J FRONT RETAILING Co (3086) AI Stock Analysis

• Market Cap: ¥589.33B
• Dividend Yield: 2.58%
• Average Volume (3M): 1.30M
• Price to Earnings (P/E): 19.5
• Beta (1Y): 1.19
• Revenue Growth: 6.52%
• EPS Growth: -31.67%
• Country: JP
• Employees: 5,277
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Department Stores
• EPS (TTM): 25.53
• Shares Outstanding: 270,565,770
• 10 Day Avg. Volume: 1,064,720
• 30 Day Avg. Volume: 1,303,113
• PEG Ratio: 0.30
• Price to Book (P/B): 1.23
• Price to Sales (P/S): 1.14
• P/FCF Ratio: 7.05
• 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: ¥2,000.00
• Price Target Upside: -13.01% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: ¥2,379.00 ▲(3.48% Upside)

The score is driven primarily by improving fundamentals and strong top-line growth, tempered by recent margin and free-cash-flow weakening and still-meaningful debt. Technical indicators are mixed with negative MACD and price below key moving averages, while valuation is moderate with a mid-range P/E and a modest dividend yield.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand and successful business strategies, supporting long-term expansion and market presence.

Leverage Improvement

Improved leverage enhances financial stability, reducing risk and increasing the company's ability to invest in growth opportunities.

Cash Generation

Strong cash generation supports operational needs and strategic investments, providing a cushion against economic fluctuations.

Negative Factors

Margin Pressure

Margin pressure indicates rising costs or pricing challenges, potentially impacting profitability and limiting reinvestment capacity.

Free Cash Flow Deterioration

Declining free cash flow growth reduces financial flexibility, potentially constraining future investments and debt servicing ability.

Substantial Debt

High debt levels can limit strategic options and increase vulnerability to interest rate changes, affecting long-term financial health.

J FRONT RETAILING Co Business Overview & Revenue Model

Company Description

J FRONT RETAILING Co (3086) is a leading retail company based in Japan, primarily engaged in department store operations, specialty retailing, and e-commerce. The company operates various retail formats, including high-end department stores and discount outlets, catering to a diverse customer base. J FRONT RETAILING is known for its wide range of products, including apparel, cosmetics, home goods, and food items, blending traditional retail with modern shopping experiences through its online platforms.

How the Company Makes Money

The company generates revenue primarily through the sales of merchandise across its department stores and specialty retail outlets. Key revenue streams include in-store sales, online sales through its e-commerce platforms, and leasing spaces within its retail locations to third-party vendors. Additionally, J FRONT RETAILING benefits from strategic partnerships with various brands, enhancing its product offerings and attracting a broader customer base. Seasonal promotions, loyalty programs, and exclusive product lines further contribute to its earnings, driving customer engagement and repeat business.

J FRONT RETAILING Co Financial Statement Overview

Summary

J FRONT RETAILING Co shows strong revenue growth and improved profitability with solid margins. However, cash flow management is a concern due to declining free cash flow growth, which could impact future operations.

Income Statement

J FRONT RETAILING Co has demonstrated strong revenue growth with a TTM increase of 27.1%, indicating a robust recovery and expansion. The gross profit margin remains healthy at approximately 47%, and the net profit margin has improved to 9.0%, reflecting enhanced profitability. EBIT and EBITDA margins are also strong, suggesting efficient operations and cost management.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.92, indicating a balanced leverage position. Return on equity is stable at around 10%, showing consistent profitability. However, the equity ratio is relatively low, suggesting a higher reliance on debt financing, which could pose risks if market conditions change.

Cash Flow

Free cash flow has declined in the TTM period, with a negative growth rate of -144.4%, which is concerning. The operating cash flow to net income ratio is low at 0.21, indicating potential cash flow management issues. However, the free cash flow to net income ratio remains healthy at 0.76, suggesting that the company is still generating sufficient cash relative to its earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	454.02B	441.88B	407.01B	359.68B	331.48B	319.08B
Gross Profit	215.60B	212.60B	195.52B	169.54B	147.84B	134.37B
EBITDA	94.31B	104.57B	91.49B	69.04B	60.35B	27.06B
Net Income	29.07B	41.42B	29.91B	14.24B	4.32B	-26.19B
Balance Sheet
Total Assets	1.15T	1.16T	1.11T	1.12T	1.19T	1.26T
Cash, Cash Equivalents and Short-Term Investments	32.61B	54.98B	71.34B	39.87B	93.28B	128.93B
Total Debt	341.31B	388.87B	364.40B	413.95B	502.11B	562.81B
Total Liabilities	731.54B	740.91B	720.50B	749.54B	830.79B	899.38B
Stockholders Equity	404.92B	409.65B	381.90B	359.38B	350.37B	352.17B
Cash Flow
Free Cash Flow	50.38B	71.40B	83.66B	56.84B	44.05B	41.74B
Operating Cash Flow	65.84B	85.81B	90.69B	65.48B	49.87B	56.47B
Investing Cash Flow	-22.04B	-28.31B	13.43B	-13.37B	-5.29B	-20.87B
Financing Cash Flow	-72.56B	-74.00B	-72.75B	-105.69B	-80.39B	58.73B

J FRONT RETAILING Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2299.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3086, the sentiment is Positive. The current price of 2299 is above the 20-day moving average (MA) of 2217.55, above the 50-day MA of 2233.84, and above the 200-day MA of 2121.03, indicating a bullish trend. The MACD of -0.60 indicates Negative momentum. The RSI at 57.27 is Neutral, neither overbought nor oversold. The STOCH value of 70.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3086.

J FRONT RETAILING Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8237	66 Neutral	¥95.09B	104.46	―	0.83%	1.38%	-87.76%
8242	66 Neutral	¥257.38B	17.37	4.97%	2.01%	2.00%	-68.35%
3099	65 Neutral	¥870.14B	15.84	9.37%	2.59%	-1.22%	-10.82%
8233	65 Neutral	¥565.68B	13.01	8.54%	1.84%	0.42%	20.25%
8244	65 Neutral	¥74.62B	12.92	―	1.09%	7.55%	89.45%
3086	63 Neutral	¥589.33B	19.51	7.58%	2.58%	6.52%	-31.67%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

J FRONT RETAILING Co Corporate Events

J. Front Retailing Posts Strong 3Q Profit, Maintains Full-Year Outlook Amid China Visitor Uncertainty

J. Front Retailing reported that its business profit for the third quarter of the fiscal year ending February 28, 2026, exceeded the previous year and came in slightly above plan, supported by steady sales between September and November. Looking ahead to the second half, the company noted uncertainty stemming from a decline in visitors from China but indicated it is still targeting the full-year forecast announced in October, while also reflecting a recent internal group reorganization in which part of J. Front ONE Partner’s operations were transferred to PARCO SPACE SYSTEMS and other group firms, with prior-year figures retroactively adjusted to ensure comparability.

The most recent analyst rating on (JP:3086) stock is a Hold with a Yen2342.00 price target. To see the full list of analyst forecasts on J FRONT RETAILING Co stock, see the JP:3086 Stock Forecast page.

J. Front Retailing Delivers Sales Growth but Profit Slumps on Rising Costs

J. Front Retailing reported consolidated gross sales of ¥940.4 billion for the nine months to 30 November 2025, up 2.9% year on year, with revenue rising 3.8% to ¥328.1 billion and gross profit up 1.9%. However, higher selling, general and administrative expenses, which increased 5.6%, squeezed profitability: business profit declined 7.4% to ¥41.5 billion, operating profit fell 20.4% to ¥40.7 billion, and profit attributable to owners of the parent dropped 33.4% to ¥24.7 billion, even as equity and the equity ratio held steady and interest-bearing liabilities decreased. Segment data, prepared under IFRS and adjusted for an internal reorganization that shifted some operations into the developer business, show modest top-line growth across the group but a notable margin contraction, signaling that cost inflation and structural investments are pressuring earnings despite resilient sales, with implications for shareholders focused on profit recovery and capital efficiency in Japan’s challenged retail sector.

The most recent analyst rating on (JP:3086) stock is a Hold with a Yen2342.00 price target. To see the full list of analyst forecasts on J FRONT RETAILING Co stock, see the JP:3086 Stock Forecast page.

J. FRONT RETAILING Sees Profit Declines Despite Higher Sales and Maintains Full-Year Outlook

J. FRONT RETAILING reported modest growth in gross sales and sales revenue for the first nine months of the fiscal year ending February 28, 2026, but saw double‑digit declines in business profit, operating profit, profit before tax, and profit attributable to owners of the parent compared with the same period a year earlier. Despite stable equity ratios and a solid financial position, profitability has weakened, leading to lower earnings per share year on year, while the company maintained its previously announced full-year forecasts and plans a slight increase in annual dividends compared with the prior fiscal year, signaling a commitment to shareholder returns even amid margin pressure.

The most recent analyst rating on (JP:3086) stock is a Hold with a Yen2342.00 price target. To see the full list of analyst forecasts on J FRONT RETAILING Co stock, see the JP:3086 Stock Forecast page.

J. FRONT RETAILING to Close Shizuoka PARCO Store

J. FRONT RETAILING Co., Ltd. announced the closure of its Shizuoka PARCO store, effective January 31, 2027, due to changing commercial conditions and the expiration of the building lease. The closure will result in a ¥1 billion loss recorded in the fiscal year ending February 28, 2026, but this has already been accounted for in the company’s financial forecasts.

The most recent analyst rating on (JP:3086) stock is a Sell with a Yen2000.00 price target. To see the full list of analyst forecasts on J FRONT RETAILING Co stock, see the JP:3086 Stock Forecast page.

J. Front Retailing Co. Reports Mixed Revenue Performance for October 2025

J. Front Retailing Co. reported a mixed performance across its business segments for October 2025, with the Department Store Business and SC Business showing year-on-year revenue growth, while the Developer Business faced declines. The company’s department stores experienced varied sales performance, with notable increases in categories such as women’s clothing and accessories, while household goods and certain food categories saw declines. The PARCO stores showed strong tenant transaction volume growth, particularly in general goods and clothing categories, indicating a positive trend in consumer spending at these locations.

The most recent analyst rating on (JP:3086) stock is a Sell with a Yen2000.00 price target. To see the full list of analyst forecasts on J FRONT RETAILING Co stock, see the JP:3086 Stock Forecast page.

J. Front Retailing Co. Sees Revenue Growth Amid Market Adjustments

J. Front Retailing Co. reported a consolidated revenue increase of 8.7% year-on-year for September 2025, with notable growth in the department store and shopping center segments. Despite some declines in specific store locations and product categories, the company saw significant gains in accessories and general goods, indicating a positive shift in consumer spending patterns. The closure of Matsumoto PARCO and varied performance across different stores and merchandise categories highlight ongoing adjustments in the company’s operations and market strategy.

The most recent analyst rating on (JP:3086) stock is a Buy with a Yen2639.00 price target. To see the full list of analyst forecasts on J FRONT RETAILING Co stock, see the JP:3086 Stock Forecast page.

J. FRONT RETAILING Reports Mixed Financial Results Amidst Profitability Challenges

J. FRONT RETAILING Co., Ltd. reported a slight increase in gross sales and sales revenue for the first six months of the fiscal year ending February 28, 2026, despite a decline in business and operating profits. The company has revised its earnings forecasts downward, indicating challenges in maintaining profitability, which may impact stakeholders’ expectations and market positioning.

The most recent analyst rating on (JP:3086) stock is a Buy with a Yen2639.00 price target. To see the full list of analyst forecasts on J FRONT RETAILING Co stock, see the JP:3086 Stock Forecast page.