Joyful Honda Co. Ltd. (3191) AI Stock Analysis

• Market Cap: ¥124.67B
• Dividend Yield: 2.83%
• Average Volume (3M): 172.26K
• Price to Earnings (P/E): 14.0
• Beta (1Y): 0.29
• Revenue Growth: 2.78%
• EPS Growth: 15.97%
• Country: JP
• Employees: 2,309
• Sector: Consumer Cyclical
• Sector Strength: 68
• Industry: Home Improvement
• EPS (TTM): 34.53
• Shares Outstanding: 63,784,610
• 10 Day Avg. Volume: 117,720
• 30 Day Avg. Volume: 172,263
• PEG Ratio: -28.84
• Price to Book (P/B): 1.04
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 66.45
• 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

• Rating: 78 Outperform
• Price Target: ―

Joyful Honda Co. Ltd. shows strong financial performance with a robust balance sheet and consistent profitability, significantly contributing to its stock score. Technical indicators suggest a stable medium-term trend, though short-term consolidation may be occurring. The stock's attractive valuation, characterized by a reasonable P/E ratio and a solid dividend yield, further supports its favorable score.

Joyful Honda Co. Ltd. Business Overview & Revenue Model

Company Description

Joyful Honda Co., Ltd. engages in the home improvement retail business in Japan. The company operates home centers, which provide timber, building materials, paints, tools, hardware, worker essentials, and electrical fittings; gardening and plumbing supplies, agricultural materials, and engine machinery; wallpapers, carpets and curtains, lighting fixtures, and electrical appliances, as well as daily living essentials, daily consumables, and fresh cut flowers; and storage goods, stationery and office supplies, outdoor goods, automotive accessories, bicycles, medicines, and alcoholic and non-alcoholic drinks. It also operates garden centers that offer flower seedlings, vegetable seedlings, plants, mulch and other soil for horticulture, fertilizers, plant pots and other gardening supplies, bricks, paving stones, and other landscaping supplies; pet centers, which provide dogs, cats, small animals, birds and fish, and pet supplies, as well as pet foods, cages, toys, and trimmer service facilities; and self-service gas stations. It operates 15 stores in Ibaraki, Chiba, Saitama, Tochigi, Gunma, and Tokyo. In addition, the company, through its subsidiaries, is involved in home renovation, art and craft supplies retail, sports club, vehicle inspection and maintenance, and tire sales and fitting businesses. It also operates an online shop. Joyful Honda Co., Ltd. was founded in 1975 and is headquartered in Tsuchiura, Japan.

How the Company Makes Money

Joyful Honda generates revenue primarily through the sale of products at its home improvement centers. The company's key revenue streams include retail sales of hardware, gardening supplies, home leisure goods, and pet-related products. Additionally, Joyful Honda may also earn income from services such as home delivery, installation, and repair services associated with the products they sell. Strategic partnerships with suppliers and manufacturers can also contribute to Joyful Honda's earnings by enabling competitive pricing and exclusive product offerings. The company focuses on attracting a broad customer base by offering a wide range of quality products and services under one roof, thus driving foot traffic and sales at its retail locations.

Joyful Honda Co. Ltd. Financial Statement Overview

Summary

Joyful Honda Co. Ltd. exhibits strong financial health with a solid balance sheet and consistent profitability. While operational efficiency is commendable, the company faces challenges in accelerating revenue growth and managing free cash flow amid substantial capital investments. The low leverage reduces financial risk, but strategic focus on enhancing top-line growth and optimizing cash flow usage could further strengthen its financial position.

Income Statement

Joyful Honda Co. Ltd. shows a strong gross profit margin of 35.3% and a net profit margin of 6.8% for the latest year, indicating a healthy level of profitability. However, the revenue growth rate is modest at 3.1%, suggesting limited top-line expansion. The EBIT and EBITDA margins stand at 7.9% and 12.5% respectively, reflecting efficient operations but also hinting at potential room for cost optimization.

Balance Sheet

The company's balance sheet is robust with a low debt-to-equity ratio of 0.08, indicating minimal leverage and financial risk. The return on equity is solid at 7.5%, showcasing effective use of shareholders' equity to generate profit. An equity ratio of 75.8% further emphasizes strong capital structure stability.

Cash Flow

Operating cash flow has increased significantly, yet free cash flow growth is negative at -59.6%, suggesting higher capital expenditures. The operating cash flow to net income ratio is strong at 1.39, indicating good cash generation relative to reported earnings, but the free cash flow to net income ratio of 0.40 suggests potential pressure from investment activities.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	133.32B	129.26B	129.05B	137.92B	130.81B
Gross Profit	47.01B	45.91B	45.50B	47.27B	40.85B
EBITDA	16.65B	15.22B	16.64B	15.74B	16.87B
Net Income	9.09B	8.53B	11.10B	8.98B	10.95B
Balance Sheet
Total Assets	159.69B	160.93B	156.43B	160.61B	157.77B
Cash, Cash Equivalents and Short-Term Investments	27.46B	35.02B	42.52B	45.53B	38.91B
Total Debt	9.18B	12.29B	16.46B	20.94B	25.49B
Total Liabilities	38.71B	41.60B	40.61B	47.92B	51.55B
Stockholders Equity	120.98B	119.33B	115.82B	112.68B	106.22B
Cash Flow
Free Cash Flow	3.66B	905.00M	1.89B	10.15B	9.52B
Operating Cash Flow	12.67B	9.81B	7.84B	12.41B	12.04B
Investing Cash Flow	-9.06B	-7.74B	1.37B	2.07B	6.02B
Financing Cash Flow	-11.18B	-9.57B	-12.22B	-6.87B	-6.84B

Joyful Honda Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2088.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3191, the sentiment is Positive. The current price of 2088 is above the 20-day moving average (MA) of 2061.05, above the 50-day MA of 2038.28, and above the 200-day MA of 1932.58, indicating a bullish trend. The MACD of 13.26 indicates Negative momentum. The RSI at 74.82 is Negative, neither overbought nor oversold. The STOCH value of 80.03 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3191.

Joyful Honda Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3191	78 Outperform	¥124.67B	13.98		2.83%	2.78%	15.97%
Sector *	67 Neutral	¥264.20B	13.61	6.49%	2.55%	5.08%	-13.04%
64E	―	€310.22M	255.32	0.09%	3.34%	―	―
3050	79 Outperform	¥188.80B	11.10		3.06%	6.96%	-19.43%
8218	71 Outperform	¥159.16B	10.81		1.69%	1.84%	-3.32%
7516	67 Neutral	¥124.59B	8.23		2.63%	4.89%	7.47%
7450	46 Neutral	¥11.33B	―		0.47%	-1.79%	-491.60%

Joyful Honda Co. Ltd. Corporate Events

Joyful Honda Reports Financial Results and Dividend Increase Amidst Market Challenges

Joyful Honda Co., Ltd. reported its non-consolidated financial results for the fiscal year ending June 20, 2025, showing a slight increase in net sales and operating profit compared to the previous year. Despite the growth in sales and profits, the company experienced a decline in overall profit, attributed to various operational challenges. The company also announced an increase in annual dividends, including a commemorative dividend for its 50th anniversary, indicating a commitment to returning value to shareholders. The financial forecast for the next fiscal year anticipates continued growth in net sales but a decrease in profits, reflecting ongoing market challenges.

Joyful Honda Announces Increased Dividends and Positive Forecast

Joyful Honda Co., Ltd. announced an increase in dividends for the fiscal year ended June 20, 2025, with a dividend of 32 yen per share, marking a significant rise from the previous year’s 25 yen. This increase includes a commemorative dividend to celebrate the company’s 50th anniversary. Looking ahead, the company forecasts a further increase in dividends for the fiscal year ending June 20, 2026, projecting a total dividend of 84 yen per share, reflecting confidence in its financial position and business outlook.

Joyful Honda Co., Ltd. Increases Dividend on Equity Ratio Target

Joyful Honda Co., Ltd. announced a change in its dividend policy, increasing its dividend on equity ratio target from 2.5% to 4.0% or higher. This change, effective from the interim dividend for the fiscal year ending June 20, 2026, reflects the company’s strategy to enhance shareholder value through sustainable profit growth.

Joyful Honda Evaluates and Enhances Board Effectiveness

Joyful Honda Co., Ltd. has conducted a self-evaluation of its Board of Directors’ effectiveness for the fiscal year ending June 20, 2025, continuing a process initiated in 2019. The evaluation shows high marks in various areas, including board composition and operation, attributed to improvements such as direct engagement in meetings and off-site discussions for strategic planning. The company plans to further enhance board effectiveness by focusing on medium- to long-term management issues and risks.

Joyful Honda Co., Ltd. Revises Internal Control Policy to Enhance Compliance and Risk Management

Joyful Honda Co., Ltd. has announced a partial revision of its Basic Policy on the Internal Control System, aimed at enhancing compliance and risk management across its operations. The revisions include establishing internal regulations, a Risk Management Department, and a Risk and Compliance Committee to ensure adherence to laws and improve the efficiency of operations within the company and its subsidiaries. These changes are designed to strengthen the company’s governance structure, improve decision-making processes, and ensure the proper conduct of operations, thereby potentially enhancing the company’s market position and stakeholder confidence.

Joyful Honda Acquires Honda Co., Ltd. to Expand Market Reach

Joyful Honda Co., Ltd. has announced its decision to acquire all shares of Honda Co., Ltd., making it a subsidiary. This strategic acquisition aligns with Joyful Honda’s vision to expand its customer base and enhance corporate value by creating a ‘general center for housing and lifestyle.’ The acquisition is expected to strengthen Joyful Honda’s market positioning and provide added value to its stakeholders by integrating Honda’s home center and remodeling businesses.

Joyful Honda Announces Strategic Organizational Changes and New Officer Appointments

Joyful Honda Co., Ltd. announced significant organizational changes and officer appointments aimed at enhancing communication, management efficiency, and sustainable growth. The restructuring includes the creation of new divisions to focus on corporate planning and administration, as well as expanding the scope of merchandising and product planning across the company. These changes are expected to strengthen the company’s market position and operational capabilities.

Joyful Honda Announces Cancellation of Treasury Shares

Joyful Honda Co., Ltd. has announced the cancellation of 1,628,359 treasury shares, representing 2.49% of its total issued shares, as resolved in a recent Board of Directors meeting. This strategic move is aimed at optimizing the company’s capital structure and could potentially enhance shareholder value by reducing the number of outstanding shares.

Joyful Honda Completes Significant Share Repurchase

Joyful Honda Co., Ltd. has completed a share repurchase program as resolved by its Board of Directors in November 2024. The company repurchased 184,900 common shares worth 372,588,900 yen between May 1 and May 16, 2025, through market purchases on the Tokyo Stock Exchange. This move is part of a broader strategy to enhance shareholder value, with a cumulative total of 2.1 million shares repurchased since the resolution, amounting to 4,017,622,000 yen.

Joyful Honda Announces Share Repurchase Status

Joyful Honda Co., Ltd. announced the status of its share repurchase program, which was resolved at a Board of Directors meeting in November 2024. The company repurchased 488,200 common shares valued at 957,400,500 yen between April 1 and April 30, 2025, as part of a broader initiative to buy back up to 2.1 million shares worth 5.0 billion yen by May 31, 2025. This move is part of the company’s strategy to enhance shareholder value and optimize its capital structure.

Joyful Honda Reports Increased Sales and Commemorative Dividend

Joyful Honda Co., Ltd. reported a slight increase in net sales and profits for the nine months ending March 20, 2025, compared to the previous year, despite a decrease in capital adequacy ratio. The company has announced a commemorative dividend for its 50th anniversary, reflecting a positive outlook and commitment to shareholder returns, although the full-year profit is expected to decline.