Ivy Cosmetics Corporation (4918) AI Stock Analysis

• Market Cap: ¥2.31B
• Dividend Yield: N/A
• Average Volume (3M): 15.29K
• Price to Earnings (P/E): 6.7
• Beta (1Y): 0.56
• Revenue Growth: 12.96%
• EPS Growth: N/A
• Country: JP
• Employees: 179
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): -30.84
• Shares Outstanding: 6,414,000
• 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: ¥453.00 ▲(33.63% Upside)
• Action: Downgraded Date: 10/31/25
• Date: Action: Downgraded 10/31/25

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

A very high equity ratio and a 0.14 debt-to-equity indicate durable financial stability and low default risk. This capital structure gives management flexibility to fund working capital, capex, or strategic investments without acute refinancing pressure, strengthening resilience over the medium term.

Robust cash flow generation and conversion

Consistent free cash flow growth and very high operating-cash-to-net-income ratios show the company reliably converts earnings into cash. This durable cash generation supports reinvestment, working capital needs and potential shareholder returns, and reduces reliance on external financing over months to years.

High gross margin and improving operating margin

Very high gross margins point to product-level pricing power or low COGS, while a rising EBIT margin shows improving operational efficiency. Combined with recent revenue recovery, these trends support sustainable operating profitability if the company maintains cost controls and sales momentum over the medium term.

Negative Factors

Very low net profit margin

A 1.47% net margin indicates most operating gains are absorbed by non-operational costs, taxes, or one-offs. Persistently low net profitability reduces retained earnings and limits the firm's ability to finance growth internally, making long-term shareholder return generation fragile without margin improvement.

Modest return on equity

ROE of 1.74% signals that the company generates limited returns on shareholders' capital despite a strong equity base. Over months, low ROE can restrain market confidence and suggests capital may be underutilized or margins insufficient to deliver attractive long-term shareholder value without strategic changes.

Declining EBITDA margin and non-operational pressure

A falling EBITDA margin points to rising SG&A, other operating or non-operational costs that erode core cash profitability. If this trend persists, it will reduce free cash available for reinvestment, weaken competitiveness and heighten sensitivity to revenue slowdowns over the medium term.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: Positive
• RSI: Neutral
• STOCH: Positive

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 399.40, below the 50-day MA of 377.34, and below the 200-day MA of 340.95, indicating a bullish trend. The MACD of 11.22 indicates Positive momentum. The RSI at 56.66 is Neutral, neither overbought nor oversold. The STOCH value of 16.91 is Positive, 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	¥2.31B	6.66	―	―	12.96%	―
4920	68 Neutral	¥2.47B	10.53	―	1.72%	-6.06%	-97.12%
4925	63 Neutral	¥6.95B	10.29	―	2.38%	-0.79%	―
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
4929	60 Neutral	¥6.58B	48.07	―	1.59%	-9.99%	-35.06%
4926	58 Neutral	¥5.84B	24.38	―	1.68%	8.46%	―
4934	52 Neutral	¥6.80B	14.63	―	―	-19.42%	―

Ivy Cosmetics Corporation Corporate Events

Ivy Cosmetics Swings Back to Profit on Higher Margins Despite Softer Sales

Ivy Cosmetics reported net sales of ¥1.70 billion for the quarter ended December 2025, a slight 1.8% decline from a year earlier, but significantly improved profitability, with operating profit nearly doubling to ¥33 million and ordinary profit also doubling to ¥30 million. The company moved from a large loss to a modest profit of ¥13 million versus a ¥333 million loss a year earlier, strengthened its financial position with a higher capital adequacy ratio of 75.0%, and maintained a zero dividend for the second quarter, signaling a continued focus on preserving capital and rebuilding earnings after prior losses.

The most recent analyst rating on (JP:4918) stock is a Hold with a Yen414.00 price target. To see the full list of analyst forecasts on Ivy Cosmetics Corporation stock, see the JP:4918 Stock Forecast page.