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

• Market Cap: ¥3.09B
• Dividend Yield: 3.19%
• Average Volume (3M): 10.18K
• Price to Earnings (P/E): 6.0
• Beta (1Y): 0.79
• 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: ¥365.00 ▲(9.28% Upside)

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 and stable gross margin

Very high gross margins (77–81%) provide a durable structural buffer for the bridal/formalwear business, supporting pricing power and protecting operating results from modest revenue dips. This margin profile underpins reinvestment capacity and long-term product profitability.

Sustained revenue recovery

A multi-year revenue rebound, including +13.9% in 2025, signals restoration of demand and market share in weddings/formalwear. Durable top-line growth improves operating leverage potential and provides a firmer base for margin recovery if cost control is maintained.

Positive cash generation

Operating cash flow turned positive and free cash flow is positive, reflecting improved cash conversion versus loss years. This strengthens the company’s ability to service obligations, fund working capital and modest capex, supporting operational stability.

Negative Factors

Thin net margins

Net margins are thin and have declined materially from prior peaks, leaving earnings highly sensitive to cost inflation, pricing pressure or volume swings. Low net profitability constrains retained earnings, limiting cushion for reinvestment or downturns.

Elevated leverage

Leverage remains meaningfully elevated with debt still above equity. Higher financial leverage reduces flexibility, increases interest burden and raises refinancing risk if profits weaken, making the company more vulnerable to adverse operating or funding conditions.

Declining free cash flow

Free cash flow contracted sharply year-over-year and converts a limited share of reported earnings into cash. Weak FCF and low operating cash coverage versus debt constrain self‑funding for growth or deleveraging and raise reliance on external financing.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	13.59B	13.22B	11.52B	9.51B	7.02B
Gross Profit	10.58B	10.19B	9.24B	7.69B	5.44B
EBITDA	906.47M	740.00M	907.59M	1.10B	-179.85M
Net Income	312.00M	192.51M	562.01M	824.38M	-810.81M
Balance Sheet
Total Assets	12.63B	12.81B	11.90B	13.58B	13.79B
Cash, Cash Equivalents and Short-Term Investments	1.89B	1.81B	2.15B	4.50B	4.80B
Total Debt	5.75B	5.83B	5.48B	8.16B	9.39B
Total Liabilities	8.66B	8.98B	8.20B	10.44B	11.42B
Stockholders Equity	3.97B	3.83B	3.70B	3.14B	2.37B
Cash Flow
Free Cash Flow	329.00M	109.36M	321.21M	859.11M	386.94M
Operating Cash Flow	859.00M	526.10M	761.02M	989.38M	515.31M
Investing Cash Flow	-463.00M	-979.56M	-409.50M	-133.35M	381.60M
Financing Cash Flow	-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 351.90, above the 50-day MA of 328.72, and below the 200-day MA of 338.40, indicating a neutral trend. The MACD of 7.68 indicates Positive momentum. The RSI at 56.82 is Neutral, neither overbought nor oversold. The STOCH value of 10.18 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
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
9271	60 Neutral	¥6.26B	11.27	―	―	30.82%	77.42%
3607	58 Neutral	¥3.09B	6.02	―	3.19%	2.81%	59.43%
8013	57 Neutral	¥2.44B	151.11	―	―	2.54%	―
2778	52 Neutral	¥1.80B	-26.30	―	―	-6.40%	-590.11%
7603	48 Neutral	¥4.66B	-1.96	―	―	-7.88%	-11.22%
9878	41 Neutral	¥1.64B	-1.52	―	2.14%	-25.92%	-1005.20%