J FRONT RETAILING Co Ltd (JP:3086)
:3086
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J FRONT RETAILING Co
(3086)
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Rating:69Neutral
Price Target:
¥2,768.00
▲(20.40% Upside)
Action:ReiteratedDate:04/16/26
The score is driven primarily by improved financial stability (profitable turnaround, consistent free cash flow, and lower leverage) and supportive technical trend strength. Valuation is the main offset, with a relatively high P/E versus the latest signs of slowing revenue and earnings.
Positive Factors
Improved leverage
A materially lower debt-to-equity (~0.81 in 2026) reflects sustained deleveraging since 2021–2022, reducing solvency risk and increasing financial flexibility. That stronger balance sheet supports capital allocation for remodels, tenant deals, or selective investments over the next 2–6 months.
Negative Factors
Cooling revenue momentum
After strong growth in 2023–2024 the latest year shows a slight revenue decline, signaling top-line maturation. For a department-store operator, stalled sales growth limits the runway for margin expansion from scale and constrains long-term earnings growth absent new channels or meaningful market-share gains.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved leverage
A materially lower debt-to-equity (~0.81 in 2026) reflects sustained deleveraging since 2021–2022, reducing solvency risk and increasing financial flexibility. That stronger balance sheet supports capital allocation for remodels, tenant deals, or selective investments over the next 2–6 months.
Read all positive factors
J FRONT RETAILING Co (3086) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥661.87B
Dividend Yield2.58%
Average Volume (3M)1.30M
Price to Earnings (P/E)22.8
Beta (1Y)1.19
Revenue Growth6.52%
EPS Growth-31.67%
CountryJP
Employees5,277
SectorConsumer Cyclical
Sector Strength84
IndustryDepartment Stores
Share Statistics
EPS (TTM)14.60
Shares Outstanding270,565,770
10 Day Avg. Volume1,064,720
30 Day Avg. Volume1,303,113
Financial Highlights & Ratios
PEG Ratio-0.77
Price to Book (P/B)1.55
Price to Sales (P/S)1.45
P/FCF Ratio12.23
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)125.48
Revenue Forecast (FY)¥456.30B
J FRONT RETAILING Co Business Overview & Revenue Model
Company Description
J. Front Retailing Co., Ltd., together with its subsidiaries, operates department stores. The company operates through Department Store Business, PARCO Business, Real Estate Business, and Credit and Finance Business segments. The Department Store ...
How the Company Makes Money
J. Front Retailing primarily makes money through retail sales generated by its department store operations. Revenue is driven by (1) direct sales of merchandise to customers in its stores, where the company earns a retail margin between procuremen...
J FRONT RETAILING Co Earnings Call Summary
Earnings Call Date:Oct 08, 2024
(Q2-2024)
| % Change Since: |
Next Earnings Date:Jun 25, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted significant revenue growth and successful cost control, particularly in the Department Store segment, along with a promising outlook for the full year. However, challenges remain in certain business segments, notably in maintaining profit margins and managing unexpected expenses. The sentiment is balanced with both notable achievements and areas requiring further improvement.Positive Updates
Significant Revenue Growth
Consolidated gross sales for the first half of FY 2023 were JPY 540.1 billion, with revenue at JPY 191.6 billion, marking double-digit growth year-on-year. Business profit increased 48.2% to JPY 20.1 billion, and operating profit rose 48.7% to JPY 19.6 billion.
Negative Updates
Lower Profit Margins in Key Segments
Revenue was JPY 3.8 billion lower than forecast due to lower profit margins in the Department Store business and weaker commission income in the Shopping Center segment.
Read all updates
Q2-2024 Updates
Positive
Negative
Significant Revenue Growth
Consolidated gross sales for the first half of FY 2023 were JPY 540.1 billion, with revenue at JPY 191.6 billion, marking double-digit growth year-on-year. Business profit increased 48.2% to JPY 20.1 billion, and operating profit rose 48.7% to JPY 19.6 billion.
Read all positive updates
Company Guidance
In the earnings call for Q2 2024, the executives provided detailed guidance on the company's financial performance and future outlook. Consolidated gross sales for the first half of FY 2023 reached JPY 540.1 billion, with revenue of JPY 191.6 billion, reflecting double-digit growth year-on-year. Business profit surged 48.2% to JPY 20.1 billion, while operating profit rose 48.7% to JPY 19.6 billion. Profit attributable to owners of the parent increased by 27.0% to JPY 12.9 billion. Looking ahead, the full year FY 2023 forecast anticipates consolidated gross sales of JPY 1.131 billion, a 13.2% increase year-on-year, with business profit expected to climb 71.0% to JPY 42.5 billion and operating profit projected to more than double to JPY 40 billion. Profit attributable to owners of the parent is estimated to rise 89.6% to JPY 27 billion. The company also plans a year-end dividend of JPY 17 per share, bringing the annual dividend to JPY 33, up JPY 2 from the previous year, with ROE and ROIC anticipated at 7.4% and 4.9%, respectively. Executives highlighted the potential for growth driven by inbound tourism and strong domestic consumption, particularly in luxury segments, while cautious about cost management and strategic investments for sustained profitability.J FRONT RETAILING Co Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
66
Positive
Cash Flow
70
Positive
| Breakdown | Feb 2026 | Feb 2025 | Feb 2024 | Feb 2023 | Feb 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 445.09B | 441.88B | 407.01B | 359.68B | 331.48B |
| Gross Profit | 215.41B | 187.63B | 170.46B | 142.62B | 121.87B |
| EBITDA | 94.89B | 99.08B | 90.82B | 73.96B | 61.35B |
| Net Income | 28.28B | 41.42B | 29.91B | 14.24B | 4.32B |
Balance Sheet | |||||
| Total Assets | 1.14T | 1.16T | 1.11T | 1.12T | 1.19T |
| Cash, Cash Equivalents and Short-Term Investments | 36.10B | 54.98B | 71.34B | 39.87B | 93.28B |
| Total Debt | 336.68B | 363.58B | 364.40B | 413.95B | 502.11B |
| Total Liabilities | 713.54B | 740.91B | 720.49B | 749.54B | 830.78B |
| Stockholders Equity | 415.59B | 409.65B | 381.90B | 359.38B | 350.37B |
Cash Flow | |||||
| Free Cash Flow | 52.84B | 71.40B | 83.66B | 56.84B | 44.05B |
| Operating Cash Flow | 66.99B | 85.81B | 90.69B | 65.48B | 49.87B |
| Investing Cash Flow | -15.15B | -28.31B | 13.43B | -13.37B | -5.29B |
| Financing Cash Flow | -70.78B | -74.00B | -72.75B | -105.69B | -80.39B |
J FRONT RETAILING Co Technical Analysis
Positive
2299.00
Price Trends
2510.08
Negative
2361.49
Positive
2293.74
Positive
Market Momentum
24.50
Negative
50.46
Neutral
50.89
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 below the 20-day moving average (MA) of 2482.65, below the 50-day MA of 2510.08, and above the 200-day MA of 2293.74, indicating a neutral trend. The MACD of 24.50 indicates Negative momentum. The RSI at 50.46 is Neutral, neither overbought nor oversold. The STOCH value of 50.89 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | ¥1.11T | 9.13 | 9.37% | 2.59% | -1.22% | -10.82% | |
69 Neutral | ¥661.87B | 22.85 | 7.58% | 2.58% | 6.52% | -31.67% | |
66 Neutral | ¥305.93B | 2.68 | 4.97% | 2.01% | 2.00% | -68.35% | |
65 Neutral | ¥1.13T | 14.50 | 9.25% | 1.48% | -2.86% | 14.93% | |
64 Neutral | ¥2.13T | 39.08 | 17.34% | 0.72% | 18.58% | 7.54% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
55 Neutral | ¥575.13B | -72.11 | 9.06% | 1.84% | 0.42% | 20.25% |
* Consumer Cyclical Sector Average
JP:3086
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J FRONT RETAILING Co Corporate Events
J. FRONT RETAILING Corrects Errors in March 2026 Consolidated Revenue Report
Apr 16, 2026
J. FRONT RETAILING announced that it has revised its Consolidated Revenue Report for March 2026, prepared under IFRS, originally released on April 15, 2026. The correction applies to the revenue by segment data, where the company identified inaccu...
J. Front Retailing Sees Mixed March Results as Department and SC Sales Rise but Developer Business Slumps
Apr 15, 2026
J. Front Retailing reported a 0.7% year-on-year decline in total consolidated revenue for March 2026, as weakness in its developer business contrasted with solid gains in its payment and finance operations, which rose 19%. The department store bus...
J. FRONT RETAILING Launches ESOP-Based Share Plan for Senior Staff
Apr 14, 2026
J. FRONT RETAILING has decided to introduce a share granting plan using an Employee Stock Ownership Plan trust for senior employees at the company and its group subsidiaries. The program will allocate company shares and cash based on performance-l...
J. FRONT RETAILING Launches ¥10 Billion Share Buyback Under Medium-Term Plan
Apr 14, 2026
J. FRONT RETAILING has approved a share buyback of up to 5 million common shares, equivalent to about 2 percent of its outstanding stock, with a maximum total value of ¥10 billion. The purchases will be conducted via market transactions on th...
J. Front Retailing Posts Higher Sales but Profit Slump and Margin Pressure in FY2025
Apr 14, 2026
J. Front Retailing reported consolidated gross sales of ¥1,290.5 billion for the fiscal year ended February 28, 2026, up 1.7% year on year, with revenue rising 0.7% to ¥445.1 billion and gross profit improving 1.3%, lifting the gross mar...
J. FRONT RETAILING Sees Profit Drop but Lifts Dividend and Plans Share Buyback
Apr 14, 2026
J. FRONT RETAILING reported modest top-line growth for the fiscal year ended February 28, 2026, with gross sales up 1.7% and sales revenue up 0.7%, but profits declined as business profit fell 5.4% and profit attributable to owners of parent dropp...
J. Front Retailing Sees PARCO Growth Offset Flat Department Store Sales in February
Mar 16, 2026
J. Front Retailing reported mixed February 2026 performance under IFRS, with total consolidated revenue down year on year but turning slightly positive for the second half overall. Department store gross sales were almost flat, as modest gains in ...
J. Front Retailing Posts Modest January Sales Growth on Strong PARCO Performance
Feb 16, 2026
J. Front Retailing reported modest consolidated revenue growth for January 2026, with total group sales edging up despite mixed performance across segments. Department store business sales were essentially flat, with overall store sales up slightl...
J. FRONT Retailing to Close Fukuoka PARCO as It Backs Major Tenjin Redevelopment
Jan 29, 2026
J. FRONT RETAILING announced that its subsidiary PARCO will close Fukuoka PARCO, a large-scale commercial facility in central Fukuoka’s Tenjin district, at the end of February 2027 after more than 15 years of operation. The decision follows ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.