J FRONT RETAILING Co (3086) AI Stock Analysis

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J FRONT RETAILING Co

(OTC:3086)

75Outperform

J FRONT RETAILING Co has a solid overall stock score, driven primarily by its strong financial performance and favorable valuation. The company's robust revenue growth and profitability, alongside a stable financial position, underpin its potential for future growth. While technical analysis presents mixed signals, the stock remains attractive for investors due to its low P/E ratio and decent dividend yield. Lack of new earnings call or corporate events data limits further insights, but the existing fundamentals provide a positive outlook.

J FRONT RETAILING Co (3086) vs. S&P 500 (SPY)

Market Cap

$458.00B

Dividend Yield2.88%

Average Volume (3M)2.75M

Price to Earnings (P/E)10.9

Beta (1Y)1.17

Revenue Growth8.57%

EPS Growth40.63%

CountryJP

Employees5,277

SectorConsumer Cyclical

Sector Strength61

IndustryDepartment Stores

Share Statistics

EPS (TTM)17.31

Shares Outstanding270,565,770

10 Day Avg. Volume1,930,410

30 Day Avg. Volume2,753,756

Financial Highlights & Ratios

PEG Ratio-1.33

Price to Book (P/B)1.10

Price to Sales (P/S)0.00

P/FCF Ratio6.55

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$1,996.85

Price Target Upside11.84% Upside

Rating ConsensusHold

Number of Analyst Covering1

J FRONT RETAILING Co Business Overview & Revenue Model

Company DescriptionJ FRONT RETAILING Co. is a prominent retail conglomerate based in Japan, with a diverse portfolio encompassing department stores, specialty stores, and other retail outlets. The company operates under well-known brands such as Daimaru and Matsuzakaya, catering to a wide range of consumer needs from fashion and cosmetics to home goods and food products. J FRONT RETAILING Co. is committed to providing high-quality products and exceptional customer service, ensuring a premium shopping experience for its clientele.

How the Company Makes MoneyJ FRONT RETAILING Co. generates revenue primarily through its extensive network of department and specialty stores. The company's revenue streams include the direct sale of consumer goods across various categories such as fashion, beauty, home essentials, and gourmet foods. Additionally, J FRONT RETAILING Co. benefits from strategic partnerships and collaborations with well-known brands, enhancing its product offerings and attracting a broader customer base. The company's earnings are also supported by ancillary services such as in-store events and loyalty programs that drive customer engagement and repeat business. Furthermore, J FRONT RETAILING Co. leverages its real estate assets by leasing retail space, contributing an additional revenue stream.

J FRONT RETAILING Co Financial Statement Overview

Summary

J FRONT RETAILING Co demonstrates strong financial health with robust revenue growth, improved profitability margins, and a stable balance sheet. The company's cash flow generation remains solid, ensuring liquidity and financial flexibility. Despite a decrease in operating cash flow, the firm maintains an effective balance between debt and equity, supporting future growth opportunities.

Income Statement

Very Positive

The income statement reveals robust revenue growth with a TTM increase in revenue of 8.57% compared to the previous year. Gross profit margin stands at 48.10%, indicating effective cost management. The net profit margin has improved to 9.38%, showcasing enhanced profitability. EBIT and EBITDA margins also reflect strong operational performance at 13.60% and 23.64%, respectively.

Balance Sheet

Positive

The balance sheet shows a stable financial position with a debt-to-equity ratio of 0.89, suggesting moderate leverage. Return on equity is healthy at 10.11%, highlighting effective use of equity. The equity ratio is 35.19%, indicating a solid equity base relative to total assets.

Cash Flow

Positive

The cash flow statement displays substantial free cash flow growth, with a TTM increase in free cash flow of -16.48%, due to a decrease in operating cash flow. Operating cash flow to net income ratio is 2.07, indicating strong cash generation ability. Free cash flow to net income ratio is 1.69, reflecting efficient cash utilization.

Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Breakdown
Income Statement		Total Revenue
441.88B	407.01B	359.68B	331.48B	319.08B
	Gross Profit
212.60B	170.46B	169.54B	147.84B	134.37B
	EBIT
53.49B	43.05B	19.06B	9.38B	-24.27B
	EBITDA
104.57B	91.49B	75.37B	59.46B	27.06B
	Net Income Common Stockholders
41.42B	29.91B	14.24B	4.32B	-26.19B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
54.98B	71.34B	50.71B	105.21B	134.77B
	Total Assets
1.16T	1.11T	1.12T	1.19T	1.26T
	Total Debt
363.58B	364.40B	413.95B	502.11B	562.81B
	Net Debt
308.60B	293.06B	374.07B	408.83B	433.89B
	Total Liabilities
740.91B	720.50B	749.54B	830.79B	899.38B
	Stockholders Equity
409.65B	381.90B	359.38B	350.37B	352.17B
Cash Flow		Free Cash Flow
71.40B	83.66B	56.84B	44.05B	41.74B
	Operating Cash Flow
85.81B	90.69B	65.48B	49.87B	56.47B
	Investing Cash Flow
-28.31B	13.43B	-13.37B	-5.29B	-20.87B
	Financing Cash Flow
-74.00B	-72.75B	-105.69B	-80.39B	58.73B

J FRONT RETAILING Co Technical Analysis

Technical Analysis Sentiment

Positive

Last Price1785.50

Price Trends

50DMA

1817.76

Negative

100DMA

1912.49

Negative

200DMA

1756.66

Positive

Market Momentum

MACD

-14.27

Negative

RSI

53.30

Neutral

STOCH

75.99

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 1785.5 is above the 20-day moving average (MA) of 1740.87, below the 50-day MA of 1817.76, and above the 200-day MA of 1756.66, indicating a neutral trend. The MACD of -14.27 indicates Negative momentum. The RSI at 53.30 is Neutral, neither overbought nor oversold. The STOCH value of 75.99 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

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3086	75 Outperform	$458.00B	10.91	10.29%	2.88%	8.57%	40.63%
8267	73 Outperform	$3.77T	131.03	2.60%	0.86%	6.08%	-35.70%
8233	68 Neutral	$339.11B	8.81	8.38%	2.08%	6.94%	26.04%
8242	66 Neutral	¥235.73B	5.23	14.30%	2.13%	4.34%	83.98%
8219	65 Neutral	€100.93B	10.95	5.34%	6.35%	1.72%	15.08%
3099	64 Neutral	$675.19B	9.77	11.80%	2.39%	5.77%	64.67%
Sector *	61 Neutral	$6.68B	11.75	3.01%	3.94%	2.61%	-21.96%

* Consumer Cyclical Sector Average

Performance Comparison

JP:3086

J FRONT RETAILING Co

1,785.50

394.11

28.33%

JP:8242

H2O Retailing Corporation

1,932.50

129.46

7.18%

JP:8219

AOYAMA TRADING Co., Ltd.

2,044.00

545.21

36.38%

JP:3099

Isetan Mitsukoshi Holdings

1,913.50

-361.20

-15.88%

JP:8267

AEON Co

4,400.00

1,132.23

34.65%

JP:8233

Takashimaya Company

1,113.50

-10.93

-0.97%

J FRONT RETAILING Co Earnings Call Summary

Earnings Call Date:Apr 14, 2025

(Q2-2024)

% Change Since: 1.51%|

Next Earnings Date:Jun 26, 2025

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.

Q2-2024 Updates

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.

Strong Department Store Performance

Department Store business saw a sales increase of 14.4% year-on-year, with business profit doubling to JPY 11.6 billion and operating profit increasing 2.6 times to JPY 10.1 billion.

Upward Revision of Full Year Forecast

Full year FY 2023 gross sales are forecasted to be JPY 1.131 billion, up 13.2% year-on-year, with business profit expected to increase by 71.0% to JPY 42.5 billion.

Successful Cost Control

Efforts to reduce SG&A expenses resulted in business profit and operating profit being JPY 1.1 billion higher than forecasted.

Improvement in Inbound Sales

Inbound sales exceeded pre-COVID levels, with substantial growth in the second quarter.

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.

Challenges with Payment and Finance Business

The Payment and Finance business faced a decrease in both business profit and operating profit due to upfront costs for securing human resources and system investments.

SG&A Challenges Due to Unplanned Expenses

Unplanned SG&A expenses of JPY 600 million were incurred due to back taxes related to past tax-exempt sales transactions.

Underperformance of Some Regional Stores

Stores such as Nagoya PARCO, Sendai PARCO, and Hiroshima PARCO saw weaker recovery with only a 10% increase from the previous year.

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 Corporate Events

J. FRONT RETAILING Co. Announces Share Buyback

May 1, 2025

J. FRONT RETAILING Co., Ltd. has announced the purchase of its own shares, acquiring 4,172,500 common shares worth approximately ¥7.28 billion between April 15 and April 30, 2025. This move is part of a larger resolution to buy back up to 11.5 million shares, valued at ¥15 billion, by August 29, 2025, which could potentially enhance shareholder value and adjust the capital structure.

J. FRONT RETAILING Announces Record Dividend Payout

Apr 24, 2025

J. FRONT RETAILING Co., Ltd. announced a resolution to pay a fiscal year-end dividend of ¥30.00 per share, resulting in a record annual dividend of ¥52.00 per share. This decision aligns with the company’s policy to maintain a consolidated dividend payout ratio of no less than 40% and reflects its strong financial performance and commitment to shareholder returns.

J. FRONT RETAILING Co. Executes Strategic Share Repurchase

Apr 15, 2025

J. FRONT RETAILING Co., Ltd. has repurchased 3,474,200 of its own shares at a cost of ¥6,074,638,700 as part of its FY2024-FY2026 Medium-term Business Plan. This move aims to enhance medium to long-term return on capital by focusing on growth with profitability and optimizing equity, reflecting a commitment to shareholder value.

J. FRONT RETAILING Announces Share Repurchase Plan

Apr 14, 2025

J. FRONT RETAILING Co., Ltd. has announced a resolution to repurchase up to 11.5 million of its own shares, representing 4.45% of its total issued shares, with a maximum expenditure of ¥15 billion. This strategic move, conducted through the ToSTNeT-3 system and market purchases, aims to enhance shareholder value and optimize capital structure, potentially impacting the company’s stock performance and market perception.

J. FRONT RETAILING Announces Share Repurchase Plan to Enhance Shareholder Returns

Apr 14, 2025

J. FRONT RETAILING Co., Ltd. has announced a decision to repurchase its own shares as part of its FY2024-FY2026 Medium-term Business Plan. This move aims to enhance shareholder returns and optimize equity, reflecting the company’s commitment to improving long-term capital returns. The company plans to purchase up to 11.5 million shares, valued at a maximum of ¥15 billion, through the Tokyo Stock Exchange, demonstrating a strategic approach to financial management and shareholder engagement.

J. FRONT RETAILING Co. Announces Record Dividend Increase

Apr 14, 2025

J. FRONT RETAILING Co., Ltd. has announced a revision to its dividend forecasts for the fiscal year ended February 28, 2025, increasing the fiscal year-end dividend from ¥22.00 to ¥30.00 per share, resulting in a total annual dividend of ¥52.00 per share. This revision aligns with the company’s policy to return profits to shareholders and reflects its strong financial performance, marking the highest dividend payout on record, which could positively impact shareholder value and market perception.

J. FRONT RETAILING Co. Reports Strong Fiscal Year 2025 Results with Increased Dividends

Apr 14, 2025

J. FRONT RETAILING Co., Ltd. reported a significant increase in its consolidated financial performance for the fiscal year ending February 28, 2025, with notable growth in gross sales, sales revenue, and operating profit. The company also announced an increase in annual dividends, reflecting a strong financial position and commitment to returning value to shareholders.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.