HONEYS HOLDINGS CO. LTD. (2792) AI Stock Analysis

• Market Cap: ¥41.38B
• Dividend Yield: 3.62%
• Average Volume (3M): 60.48K
• Price to Earnings (P/E): 12.1
• Beta (1Y): 0.32
• Revenue Growth: -0.98%
• EPS Growth: -29.86%
• Country: JP
• Employees: 6,105
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): 28.41
• Shares Outstanding: 27,900,000
• 10 Day Avg. Volume: 49,420
• 30 Day Avg. Volume: 60,483
• PEG Ratio: -0.48
• Price to Book (P/B): 0.95
• Price to Sales (P/S): 0.74
• P/FCF Ratio: 14.69
• 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: 72 Outperform
• Price Target: ¥1,696.00 ▲(10.99% Upside)

The score is driven primarily by strong financial stability (debt-free balance sheet, solid gross margins) and supportive valuation (modest P/E with a ~3.6% dividend yield). These positives are tempered by cooling profitability and uneven growth/cash-flow consistency, while technicals are mildly positive rather than strongly bullish.

Positive Factors

Debt-Free Balance Sheet

A debt-free balance sheet provides significant financial flexibility and lowers risk, especially in a cyclical retail industry.

Strong Gross Margins

High gross margins indicate effective cost management and pricing power, supporting profitability in a competitive market.

Equity Growth

Growing equity and healthy returns on equity suggest a solid foundation for long-term shareholder value creation.

Negative Factors

Declining Revenue Growth

Declining revenue growth indicates potential challenges in maintaining market share and demand, impacting future earnings.

Cooling Profitability

Decreasing margins suggest reduced profitability, which could limit reinvestment capacity and shareholder returns.

Volatile Cash Flow

Volatile cash flow raises concerns about the company's ability to consistently fund operations and investments.

HONEYS HOLDINGS CO. LTD. Business Overview & Revenue Model

Company Description

Honeys Holdings Co., Ltd. engages in the planning, manufacture, and retail of women's apparel and accessories. It offers its products under the GLACIER, Gracia, Cinema club, and Colza brand names. The company operates a network of 873 stores under the Honeys, Cinema Club, Honey's Dee, and Crossover brand names in Japan. It also operates online shopping sites. The company was formerly known as Honeys Co. Ltd. and changed its name to Honeys Holdings Co., Ltd. in March 2017. Honeys Holdings Co., Ltd. was incorporated in 1978 and is headquartered in Iwaki, Japan.

How the Company Makes Money

HONEYS HOLDINGS CO. LTD. generates revenue primarily through the sale of women's clothing and accessories in its retail stores. The company's revenue model is based on direct sales to consumers, both through its physical retail outlets and its online platform. Key revenue streams include the sale of various fashion items such as tops, bottoms, dresses, and outerwear, along with accessories like bags and shoes. The company benefits from economies of scale by leveraging its extensive network of retail locations and efficient supply chain management. Additionally, HONEYS may engage in strategic partnerships with suppliers and designers to enhance product offerings and maintain competitive pricing. Seasonal promotions, loyalty programs, and marketing campaigns also contribute to driving customer traffic and increasing sales.

HONEYS HOLDINGS CO. LTD. Financial Statement Overview

Summary

HONEYS HOLDINGS CO. LTD. exhibits strong revenue growth and a solid financial structure with no debt, fostering stability and resilience. However, declining net profit margins and free cash flow raise concerns about profitability and cash generation efficiency. The company must focus on enhancing operational efficiency and profitability to sustain its growth trajectory.

Income Statement

HONEYS HOLDINGS CO. LTD. demonstrates solid revenue growth over the years, with a notable increase from 2022 to 2023 by approximately 17.9%. The gross profit margin remains robust at around 60% in 2024, indicating effective cost management. However, the net profit margin slightly decreased from the previous year, influenced by a reduction in net income and EBIT margins, suggesting some profitability pressure.

Balance Sheet

The company maintains a strong balance sheet with no debt, resulting in a favorable debt-to-equity ratio of 0. The equity ratio remains high at around 84.8% in 2024, showcasing financial stability. Return on equity is decent at approximately 10.9%, but it declined from 13.1% in 2023, reflecting a slight drop in net income against equity.

Cash Flow

Free cash flow experienced a decline from a positive value in 2023 to a negative in 2024, primarily due to higher capital expenditures. The operating cash flow to net income ratio suggests operational cash sufficiency, but the free cash flow to net income ratio turned negative, indicating potential challenges in generating free cash from operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	57.29B	57.70B	56.57B	54.89B	47.70B	45.37B
Gross Profit	34.26B	34.15B	34.09B	33.43B	28.74B	26.83B
EBITDA	7.09B	7.24B	8.14B	8.80B	6.07B	4.76B
Net Income	3.44B	3.73B	4.88B	5.34B	3.26B	2.40B
Balance Sheet
Total Assets	53.20B	53.00B	52.84B	50.14B	46.58B	43.17B
Cash, Cash Equivalents and Short-Term Investments	14.64B	13.36B	12.86B	16.36B	12.54B	13.67B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	7.81B	8.29B	8.04B	9.39B	8.82B	7.45B
Stockholders Equity	45.39B	44.71B	44.80B	40.75B	37.75B	35.71B
Cash Flow
Free Cash Flow	0.00	2.89B	-1.96B	5.16B	839.33M	5.92B
Operating Cash Flow	0.00	4.92B	2.13B	6.81B	2.21B	7.71B
Investing Cash Flow	0.00	-2.26B	-4.20B	-1.78B	-2.47B	-1.88B
Financing Cash Flow	0.00	-1.53B	-1.53B	-1.12B	-837.40M	-978.62M

HONEYS HOLDINGS CO. LTD. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1528.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2792, the sentiment is Negative. The current price of 1528 is above the 20-day moving average (MA) of 1519.05, above the 50-day MA of 1504.32, and above the 200-day MA of 1515.24, indicating a bearish trend. The MACD of -0.68 indicates Positive momentum. The RSI at 38.85 is Neutral, neither overbought nor oversold. The STOCH value of 16.15 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2792.

HONEYS HOLDINGS CO. LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7606	74 Outperform	¥69.73B	19.24	―	2.73%	10.48%	-34.38%
2792	72 Outperform	¥41.38B	12.10	―	3.62%	-0.98%	-29.86%
8008	67 Neutral	¥39.04B	24.18	―	4.71%	48.00%	16.54%
8185	66 Neutral	¥34.80B	16.98	―	4.07%	-9.86%	-14.02%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3548	53 Neutral	¥28.34B	-13.02	―	4.99%	-7.21%	-5127.88%
7494	47 Neutral	¥8.36B	17.65	―	4.13%	-10.82%	―