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

• Market Cap: ¥126.64B
• Dividend Yield: 2.78%
• Average Volume (3M): 113.63K
• Price to Earnings (P/E): 15.7
• Beta (1Y): 0.29
• Revenue Growth: 1.81%
• EPS Growth: -7.32%
• Country: JP
• Employees: 2,309
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Home Improvement
• EPS (TTM): 34.53
• Shares Outstanding: 63,784,610
• 10 Day Avg. Volume: 127,870
• 30 Day Avg. Volume: 113,630
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥2,201.00
• Price Target Upside: 3.77% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 61 Neutral
• Price Target: ¥2,201.00 ▲(3.77% Upside)

Joyful Honda Co. Ltd. has a strong financial foundation with consistent revenue growth and effective cash management, which is the most significant factor in its score. However, bearish technical indicators and oversold conditions weigh negatively on the stock's outlook. The valuation is fair, providing some support to the overall score.

Joyful Honda Co. Ltd. Business Overview & Revenue Model

Company Description

Joyful Honda Co. Ltd. (3191) is a leading Japanese retailer primarily engaged in the operation of home improvement centers. The company provides a wide range of products and services, including hardware, gardening supplies, home leisure goods, and pet-related products. Joyful Honda is known for its large-scale retail outlets that offer an extensive selection of items designed to meet the diverse needs of homeowners and DIY enthusiasts.

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 solid financial health with consistent revenue growth and strong profitability margins. The balance sheet is stable with low leverage, and cash flow management is effective. While there are minor concerns regarding declining net income and return on equity, the overall financial position remains strong.

Income Statement

Joyful Honda Co. Ltd. has shown consistent revenue growth with a 3.88% increase in the latest year, indicating a positive trajectory. The gross profit margin remains strong, and the net profit margin is stable, reflecting good profitability. However, there is a slight decline in net income, which could be a concern if it continues.

Balance Sheet

The company maintains a healthy equity ratio, indicating financial stability. The debt-to-equity ratio is low, suggesting conservative leverage. However, the return on equity has slightly decreased, which might affect investor returns if not addressed.

Cash Flow

Operating cash flow remains robust, and there is a positive growth in free cash flow, which is a good sign for liquidity. The free cash flow to net income ratio is improving, indicating efficient cash management. However, the operating cash flow to net income ratio has decreased, which could be a potential risk if it continues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	130.66B	135.74B	133.32B	129.26B	129.05B	137.92B
Gross Profit	46.24B	47.74B	47.01B	45.91B	45.50B	47.27B
EBITDA	15.04B	14.97B	16.65B	15.22B	16.64B	15.74B
Net Income	8.12B	8.33B	9.09B	8.53B	11.10B	8.98B
Balance Sheet
Total Assets	158.31B	165.57B	159.69B	160.93B	156.43B	160.61B
Cash, Cash Equivalents and Short-Term Investments	32.19B	32.26B	27.46B	35.02B	42.52B	45.53B
Total Debt	10.66B	14.73B	9.18B	12.29B	16.46B	20.94B
Total Liabilities	41.05B	43.78B	38.71B	41.60B	40.61B	47.92B
Stockholders Equity	117.26B	121.79B	120.98B	119.33B	115.82B	112.68B
Cash Flow
Free Cash Flow	6.82B	7.13B	3.66B	905.00M	1.89B	10.15B
Operating Cash Flow	6.82B	9.07B	12.67B	9.81B	7.84B	12.41B
Investing Cash Flow	0.00	-2.33B	-9.06B	-7.74B	1.37B	2.07B
Financing Cash Flow	0.00	-2.03B	-11.18B	-9.57B	-12.22B	-6.87B

Joyful Honda Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2121.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3191, the sentiment is Neutral. The current price of 2121 is below the 20-day moving average (MA) of 2179.10, below the 50-day MA of 2159.64, and above the 200-day MA of 1996.25, indicating a neutral trend. The MACD of -10.89 indicates Positive momentum. The RSI at 40.81 is Neutral, neither overbought nor oversold. The STOCH value of 15.22 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
3050	79 Outperform	¥206.76B	11.39	―	3.08%	1.49%	-21.76%
8218	68 Neutral	¥154.94B	10.43	―	1.76%	1.84%	-3.32%
7516	67 Neutral	¥127.26B	8.41	―	2.49%	4.89%	7.47%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3191	61 Neutral	¥126.64B	15.69	―	2.78%	1.81%	-7.32%
2790	57 Neutral	€58.04B	274.50	-0.02%	2.85%	-4.81%	-101.28%
7450	48 Neutral	¥10.72B	―	―	0.50%	-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.