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

• Market Cap: ¥5.11B
• Dividend Yield: N/A
• Average Volume (3M): 150.42K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.70
• Revenue Growth: 8.12%
• EPS Growth: 19.19%
• Country: JP
• Employees: 101
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): -7.82
• Shares Outstanding: 11,207,470
• 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: ¥450.00 ▼(-8.72% Downside)

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 management

A moderate D/E of 0.47 and improvement versus prior years indicates the company has reduced leverage risk and strengthened financial flexibility. Lower relative debt lessens interest burden and gives management room to allocate cash to operations or restructuring, supporting durability through downturns.

Consistent revenue growth

Positive top-line growth, even modest, signals continued market demand and supports the potential to scale fixed costs. If sustained, revenue growth provides a foundation for margin recovery and investment, making operational turnarounds and strategic initiatives more attainable over the medium term.

Relatively strong gross profit margin

A relatively strong gross margin implies underlying pricing power or efficient cost of goods sold, giving the company room to absorb SG&A reductions and improve operating margins. This structural cost advantage can support sustainable profitability if operating expenses are optimized.

Negative Factors

Negative net profit and EBIT margins

Persistent negative EBIT and net margins show the core business is not generating operating profits, eroding retained earnings and limiting capacity to self-fund growth. Without structural cost or revenue improvements, sustained losses will hinder competitive positioning and capital raising.

Negative operating and free cash flows

Negative operating and free cash flows are a material constraint on liquidity and investment capacity; they force dependence on external financing and increase refinancing risk. Over months this impedes capital expenditure, working capital management, and the ability to execute strategic initiatives.

Negative return on equity

A negative ROE indicates the company fails to generate returns on shareholder capital, signaling inefficient asset use and weak economics of the business. This structural weakness undermines investor confidence and can limit access to equity financing for medium-term recovery plans.

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	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.37B	2.44B	2.26B	2.14B	2.32B	2.47B
Gross Profit	1.50B	1.56B	1.49B	1.43B	1.58B	1.78B
EBITDA	-99.57M	-87.94M	-200.25M	-206.57M	-96.21M	-122.10M
Net Income	-341.68M	-243.93M	-273.03M	-272.62M	-156.53M	-178.20M
Balance Sheet
Total Assets	2.88B	2.99B	2.29B	1.64B	1.45B	1.82B
Cash, Cash Equivalents and Short-Term Investments	236.92M	439.05M	836.66M	539.51M	649.44M	820.21M
Total Debt	819.50M	773.23M	544.51M	757.77M	650.65M	793.95M
Total Liabilities	1.42B	1.33B	1.12B	1.13B	999.97M	1.23B
Stockholders Equity	1.46B	1.66B	1.17B	518.17M	454.12M	595.50M
Cash Flow
Free Cash Flow	0.00	-729.17M	-361.36M	-332.50M	-45.12M	-141.96M
Operating Cash Flow	0.00	-713.65M	-361.11M	-324.39M	-41.26M	-106.13M
Investing Cash Flow	0.00	-571.94M	-50.12M	-102.93M	-4.71M	-8.78M
Financing Cash Flow	0.00	938.05M	708.38M	317.39M	-124.80M	-84.08M

4Cs HD Co.Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 493.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3726, the sentiment is Negative. The current price of 493 is above the 20-day moving average (MA) of 468.00, below the 50-day MA of 493.50, and below the 200-day MA of 585.74, indicating a bearish trend. The MACD of -10.82 indicates Negative momentum. The RSI at 37.50 is Neutral, neither overbought nor oversold. The STOCH value of 37.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
3560	78 Outperform	¥8.44B	14.16	―	2.66%	15.17%	12.30%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3135	61 Neutral	¥7.44B	17.44	―	―	25.60%	―
3396	60 Neutral	¥5.73B	10.62	―	1.76%	2.24%	―
3726	46 Neutral	¥5.11B	-19.43	―	―	8.12%	19.19%
2769	45 Neutral	¥7.62B	-2.21	―	―	-4.54%	-261.55%

4Cs HD Co.Ltd. Corporate Events

4Cs HD Co., Ltd. Reports Financial Results for FY 2025

4Cs HD Co., Ltd. reported its consolidated financial results for the fiscal year ending September 30, 2025, showing an increase in net sales to ¥2,441 million, up 8.1% from the previous year. Despite the rise in sales, the company faced operating and ordinary losses, with a net loss attributable to owners of the parent amounting to ¥243 million. The company’s total assets increased to ¥2,986 million, with a net asset value of ¥1,658 million, reflecting a stronger equity-to-asset ratio of 55.1%. The financial results indicate challenges in profitability despite growth in sales, impacting the company’s financial health and stakeholder interests.

The most recent analyst rating on (JP:3726) stock is a Sell with a Yen425.00 price target. To see the full list of analyst forecasts on 4Cs HD Co.Ltd. stock, see the JP:3726 Stock Forecast page.