NAFCO Co., Ltd. (2790) AI Stock Analysis

• Market Cap: €58.04B
• Dividend Yield: 2.85%
• Average Volume (3M): 15.91K
• Price to Earnings (P/E): 274.5
• Beta (1Y): 0.50
• Revenue Growth: -4.81%
• EPS Growth: -101.28%
• Country: JP
• Employees: 1,324
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Home Improvement
• EPS (TTM): 31.16
• Shares Outstanding: 29,784,400
• 10 Day Avg. Volume: 18,150
• 30 Day Avg. Volume: 15,906
• PEG Ratio: -2.76
• Price to Book (P/B): 0.31
• Price to Sales (P/S): 0.26
• P/FCF Ratio: -7.47
• 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: €1,814.54
• Price Target Upside: -10.30% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 57 Neutral
• Price Target: ¥1,815.00 ▼(-10.28% Downside)

The overall stock score for NAFCO Co., Ltd. is primarily influenced by its declining financial performance, highlighted by negative cash flow and reduced profitability, despite a strong balance sheet. The technical analysis suggests moderate momentum, but the valuation indicates a potential overvaluation with a high P/E ratio. The lack of earnings call data and corporate events limits additional insights.

NAFCO Co., Ltd. Business Overview & Revenue Model

Company Description

NAFCO Co., Ltd. (2790) operates as a retail company specializing in home improvement and hardware products. The company is headquartered in Japan and manages a chain of home centers and hardware stores. It offers a wide range of products including DIY supplies, gardening tools, household goods, and building materials. NAFCO is dedicated to providing quality products and services to support home improvement and maintenance projects for both individual and professional customers.

How the Company Makes Money

NAFCO Co., Ltd. generates revenue primarily through the sale of home improvement, hardware, and gardening products via its chain of retail stores. The company operates a network of home centers that serve as one-stop destinations for customers seeking products for DIY projects, home renovations, and gardening. Key revenue streams include the direct sale of goods to consumers, as well as value-added services such as delivery and installation. NAFCO's revenue is also supported by strategic partnerships with major suppliers and manufacturers, which enable it to offer a diverse range of products at competitive prices. Additionally, the company may engage in promotional activities and loyalty programs to drive customer engagement and repeat business.

NAFCO Co., Ltd. Financial Statement Overview

Summary

NAFCO Co., Ltd. is experiencing declining revenue and profitability, with a significant drop in net profit margin and negative cash flow. However, it maintains a strong balance sheet with low leverage.

Income Statement

NAFCO Co., Ltd. has experienced declining revenue over recent years, with total revenue decreasing from ¥234.58 billion in 2021 to ¥181.85 billion in 2025. The gross profit margin for 2025 is approximately 34.15%, indicating reasonable profitability within the industry. However, the net profit margin has decreased significantly to around 0.10% in 2025, reflecting reduced net income. The declining EBIT and EBITDA margins highlight challenges in operational efficiency and profit generation.

Balance Sheet

The company's balance sheet shows a stable equity position, with a debt-to-equity ratio of 0.16 in 2025, which is quite conservative. The return on equity (ROE) has been decreasing, indicating lower profitability from shareholders' investments, standing at approximately 0.12% in 2025. The equity ratio remains healthy at about 68.36%, suggesting a strong reliance on equity over debt for financing.

Cash Flow

NAFCO Co., Ltd. has faced a significant decline in operating cash flow, turning negative in 2025 at -¥709 million, reflecting operational challenges. Free cash flow has also turned negative in 2025, indicating potential liquidity issues. The free cash flow to net income ratio is negative, showing inefficiencies in cash generation from operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	180.22B	181.85B	192.45B	202.64B	206.88B	234.58B
Gross Profit	62.02B	62.11B	65.39B	69.96B	72.14B	80.73B
EBITDA	6.81B	7.10B	11.00B	14.98B	18.43B	24.66B
Net Income	-14.00M	183.00M	3.11B	5.64B	7.96B	11.69B
Balance Sheet
Total Assets	225.39B	225.19B	232.25B	238.41B	233.07B	236.16B
Cash, Cash Equivalents and Short-Term Investments	18.88B	18.50B	33.00B	36.12B	34.11B	40.98B
Total Debt	23.17B	27.65B	26.53B	26.40B	26.00B	26.71B
Total Liabilities	71.38B	71.24B	72.89B	76.60B	75.31B	83.34B
Stockholders Equity	154.01B	153.96B	159.36B	161.81B	157.76B	152.82B
Cash Flow
Free Cash Flow	0.00	-6.34B	4.14B	6.47B	-2.38B	20.82B
Operating Cash Flow	0.00	-709.00M	9.17B	9.66B	1.18B	24.78B
Investing Cash Flow	0.00	-5.95B	-4.93B	-3.43B	-3.50B	-3.50B
Financing Cash Flow	0.00	-7.84B	-7.36B	-4.22B	-4.56B	-4.49B

NAFCO Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2023.00
• 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:2790, the sentiment is Positive. The current price of 2023 is above the 20-day moving average (MA) of 1998.74, above the 50-day MA of 1926.42, and above the 200-day MA of 1828.96, indicating a bullish trend. The MACD of 24.90 indicates Positive momentum. The RSI at 60.61 is Neutral, neither overbought nor oversold. The STOCH value of 52.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2790.

NAFCO Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8218	68 Neutral	¥154.94B	10.43	―	1.76%	1.84%	-3.32%
7516	67 Neutral	¥127.26B	8.41	―	2.49%	4.89%	7.47%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3191	61 Neutral	¥126.64B	15.69	―	2.78%	1.81%	-7.32%
3199	60 Neutral	¥30.34B	14.28	―	1.61%	3.11%	-5.40%
2790	57 Neutral	€58.04B	274.50	-0.02%	2.85%	-4.81%	-101.28%
7450	48 Neutral	¥10.72B	―	―	0.50%	-1.79%	-491.60%

NAFCO Co., Ltd. Corporate Events

NAFCO Co., Ltd. Reports Significant Financial Decline for FY 2025

NAFCO Co., Ltd. has reported a significant decline in its financial performance for the fiscal year ending March 2025. The company experienced a 5.8% decrease in operating revenues and a substantial drop in operating profit by 76.9%, ordinary profit by 76.0%, and net profit by 94.1% compared to the previous year. These results indicate a challenging financial period for the company, potentially impacting its market positioning and stakeholder confidence.