J FRONT RETAILING Co (3086) AI Stock Analysis

• Market Cap: ¥631.10B
• Dividend Yield: 2.58%
• Average Volume (3M): 1.30M
• Price to Earnings (P/E): 20.9
• Beta (1Y): 1.16
• 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: 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: 63 Neutral
• Price Target: ¥2,794.00 ▲(21.53% Upside)

The score is driven mainly by solid financial recovery (strong sales growth and improved leverage) but is held back by recent margin and free-cash-flow deterioration. Technically, the uptrend is strong, yet extremely overbought indicators raise pullback risk, and valuation is only modestly supported by the dividend.

Positive Factors

Revenue Recovery

A 35.1% TTM revenue increase reflects a multi-year recovery and expanding customer demand across stores and e-commerce. Durable top-line momentum improves scale economics, supports negotiating leverage with suppliers, and underpins long-term cash generation and strategic reinvestment.

High Gross Margin

A gross margin near 47% signals healthy product mix and pricing power in department and specialty retail. Strong gross margins provide a structural cushion to absorb SG&A or promotional costs, helping maintain operating profitability even during cyclical consumer fluctuations.

Improved Leverage

Material reduction in leverage from prior years and a sizable equity base improve financial flexibility and reduce refinancing risk. Lower debt-to-equity supports capacity for targeted investments, dividends, or buybacks while better positioning the company for economic stress.

Negative Factors

Margin Compression

Declining EBIT and net margins indicate rising cost pressures or weaker operating leverage versus the prior year. Reduced margin sustainability limits retained earnings for reinvestment, constrains free cash flow growth potential, and heightens sensitivity to sales slowdowns over a multi-month horizon.

Weakening FCF Momentum

Although FCF remains positive, sharply negative FCF growth signals deteriorating cash conversion and less runway for discretionary uses. Slowing FCF momentum reduces the firm's ability to accelerate debt reduction or fund strategic initiatives without relying on external financing.

High Absolute Debt

Despite improved leverage ratios, a large absolute debt stock limits flexibility if revenue or margins worsen. Interest obligations and principal amortizations could strain liquidity since operating cash flow relative to debt is modest (~19.4%), increasing refinancing and covenant vulnerability risks.

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 Business segment offers cloths, general and household goods, food, and other products. This segment operates 15 Daimaru and Matsuzakaya stores. The PARCO Business undertakes development, management, supervision, and operation of shopping centers. This segment operates 17 shopping complexes. The Real Estate Business segment develops, supervises, and operates real estate properties. The Credit and Finance Business segment is involved in the issuance and administration of credit cards. The company also engages in the restaurant, wholesale, staffing, merchandise inspection and consulting, parking, leasing, direct marketing, and labor dispatch services; import and export activities; design, supervision, and contracting construction works; and manufacture and sale of furniture. J. Front Retailing Co., Ltd. was incorporated in 2007 and is based in Tokyo, Japan.

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

Strong TTM revenue growth (+35.1%) and solid gross margin (~47%) support the recovery, and leverage has improved (debt-to-equity ~0.84). Offsetting this, profitability has softened versus FY2025 (TTM net margin ~6.4% vs ~9.4%) and free cash flow momentum has deteriorated (TTM FCF growth sharply negative), which reduces the cushion.

Income Statement

TTM (Trailing-Twelve-Months) revenue is up strongly (+35.1%), extending a multi-year recovery from the 2021 downturn. Profitability is solid at the gross level (~47%), but earnings power has softened versus the most recent annual period: net margin fell to ~6.4% in TTM from ~9.4% (FY2025), and EBIT margin also stepped down (~10.6% vs ~13.3%). Overall, the business is growing well and remains profitable, but the latest trend shows some margin pressure and lower net income versus last year.

Balance Sheet

Leverage has improved meaningfully versus earlier years, with debt-to-equity down to ~0.84 in TTM (from ~1.60 in FY2021 and ~1.43 in FY2022), supported by a large equity base (~¥405B). Returns are positive and improving from the trough, but still moderate: return on equity is ~7.2% in TTM, below FY2025 (~10.1%). Overall balance sheet risk is better than prior years, though the company still carries substantial absolute debt (~¥341B), which limits flexibility if operating conditions weaken.

Cash Flow

Cash generation is positive, with TTM operating cash flow of ~¥65.8B and free cash flow of ~¥50.4B, and free cash flow remains well supported by earnings (free cash flow is ~76.5% of net income). However, momentum has turned down: TTM free cash flow growth is sharply negative (-4.603), and operating cash flow relative to debt is modest (~19.4%), implying debt paydown capacity is adequate but not strong. Overall, the company is generating cash, but recent deterioration in free cash flow reduces the cushion.

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: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 2310.50, above the 50-day MA of 2254.73, and above the 200-day MA of 2173.16, indicating a bullish trend. The MACD of 46.58 indicates Negative momentum. The RSI at 84.38 is Negative, neither overbought nor oversold. The STOCH value of 95.68 is Negative, 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
8233	71 Outperform	¥652.78B	15.01	8.54%	1.84%	0.42%	20.25%
7453	66 Neutral	¥1.72T	28.80	16.01%	0.72%	18.58%	7.54%
8242	66 Neutral	¥266.04B	9.57	4.97%	2.01%	2.00%	-68.35%
3099	65 Neutral	¥941.14B	17.13	9.37%	2.59%	-1.22%	-10.82%
9005	65 Neutral	¥1.07T	11.83	9.25%	1.48%	-2.86%	14.93%
3086	63 Neutral	¥631.10B	20.89	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 to Close Fukuoka PARCO as It Backs Major Tenjin Redevelopment

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 a review of increasing investment needs to address aging building infrastructure and the broader redevelopment of the Tenjin 2-chome South Block area, where Fukuoka PARCO currently accounts for about 8.4% of PARCO’s total tenant transaction volume.
The company plans to participate in a wider area redevelopment that will rebuild and upgrade surrounding buildings’ earthquake resistance and disaster-prevention functions, while introducing new cultural and information-dissemination facilities such as live music venues, galleries, and museums, as well as greened parks and building spaces to enhance vibrancy and visitor appeal. Working with neighboring shopping streets and underground passages, these initiatives are intended to carry forward local landmarks like Shintencho and improve pedestrian circulation as part of the broader “Tenjin Big Bang” urban renewal, with only a minor impact expected on J. FRONT RETAILING’s current fiscal results but potential closure-related costs from fiscal 2027 onward.

The most recent analyst rating on (JP:3086) stock is a Buy with a Yen2594.00 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 Posts Mixed December Results as PARCO Growth Offsets Department Store and Developer Weakness

J. Front Retailing reported mixed performance for December 2025 and the second half, with total consolidated revenue slightly down year on year in December but returning to modest growth over the half. The Department Store Business saw a small decline in December sales despite overall growth for the half, with customer traffic broadly flat and clothing categories weak, while general goods and foods, particularly accessories, cosmetics, confectionery, and service-related sales, supported a 4.1% rise in Daimaru Matsuzakaya net sales over the period. The SC Business, centered on PARCO, continued to expand, posting solid gains in tenant transaction volumes across most locations, led by strong growth at flagship sites such as Shibuya PARCO and healthy increases in general goods, while the Developer Business recorded a sharp revenue decline, partly reflecting portfolio and property changes including the closure of Matsumoto PARCO in early 2025. Overall, the data point to resilience in consumer spending on specialty goods and experiences in the group’s urban malls, offset by structural headwinds in department store apparel and a contracting developer segment, factors that are likely to shape the company’s revenue mix and strategic focus going forward.

The most recent analyst rating on (JP:3086) stock is a Buy with a Yen2480.00 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 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.