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

• Market Cap: ¥2.96B
• Dividend Yield: 3.19%
• Average Volume (3M): 10.18K
• Price to Earnings (P/E): 0.9
• Beta (1Y): 0.73
• 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: ¥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 margin

Sustained gross margins near 77–81% indicate durable product-level profitability and persistent pricing power in bridal/formalwear. High gross margin provides structural headroom to absorb SG&A and marketing, supporting operating recovery and resilience through demand cycles.

Revenue recovery and growth

Consistent top-line growth, including a 13.9% rise in 2025 and a clear rebound from the 2020–2021 trough, signals restored structural demand and improved market positioning. Durable revenue expansion helps spread fixed costs and supports reinvestment in operations and service capabilities.

Balance-sheet repair

Material reduction in peak leverage demonstrates successful balance-sheet repair and greater financial flexibility. Lower leverage reduces refinancing and solvency risk, improving the company's ability to fund operations or targeted investments over the medium term while still requiring monitoring.

Negative Factors

Thin net margins

Net margins have compressed to roughly 2.3%, leaving limited profit buffer against cost pressures or volume variability. Thin bottom-line profitability increases earnings volatility and reduces the margin for error on pricing, input costs, or slower demand, threatening sustained cash generation.

Shrinking free cash flow

A 34% decline in free cash flow to ~¥329m and FCF at ~0.38x of net income indicate weakening cash conversion. Reduced free cash limits internal funding for capex, dividends, or debt paydown, raising reliance on external financing and constraining strategic flexibility long term.

Elevated leverage persists

Despite improvement, debt remains above equity with a ~1.45x ratio, leaving the company exposed to interest rate rises or revenue shocks. Elevated leverage amplifies downside risk, limits capacity for M&A or investment, and increases sensitivity to any further earnings or cashflow deterioration.

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: Negative
• Last Price: 334.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• 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 Negative. The current price of 334 is below the 20-day moving average (MA) of 345.68, below the 50-day MA of 339.98, and below the 200-day MA of 337.70, indicating a bearish trend. The MACD of -1.06 indicates Positive momentum. The RSI at 40.17 is Neutral, neither overbought nor oversold. The STOCH value of 10.42 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥41.77B	10.95	―	3.62%	-0.98%	-29.86%
8227	68 Neutral	¥755.58B	16.45	8.78%	2.02%	―	―
2670	66 Neutral	¥628.08B	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	¥2.96B	0.90	―	3.19%	2.81%	59.43%
7603	41 Neutral	¥3.59B	-1.51	―	―	-7.88%	-11.22%