Beauty Kadan Holdings Co. Ltd. (3041) AI Stock Analysis

• Market Cap: ¥1.79B
• Dividend Yield: 1.19%
• Average Volume (3M): 5.26K
• Price to Earnings (P/E): 130.6
• Beta (1Y): 0.86
• Revenue Growth: 6.83%
• EPS Growth: 1654.82%
• Country: JP
• Employees: 238
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Personal Products & Services
• EPS (TTM): -21.48
• Shares Outstanding: 5,076,000
• 10 Day Avg. Volume: 3,720
• 30 Day Avg. Volume: 5,263
• PEG Ratio: 1.00
• Price to Book (P/B): 3.18
• Price to Sales (P/S): 0.26
• P/FCF Ratio: -15.76
• 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: 49 Neutral
• Price Target: ¥450.00 ▲(1.81% Upside)

Beauty Kadan Holdings Co. Ltd. faces significant financial challenges, with high leverage and declining profitability being major concerns. The technical indicators suggest a bearish trend, and the high P/E ratio indicates potential overvaluation. These factors contribute to a cautious outlook on the stock.

Positive Factors

Revenue Growth

Consistent revenue growth indicates the company's ability to expand its market presence and adapt to consumer demands, supporting long-term business sustainability.

Market Expansion

The dual focus on retail and wholesale operations allows the company to diversify revenue streams and mitigate risks associated with reliance on a single market segment.

Product Innovation

A strong focus on innovation and quality can drive customer loyalty and brand strength, positioning the company well for long-term competitive advantage.

Negative Factors

High Leverage

High leverage increases financial risk, potentially limiting the company's ability to invest in growth opportunities and affecting long-term financial stability.

Profitability Challenges

Negative EBIT margins indicate operational inefficiencies, which could hinder profitability and impact the company's ability to sustain growth over time.

Cash Flow Issues

Negative free cash flow suggests liquidity constraints, which could impair the company's capacity to fund operations and invest in future growth initiatives.

Beauty Kadan Holdings Co. Ltd. Business Overview & Revenue Model

Company Description

Beauty Kadan Holdings Co. Ltd. (3041) is a prominent player in the beauty and cosmetics industry, primarily based in Asia. The company focuses on the manufacturing and distribution of a wide range of beauty products, including skincare, makeup, and personal care items. With a commitment to innovation and quality, Beauty Kadan Holdings engages in both retail and wholesale operations, serving a diverse clientele through various channels such as e-commerce platforms and physical stores. The company aims to enhance consumer well-being through its comprehensive product offerings.

How the Company Makes Money

Beauty Kadan Holdings generates revenue through multiple channels within the beauty sector. Its primary revenue streams include direct sales of cosmetic and skincare products to consumers, both online and in retail settings. Additionally, the company benefits from wholesale arrangements with other retailers and distributors, allowing it to reach a broader market. Partnerships with beauty influencers and strategic collaborations with other brands enhance its market presence and drive sales. The company also invests in marketing and promotional campaigns to boost brand visibility, which plays a crucial role in attracting and retaining customers, thereby contributing to overall revenue growth.

Beauty Kadan Holdings Co. Ltd. Financial Statement Overview

Summary

Beauty Kadan Holdings Co. Ltd. shows strong revenue growth but faces significant challenges in profitability and cash flow management. The high leverage and declining return on equity indicate financial instability, which is a major concern.

Income Statement

Beauty Kadan Holdings Co. Ltd. has shown consistent revenue growth over the years, with a notable increase in the latest year. However, the gross profit margin has slightly declined, and the EBIT margin turned negative in the most recent year, indicating operational challenges. The net profit margin remains low, suggesting limited profitability. Despite these challenges, the company has managed to maintain positive revenue growth, which is a positive indicator.

Balance Sheet

The company has a high debt-to-equity ratio, indicating significant leverage, which poses a risk in terms of financial stability. Return on equity has decreased over the years, reflecting reduced profitability for shareholders. The equity ratio is relatively low, suggesting a higher reliance on debt financing. These factors highlight potential financial risks, despite the company's ability to grow its revenue.

Cash Flow

The cash flow situation is concerning, with negative free cash flow in the latest year and a negative operating cash flow to net income ratio. The free cash flow to net income ratio is high due to negative free cash flow, indicating potential liquidity issues. The company needs to improve its cash generation capabilities to ensure long-term sustainability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.60B	7.60B	6.98B	6.41B	5.86B	5.35B
Gross Profit	974.07M	975.00M	994.39M	941.02M	902.62M	785.16M
EBITDA	86.63M	55.00M	145.53M	179.44M	178.31M	161.54M
Net Income	42.27M	42.00M	28.54M	88.82M	86.32M	81.78M
Balance Sheet
Total Assets	2.90B	2.90B	2.72B	2.46B	2.44B	2.44B
Cash, Cash Equivalents and Short-Term Investments	1.22B	1.22B	1.07B	954.90M	950.45M	976.36M
Total Debt	1.59B	1.59B	1.48B	1.31B	1.31B	1.47B
Total Liabilities	2.29B	2.29B	2.17B	1.92B	1.91B	2.01B
Stockholders Equity	610.00M	610.00M	544.11M	545.46M	488.94M	402.62M
Cash Flow
Free Cash Flow	0.00	-123.00M	25.39M	91.42M	143.87M	44.93M
Operating Cash Flow	0.00	-32.00M	98.46M	105.99M	157.78M	57.82M
Investing Cash Flow	0.00	69.79M	-72.39M	-31.45M	-14.99M	-5.63M
Financing Cash Flow	0.00	111.00M	90.40M	-70.09M	-168.69M	145.25M

Beauty Kadan Holdings Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 442.00
• 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:3041, the sentiment is Negative. The current price of 442 is below the 20-day moving average (MA) of 448.75, below the 50-day MA of 451.64, and below the 200-day MA of 450.90, indicating a bearish trend. The MACD of -2.51 indicates Positive momentum. The RSI at 31.50 is Neutral, neither overbought nor oversold. The STOCH value of 6.06 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3041.

Beauty Kadan Holdings Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7372	71 Outperform	¥2.00B	13.89	―	―	8.17%	37.03%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
2196	54 Neutral	¥2.15B	-14.49	―	―	-4.35%	-132.57%
6186	54 Neutral	¥2.06B	-52.71	―	3.76%	-2.06%	-109.18%
3041	49 Neutral	¥1.79B	130.64	―	1.19%	6.83%	1654.82%
4679	45 Neutral	¥1.52B	-1,221.95	―	―	-6.45%	99.39%
7578	44 Neutral	¥2.00B	3.99	―	―	-15.38%	―