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

• Market Cap: ¥31.42B
• Dividend Yield: 3.63%
• Average Volume (3M): 63.69K
• Price to Earnings (P/E): 6.6
• Beta (1Y): 0.75
• Revenue Growth: 33.09%
• EPS Growth: -4.95%
• Country: JP
• Employees: 1,405
• Sector: Real Estate
• Sector Strength: 55
• Industry: Real Estate - Services
• EPS (TTM): 90.91
• Shares Outstanding: 11,257,000
• 10 Day Avg. Volume: 54,160
• 30 Day Avg. Volume: 63,693
• PEG Ratio: -2.39
• Price to Book (P/B): 0.74
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 24.05
• 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: ¥3,043.00
• Price Target Upside: 5.11% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 70 Outperform
• Price Target: ¥3,155.00 ▲(8.98%Upside)

The overall score reflects strong valuation metrics indicating possible undervaluation and a robust dividend yield. However, financial risks associated with high leverage and negative cash flow, combined with technical indicators pointing to bearish sentiment, suggest caution. Improving financial stability and cash flow is essential for future growth.

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

Company Description

Komehyo Holdings Co., Ltd. (2780) is a Japanese company primarily engaged in the retail and auction of pre-owned luxury goods, including jewelry, watches, handbags, and apparel. The company operates through a network of retail stores, as well as online platforms, providing customers with a wide range of high-quality, authenticated second-hand products. Komehyo Holdings is known for its expertise in appraisals and its commitment to sustainability through the promotion of circular fashion.

How the Company Makes Money

Komehyo Holdings Co., Ltd. generates revenue through the buying and selling of pre-owned luxury goods. The company sources products from individual sellers and auctions, which are then authenticated and appraised before being offered for sale in their retail stores and online platforms. Key revenue streams include direct retail sales from their brick-and-mortar locations and e-commerce sites. Additionally, Komehyo may receive income from service fees related to appraisals and auctions. The company’s business model benefits from partnerships with luxury brands and strategic collaborations that enhance its product offerings and customer reach.

Komehyo Holdings Co., Ltd. Financial Statement Overview

Summary

Komehyo Holdings demonstrates strong revenue growth and stable profit margins. However, a high Debt-to-Equity ratio and negative free cash flow indicate financial risks and liquidity challenges that need addressing for long-term stability.

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	135.23B	158.99B	119.46B	86.11B	71.15B	50.72B
Gross Profit	31.95B	35.25B	29.59B	22.54B	18.42B	13.84B
EBITDA	9.40B	9.28B	9.03B	6.66B	4.40B	674.61M
Net Income	4.79B	4.78B	5.03B	3.71B	2.26B	-595.59M
Balance Sheet
Total Assets	91.38B	88.63B	64.04B	46.75B	39.67B	37.40B
Cash, Cash Equivalents and Short-Term Investments	18.81B	15.54B	18.09B	10.38B	9.08B	10.54B
Total Debt	51.86B	47.40B	27.73B	16.50B	13.52B	14.75B
Total Liabilities	59.83B	55.43B	35.27B	22.51B	18.97B	18.96B
Stockholders Equity	31.16B	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: 2895.00
• 50DMA: Positive
• 100DMA: Positive
• 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:2780, the sentiment is Positive. The current price of 2895 is above the 20-day moving average (MA) of 2808.35, above the 50-day MA of 2826.52, and below the 200-day MA of 3313.79, indicating a neutral trend. The MACD of 10.85 indicates Negative momentum. The RSI at 58.14 is Neutral, neither overbought nor oversold. The STOCH value of 83.80 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
3486	80 Outperform	¥33.32B	7.68		6.26%	89.94%	65.68%
8864	78 Outperform	¥41.25B	15.99		2.66%	19.92%	27.31%
2975	72 Outperform	¥32.27B	8.10		3.18%	21.59%	41.67%
2780	70 Outperform	¥31.42B	6.64		3.63%	33.09%	-4.95%
3457	67 Neutral	¥22.70B	7.98		4.16%	3.93%	26.84%
8860	65 Neutral	¥24.58B	5.19		3.81%	2.94%	4.03%
Sector *	54 Neutral	$1.17B	3.57	0.13%	7.12%	-2.13%	-128.06%

Komehyo Holdings Co., Ltd. Corporate Events

Komehyo Holdings Reports Record Net Sales Amid Market Challenges

Komehyo Holdings Co., Ltd. reported a record high in net sales for the fiscal year ending March 31, 2025, despite a decline in gross profit margins due to market instability and changes in inventory mix. The company successfully expanded its market share and is actively pursuing growth through new store openings and strategic M&A activities, reinforcing its foundation for sustainable growth. The company aims to further increase net sales and profit in the upcoming fiscal year by enhancing profitability and adapting to market fluctuations.

Komehyo Holdings Reports Increased Sales but Declining Profits

Komehyo Holdings Co., Ltd. reported a significant increase in net sales for the fiscal year ending March 31, 2025, with a 33.1% rise compared to the previous year. However, the company experienced a decline in operating and ordinary profits, with decreases of 17.1% and 19.2%, respectively. Despite these challenges, the company plans to increase its annual dividend payout, reflecting confidence in future growth. The financial forecast for the next fiscal year anticipates further growth in net sales and operating profit, although profit attributable to owners is expected to decrease slightly.