4Cs HD Co.Ltd. (3726) AI Stock Analysis

• Market Cap: ¥5.71B
• Dividend Yield: N/A
• Average Volume (3M): 150.42K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.68
• Revenue Growth: 8.12%
• EPS Growth: 19.19%
• Country: JP
• Employees: 101
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): -16.19
• Shares Outstanding: 13,145,470
• 10 Day Avg. Volume: 123,220
• 30 Day Avg. Volume: 150,420
• PEG Ratio: 0.91
• Price to Book (P/B): 3.25
• Price to Sales (P/S): 2.21
• P/FCF Ratio: -7.40
• 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: 46 Neutral
• Price Target: ¥431.00 ▼(-12.58% Downside)
• Action: Upgraded Date: 12/11/25
• Date: Action: Upgraded 12/11/25

The overall stock score is primarily influenced by significant financial challenges, particularly in profitability and cash flow management. Technical analysis provides a neutral outlook with slight bullish momentum, but valuation metrics are poor due to negative earnings and lack of dividends.

Positive Factors

Improved leverage (moderate D/E)

A debt-to-equity of 0.47 indicates materially lower leverage risk versus higher‑debt peers. Improved leverage provides durable financial flexibility to absorb operating losses, fund working capital and pursue restructuring or selective investment without immediate refinancing pressure.

Slight but positive revenue growth

Consistent, if modest, top-line growth demonstrates persistent customer demand and market traction. Over a multi-month horizon this supports revenue stability, gives management room to focus on margin recovery, and underpins any operational turnaround initiatives.

Relatively strong gross profit margin

A relatively healthy gross margin implies core product economics are sound and that cost of goods sold is controlled. This structural advantage allows the company to pursue cost discipline in SG&A to drive operating leverage and eventual recovery in EBIT if execution improves.

Negative Factors

Negative operating and free cash flow

Persistent negative operating and free cash flows undermine the firm's ability to self-fund operations and capital needs. Over several months this forces reliance on external financing or asset sales, constrains reinvestment, and raises liquidity and solvency risks if losses continue.

Consistent negative EBIT and EBITDA margins

Ongoing negative operating margins indicate the business struggles to cover overhead and fixed costs despite topline. Structural inefficiencies in operating model or cost base must be addressed; otherwise the company faces prolonged unprofitability and limited ability to convert revenue into sustainable earnings.

Negative ROE and steep EPS decline

Negative ROE combined with a large EPS contraction signals persistent erosion of shareholder value and poor profitability returns on capital. This structural weakness reduces attractiveness to investors and limits internal capital accumulation needed for long‑term recovery.

4Cs HD Co.Ltd. Business Overview & Revenue Model

Company Description

4Cs HD Co., Ltd. engages in the mail order, retail, wholesale, and hygiene consulting businesses in Japan and internationally. The company's wholesale business sells cosmetics, health food, and aromatherapy related products through its stores, as well as through drug and variety stores. Its retail business provides aromatherapy products and essential oils under the Aroma Bloom brand name. The company's mail order business offers cosmetics, health food, and aromatherapy related products through its call center and website. Its hygiene consulting business sells and inspects BACTESTER; and provides space sterilization devices and hazard analysis critical control point certification consultation services. The company also offers femcare products under the CharmMakeBody, Omahit, and RhinoWolf brands. 4Cs HD Co., Ltd. was formerly known as 4Cs Holdings Co., Ltd. The company was incorporated in 2003 and is headquartered in Fukuoka City, Japan.

How the Company Makes Money

4Cs HD Co. Ltd. generates revenue through multiple streams, primarily from the sales of its high-definition video and imaging products. The company earns income by marketing its products to both retail consumers and business clients, which includes collaborations with broadcasters, educational institutions, and corporate entities. Additionally, 4Cs HD may engage in licensing agreements or partnerships with other technology firms to expand its distribution channels and enhance its product offerings. The company also benefits from after-sales services, including maintenance and repair, which contribute to its overall revenue. Seasonal promotions and strategic marketing campaigns further bolster sales, ensuring a steady influx of income throughout the year.

4Cs HD Co.Ltd. Financial Statement Overview

Summary

The company is facing significant financial challenges, particularly in profitability and cash flow management. Despite a slight improvement in revenue growth and leverage, negative net profit margins, EBIT margins, and cash flows highlight operational inefficiencies.

Income Statement

The company has shown a slight revenue growth of 3.15% in the latest year, but it continues to struggle with profitability as indicated by negative net profit margins and EBIT margins. The gross profit margin remains relatively strong, but the consistent negative EBIT and EBITDA margins highlight operational inefficiencies.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 0.47, which is an improvement from previous years, indicating better leverage management. However, the return on equity remains negative, reflecting ongoing profitability challenges. The equity ratio is stable, but the company needs to improve its asset utilization.

Cash Flow

Cash flow analysis reveals significant challenges, with negative operating and free cash flows. The free cash flow to net income ratio is slightly above 1, indicating that cash flow issues are closely tied to net income losses. The company must address its cash flow management to ensure sustainability.

Breakdown	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	2.44B	2.26B	2.14B	2.32B	2.47B
Gross Profit	1.56B	1.49B	1.43B	1.58B	1.78B
EBITDA	-87.94M	-200.25M	-206.57M	-96.21M	-122.10M
Net Income	-243.93M	-273.03M	-272.62M	-156.53M	-178.20M
Balance Sheet
Total Assets	2.99B	2.29B	1.64B	1.45B	1.82B
Cash, Cash Equivalents and Short-Term Investments	439.05M	836.66M	539.51M	649.44M	820.21M
Total Debt	773.23M	544.51M	757.77M	650.65M	793.95M
Total Liabilities	1.33B	1.12B	1.13B	999.97M	1.23B
Stockholders Equity	1.66B	1.17B	518.17M	454.12M	595.50M
Cash Flow
Free Cash Flow	-729.17M	-361.36M	-332.50M	-45.12M	-141.96M
Operating Cash Flow	-713.65M	-361.11M	-324.39M	-41.26M	-106.13M
Investing Cash Flow	-571.94M	-50.12M	-102.93M	-4.71M	-8.78M
Financing Cash Flow	938.05M	708.38M	317.39M	-124.80M	-84.08M

4Cs HD Co.Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 493.00
• 50DMA: Negative
• 100DMA: Negative
• 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:3726, the sentiment is Neutral. The current price of 493 is above the 20-day moving average (MA) of 449.25, above the 50-day MA of 470.14, and below the 200-day MA of 572.79, indicating a bearish trend. The MACD of -10.20 indicates Positive momentum. The RSI at 40.43 is Neutral, neither overbought nor oversold. The STOCH value of 16.13 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3726.

4Cs HD Co.Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3181	80 Outperform	¥3.23B	10.28	―	1.12%	24.10%	-15.55%
3134	74 Outperform	¥8.06B	9.07	―	2.05%	13.52%	-42.59%
3179	66 Neutral	¥24.74B	17.26	―	3.53%	-2.73%	-51.48%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3396	60 Neutral	¥5.64B	10.64	―	1.76%	2.24%	―
9270	59 Neutral	¥25.71B	12.89	―	0.95%	4.14%	―
3726	46 Neutral	¥5.71B	-11.14	―	―	8.12%	19.19%

4Cs HD Co.Ltd. Corporate Events

4Cs HD Swings to Deeper Quarterly Loss but Sticks to Ambitious Full-Year Turnaround Plan

4Cs HD Co., Ltd. reported consolidated net sales of ¥528 million for the quarter ended December 31, 2025, down 14.1% year on year, and posted an operating loss of ¥160 million and a net loss attributable to owners of the parent of ¥181 million, widening from the year-earlier period. Total assets fell to ¥2.7 billion and the equity ratio dipped to 54.2%, while the company maintained a zero-dividend policy and confirmed its full-year forecast, which still projects a return to operating profit despite interim losses.

The company’s forecasts for the fiscal year ending September 30, 2026 call for a sharp increase in net sales to ¥3.54 billion and operating profit of ¥161 million, signaling expectations of a significant turnaround from current losses. During the period, 4Cs HD expanded its consolidation scope by adding MIRAISECO., Ltd., a move that may support the anticipated growth, though near-term pressure on earnings and the continued suspension of dividends remain key concerns for shareholders.

The most recent analyst rating on (JP:3726) stock is a Hold with a Yen449.00 price target. To see the full list of analyst forecasts on 4Cs HD Co.Ltd. stock, see the JP:3726 Stock Forecast page.