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

• Market Cap: ¥36.54B
• Dividend Yield: 3.69%
• Average Volume (3M): 80.22K
• Price to Earnings (P/E): 10.5
• Beta (1Y): 0.93
• 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): 29.51
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: ¥3,860.00 ▲(34.82% Upside)

The score is primarily shaped by mixed financial performance: strong revenue growth and stable margins are offset by negative free cash flow and elevated leverage. Technically, the trend is strong but overextended, while valuation is supportive with a low P/E and a near-3% dividend yield.

Positive Factors

Recommerce model & appraisal expertise

Komehyo's core recommerce model and in-house appraisal/authentication skills create a durable competitive moat. Expertise reduces counterfeit/valuation risk, improves sell-through and limits markdowns, sustaining gross margin spreads and customer trust across channels over time.

Robust revenue growth

Sustained ~36% revenue growth signals structural demand capture in the pre-owned luxury market and effective multi-channel distribution. Continued top-line expansion supports scale economics, inventory rotation, and reinvestment capacity, strengthening long-term operational resilience.

Stable margins and solid ROE

Stable gross and net margins combined with solid ROE indicate consistent profitability and efficient use of equity. This suggests effective pricing, cost controls and capital allocation that can sustain returns through economic cycles and underpin long-term shareholder value creation.

Negative Factors

Negative free cash flow and operating cash conversion

Persistent negative free cash flow and poor operating-cash-to-income conversion constrain the firm's ability to self-fund inventory purchases, capex or debt reduction. Over months this raises liquidity and refinancing risk, increasing dependence on external financing for growth or working capital.

Elevated leverage (high debt-to-equity)

Higher leverage reduces financial flexibility and raises interest and refinancing exposure. If revenue or cash conversion softens, debt-servicing demands could force cost cuts or asset dispositions, limiting strategic investments and raising credit risk in the medium term.

Weakening EBIT margin from rising operating costs

A declining EBIT margin indicates operating-cost pressures that can erode operating leverage even as revenue grows. Without structural cost control, sustained margin compression will reduce free cash generation and lower the long-run profitability of new sales and investments.

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

Revenue growth and stable gross/net margins support performance, but weakening EBIT margin points to rising operating costs. Balance sheet leverage is elevated (higher debt-to-equity), and cash flow is the main concern due to negative free cash flow and a negative operating cash flow to net income ratio, raising liquidity-quality risk.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: Positive
• RSI: Neutral
• STOCH: Neutral

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 3235.30, below the 50-day MA of 2972.50, and below the 200-day MA of 2901.80, indicating a bullish trend. The MACD of 128.83 indicates Positive momentum. The RSI at 61.57 is Neutral, neither overbought nor oversold. The STOCH value of 29.03 is Neutral, 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	¥29.65B	5.55	―	4.20%	6.26%	-4.41%
8864	70 Outperform	¥48.99B	17.29	―	2.93%	26.99%	-26.97%
3457	70 Neutral	¥21.73B	9.76	―	4.31%	-6.89%	7.72%
2780	69 Neutral	¥36.54B	10.46	―	3.69%	36.03%	-27.99%
3486	66 Neutral	¥33.24B	5.32	―	6.11%	81.19%	250.41%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
2975	64 Neutral	¥49.80B	11.71	―	2.81%	21.69%	30.92%

Komehyo Holdings Co., Ltd. Corporate Events

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.

Komehyo Holdings Reports Mixed Financial Results Amid Rising Sales

Komehyo Holdings reported a significant increase in net sales by 37.7% for the six months ending September 30, 2025, compared to the previous year. However, the company experienced a decline in operating profit, ordinary profit, and profit attributable to owners of the parent, indicating challenges in managing costs or market conditions. Despite these mixed results, the company maintains its forecast for the fiscal year ending March 31, 2026, with expectations of increased net sales and operating profit, suggesting confidence in its strategic initiatives and market positioning.

The most recent analyst rating on (JP:2780) stock is a Buy with a Yen3416.00 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 Reports Revenue Growth Amid Profit Challenges

Komehyo Holdings Co., Ltd. reported a revenue increase but a profit decrease for the second quarter of the fiscal year ending March 31, 2026. Despite achieving record net sales, profitability was impacted by higher SG&A expenses due to store openings and increased corporate sales ratio. The company is aggressively investing in expanding its store network, both domestically and internationally, to reinforce sustainable growth. With new purchasing centers in Malaysia and Thailand and a joint venture with J. Front Retailing, Komehyo is steadily expanding its market share, aiming to improve profitability amidst external market fluctuations.

The most recent analyst rating on (JP:2780) stock is a Buy with a Yen3416.00 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 Revises Earnings Forecast Amid Global Economic Challenges

Komehyo Holdings Co., Ltd. announced a revision of its earnings forecasts for the fiscal year ending March 31, 2026, due to recent operating trends. The company has increased its net sales forecast but lowered its profit expectations, citing challenges in the brand reuse market, influenced by global economic factors such as U.S. tariff policies and the Chinese economic recession. Despite these challenges, Komehyo has seen success in retail and corporate sales, driven by new store openings and increased gold bullion transactions.

The most recent analyst rating on (JP:2780) stock is a Buy with a Yen3416.00 price target. To see the full list of analyst forecasts on Komehyo Holdings Co., Ltd. stock, see the JP:2780 Stock Forecast page.