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

• Market Cap: ¥19.69B
• Dividend Yield: 0.71%
• Average Volume (3M): 122.08K
• Price to Earnings (P/E): 19.3
• Beta (1Y): 0.54
• 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: 10,749,600
• 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: ¥2,286.00 ▲(42.08% 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

Debt-free balance sheet

Zero reported debt provides durable financial flexibility and markedly lowers bankruptcy and refinancing risk. Over a 2-6 month horizon this supports capital allocation optionality (investments, M&A or shareholder returns) and resilience through demand cycles without leverage pressure.

Improved profitability and margins

Meaningful margin expansion shows effective cost control and pricing/merchandising discipline. Stable gross margin (~50%) plus rising EBIT/net margins create a firmer earnings base, improving cash flow potential and ROE sustainability over the medium term.

Stronger operating and free cash flow

Material improvement in operating and free cash flow enhances the company's ability to self-fund operations and investments. Sustained higher cash generation strengthens liquidity and supports strategic initiatives or shareholder returns without needing external financing.

Negative Factors

Declining revenue trend

Two consecutive years of revenue decline point to structural demand or traffic pressure rather than a temporary blip. If top-line weakness persists, margin gains may be limited, constraining reinvestment and longer-term growth unless the company restores sales momentum or expands addressable markets.

Inconsistent cash conversion

Volatile cash conversion and past negative operating cash flow indicate working-capital sensitivity and timing risk. This undermines predictability of internally generated funds, complicates planning for capex/dividends, and elevates reliance on balance sheet buffers to cover shortfalls.

Rising assets with softer revenue

Asset growth alongside falling sales suggests declining asset turnover and potential capital allocation inefficiency. Persisting lower asset utilization would pressure ROIC and may require restructuring or better inventory/space management to avoid long-term erosion of 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

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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	7.84B	8.30B	9.21B	11.46B
EBITDA	0.00	1.13B	925.15M	512.43M	754.99M	1.96B
Net Income	204.00K	591.67M	394.36M	120.44M	382.62M	1.16B
Balance Sheet
Total Assets	―	8.10B	7.25B	7.16B	8.03B	8.24B
Cash, Cash Equivalents and Short-Term Investments	―	1.84B	1.84B	2.00B	1.23B	3.12B
Total Debt	―	0.00	0.00	0.00	1.00B	500.00M
Total Liabilities	―	2.14B	1.68B	1.85B	2.76B	3.11B
Stockholders Equity	―	5.96B	5.57B	5.30B	5.27B	5.14B
Cash Flow
Free Cash Flow	0.00	416.71M	189.38M	1.97B	-1.99B	2.33B
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: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 below the 20-day moving average (MA) of 2005.75, below the 50-day MA of 1710.90, and below the 200-day MA of 1749.41, indicating a neutral trend. The MACD of 71.02 indicates Positive momentum. The RSI at 46.76 is Neutral, neither overbought nor oversold. The STOCH value of 39.85 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
2674	74 Outperform	¥27.59B	8.12	―	3.77%	7.88%	-5.92%
3542	68 Neutral	¥19.69B	19.32	―	0.71%	11.91%	24.06%
3093	65 Neutral	¥40.35B	9.40	―	2.19%	17.90%	14.14%
7685	65 Neutral	¥202.14B	27.65	―	0.64%	57.01%	91.03%
9278	64 Neutral	¥30.62B	11.19	―	1.73%	―	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
9270	59 Neutral	¥24.47B	3.19	―	0.95%	4.14%	―