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): 35.9
• Beta (1Y): 0.27
• Revenue Growth: -5.63%
• EPS Growth: -31.36%
• Country: JP
• Employees: 181
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Department Stores
• EPS (TTM): 31.57
• Shares Outstanding: 7,112,400
• 10 Day Avg. Volume: 4,420
• 30 Day Avg. Volume: 3,903
• PEG Ratio: -1.07
• Price to Book (P/B): 1.38
• Price to Sales (P/S): 0.37
• P/FCF Ratio: 9.46
• 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: 56 Neutral
• Price Target: ¥648.00 ▼(-6.36% Downside)
• Action: Reiterated Date: 03/19/26
• Date: Action: Reiterated 03/19/26

The score is primarily supported by financial resilience (low leverage) and improved recent free cash flow, but is capped by a clear downshift in profitability/ROE and a high P/E that leaves little margin for error. Technically, indicators point to a weaker trend with negative momentum.

Positive Factors

Conservative balance sheet

Low leverage (debt-to-equity ~9% in 2026) and stable equity give the company financial flexibility to fund operations, withstand demand shocks, and support strategic investments without relying on costly external financing, improving resilience over the medium term.

High gross margins

Sustained gross margins near 48–51% provide a durable buffer to absorb SG&A, markdowns, or input inflation. This structural margin strength supports long-term profitability potential if the company stabilizes sales and controls operating expenses.

Improving free cash flow

Recent FCF improvement (≈¥473M in 2026) and three-year positive free cash flow trend enhance liquidity and internal funding for capex, store upgrades and e-commerce investment, giving management room to execute strategic initiatives without heavy external funding.

Negative Factors

Profitability compression

Net margin collapsing to ~1% and ROE down to ~3.9% indicate a meaningful loss of earnings power. Persistently low margins and returns constrain the firm's ability to reinvest, pay dividends or rebuild competitive initiatives without structural changes to cost base or pricing.

Top-line weakness and EPS decline

A return to revenue decline (~-3.8% in 2026) alongside steep EPS contraction (~-33.5%) signals weakening demand or margin erosion. Continued top-line shrinkage undermines scale economics and makes it harder to leverage high gross margins into sustainable operating profits.

Cash-flow volatility and working-capital risk

Historic FCF volatility and inconsistent operating cash versus reported earnings suggest working-capital swings and forecasting risk. This variability can force short-term financing or delay investments and weakens reliability of cash generation despite recent improvements.

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 primarily from the sale of merchandise through its direct-to-consumer retail operations. Key revenue streams include (1) in-store sales from company-operated branded retail locations, where the company sells furniture, interior goods, and other lifestyle products; and (2) online sales via e-commerce, which monetizes the same product categories to customers outside physical store catchments. The company’s earnings are driven by product gross margins (the spread between retail selling prices and procurement/manufacturing costs), sales volume, and the performance of its store network and online channels. Specific information on additional revenue streams (e.g., wholesale, licensing, services, or named strategic partnerships) is null.

Misawa & Co., Ltd. Financial Statement Overview

Summary

Balance sheet is conservatively financed with low leverage (debt-to-equity ~9% in 2026) and equity stability, and recent free cash flow was positive and improved in 2026. However, profitability has deteriorated materially (net margin ~1.0% in 2026 vs ~6% in 2021–2022) and ROE fell to ~3.9%, alongside a return to revenue decline in 2026.

Income Statement

Revenue has been broadly flat over the period and recently turned negative (2026 revenue down ~3.8% year-over-year after growth in 2025). Profitability has also compressed materially from earlier highs: net margin fell from ~6% in 2021–2022 to ~1.0% in 2026, with operating profitability similarly lower versus 2022–2023 levels. Positives include consistently strong gross margins (~48–51% in the last three years), but the sharp drop in operating and net profitability indicates weaker cost control and/or less favorable demand conditions recently.

Balance Sheet

The balance sheet looks conservatively financed with low leverage overall (debt-to-equity ~9% in 2026, and low levels in most prior years as well). Equity has been stable-to-up over time, supporting balance sheet resilience. However, returns to shareholders have weakened meaningfully (return on equity down to ~3.9% in 2026 from double-digit levels in 2021–2023), reflecting the reduced earnings power rather than balance sheet stress.

Cash Flow

Cash generation is a relative strength: operating cash flow and free cash flow were solid in 2026 (free cash flow ~¥473M) and improved versus 2025, with strong free cash flow growth in 2026. Cash flow has been volatile (notably negative free cash flow in 2023), but the last three years show positive free cash flow. A key watch-out is that operating cash flow has not consistently been high relative to reported earnings in the provided coverage metric, suggesting periodic working-capital swings or timing effects.

Breakdown	TTM	Jan 2026	Jan 2025	Jan 2024	Jan 2023	Jan 2022
Income Statement
Total Revenue	11.92B	12.16B	12.64B	12.09B	12.20B	11.63B
Gross Profit	5.88B	6.20B	6.16B	5.81B	6.17B	7.12B
EBITDA	195.71M	358.55M	456.48M	199.72M	657.12M	1.14B
Net Income	48.04M	124.83M	187.36M	12.27M	341.04M	692.53M
Balance Sheet
Total Assets	4.78B	5.52B	5.08B	5.16B	4.52B	4.55B
Cash, Cash Equivalents and Short-Term Investments	819.05M	1.36B	1.10B	1.12B	641.26M	940.25M
Total Debt	85.42M	301.25M	54.17M	79.17M	134.76M	35.84M
Total Liabilities	1.79B	2.28B	1.91B	2.12B	1.40B	1.65B
Stockholders Equity	2.99B	3.24B	3.17B	3.04B	3.12B	2.90B
Cash Flow
Free Cash Flow	0.00	473.33M	270.46M	605.13M	-100.32M	170.67M
Operating Cash Flow	0.00	631.15M	357.93M	825.15M	74.79M	251.27M
Investing Cash Flow	0.00	-534.15M	-254.03M	-304.88M	-257.29M	-134.32M
Financing Cash Flow	0.00	158.03M	-117.52M	-44.25M	-116.50M	-262.36M

Misawa & Co., Ltd. Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3169, the sentiment is Neutral. The current price of 692 is above the 20-day moving average (MA) of 628.35, above the 50-day MA of 645.61, and above the 200-day MA of 656.29, indicating a neutral trend. The MACD of -3.74 indicates Negative momentum. The RSI at 44.40 is Neutral, neither overbought nor oversold. The STOCH value of 85.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	¥193.59B	7.25	―	2.18%	6.30%	27.88%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
8278	61 Neutral	¥174.15B	100.03	―	1.44%	1.48%	-33.32%
3169	56 Neutral	¥4.48B	35.86	―	1.16%	-5.63%	-31.36%
9946	53 Neutral	¥51.78B	-5.76	―	0.94%	10.66%	-218.40%
3222	53 Neutral	¥178.09B	-65.24	―	1.77%	30.67%	―
2698	48 Neutral	¥51.56B	90.62	―	0.51%	2.90%	―