates revenue through the retail sale of secondhand luxury goods, including clothing, handbags, watches, and jewelry. The company profits from both its brick-and-mortar stores and its e-commerce platform, capitalizing on the increasing consumer demand for sustainable fashion. Key revenue streams include direct sales of consigned items, which are acquired from individual sellers and resold at marked-up prices, as well as trade-in services that allow customers to exchange their luxury items for store credit or cash. The company may also engage in partnerships with luxury brands and other retailers to broaden its inventory and enhance customer reach, contributing to its overall earnings.

Komehyo Holdings Co., Ltd. Financial Statement Overview

Summary

Income statement strength (revenue growth and stable gross/net margins) is offset by a weakening EBIT margin, relatively high leverage on the balance sheet, and cash-flow pressure from negative free cash flow and a negative operating cash flow to net income ratio.

Income Statement

Komehyo Holdings has demonstrated strong revenue growth over the years, with a significant increase from the previous periods. The Gross Profit Margin and Net Profit Margin have been stable, indicating effective cost management and profitability. However, a decline in EBIT margin suggests increased operational expenses, which could impact future profitability.

Balance Sheet

The company has a relatively high Debt-to-Equity ratio, indicating higher leverage, which could pose financial risks if not managed properly. However, the Return on Equity is solid, reflecting efficient use of equity to generate profits. The Equity Ratio suggests a balanced capital structure but with room for improvement in reducing debt levels.

Cash Flow

Komehyo Holdings faces challenges with negative free cash flow, indicating difficulties in generating sufficient cash from operations to cover capital expenditures. The Operating Cash Flow to Net Income ratio is negative, signaling potential liquidity issues. However, the company has managed to improve its financing cash flow, which could help manage its cash needs in the short term.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	171.61B	158.99B	119.46B	86.11B	71.15B	50.72B
Gross Profit	36.51B	35.25B	29.59B	22.54B	18.42B	13.84B
EBITDA	8.04B	9.28B	9.03B	6.66B	4.40B	674.61M
Net Income	3.72B	4.78B	5.03B	3.71B	2.26B	-595.59M
Balance Sheet
Total Assets	98.58B	88.63B	64.04B	46.75B	39.67B	37.40B
Cash, Cash Equivalents and Short-Term Investments	19.94B	15.54B	18.09B	12.28B	10.74B	11.98B
Total Debt	58.18B	47.40B	27.73B	16.50B	13.52B	14.75B
Total Liabilities	66.07B	55.43B	35.27B	22.51B	18.97B	18.96B
Stockholders Equity	32.11B	32.77B	28.41B	23.93B	20.44B	18.25B
Cash Flow
Free Cash Flow	0.00	-7.86B	-3.27B	-105.68M	506.18M	2.92B
Operating Cash Flow	0.00	-5.18B	-548.05M	1.54B	1.13B	4.38B
Investing Cash Flow	0.00	-6.71B	-3.22B	-1.95B	-529.30M	-1.22B
Financing Cash Flow	0.00	11.91B	9.43B	1.85B	-1.90B	1.35B

Komehyo Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2863.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2780, the sentiment is Positive. The current price of 2863 is below the 20-day moving average (MA) of 3962.00, below the 50-day MA of 3460.60, and below the 200-day MA of 3020.12, indicating a bullish trend. The MACD of 349.68 indicates Negative momentum. The RSI at 78.37 is Negative, neither overbought nor oversold. The STOCH value of 81.56 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2780.

Komehyo Holdings Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8860	74 Outperform	¥32.85B	6.27	―	4.20%	6.26%	-4.41%
2780	69 Neutral	¥52.21B	12.14	―	3.69%	36.03%	-27.99%
8881	67 Neutral	¥37.71B	8.94	5.90%	3.07%	3.04%	44.65%
3452	67 Neutral	¥31.52B	6.98	―	3.99%	3.72%	-27.94%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
2986	64 Neutral	¥74.28B	11.40	―	5.71%	8.07%	12.06%
3486	61 Neutral	¥38.04B	8.40	―	6.11%	81.19%	250.41%

Komehyo Holdings Co., Ltd. Corporate Events

Komehyo’s Luxury Resale Business Delivers Strong January as Global Expansion Continues

Komehyo Holdings reported strong January results in its brand and fashion business for the fiscal year ending March 2026, with net sales and individual purchase amounts both posting double-digit year-on-year growth. Retail sales ratios remained solid, while domestic tax-free sales continued to benefit from inbound demand, underscoring the resilience of the luxury resale segment.

The company expanded its global footprint with a new purchasing center, a combined purchase and sales outlet in Shanghai, and a sales store in Singapore, while auction prices for jewelry, watches, and bags rose on the back of soaring gold, inflation, and tight industry inventories. Although management expects growth to moderate as M&A effects normalize from the fourth quarter, both retail and corporate sales are tracking ahead of expectations, and a recent revision to disclosed retail ratios was confirmed to have no impact on consolidated financial results.

The most recent analyst rating on (JP:2780) stock is a Buy with a Yen5062.00 price target. To see the full list of analyst forecasts on Komehyo Holdings Co., Ltd. stock, see the JP:2780 Stock Forecast page.

Komehyo Hits Record Q3 Earnings as Global Store Expansion and Gold Sales Drive Growth

Komehyo Holdings reported record third-quarter net sales, operating profit, and ordinary profit for the fiscal year ending March 31, 2026, driven by strong purchasing, robust peak-season retail demand, and increased gold bullion sales amid higher gold prices. Profitability improved as high-margin domestic and duty-free retail grew, and although SG&A expenses rose due to store openings and personnel investment, their ratio declined, allowing gross profit growth to outpace cost increases.

The company accelerated domestic and overseas expansion, opening 13 new stores in the third quarter alone, including purchasing centers and sales outlets across Japan, Southeast Asia, Greater China, and a new purchasing office in New York City supported by an e-commerce site. A joint venture with J. Front Retailing bolstered inventory sourcing, and the full acquisition of U.S.-focused live commerce operator iShopShops, Inc. strengthened cross-border sales channels, underpinning Komehyo’s strategy to grow market share and enhance profitability globally.

The most recent analyst rating on (JP:2780) stock is a Buy with a Yen4160.00 price target. To see the full list of analyst forecasts on Komehyo Holdings Co., Ltd. stock, see the JP:2780 Stock Forecast page.

Komehyo Holdings Posts Strong Sales Growth but Lower Profit as It Maintains Dividend and Forecasts

Komehyo Holdings reported consolidated net sales of ¥157.5 billion for the nine months ended December 31, 2025, a 40.9% year-on-year increase, with operating profit up 12.6% to ¥5.7 billion and ordinary profit up 3.9% to ¥5.2 billion. Profit attributable to owners of the parent fell 15.7% to ¥3.2 billion, compressing EPS, while total assets expanded to ¥106.4 billion and the capital adequacy ratio declined as the balance sheet grew.

The company maintained its dividend policy, paying an interim dividend of ¥53 per share and forecasting a full-year payout of ¥106, unchanged from prior guidance. For the full fiscal year ending March 31, 2026, it left its earnings forecast intact, projecting 26.8% growth in net sales and double-digit gains in operating and ordinary profit, even as full-year profit attributable to owners is expected to decline, signaling ongoing top-line expansion alongside pressure on bottom-line margins.

The most recent analyst rating on (JP:2780) stock is a Buy with a Yen4160.00 price target. To see the full list of analyst forecasts on Komehyo Holdings Co., Ltd. stock, see the JP:2780 Stock Forecast page.

Komehyo’s Brand and Fashion Business Delivers Double-Digit Growth on Gold-Driven Demand

Komehyo Holdings reported strong growth in its brand and fashion business for the fiscal year ending March 2026 through December, with net sales reaching ¥152.3 billion, up 42.2% year on year, and individual purchase amounts climbing nearly 30%. Retail and corporate sales both exceeded internal plans, helped by a “Holiday SALE,” new purchasing centers and new sales outlets in Hong Kong and Taiwan, as well as robust domestic tax-free sales, which rose notably in the third quarter. Jewelry and watch auction prices benefited from surging gold prices, inflation and a weak yen, driving demand particularly for standard jewelry models, current watch models and solid-gold pieces, while bag prices remained elevated despite some year-end softening in overseas buying for certain brands. The company noted that growth in individual purchase amounts was heavily driven by low-margin gold and bullion amid soaring gold prices, implying that topline expansion may not translate proportionally into higher profitability, and it also highlighted that the current figures are preliminary, unaudited and exclude certain merged entities from the prior-year comparison, which stakeholders should consider when assessing performance trends.

The most recent analyst rating on (JP:2780) stock is a Hold with a Yen3552.00 price target. To see the full list of analyst forecasts on Komehyo Holdings Co., Ltd. stock, see the JP:2780 Stock Forecast page.

Komehyo’s Brand and Fashion Business Posts Strong November on Luxury Demand and Gold Price Surge

Komehyo Holdings reported strong performance in its brand and fashion business for November of the fiscal year ending March 2026, with net sales and individual purchase amounts continuing to grow at double-digit year-on-year rates, supported by robust retail demand and even faster growth in corporate sales. The company cited a Holiday SALE campaign, new store openings in Japan and Shanghai, and rising trading prices at corporate auctions—particularly for gold, bullion and popular watch models boosted by higher gold prices, inflation and a weak yen—as key drivers, though it noted that the surge in purchases of low-margin gold, bullion and watches is shaping the profit structure; the disclosed figures are preliminary, unaudited and exclude certain merged entities for the April–December period, which stakeholders should consider when assessing underlying trends.

The most recent analyst rating on (JP:2780) stock is a Hold with a Yen2877.00 price target. To see the full list of analyst forecasts on Komehyo Holdings Co., Ltd. stock, see the JP:2780 Stock Forecast page.