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

• Market Cap: ¥20.46B
• Dividend Yield: 0.71%
• Average Volume (3M): 122.08K
• Price to Earnings (P/E): 19.3
• Beta (1Y): 0.59
• 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: 68 Neutral
• Price Target: ¥2,329.00 ▲(44.75% Upside)
• Action: Reiterated Date: 02/14/26
• Date: Action: Reiterated 02/14/26

The score is driven primarily by solid fundamentals: improved profitability and a very conservative, debt-free balance sheet. Technicals are supportive with a strong uptrend, though momentum indicators are stretched. Valuation is fair but not especially attractive given the low dividend yield and soft revenue trend.

Positive Factors

Conservative Balance Sheet

Zero reported debt and rising equity materially lower financial risk and preserve flexibility to fund investment or weather downturns without costly refinancing. Improved ROE (~9.9%) indicates management is extracting better returns from equity, supporting durable capital strength.

Improved Profitability & Stable Margins

Meaningful margin expansion and higher net income show effective cost control and pricing/merchandising discipline. Stable gross margins (~50%) imply a resilient product mix or procurement advantage, underpinning sustainable earnings even if top-line growth is choppy.

Stronger Cash Generation in FY2025

A pronounced rise in operating and free cash flow enhances internal funding capacity for capex, strategic initiatives, or shareholder returns without adding leverage. The step-up in cash generation improves liquidity and strategic optionality over the medium term.

Negative Factors

Soft Revenue Trend

Consecutive revenue declines point to underlying demand or traffic weakness that cost cutting may not fully offset. Persistent top-line softness constrains operating leverage, limits long-term growth prospects, and reduces capacity to fund expansion or margin improvement sustainably.

Inconsistent Cash Conversion

Variability in cash conversion and past negative OCF raise concerns about working-capital management and predictability of cash available for reinvestment. This inconsistency increases execution risk and complicates reliable financial planning despite the recent FY2025 improvement.

Rising Assets While Revenue Falls

Growing asset base with declining sales suggests weakening asset turnover—possibly from inventory buildup or underutilized locations. Lower efficiency pressures returns on capital and may necessitate operational restructuring or asset reallocation to restore long-term profitability.

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 (higher net income and expanded EBIT/net margins) and the balance sheet is a major strength with zero debt and improving ROE. Offsetting this, revenue declined slightly and cash-flow conversion/consistency is uneven 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	Mar 2025	Mar 2025	Mar 2024	Mar 2023	Mar 2022
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: Positive
• Last Price: 1609.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 1609 is below the 20-day moving average (MA) of 1864.75, below the 50-day MA of 1635.02, and below the 200-day MA of 1709.24, indicating a bullish trend. The MACD of 156.04 indicates Negative momentum. The RSI at 54.99 is Neutral, neither overbought nor oversold. The STOCH value of 60.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
2674	74 Outperform	¥28.30B	8.12	―	3.77%	7.88%	-5.92%
3542	68 Neutral	¥20.46B	19.32	―	0.71%	11.91%	24.06%
3093	65 Neutral	¥44.28B	9.40	―	2.19%	17.90%	14.14%
7685	65 Neutral	¥191.43B	27.65	―	0.64%	57.01%	91.03%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
9270	59 Neutral	¥24.34B	3.19	―	0.95%	4.14%	―