Misawa & Co., Ltd. (3169) AI Stock Analysis

• Market Cap: ¥4.48B
• Dividend Yield: 1.16%
• Average Volume (3M): 3.90K
• Price to Earnings (P/E): 72.1
• Beta (1Y): 0.28
• Revenue Growth: -5.63%
• EPS Growth: -31.36%
• Country: JP
• Employees: 181
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Department Stores
• EPS (TTM): -5.48
• Shares Outstanding: 7,112,400
• 10 Day Avg. Volume: 4,420
• 30 Day Avg. Volume: 3,903
• PEG Ratio: 0.02
• Price to Book (P/B): 1.40
• Price to Sales (P/S): 0.35
• P/FCF Ratio: 37.45
• 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: 57 Neutral
• Price Target: ¥650.00 ▼(-6.07% Downside)
• Action: Reiterated Date: 01/30/26
• Date: Action: Reiterated 01/30/26

The score is primarily supported by solid financial stability (very low leverage, strong equity ratio) and improving profitability, but is held back by sharply weaker free cash flow, a pronounced technical downtrend with bearish momentum, and an expensive valuation (high P/E with only a modest yield).

Positive Factors

Balance Sheet Strength

Extremely low leverage and a high equity ratio provide durable financial flexibility. This capital structure reduces interest burden, supports investment or working capital needs during cycles, and lowers bankruptcy risk, sustaining operations through 2-6 month shocks.

High Gross Margin

A near-50% gross margin signals structural cost advantage—likely sourcing, private-label ability or favorable supplier terms. That margin cushion supports pricing power and protects profitability versus peers amid input cost swings, aiding margin sustainability over months.

Recovering Revenue

Positive top-line growth with improved profitability indicates regained demand or better product mix. Sustained revenue growth helps stabilize cash flows, allows gradual margin improvement, and supports reinvestment into e-commerce or distribution capabilities over the medium term.

Negative Factors

Free Cash Flow Collapse

A large, persistent drop in free cash flow materially weakens the company’s ability to fund capex, dividends, or M&A from operations. Even with profits, poor conversion to free cash reduces financial optionality and increases reliance on external financing in adverse months.

Low Operating Margins

Very thin operating margins limit the firm’s buffer against cost inflation and competitive price pressure. Low operating leverage constrains ability to absorb rising input or distribution costs and reduces free cash generation potential over the medium term.

Modest Return on Equity

A modest ROE signals limited efficiency in converting equity into profits, implying slower shareholder value compounding. Over 2-6 months this can translate to constrained reinvestment returns or weaker capacity to fund growth initiatives versus higher-ROE peers.

Misawa & Co., Ltd. Business Overview & Revenue Model

Company Description

Misawa & Co.,Ltd. operates and manages lifestyle shops, restaurants, and cafes in Japan. The company operates lifestyle shops under the unico and unico loom names. As of April 30, 2018, it operated 53 directly managed stores; 4 restaurants and cafes; and an online shop. The company was formerly known as Misawa Seiki Seisakusho Co., Ltd. and changed its name to Misawa & Co.,Ltd. in February 1988. Misawa & Co.,Ltd. was founded in 1959 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Misawa & Co., Ltd. generates revenue through several key streams, primarily from the wholesale distribution of its core products such as textiles and household goods. The company leverages strategic partnerships with manufacturers and suppliers to ensure a steady supply chain, allowing it to offer competitive pricing. Additionally, Misawa & Co. may engage in private-label branding, which enables it to enhance margins by selling products under its own brand names. The company also explores opportunities in e-commerce and online sales, expanding its reach and tapping into the growing digital marketplace. Seasonal promotions, bulk sales, and contracts with retailers further contribute to its revenue, while effective inventory management helps optimize profit margins.

Misawa & Co., Ltd. Financial Statement Overview

Summary

Revenue grew 4.6% and profitability improved (net margin ~1.5% vs. ~0.1% prior year), supported by a strong gross margin (~49.8%). The balance sheet is very stable with minimal leverage (debt-to-equity ~0.02) and a high equity ratio (~62.4%). Offsetting this, cash flow weakened materially with free cash flow down 77.9%, indicating near-term cash generation risk.

Income Statement

Misawa & Co., Ltd. shows a strong gross profit margin at approximately 49.8% for the latest year, indicating good cost management. Net profit margin improved significantly to about 1.5%, up from 0.1% the previous year, signaling recovery in profitability. Revenue growth was positive at 4.6%, suggesting healthy sales growth. The EBIT margin of 2.6% and EBITDA margin of 3.3% show improvement but remain relatively low, indicating room for operational efficiency improvements.

Balance Sheet

The company's debt-to-equity ratio is low at roughly 0.02, indicating minimal leverage and strong financial stability. Return on Equity (ROE) is modest at 5.9%, reflecting moderate efficiency in using shareholders' equity to generate profits. An equity ratio of approximately 62.4% demonstrates a strong capital structure with a high proportion of equity financing.

Cash Flow

Operating cash flow decreased significantly, and free cash flow dropped by 77.9%, indicating potential cash management issues. The operating cash flow to net income ratio of 1.9 suggests good cash generation from operations relative to earnings, though not as strong as prior years. The free cash flow to net income ratio of 0.6 shows some challenges in converting profits into free cash flow.

Breakdown	TTM	Jan 2025	Jan 2024	Jan 2023	Jan 2022	Jan 2021
Income Statement
Total Revenue	11.92B	12.64B	12.09B	12.20B	11.63B	10.92B
Gross Profit	5.88B	6.29B	5.81B	6.17B	7.12B	6.71B
EBITDA	197.42M	413.06M	160.12M	631.48M	1.16B	1.04B
Net Income	48.04M	187.36M	12.27M	341.04M	692.53M	614.92M
Balance Sheet
Total Assets	4.78B	5.08B	5.16B	4.52B	4.55B	4.34B
Cash, Cash Equivalents and Short-Term Investments	819.05M	1.10B	1.12B	641.26M	940.25M	1.09B
Total Debt	85.42M	54.17M	79.17M	86.00K	35.84M	240.69M
Total Liabilities	1.79B	1.91B	2.12B	1.40B	1.65B	2.07B
Stockholders Equity	2.99B	3.17B	3.04B	3.12B	2.90B	2.27B
Cash Flow
Free Cash Flow	259.16M	118.91M	538.95M	-159.41M	143.25M	1.35B
Operating Cash Flow	259.16M	357.93M	825.15M	74.79M	251.27M	1.43B
Investing Cash Flow	0.00	-254.03M	-304.88M	-257.29M	-134.32M	-62.36M
Financing Cash Flow	0.00	-117.52M	-44.25M	-116.50M	-262.36M	-782.27M

Misawa & Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 692.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3169, the sentiment is Negative. The current price of 692 is above the 20-day moving average (MA) of 629.95, above the 50-day MA of 661.93, and above the 200-day MA of 656.64, indicating a bearish trend. The MACD of -9.21 indicates Negative momentum. The RSI at 30.26 is Neutral, neither overbought nor oversold. The STOCH value of 30.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3169.

Misawa & Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9956	79 Outperform	¥198.96B	12.15	―	2.18%	6.30%	27.88%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
8278	61 Neutral	¥178.14B	47.61	―	1.44%	1.48%	-33.32%
3169	57 Neutral	¥4.48B	72.07	―	1.16%	-5.63%	-31.36%
9946	53 Neutral	¥54.10B	-7.69	―	0.94%	10.66%	-218.40%
3222	53 Neutral	¥174.47B	89.65	―	1.77%	30.67%	―
2698	48 Neutral	¥53.48B	89.70	―	0.51%	2.90%	―