Vega corporation Co., Ltd. (3542) AI Stock Analysis

• Market Cap: ¥15.37B
• Dividend Yield: 0.71%
• Average Volume (3M): 122.08K
• Price to Earnings (P/E): 19.5
• Beta (1Y): 0.56
• Revenue Growth: 11.91%
• EPS Growth: 24.06%
• Country: JP
• Employees: 138
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): N/A
• Shares Outstanding: 10,735,800
• 10 Day Avg. Volume: 60,530
• 30 Day Avg. Volume: 122,083
• PEG Ratio: 0.28
• Price to Book (P/B): 1.40
• Price to Sales (P/S): 0.52
• P/FCF Ratio: 20.07
• 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: 63 Neutral
• Price Target: ¥1,464.00 ▼(-9.01% Downside)

The score is primarily supported by improving profitability and a low-risk balance sheet with no debt. It is held back by soft revenue trends and mixed cash-flow consistency, while technical signals are only moderately supportive and valuation (P/E ~24 with a low dividend yield) offers limited margin of safety.

Positive Factors

Conservative Balance Sheet

A debt-free balance sheet and rising equity/ROE materially reduce financial risk and give management flexibility to fund operations, invest in growth or weather downturns without relying on external financing. This bolsters long-term resilience and strategic optionality.

Stable Gross Margin and Improving Profitability

Consistently high ~50% gross margin and expanding operating and net margins indicate durable pricing/merchandising strength and effective cost control. These margin characteristics support sustained profitability even if top-line growth is uneven, improving earnings power over time.

Improved Cash Generation in Latest Year

A marked improvement in operating and free cash flow increases internal funding capacity for reinvestment, dividends or opportunistic M&A. Stronger cash generation enhances financial flexibility and reduces dependency on external capital over the medium term.

Negative Factors

Weak Revenue Trend

Two consecutive years of declining revenue suggest persistent demand or traffic pressure that cost cuts alone may not fix. Continued top-line weakness can limit scale benefits, constrain margin expansion potential, and cap long-term earnings and investment capacity.

Inconsistent Cash Conversion

Despite recent cash-flow improvement, low OCF-to-income and historical volatility signal working-capital swings and inconsistent conversion. This undermines predictability of free cash available for strategic uses and raises execution risk on funding commitments over time.

Asset Efficiency Concerns

Growing asset bases alongside declining revenue can compress asset turnover and pressure return metrics. If sustained, lower capital efficiency may require management action—asset rationalization or reprioritized investments—to avoid eroding ROE and long-term shareholder returns.

Vega corporation Co., Ltd. Business Overview & Revenue Model

Company Description

Vega Corporation Co.,Ltd. operates EC platforms for furniture and interior products in Japan and internationally. The company operates LOWYA, which offers e-commerce services, as well as furniture designs; and DOKODEMO, a cross-border e-commerce platform. Vega Corporation Co.,Ltd. was incorporated in 2004 and is headquartered in Fukuoka, Japan.

How the Company Makes Money

Vega Corporation Co., Ltd. generates revenue through its e-commerce platform by selling furniture and interior goods directly to consumers. The company capitalizes on its robust online presence to reach a broad customer base across Japan. Revenue streams are mainly derived from the sale of products listed on their website. Additionally, the company may engage in strategic partnerships with manufacturers and designers to offer exclusive products, enhancing its product portfolio and attracting a wider audience. Factors such as competitive pricing, efficient logistics, and a user-friendly online shopping experience contribute significantly to its earnings.

Vega corporation Co., Ltd. Financial Statement Overview

Summary

Profitability improved in FY2025 with higher net income and expanding EBIT/net margins, supported by stable ~50% gross margin. Strength is a very conservative balance sheet with zero debt and rising equity/ROE. Offsetting this are slightly negative revenue growth and uneven cash-flow conversion/consistency despite better FY2025 operating and free cash flow.

Income Statement

Profitability improved meaningfully in the latest year, with net income rising to 592M and margins expanding (EBIT margin ~5.9% and net margin ~3.7% in FY2025 vs. ~4.2% and ~2.5% in FY2024). Gross margin has remained very stable around ~50%, indicating good pricing/merchandising discipline. The key weakness is growth: revenue has been slightly negative in FY2025 (-0.8%) after a larger decline in FY2024 (-5.4%), suggesting demand/traffic pressure despite better cost control.

Balance Sheet

The balance sheet is conservatively positioned with zero debt reported in FY2024 and FY2025, reducing financial risk and providing flexibility through cycles. Equity has increased (to ~5.96B in FY2025 from ~5.57B in FY2024), and returns on equity improved to ~9.9% in FY2025 (from ~7.1% in FY2024). A potential watch item is that total assets rose in FY2025 while revenue was slightly down, which can signal less efficient asset use, but overall leverage and solvency look strong.

Cash Flow

Cash generation improved in FY2025, with operating cash flow up to 716M (from 264M in FY2024) and free cash flow up to 417M (from 106M). However, cash conversion remains mixed: free cash flow was only ~58% of net income in FY2025, and operating cash flow relative to net income is modest (~0.36), implying working-capital volatility or timing effects. History also shows material swings (including a negative operating cash flow year in FY2022), which lowers confidence in consistency.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.49M	15.94B	16.06B	16.97B	16.83B	19.31B
Gross Profit	1.24M	7.96B	8.00B	8.47B	9.37B	11.60B
EBITDA	0.00	1.14B	833.68M	420.04M	782.02M	1.99B
Net Income	204.00K	591.67M	394.36M	120.44M	382.62M	1.16B
Balance Sheet
Total Assets	―	8.07B	7.21B	7.15B	8.02B	8.22B
Cash, Cash Equivalents and Short-Term Investments	―	1.84B	1.75B	1.89B	1.07B	3.03B
Total Debt	―	0.00	0.00	0.00	1.00B	500.00M
Total Liabilities	―	2.11B	1.64B	1.85B	2.75B	3.08B
Stockholders Equity	―	5.96B	5.57B	5.30B	5.27B	5.14B
Cash Flow
Free Cash Flow	0.00	416.71M	106.09M	1.84B	-2.04B	2.19B
Operating Cash Flow	0.00	715.57M	264.00M	2.04B	-1.92B	2.37B
Investing Cash Flow	0.00	-466.61M	-189.62M	-179.00M	-229.33M	-300.89M
Financing Cash Flow	0.00	-165.85M	-234.86M	-1.10B	258.04M	-269.25M

Vega corporation Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1609.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3542, the sentiment is Neutral. The current price of 1609 is above the 20-day moving average (MA) of 1471.85, above the 50-day MA of 1492.00, and below the 200-day MA of 1620.71, indicating a bearish trend. The MACD of -34.91 indicates Positive momentum. The RSI at 47.61 is Neutral, neither overbought nor oversold. The STOCH value of 24.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3542.

Vega corporation Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7110	78 Outperform	¥15.47B	18.04	―	2.22%	26.29%	28.62%
2652	66 Neutral	¥12.34B	10.10	―	0.30%	5.03%	-17.66%
7636	65 Neutral	¥11.64B	11.67	―	3.67%	-2.43%	14.17%
3542	63 Neutral	¥15.37B	19.55	―	0.71%	11.91%	24.06%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
8289	53 Neutral	¥10.77B	-4.76	―	4.61%	3.14%	-183.07%
2769	45 Neutral	¥7.64B	-2.22	―	―	-4.54%	-261.55%