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

• Market Cap: ¥3.04B
• Dividend Yield: 3.19%
• Average Volume (3M): 10.18K
• Price to Earnings (P/E): 0.9
• Beta (1Y): 0.72
• 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: 9.61
• 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: ¥359.00 ▲(7.49% 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 and revenue recovery

Sustained high gross margins (~77–81%) and a clear revenue rebound (+13.9% in 2025) indicate durable pricing power and product mix strength in bridal/formal wear. This gross-margin cushion supports long-term profitability even if operating costs rise and underpins scalable margin recovery as volumes grow.

Improving balance sheet and returns

Material deleveraging from peak leverage demonstrates management focus on financial repair and reduces long-term solvency risk. Gradual equity growth and improving ROE (~7.9%) reflect better capital efficiency, increasing the firm's resilience and capacity to invest or withstand industry cyclical swings over months ahead.

Positive operating and free cash flow

Consistent positive operating cash flow and positive free cash flow show the core business converts sales into cash, supporting dividend distributions and incremental reinvestment. This cash generation improves strategic optionality and reduces reliance on external financing for near-term initiatives and upkeep of inventory/locations.

Negative Factors

Thin operating and net margins

Net margins compressed to ~2.3% leave limited buffer against input cost inflation, supplier or wage pressure, and demand softness. With thin operating leverage, small revenue declines or expense shocks can quickly erode earnings, making profitable growth and sustained margin expansion more challenging over the medium term.

Leverage still elevated above equity

Debt exceeding equity keeps financial vulnerability elevated despite improvement from peak. Higher leverage constrains capital allocation, raises interest-service sensitivity, and limits the company's ability to absorb shocks or fund opportunistic growth without further balance-sheet actions over the coming months.

Shrinking free cash flow and weak cash conversion

A 34% YoY fall in FCF and low cash conversion (~0.38x of net income) indicate earnings are not fully turning into liquid cash. This reduces the firm's tolerance for further margin or revenue volatility, limits debt repayment flexibility, and weakens the durability of dividends and reinvestment plans absent a reversal in cash conversion trends.

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

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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	10.23B	9.87B	8.98B	7.44B	5.16B
EBITDA	1.08B	830.74M	741.02M	885.30M	425.81M	-1.39B
Net Income	525.58M	312.33M	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	521.89M	328.53M	109.36M	398.69M	868.71M	411.69M
Operating Cash Flow	1.01B	859.61M	526.10M	761.02M	989.38M	515.31M
Investing Cash Flow	-415.92M	-463.05M	-979.56M	-409.50M	-133.35M	381.60M
Financing Cash Flow	-508.76M	-193.22M	36.13M	-2.73B	-1.23B	-126.25M

KURAUDIA HOLDINGS CO. LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 334.00
• 50DMA: Negative
• 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:3607, the sentiment is Positive. The current price of 334 is below the 20-day moving average (MA) of 343.63, below the 50-day MA of 346.10, and below the 200-day MA of 338.71, indicating a neutral trend. The MACD of -0.24 indicates Negative momentum. The RSI at 53.32 is Neutral, neither overbought nor oversold. The STOCH value of 78.57 is Neutral, 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	¥41.52B	10.95	―	3.62%	-0.98%	-29.86%
8227	68 Neutral	¥746.94B	16.45	8.48%	2.02%	―	―
2670	66 Neutral	¥616.07B	17.79	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	¥3.04B	0.90	―	3.19%	2.81%	59.43%
7603	41 Neutral	¥3.33B	-1.51	―	―	-7.88%	-11.22%