J FRONT RETAILING Co (3086) AI Stock Analysis

• Market Cap: ¥635.94B
• Dividend Yield: 2.34%
• Average Volume (3M): 1.11M
• Price to Earnings (P/E): 15.3
• Beta (1Y): 1.16
• Revenue Growth: 8.72%
• EPS Growth: 19.26%
• Country: JP
• Employees: 5,277
• Sector: Consumer Cyclical
• Sector Strength: 83
• Industry: Department Stores
• EPS (TTM): 41.25
• Shares Outstanding: 270,565,770
• 10 Day Avg. Volume: 1,366,090
• 30 Day Avg. Volume: 1,110,586
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥2,000.29
• Price Target Upside: -17.63% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 76 Outperform
• Price Target: ¥2,639.00 ▲(8.67% Upside)

J FRONT RETAILING Co's stock is supported by strong financial performance and bullish technical indicators. While the valuation is fair, the stock's momentum is a key driver of its attractiveness. The lack of earnings call data and corporate events does not detract from the positive outlook.

J FRONT RETAILING Co Business Overview & Revenue Model

Company Description

J FRONT RETAILING Co. is a prominent Japanese retail company engaged in the management and operation of department stores, specialty stores, and other related businesses. The company is known for its extensive range of consumer products, which include clothing, cosmetics, household goods, and food items. It operates primarily through its flagship department store brands, Daimaru and Matsuzakaya, which are well-established names in Japan's retail sector. J FRONT RETAILING Co. also engages in real estate operations, providing rental space in its commercial facilities.

How the Company Makes Money

J FRONT RETAILING Co. generates revenue primarily through its retail operations by selling a wide array of consumer goods in its department and specialty stores. The key revenue streams include the sale of apparel, cosmetics, food products, and household items. Additionally, the company earns income from leasing commercial space within its retail properties. The real estate segment of the company contributes significantly to its earnings, as it involves developing and managing commercial facilities, thereby generating rental income. Strategic partnerships with various suppliers and brand collaborations also play a crucial role in enhancing its product offerings, attracting customers, and driving sales.

J FRONT RETAILING Co Financial Statement Overview

Summary

J FRONT RETAILING Co demonstrates solid financial health with strong revenue and profit growth, effective cost management, and improved leverage. However, the decline in free cash flow growth highlights the need for attention to cash management.

Income Statement

J FRONT RETAILING Co has shown strong revenue growth, with a TTM revenue growth rate of 2.11% and consistent improvement over the past few years. The gross profit margin remains robust at approximately 48%, indicating effective cost management. The net profit margin has improved significantly to 9.37% in the TTM, reflecting enhanced profitability. EBIT and EBITDA margins are healthy, supporting operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.89 in the TTM, indicating better leverage management compared to previous years. Return on equity has increased to 10.44%, showcasing improved profitability. However, the equity ratio remains moderate, suggesting a balanced capital structure but with room for improvement in asset utilization.

Cash Flow

Operating cash flow remains strong, though free cash flow has declined by 23.29% in the TTM, which could indicate potential challenges in cash generation. The operating cash flow to net income ratio is stable, but the decline in free cash flow growth suggests a need for careful cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	451.21B	441.88B	407.01B	359.68B	331.48B	319.08B
Gross Profit	211.98B	212.60B	195.52B	169.54B	147.84B	134.37B
EBITDA	104.47B	104.57B	91.49B	69.04B	60.35B	27.06B
Net Income	40.59B	41.42B	29.91B	14.24B	4.32B	-26.19B
Balance Sheet
Total Assets	1.16T	1.16T	1.11T	1.12T	1.19T	1.26T
Cash, Cash Equivalents and Short-Term Investments	37.25B	54.98B	71.34B	39.87B	93.28B	128.93B
Total Debt	372.29B	363.58B	364.40B	413.95B	502.11B	562.81B
Total Liabilities	743.17B	740.91B	720.50B	749.54B	830.79B	899.38B
Stockholders Equity	403.85B	409.65B	381.90B	359.38B	350.37B	352.17B
Cash Flow
Free Cash Flow	53.59B	71.40B	83.66B	56.84B	44.05B	41.74B
Operating Cash Flow	70.57B	85.81B	90.69B	65.48B	49.87B	56.47B
Investing Cash Flow	-26.55B	-28.31B	13.43B	-13.37B	-5.29B	-20.87B
Financing Cash Flow	-50.38B	-74.00B	-72.75B	-105.69B	-80.39B	58.73B

J FRONT RETAILING Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2428.50
• 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 2428.5 is above the 20-day moving average (MA) of 2294.57, above the 50-day MA of 2113.70, and above the 200-day MA of 1944.09, indicating a bullish trend. The MACD of 80.32 indicates Negative momentum. The RSI at 72.70 is Negative, neither overbought nor oversold. The STOCH value of 93.70 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
3086	76 Outperform	¥635.94B	15.34	10.25%	2.34%	8.72%	19.26%
Sector *	61 Neutral	$17.97B	12.87	-5.29%	2.97%	1.26%	-14.45%
IMHDF	―	$6.64B	16.92	10.01%	1.32%	―	―
TKSHF	―	$2.83B	12.85	7.14%	2.96%	―	―
HKU	―	€1.58B	20.28	4.63%	―	―	―
8237	72 Outperform	¥71.58B	37.69		0.89%	9.88%	-37.53%
8244	60 Neutral	¥80.75B	37.22		0.98%	2.35%	-36.99%

J FRONT RETAILING Co Corporate Events

J. FRONT RETAILING Co. Announces Share Buyback

J. FRONT RETAILING Co., Ltd. announced the purchase of 1,136,300 of its own shares, valued at approximately ¥2.28 billion, through market purchases on the Tokyo Stock Exchange. This move is part of a broader strategy to repurchase up to 11.5 million shares, with a total value not exceeding ¥15 billion, to enhance shareholder value and optimize capital structure.

J. Front Retailing Revises June 2025 Revenue Report

J. Front Retailing Co., Ltd. announced revisions to its Consolidated Revenue Report for June 2025, initially released on July 15, 2025. The revisions were necessary due to errors in the reported revenue figures across various business segments, including department stores and shopping centers, which have now been corrected.

J. FRONT RETAILING Co. Announces Share Buyback Strategy

J. FRONT RETAILING Co., Ltd. has announced the purchase of its own shares, acquiring 1,092,600 common shares for approximately ¥2.19 billion through market purchases on the Tokyo Stock Exchange. This move is part of a broader strategy to repurchase up to 11.5 million shares, valued at a maximum of ¥15 billion, to potentially enhance shareholder value and optimize capital structure.

J FRONT RETAILING Co Faces Profit Decline Amid Duty-Free Sales Slowdown

J FRONT RETAILING Co reported a 15% year-over-year decline in consolidated business profit for the first quarter of fiscal year 2025, primarily due to a slowdown in duty-free sales at department stores. Despite this, the SC and Developer segments showed strong performance, leading to increased revenue and profit. The company maintains its forecast for the first half of the fiscal year and is implementing measures to improve profits amid an uncertain economic environment.

J. FRONT RETAILING Reports Mixed Financial Results for Q1 FY2026

J. FRONT RETAILING Co., Ltd. reported its consolidated financial results for the first three months of the fiscal year ending February 28, 2026, showing a modest increase in gross sales and sales revenue compared to the previous year. However, the company experienced a decline in business and operating profits, indicating potential challenges in maintaining profitability. Despite these mixed results, the company has maintained its dividend forecast, suggesting a commitment to shareholder returns amidst fluctuating financial performance.

J. Front Retailing Reports Mixed May 2025 Performance

J. Front Retailing Co. reported a mixed performance across its business segments for May 2025. The Developer Business saw significant growth, while the Department Store Business experienced a decline in sales. The SC Business and PARCO stores showed positive trends, indicating a shift in consumer preferences towards shopping centers and specialty stores. This performance highlights the company’s strategic focus on diversifying its retail offerings and adapting to changing market dynamics, which may impact its future positioning and stakeholder interests.

J. FRONT RETAILING Announces Share Buyback Strategy

J. FRONT RETAILING Co., Ltd. has announced the purchase of its own shares, acquiring 876,600 common shares valued at approximately ¥1.66 billion through market purchases on the Tokyo Stock Exchange during May 2025. This move is part of a broader strategy to buy back up to 11.5 million shares, with a total value limit of ¥15 billion, to potentially enhance shareholder value and optimize capital structure.