J FRONT RETAILING Co Ltd (JP:3086)
:3086
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J FRONT RETAILING Co
(3086)
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Rating:66Neutral
Price Target:
¥2,535.00
▲(10.27% Upside)
Action:ReiteratedDate:02/06/26
The score is driven primarily by strong revenue growth and improved leverage, but is held back by recent margin compression and weakening free-cash-flow momentum. Technicals are strong but very overbought, increasing near-term risk, and valuation (P/E ~20.9) looks only fair given the latest profitability and cash-flow trend.
Positive Factors
Revenue Growth
A 35.1% TTM revenue increase reflects a sustained recovery and growing customer demand across core department store operations. Durable top-line expansion improves scale economics, strengthens vendor partnerships and supports long‑term investments in merchandising and store experiences.
Negative Factors
Net Margin Compression
Material fall in net and EBIT margins signals sustained pressure on profitability, likely from higher operating costs or promotional intensity. Over time lower margins reduce retained earnings and constrain ability to fund strategic investments or build cash buffers against retail cyclicality.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
A 35.1% TTM revenue increase reflects a sustained recovery and growing customer demand across core department store operations. Durable top-line expansion improves scale economics, strengthens vendor partnerships and supports long‑term investments in merchandising and store experiences.
Read all positive factors
J FRONT RETAILING Co (3086) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥617.35B
Dividend Yield2.58%
Average Volume (3M)1.30M
Price to Earnings (P/E)22.1
Beta (1Y)1.22
Revenue Growth6.52%
EPS Growth-31.67%
CountryJP
Employees5,277
SectorConsumer Cyclical
Sector Strength84
IndustryDepartment Stores
Share Statistics
EPS (TTM)25.53
Shares Outstanding270,565,770
10 Day Avg. Volume1,064,720
30 Day Avg. Volume1,303,113
Financial Highlights & Ratios
PEG Ratio0.30
Price to Book (P/B)1.23
Price to Sales (P/S)1.14
P/FCF Ratio7.05
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)125.4
Revenue Forecast (FY)¥455.36B
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 ...
How the Company Makes Money
J. Front Retailing primarily makes money through retail sales generated by its department store operations. Revenue is driven by (1) direct sales of merchandise to customers in its stores, where the company earns a retail margin between procuremen...
J FRONT RETAILING Co Earnings Call Summary
Earnings Call Date:Oct 08, 2024
(Q2-2024)
| % Change Since: |
Next Earnings Date:Apr 14, 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
76
Positive
Balance Sheet
64
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Feb 2025 | Feb 2024 | Feb 2023 | Feb 2022 | Feb 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 454.02B | 441.88B | 407.01B | 359.68B | 331.48B | 319.08B |
| Gross Profit | 215.60B | 187.63B | 170.46B | 142.62B | 121.87B | 109.23B |
| EBITDA | 96.19B | 99.08B | 90.82B | 73.96B | 61.35B | 52.73B |
| 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 | 363.58B | 364.40B | 413.95B | 502.11B | 562.81B |
| Total Liabilities | 731.54B | 740.91B | 720.49B | 749.54B | 830.78B | 899.37B |
| 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
Negative
2299.00
Price Trends
2447.02
Negative
2328.60
Positive
2259.35
Positive
Market Momentum
-21.97
Positive
40.42
Neutral
38.21
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3086, the sentiment is Negative. The current price of 2299 is below the 20-day moving average (MA) of 2467.80, below the 50-day MA of 2447.02, and above the 200-day MA of 2259.35, indicating a neutral trend. The MACD of -21.97 indicates Positive momentum. The RSI at 40.42 is Neutral, neither overbought nor oversold. The STOCH value of 38.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3086.
J FRONT RETAILING Co Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | ¥1.00T | 9.13 | 9.37% | 2.59% | -1.22% | -10.82% | |
71 Outperform | ¥529.23B | 14.44 | 9.06% | 1.84% | 0.42% | 20.25% | |
66 Neutral | ¥617.35B | 22.09 | 7.58% | 2.58% | 6.52% | -31.67% | |
66 Neutral | ¥282.27B | 2.68 | 4.97% | 2.01% | 2.00% | -68.35% | |
65 Neutral | ¥1.10T | 14.50 | 9.25% | 1.48% | -2.86% | 14.93% | |
64 Neutral | ¥1.85T | 18.88 | 17.34% | 0.72% | 18.58% | 7.54% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
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J FRONT RETAILING Co Corporate Events
J. Front Retailing Sees PARCO Growth Offset Flat Department Store Sales in February
Mar 16, 2026
J. Front Retailing reported mixed February 2026 performance under IFRS, with total consolidated revenue down year on year but turning slightly positive for the second half overall. Department store gross sales were almost flat, as modest gains in ...
J. Front Retailing Posts Modest January Sales Growth on Strong PARCO Performance
Feb 16, 2026
J. Front Retailing reported modest consolidated revenue growth for January 2026, with total group sales edging up despite mixed performance across segments. Department store business sales were essentially flat, with overall store sales up slightl...
J. FRONT Retailing to Close Fukuoka PARCO as It Backs Major Tenjin Redevelopment
Jan 29, 2026
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 ...
J. Front Retailing Posts Mixed December Results as PARCO Growth Offsets Department Store and Developer Weakness
Jan 15, 2026
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 dec...
J. Front Retailing Posts Strong 3Q Profit, Maintains Full-Year Outlook Amid China Visitor Uncertainty
Dec 26, 2025
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 a...
J. Front Retailing Delivers Sales Growth but Profit Slumps on Rising Costs
Dec 26, 2025
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 a...
J. FRONT RETAILING Sees Profit Declines Despite Higher Sales and Maintains Full-Year Outlook
Dec 26, 2025
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 prof...
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.