Beauty Garage, Inc. (3180) AI Stock Analysis

• Market Cap: ¥18.40B
• Dividend Yield: 1.11%
• Average Volume (3M): 73.43K
• Price to Earnings (P/E): 22.3
• Beta (1Y): 0.64
• Revenue Growth: 13.45%
• EPS Growth: -5.58%
• Country: JP
• Employees: 402
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): 16.39
• Shares Outstanding: 12,752,000
• 10 Day Avg. Volume: 59,690
• 30 Day Avg. Volume: 73,430
• PEG Ratio: -3.22
• Price to Book (P/B): 2.46
• Price to Sales (P/S): 0.56
• P/FCF Ratio: 15.59
• 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): 88.45
• Revenue Forecast (FY): ¥38.06B

• Rating: 64 Neutral
• Price Target: ¥1,513.00 ▼(-6.60% Downside)
• Action: Downgraded Date: 03/12/26
• Date: Action: Downgraded 03/12/26

The score is driven primarily by solid financial fundamentals (growth and conservative leverage) offset by declining margins and inconsistent free-cash-flow conversion. Technical indicators add near-term caution due to weak trend/momentum, while valuation is neutral with only a modest dividend yield.

Positive Factors

Consistent Revenue Growth

Beauty Garage shows multi-year top-line expansion, with double-digit reported revenue growth in fundamentals and a 6.44% increase in the latest year. Durable revenue momentum supports scale advantages with B2B salon customers, improving bargaining power and platform economics over the medium term.

Conservative Leverage / Healthy Balance Sheet

A low debt-to-equity ratio (0.28) and a healthy equity ratio provide financial flexibility and downside protection. Conservatively leveraged capital structure reduces refinancing risk, enabling steady reinvestment in distribution, equipment sales and service capabilities through varying economic cycles.

Improving Operating Cash Flow

Material improvement in operating cash flow indicates stronger cash conversion from core salon-focused distribution and services. Sustained OCF strength supports working capital needs, funds capex for equipment sales, and can finance strategic initiatives without adding leverage.

Negative Factors

Declining Profitability Margins

Net, EBIT and EBITDA margins have trended lower, signaling pressure on core profitability from rising operating costs or pricing compression. If margins do not stabilize, long-term returns on sales will weaken, constraining capacity to fund growth, margins-led investments, and shareholder returns.

Volatile Free Cash Flow Conversion

Free cash flow has been inconsistent, with recent spikes attributed to base effects rather than sustained improvement. Persistent volatility in FCF limits reliable internal funding for equipment inventories and services, increasing reliance on working capital management and making long-term planning harder.

Slightly Lower Return on Equity

A declining ROE suggests earnings generation on shareholder capital is weakening, potentially from margin erosion or higher equity base. Reduced ROE over time can signal diminished capital efficiency, lowering potential reinvestment returns and pressure on management to improve operational performance.

Beauty Garage, Inc. Business Overview & Revenue Model

Company Description

BEAUTY GARAGE Inc. purchases and sells beautician and beauty products and equipment. The company provides support services for the start-up of a salon and fund raising; courses and personnel training services; insurance services for salons; and real estate and advertising services, as well as introduces IT and other systems in beauty salons. It also sells professional use cosmetics; and designs, engineers, and constructs salon premises. The company also sells its products through online. BEAUTY GARAGE Inc. was founded in 2003 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Beauty Garage makes money primarily by selling and distributing professional beauty-related goods and supplies to business customers (e.g., salons). Revenue is generated through product sales (such as consumables and salon-use items) and the sale of equipment and fixtures used in salon operations. The company also earns revenue from providing services to salon businesses (e.g., operational or support services) where applicable. Specific breakdowns of revenue streams, margin structure, and significant partnerships are null.

Beauty Garage, Inc. Financial Statement Overview

Summary

Solid revenue growth and a stable balance sheet supported by low leverage, but weakening profitability (declining net/EBIT/EBITDA margins) and volatile free cash flow conversion reduce overall financial strength.

Income Statement

Beauty Garage, Inc. has demonstrated consistent revenue growth over the years, with a notable 6.44% increase in the latest year. The gross profit margin has remained stable, although slightly declining, indicating efficient cost management. However, the net profit margin has decreased, suggesting increased expenses or cost pressures. The EBIT and EBITDA margins have also shown a downward trend, which could impact profitability if not addressed.

Balance Sheet

The company's debt-to-equity ratio is relatively low at 0.28, indicating a conservative approach to leverage. Return on equity has decreased slightly, reflecting a potential decline in profitability or increased equity base. The equity ratio remains healthy, suggesting a strong capital structure. Overall, the balance sheet reflects stability but with room for improvement in profitability metrics.

Cash Flow

Operating cash flow has improved significantly, but free cash flow growth is volatile, with a recent spike due to a low base effect. The operating cash flow to net income ratio is moderate, indicating decent cash generation relative to earnings. However, the free cash flow to net income ratio suggests that a significant portion of earnings is not translating into free cash flow, which could be a concern for future investments.

Breakdown	TTM	Apr 2024	Apr 2023	Apr 2022	Apr 2021	Apr 2020
Income Statement
Total Revenue	34.85B	33.72B	29.84B	26.43B	23.40B	19.60B
Gross Profit	8.63B	8.46B	7.50B	6.72B	6.09B	6.12B
EBITDA	1.82B	1.86B	1.96B	1.66B	1.51B	1.26B
Net Income	937.96M	1.02B	1.08B	865.03M	709.96M	654.51M
Balance Sheet
Total Assets	16.39B	16.27B	13.63B	12.07B	10.56B	10.05B
Cash, Cash Equivalents and Short-Term Investments	3.72B	4.62B	3.69B	3.56B	2.91B	2.78B
Total Debt	2.96B	2.14B	1.64B	1.24B	1.24B	1.34B
Total Liabilities	8.46B	8.40B	6.49B	5.83B	5.09B	5.32B
Stockholders Equity	7.69B	7.63B	6.95B	6.04B	5.27B	4.57B
Cash Flow
Free Cash Flow	0.00	1.20B	557.60M	930.25M	640.35M	725.97M
Operating Cash Flow	0.00	1.42B	581.94M	998.37M	712.05M	859.21M
Investing Cash Flow	0.00	-609.92M	-592.28M	-182.72M	-415.18M	-565.80M
Financing Cash Flow	0.00	140.52M	133.95M	-117.96M	-212.24M	40.66M

Beauty Garage, Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1620.00
• 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:3180, the sentiment is Neutral. The current price of 1620 is above the 20-day moving average (MA) of 1383.70, above the 50-day MA of 1447.78, and above the 200-day MA of 1528.24, indicating a neutral trend. The MACD of -14.06 indicates Negative momentum. The RSI at 50.85 is Neutral, neither overbought nor oversold. The STOCH value of 70.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3180.

Beauty Garage, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4928	76 Outperform	¥154.90B	29.58	―	5.00%	1.41%	0.75%
4919	71 Outperform	¥84.89B	22.92	7.23%	3.53%	3.05%	-32.61%
4927	69 Neutral	¥286.16B	39.57	5.84%	3.92%	-1.16%	36.30%
4923	66 Neutral	¥41.46B	6.92	―	1.81%	0.22%	4.15%
3180	64 Neutral	¥18.40B	22.30	―	1.11%	13.45%	-5.58%
4925	63 Neutral	¥6.83B	12.52	―	2.38%	-0.79%	―
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Beauty Garage, Inc. Corporate Events

Beauty Garage Positions Itself as Concierge Leader for Professional Salons

Beauty Garage Inc., a Tokyo-based beauty industry support company, employs over 600 staff across Japan and operates group companies in China, Singapore, Malaysia, and Vietnam to serve professional salons. Its mission centers on being the leading concierge for beauty salons, offering total support and creating new value to drive prosperity in the salon business.

The company emphasizes customer delight, continuous innovation, and daily improvement as core beliefs guiding its operations and strategic direction. By prioritizing ethical judgment over pure profitability and valuing speed and ideas, Beauty Garage aims to strengthen its industry positioning and deepen its role as a key partner in the professional beauty ecosystem.

The most recent analyst rating on (JP:3180) stock is a Buy with a Yen1448.00 price target. To see the full list of analyst forecasts on Beauty Garage, Inc. stock, see the JP:3180 Stock Forecast page.

Beauty Garage grows sales but sees profit decline, keeps full-year outlook and dividend plan

Beauty Garage Inc. reported consolidated net sales of ¥27.8 billion for the nine months ended January 31, 2026, a 13.8% year-on-year increase, while operating profit fell 11.9% to ¥895 million and profit attributable to owners of parent declined 12.0% to ¥564 million, reflecting margin pressure despite solid top-line growth. The company’s financial position remained sound with total assets of ¥17.1 billion and an equity ratio of 46.7%, and it maintained its full-year forecast for fiscal 2026, targeting ¥38.2 billion in net sales and only a modest decline in full-year profit, alongside a planned annual dividend of ¥16 per share, signaling confidence in its medium-term earnings capacity and shareholder return policy.

The most recent analyst rating on (JP:3180) stock is a Buy with a Yen1448.00 price target. To see the full list of analyst forecasts on Beauty Garage, Inc. stock, see the JP:3180 Stock Forecast page.

Beauty Garage Expands Lineup for 2026 Shareholder Benefits Program

Beauty Garage has finalized the details of its shareholder benefits program for the fiscal year ending April 2026 and will again allow eligible investors to choose one product from a dedicated shareholder benefits website. The company is expanding the lineup to 25 candidate items—five more than the previous year—including popular towel-related products, hair care, beauty cosmetics, beauty appliances and femcare goods, with each product priced at around ¥4,000 including tax; shareholders holding at least 100 shares for more than one year as of April 30, 2026, will receive application instructions with the Annual General Meeting notice in July and will have their selected items shipped sequentially after applying, reinforcing shareholder engagement and loyalty through tangible brand experiences.

The most recent analyst rating on (JP:3180) stock is a Buy with a Yen1643.00 price target. To see the full list of analyst forecasts on Beauty Garage, Inc. stock, see the JP:3180 Stock Forecast page.

Beauty Garage, Inc. Acquires alc co., ltd to Expand into Wellness Field

Beauty Garage, Inc. announced its decision to acquire alc co., ltd, a company specializing in medical equipment sales and start-up support for medical and beauty clinics, primarily in the Kansai area. This acquisition aligns with Beauty Garage’s strategy to expand its business into the wellness field, aiming to capture a larger market and enhance corporate value.

The most recent analyst rating on (JP:3180) stock is a Buy with a Yen1643.00 price target. To see the full list of analyst forecasts on Beauty Garage, Inc. stock, see the JP:3180 Stock Forecast page.