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

Revenue recovery & growth

The company’s rebound and 13.9% revenue growth in 2025 reflects restored demand and expanding market penetration after pandemic lows. Sustained top‑line momentum provides scale for operational leverage, supports investment in product and service offerings, and cushions earnings volatility over the next several quarters.

High gross margins

Very high gross margins (~77–81%) point to strong product pricing and a favorable cost structure in bridal and formalwear. This margin buffer helps absorb input‑cost swings, funds marketing and inventory investments, and underpins long‑term profitability if the company sustains its product mix and pricing discipline.

Positive cash generation

Positive operating cash flow (~¥859m) and free cash flow (~¥329m) demonstrate the business generates real cash to fund operations, refurbish stores, support product lines and return capital. Durable cash generation reduces reliance on external funding and supports strategic flexibility over the medium term.

Negative Factors

Thin net margins

A net margin of only ~2.3% leaves a very small profit cushion; modest cost increases or revenue softness could eliminate net earnings. Low net profitability constrains internal resource accumulation, heightens earnings cyclicality, and weakens the company’s ability to self‑fund growth or withstand prolonged downturns.

Elevated leverage

Debt still exceeds equity (D/E ~1.45x), leaving the balance sheet exposed if margins deteriorate. Elevated leverage increases interest burden and refinancing risk, limits strategic choices for M&A or capex, and reduces resilience to demand shocks despite material improvement from peak leverage in 2021.

Shrinking FCF & weak coverage

Free cash flow declined ~34% YoY and is only ~0.38x of net income, while operating cash flow covers only ~0.21 of debt. Falling FCF and weak cash‑to‑debt coverage reduce capacity to pay down leverage, invest in growth, or sustain distributions without accessing external capital under adverse conditions.

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

null

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%