Ivy Cosmetics Corporation (4918) AI Stock Analysis

• Market Cap: ¥2.13B
• Dividend Yield: N/A
• Average Volume (3M): 15.29K
• Price to Earnings (P/E): 6.2
• Beta (1Y): 0.57
• Revenue Growth: 12.96%
• EPS Growth: N/A
• Country: JP
• Employees: 179
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): 77.31
• Shares Outstanding: 6,288,000
• 10 Day Avg. Volume: 19,010
• 30 Day Avg. Volume: 15,293
• PEG Ratio: -0.34
• Price to Book (P/B): 0.54
• Price to Sales (P/S): 0.46
• P/FCF Ratio: 3.15
• 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: 68 Neutral
• Price Target: ¥413.00 ▲(21.83% Upside)

Ivy Cosmetics Corporation's stock score is primarily driven by its strong financial performance and attractive valuation. The company's solid recovery trajectory and robust cash flow generation enhance its financial stability. However, technical indicators suggest bearish momentum, which may pose short-term risks. The low P/E ratio highlights potential undervaluation, making it an attractive investment opportunity despite the technical weaknesses.

Positive Factors

Strong balance sheet and low leverage

High equity ratio and very low debt-to-equity give Ivy durable financial resilience. Low leverage reduces refinancing and liquidity risk, supports investment in R&D, marketing, and channel expansion, and provides flexibility to weather downturns without capital strain.

Robust cash generation capability

Consistent free cash flow growth and a high operating cash flow to net income ratio indicate strong cash conversion. This durable cash generation funds capex, working capital, and strategic initiatives internally, lowering dependence on external financing.

High gross margins and improving operating margin

Very strong gross margins imply product pricing power or cost advantages, while a meaningful EBIT margin recovery shows improving operational leverage. Together they support sustainable profitability if revenue scale and cost control continue.

Negative Factors

Very low net profit margin

Despite high gross margins, the company delivers minimal net profit, suggesting heavy SG&A, taxes, interest, or one-off charges. Persistently thin net margins limit retained earnings and ability to return capital, constraining long-term shareholder value creation.

Modest return on equity

ROE near 2% indicates limited effectiveness converting equity into profits. Even with a strong equity base, low ROE signals underutilized assets or weak bottom-line conversion, making it harder to justify equity funding for growth over the medium term.

Declining EBITDA margin from higher non-operational costs

A falling EBITDA margin points to rising non-operational or overhead costs that erode core cash profitability. If structural, these expense pressures can undermine the company's ability to sustain investments and cushion earnings volatility over time.

Ivy Cosmetics Corporation Business Overview & Revenue Model

Company Description

Ivy Cosmetics Corporation manufactures and sells cosmetics and beauty supplement products. The company offers penetrating beauty liquid, lotion/emulsion/cream, and cleansing/face wash products. It also offers optional care, makeup, hair care, and body care products; health food/equipment, UV protection, and men's cosmetics. The company was formerly known as Shirogane Corporation and changed its name to Ivy Cosmetics Corporation in October 1977. Ivy Cosmetics Corporation was incorporated in 1975 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Ivy Cosmetics Corporation generates revenue primarily through the sale of its cosmetic products across multiple channels, including retail, e-commerce, and direct-to-consumer platforms. The company has established key partnerships with major beauty retailers and online marketplaces, allowing it to reach a wide audience. Additionally, Ivy Cosmetics invests in brand collaborations and influencer marketing to boost product visibility and sales. Its revenue model also includes subscription services for exclusive product launches, which provide a steady stream of income. Seasonal promotions and loyal customer programs further enhance customer retention and drive repeat purchases, contributing significantly to the company's overall earnings.

Ivy Cosmetics Corporation Financial Statement Overview

Summary

Ivy Cosmetics Corporation shows a solid recovery with revenue growth and improved operational metrics. The balance sheet is strong with low leverage, enhancing financial stability. Cash flow generation is robust, supporting liquidity and operational needs. However, challenges remain in consistently translating revenue growth into higher profitability.

Income Statement

Ivy Cosmetics Corporation has experienced a recent recovery in revenue growth, with a 7.95% increase from 2024 to 2025, following a decline in prior years. Gross profit margin remains strong at 70.5% in 2025, indicating efficient cost control. However, the net profit margin is low at 1.47%, reflecting challenges in converting revenue into profit. The EBIT margin improved significantly to 14.42% in 2025 from previous negative margins, showing operational improvements, though EBITDA margin has declined, indicating higher non-operational expenses.

Balance Sheet

The balance sheet shows a strong equity position with an equity ratio of 69.19% in 2025, indicating financial stability. The debt-to-equity ratio has improved to 0.14, suggesting effective debt management. Return on equity, however, is modest at 1.74%, indicating limited profitability relative to shareholder investments. The overall leverage is low, reducing financial risk.

Cash Flow

Cash flow analysis reveals robust free cash flow growth of 3.91% from 2024 to 2025, indicating strong cash generation capability. The operating cash flow to net income ratio is high at 10.37, reflecting efficient cash operations. The company's ability to convert net income into free cash flow is impressive, with a ratio of 9.87, highlighting effective capital expenditure management.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.93B	2.71B	2.94B	3.53B	3.43B
Gross Profit	2.07B	1.91B	2.11B	2.42B	2.14B
EBITDA	20.62M	242.60M	-33.16M	185.13M	255.05M
Net Income	43.01M	160.31M	-384.61M	40.38M	-23.23M
Balance Sheet
Total Assets	3.57B	3.57B	3.85B	4.35B	4.72B
Cash, Cash Equivalents and Short-Term Investments	577.94M	208.73M	247.67M	129.38M	113.43M
Total Debt	339.85M	451.69M	1.05B	1.18B	1.79B
Total Liabilities	1.10B	1.33B	1.87B	2.09B	3.20B
Stockholders Equity	2.47B	2.24B	1.98B	2.27B	1.51B
Cash Flow
Free Cash Flow	424.68M	408.70M	243.33M	-160.58M	374.53M
Operating Cash Flow	445.94M	453.06M	278.59M	-107.06M	427.02M
Investing Cash Flow	-18.43M	7.30M	-29.30M	63.30M	330.37M
Financing Cash Flow	-58.27M	-499.31M	-131.00M	59.71M	-693.39M

Ivy Cosmetics Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 339.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4918, the sentiment is Positive. The current price of 339 is below the 20-day moving average (MA) of 356.85, below the 50-day MA of 342.76, and above the 200-day MA of 322.41, indicating a bullish trend. The MACD of 12.44 indicates Negative momentum. The RSI at 84.09 is Negative, neither overbought nor oversold. The STOCH value of 83.71 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4918.

Ivy Cosmetics Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4918	68 Neutral	¥2.13B	6.21	―	―	12.96%	―
4917	66 Neutral	¥142.60B	74.14	2.73%	1.45%	3.95%	-25.42%
4923	66 Neutral	¥34.14B	24.48	―	1.81%	0.22%	4.15%
4925	63 Neutral	¥6.58B	8.43	―	2.38%	-0.79%	―
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
4929	60 Neutral	¥6.62B	48.43	―	1.59%	-9.99%	-35.06%
4926	58 Neutral	¥5.33B	17.04	―	1.68%	8.46%	―

Ivy Cosmetics Corporation Corporate Events

Ivy Cosmetics Reports Growth in Profits Amidst Stable Financial Position

Ivy Cosmetics Corporation reported a slight increase in net sales by 0.2% for the second quarter of 2025, with operating and ordinary profits showing notable growth of 9.4% and 12.2%, respectively. The company’s financial position remains strong with a capital adequacy ratio of 73.6%, indicating a stable financial outlook and potential positive implications for stakeholders.

The most recent analyst rating on (JP:4918) stock is a Hold with a Yen362.00 price target. To see the full list of analyst forecasts on Ivy Cosmetics Corporation stock, see the JP:4918 Stock Forecast page.