J FRONT RETAILING Co (3086) AI Stock Analysis

• Market Cap: ¥573.22B
• Dividend Yield: 2.6%
• Average Volume (3M): 1.31M
• Price to Earnings (P/E): 18.1
• Beta (1Y): 1.20
• Revenue Growth: 6.52%
• EPS Growth: -31.67%
• Country: JP
• Employees: 5,277
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Department Stores
• EPS (TTM): 31.55
• Shares Outstanding: 270,565,770
• 10 Day Avg. Volume: 1,153,970
• 30 Day Avg. Volume: 1,312,353
• 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: ¥2,000.31
• Price Target Upside: -12.99% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: ¥2,342.00 ▲(1.87% Upside)

The overall score reflects strong financial performance with robust revenue growth and profitability. However, concerns about cash flow management and bearish technical indicators weigh down the score. The valuation is fair, but not compelling enough to offset the technical weaknesses.

Positive Factors

Revenue Growth

The company's robust revenue growth of 27.1% TTM indicates strong market demand and effective sales strategies, supporting long-term expansion.

Profitability

High and improving profit margins reflect effective cost management and pricing strategies, ensuring sustainable profitability over time.

Leverage Position

An improved debt-to-equity ratio suggests prudent financial management, enhancing financial stability and reducing risk exposure.

Negative Factors

Cash Flow Management

Declining free cash flow indicates potential liquidity issues, which could affect the company's ability to invest in growth and meet obligations.

Equity Ratio

A low equity ratio implies higher financial risk, as the company depends more on debt, which could be problematic if market conditions worsen.

EPS Growth

Negative EPS growth reflects declining profitability per share, potentially impacting investor confidence and future capital raising abilities.

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 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	388.87B	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: Neutral
• Last Price: 2299.00
• 50DMA: Negative
• 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 Neutral. The current price of 2299 is above the 20-day moving average (MA) of 2209.97, below the 50-day MA of 2304.02, and above the 200-day MA of 2090.60, indicating a neutral trend. The MACD of -24.62 indicates Negative momentum. The RSI at 45.18 is Neutral, neither overbought nor oversold. The STOCH value of 32.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	$501.27B	12.08	8.54%	1.80%	0.42%	20.25%
8237	66 Neutral	¥95.62B	235.49	―	0.85%	1.38%	-87.76%
8242	66 Neutral	€253.72B	17.12	4.97%	2.01%	2.00%	-68.35%
3099	65 Neutral	$836.33B	15.22	9.37%	2.48%	-1.22%	-10.82%
8244	65 Neutral	¥75.71B	13.11	―	1.10%	7.55%	89.45%
3086	64 Neutral	¥573.22B	18.10	7.58%	2.60%	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 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.

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.

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.

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.