KURAUDIA HOLDINGS CO. LTD. (3607) AI Stock Analysis

• Market Cap: ¥3.06B
• Dividend Yield: 3.19%
• Average Volume (3M): 10.18K
• Price to Earnings (P/E): 5.9
• Beta (1Y): 0.75
• Revenue Growth: 2.81%
• EPS Growth: 59.43%
• Country: JP
• Employees: 1,039
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): 87.76
• Shares Outstanding: 9,689,200
• 10 Day Avg. Volume: 7,970
• 30 Day Avg. Volume: 10,176
• PEG Ratio: 0.16
• Price to Book (P/B): 0.80
• Price to Sales (P/S): 0.23
• P/FCF Ratio: 9.60
• 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: 58 Neutral
• Price Target: ¥361.00 ▲(8.08% Upside)
• Action: Reiterated Date: 01/04/26
• Date: Action: Reiterated 01/04/26

The score is primarily held back by financial risk factors: thin profitability, declining free cash flow, and still-elevated leverage. Technical signals are mixed-to-weak given the stock’s position below key longer-term moving averages and negative MACD. Valuation is the main support, with a low P/E and a meaningful dividend yield.

Positive Factors

High Gross Margins

Sustained gross margins near 77–81% indicate structurally strong product economics and pricing power in bridal/formal wear. High gross margins provide a durable cushion to absorb input cost increases and support investment in branding and service without immediate margin erosion.

Revenue Recovery and Growth

A clear rebound and multi-year revenue growth, including a 13.9% increase in 2025, reflect resilient demand and recovery from the 2020–2021 downturn. This trend supports durable scale benefits, steadier fixed-cost absorption, and a stronger platform for cross-selling services.

Positive Cash Generation in 2025

Positive operating cash flow and positive free cash flow in 2025 demonstrate the business can convert sales into cash, enabling reinvestment, dividend support, and some debt servicing. This cash generation is a durable foundation for near-term operational flexibility.

Negative Factors

Thin Net Margins

Very thin net margins make profitability highly sensitive to modest cost inflation or revenue declines. Structural margin compression reduces retained earnings, weakens ability to self-fund growth or debt reduction, and raises the probability that cyclical swings impair long-term returns.

Elevated Leverage

Debt materially above equity increases financial risk and interest burden, limiting strategic optionality. Elevated leverage constrains the company's ability to invest or absorb shocks, and makes it more vulnerable to rising rates or weaker earnings across a 2–6 month horizon.

Shrinking Free Cash Flow & Low Coverage

Declining free cash flow and low cash coverage versus debt mean less internal funding for capex, dividends, or deleveraging. This structural erosion of cash conversion increases reliance on external financing and reduces cushion against operational or demand shocks.

KURAUDIA HOLDINGS CO. LTD. Business Overview & Revenue Model

Company Description

KURAUDIA HOLDINGS CO. LTD. is a Japanese company primarily engaged in the production and wholesale of bridal wear and related accessories. The company operates in the wedding industry, offering an extensive range of wedding dresses, tuxedos, and other bridal accessories. It is known for its high-quality, stylish designs and has established a strong presence in the domestic market, catering to both individual customers and bridal retail businesses.

How the Company Makes Money

KURAUDIA HOLDINGS CO. LTD. generates revenue primarily through the sale of its bridal products. The company's key revenue streams include the wholesale distribution of wedding dresses and tuxedos to bridal shops and retailers. Additionally, it may offer rental services for bridal wear, which provides an alternative revenue source. The company likely collaborates with designers and manufacturers to produce its exclusive lines, enhancing its product offerings and market reach. Partnerships with wedding venues and event planners may also contribute to its business operations by channeling customers towards their products. However, specific details on partnerships or additional revenue streams are not available.

KURAUDIA HOLDINGS CO. LTD. Financial Statement Overview

Summary

Revenue growth and profitability have recovered, but earnings quality is constrained by thin net margins and shrinking free cash flow. Leverage remains elevated (debt still above equity), increasing sensitivity if profitability softens.

Income Statement

Revenue has grown strongly over the last several years (including +13.9% in 2025 vs. 2024 and a sharp rebound after 2020–2021 declines), and profitability has recovered meaningfully from the 2020–2021 loss period. Gross profit remains very high and stable (~77–81%), but operating and net profitability are now relatively thin (2025 net margin ~2.3% vs. ~4.9% in 2023), indicating earnings are more sensitive to cost pressure and demand swings.

Balance Sheet

Leverage remains elevated, with debt still exceeding equity (debt-to-equity ~1.45x in 2025), though it has improved materially from the peak leverage in 2021 (~4.0x). Equity has grown gradually, and returns improved versus 2024 (ROE ~7.9% in 2025), but are well below the stronger 2022–2023 period—leaving the balance sheet more exposed if profits soften.

Cash Flow

Cash generation is positive and improved in 2025 (operating cash flow ~¥859m; free cash flow ~¥329m), but free cash flow has been shrinking recently (2025 down ~34% year over year). Cash conversion is mixed: free cash flow is meaningfully below net income in 2025 (~0.38x), and operating cash flow is relatively small compared with the company’s debt load (coverage ~0.21), which can constrain flexibility if funding conditions tighten.

Breakdown	TTM	Aug 2025	Aug 2024	Aug 2023	Aug 2022	Aug 2021
Income Statement
Total Revenue	13.77B	13.59B	13.22B	11.52B	9.51B	7.02B
Gross Profit	10.79B	10.58B	10.19B	9.24B	7.69B	5.44B
EBITDA	1.15B	906.47M	740.00M	907.59M	1.10B	-179.85M
Net Income	525.74M	312.00M	192.51M	562.01M	824.38M	-810.81M
Balance Sheet
Total Assets	13.64B	12.63B	12.81B	11.90B	13.58B	13.79B
Cash, Cash Equivalents and Short-Term Investments	2.55B	1.89B	1.81B	2.15B	4.50B	4.80B
Total Debt	5.52B	5.75B	5.83B	5.48B	8.16B	9.39B
Total Liabilities	8.92B	8.66B	8.98B	8.20B	10.44B	11.42B
Stockholders Equity	4.73B	3.97B	3.83B	3.70B	3.14B	2.37B
Cash Flow
Free Cash Flow	380.09M	329.00M	109.36M	321.21M	859.11M	386.94M
Operating Cash Flow	864.09M	859.00M	526.10M	761.02M	989.38M	515.31M
Investing Cash Flow	-415.93M	-463.00M	-979.56M	-409.50M	-133.35M	381.60M
Financing Cash Flow	-508.76M	-193.00M	36.13M	-2.73B	-1.23B	-126.25M

KURAUDIA HOLDINGS CO. LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 334.00
• 50DMA: Positive
• 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:3607, the sentiment is Positive. The current price of 334 is below the 20-day moving average (MA) of 347.68, below the 50-day MA of 337.56, and below the 200-day MA of 337.41, indicating a neutral trend. The MACD of 2.33 indicates Positive momentum. The RSI at 51.70 is Neutral, neither overbought nor oversold. The STOCH value of 5.39 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3607.

KURAUDIA HOLDINGS CO. LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2792	72 Outperform	¥42.97B	12.56	―	3.62%	-0.98%	-29.86%
8227	68 Neutral	¥795.86B	18.28	8.78%	2.02%	―	―
2670	66 Neutral	¥649.63B	14.47	12.11%	2.68%	2.99%	5.66%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3607	58 Neutral	¥3.06B	5.95	―	3.19%	2.81%	59.43%
7445	50 Neutral	¥11.82B	-17.84	-111.30%	―	-27.51%	96.20%
7603	47 Neutral	¥3.79B	-1.60	―	―	-7.88%	-11.22%