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J FRONT RETAILING Co
(3086)
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Rating:60Neutral
Price Target:
¥3,027.00
▼(-1.27% Downside)
Action:Reiterated
Date:07/02/26
The score is driven primarily by steady financial performance with strong cash generation and improving leverage, partially offset by weakening TTM growth/profitability. Technically, the stock is in a strong uptrend but appears overextended, raising near-term risk. Valuation is a meaningful headwind given the high P/E and modest yield.
Positive Factors
Strong cash generation
Consistent, sizable operating and free cash flow provides durable internal funding for reinvestment, property upkeep, dividends or buybacks. Over a multi-month horizon this supports operational stability, funds omnichannel initiatives, and cushions cyclical retail revenue swings without immediate external financing.
Negative Factors
Weak recent revenue trend
A sharply negative TTM revenue trend signals potential structural or timing challenges in customer traffic, category mix, or competitive positioning. Over 2–6 months this can compress operating leverage, force markdowns, and require strategic investment to restore top-line momentum, pressuring long-term scale benefits.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Consistent, sizable operating and free cash flow provides durable internal funding for reinvestment, property upkeep, dividends or buybacks. Over a multi-month horizon this supports operational stability, funds omnichannel initiatives, and cushions cyclical retail revenue swings without immediate external financing.
Read all positive factors
J FRONT RETAILING Co (3086) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥740.65B
Dividend Yield1.81%
Average Volume (3M)1.30M
Price to Earnings (P/E)26.9
Beta (1Y)0.88
Revenue Growth-2.32%
EPS Growth-30.08%
CountryJP
Employees5,584
SectorConsumer Cyclical
Sector Strength84
IndustryDepartment Stores
Share Statistics
EPS (TTM)110.81
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 Target
¥2,300.00Price Target Upside-24.98% Downside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)127.31
Revenue Forecast (FY)¥460.16B
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, Shopping Center (SC) Business, Developer Business, and Payment and Finance Business segments. The Dep...
How the Company Makes Money
J. Front Retailing makes money mainly through its retail business, led by department store operations. Its core revenue stream is sales generated at group-operated stores (including in-store product sales across categories such as apparel, cosmeti...
J FRONT RETAILING Co Earnings Call Summary
Earnings Call Date:Oct 08, 2024
(Q2-2024)
| % Change Since: |
Next Earnings Date:Oct 13, 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
62
Positive
Balance Sheet
58
Neutral
Cash Flow
71
Positive
| Breakdown | TTM | Feb 2026 | Feb 2025 | Feb 2024 | Feb 2023 | Feb 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 440.73B | 445.09B | 441.88B | 407.01B | 359.68B | 331.48B |
| Gross Profit | 216.24B | 215.41B | 187.63B | 170.46B | 142.62B | 121.87B |
| EBITDA | 92.51B | 95.10B | 105.65B | 92.68B | 71.20B | 61.71B |
| Net Income | 27.50B | 28.28B | 41.42B | 29.91B | 14.24B | 4.32B |
Balance Sheet | ||||||
| Total Assets | 1.15T | 1.14T | 1.16T | 1.11T | 1.12T | 1.19T |
| Cash, Cash Equivalents and Short-Term Investments | 25.59B | 36.10B | 54.98B | 71.34B | 39.87B | 93.28B |
| Total Debt | 353.44B | 336.68B | 363.58B | 364.40B | 413.95B | 502.11B |
| Total Liabilities | 727.52B | 713.54B | 740.91B | 720.49B | 749.54B | 830.78B |
| Stockholders Equity | 410.94B | 415.59B | 409.65B | 381.90B | 359.38B | 350.37B |
Cash Flow | ||||||
| Free Cash Flow | 62.02B | 52.84B | 71.40B | 83.66B | 56.84B | 44.05B |
| Operating Cash Flow | 77.20B | 66.99B | 85.81B | 90.69B | 65.48B | 49.87B |
| Investing Cash Flow | -32.27B | -15.15B | -28.31B | 13.43B | -13.37B | -5.29B |
| Financing Cash Flow | -56.80B | -70.78B | -74.00B | -72.75B | -105.69B | -80.39B |
J FRONT RETAILING Co Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | ¥1.26T | 16.73 | 12.81% | 1.90% | -1.78% | 51.07% | |
68 Neutral | ¥349.30B | 11.12 | 9.80% | 2.01% | -0.23% | -17.40% | |
67 Neutral | ¥2.28T | 33.68 | 17.86% | 0.70% | 16.81% | 28.07% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | ¥740.65B | 26.91 | 6.72% | 1.76% | -2.32% | -30.08% | |
59 Neutral | ¥669.41B | -179.46 | -0.88% | 1.52% | 1.79% | -114.35% | |
59 Neutral | ¥1.05T | 11.48 | 9.98% | 1.67% | 2.96% | 13.23% |
* Consumer Cyclical Sector Average
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J FRONT RETAILING Co Corporate Events
J. Front Retailing posts mixed June results as PARCO outperforms department stores
Jul 15, 2026
J. Front Retailing reported modest consolidated revenue growth for June 2026, with total sales up year on year and stronger momentum in the first half, driven mainly by solid performance in its shopping center and payment and finance segments. The...
J. FRONT RETAILING to Close Long-Standing Daimaru Shimonoseki Store in 2027
Jun 30, 2026
J. FRONT RETAILING announced that its subsidiary Daimaru Matsuzakaya Department Stores will close the Daimaru Shimonoseki Store in Yamaguchi Prefecture at the end of August 2027. The store, which has operated for 76 years and generated gross sales...
J. FRONT RETAILING to Dispose Treasury Shares for New Employee Share Grant Plan
Jun 30, 2026
J. FRONT RETAILING has approved the disposal of 206,400 treasury shares, valued at about ¥718 million, to fund a new share granting plan for senior employees across the group. The shares will be transferred to an ESOP trust administered by Mi...
J FRONT RETAILING Lifts Q1 Profit Ahead of Plan on Strong Department Store Sales
Jun 30, 2026
J FRONT RETAILING Co. reported consolidated business profit of 14.1 billion yen for the first quarter of the fiscal year ending February 28, 2027, a 1.7% year-on-year increase and ahead of its full-year profit plan. Gross sales in the department s...
J. Front Retailing Delivers Higher Gross Sales But Lower Profit in First Quarter FY2027
Jun 30, 2026
J. Front Retailing reported consolidated gross sales of ¥317.6 billion for the three months ended May 31, 2026, up 3.3% year on year, supported by a higher gross margin ratio of 50.27% versus 47.55%. However, revenue declined 3.9% to ¥10...
J. FRONT RETAILING Posts Mixed Q1 Results as Profit Margins Come Under Pressure
Jun 30, 2026
J. FRONT RETAILING reported consolidated gross sales of ¥317.6 billion for the first quarter of the fiscal year ending February 28, 2027, up 3.3% year on year, while sales revenue fell 3.9% to ¥106.4 billion. Business profit edged up 1.7...
J. Front Retailing Sees Department Store Stabilization and Strong PARCO Growth in May 2026
Jun 15, 2026
J. Front Retailing reported mixed consolidated revenue trends for May 2026, with total group sales down year on year but modest growth for the first half overall, highlighting divergent performance across segments. The department store business sa...
J. FRONT RETAILING Completes ¥10 Billion Share Buyback Ahead of Schedule
Jun 5, 2026
J. FRONT RETAILING has completed a share buyback authorized under Article 459 of the Companies Act and its Articles of Incorporation, repurchasing 726,400 common shares for about ¥1.62 billion via market purchases on the Tokyo Stock Exchange ...
J. FRONT RETAILING Advances Share Buyback, Acquires 3.6 Million Shares
Jun 1, 2026
J. FRONT RETAILING has executed a share buyback under provisions of the Companies Act and its Articles of Incorporation, repurchasing 2,277,700 common shares for approximately ¥5.18 billion between May 1 and May 31, 2026 via market purchases ...
J. Front Retailing Posts Steady April Growth on Strong Department Store and PARCO Sales
May 15, 2026
J. Front Retailing reported modest consolidated revenue growth for April 2026, with total sales up 1.1% year on year and 5.0% for the first half to date under IFRS, driven mainly by strong performance in its payment and finance segment and steady ...
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.