C'BON COSMETICS Co., Ltd. (4926) AI Stock Analysis

• Market Cap: ¥5.84B
• Dividend Yield: 1.68%
• Average Volume (3M): 1.75K
• Price to Earnings (P/E): 24.4
• Beta (1Y): 0.18
• Revenue Growth: 8.46%
• EPS Growth: N/A
• Country: JP
• Employees: 694
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): -9.06
• Shares Outstanding: 4,281,200
• 10 Day Avg. Volume: 1,490
• 30 Day Avg. Volume: 1,753
• PEG Ratio: -0.06
• Price to Book (P/B): 0.84
• Price to Sales (P/S): 0.54
• P/FCF Ratio: -5.15
• 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: 58 Neutral
• Price Target: ¥1,414.00 ▲(19.02% Upside)
• Action: Reiterated Date: 12/30/25
• Date: Action: Reiterated 12/30/25

The score is driven primarily by solid financial stability from a debt-free balance sheet, offset by weak cash flow (negative operating and deeply negative free cash flow). Technicals are neutral-to-mixed, while valuation is reasonable with a moderate dividend yield and mid-range P/E.

Positive Factors

Debt-free balance sheet

The company carries essentially no financial leverage, materially reducing refinancing and solvency risk and providing long-term financial flexibility. A sizable equity cushion (¥5.7bn of equity vs ¥8.5bn assets) helps absorb downturns and supports strategic investments without immediate liquidity stress.

High product gross margins

A roughly 76% gross margin indicates strong unit economics on product sales, enabling the business to fund marketing, counseling and salon services while retaining pricing power. High product margins are a durable competitive asset that supports long-term profitability if operating cost control improves.

Service-driven recurring revenue model

The blended model—product sales supported by in-person counseling and salon services—creates customer stickiness and repeat purchase streams. Physical service touchpoints foster higher lifetime value, cross-sell opportunities and differentiation versus pure e-commerce peers, aiding durable revenue retention.

Negative Factors

Weak cash generation

Operating cash flow weakness and persistently negative free cash flow signal the company is not self-funding its operations and investments. Continued negative FCF raises execution and financing risk: despite no debt, the firm may need external capital for capex, store upkeep or to sustain dividends, limiting strategic optionality.

Thin, volatile profitability

Reported margins are very thin and earnings have been volatile, with prior meaningful losses. Low operating and net margins leave little buffer against demand declines or cost increases, making earnings durability weak and reducing the company's ability to consistently generate return for shareholders over time.

Low returns on equity

ROE near 2.4% after recent negative years indicates the company is not efficiently converting its equity base into profits. Low and inconsistent ROE constrains long-term shareholder value creation and suggests capital allocation or operational execution issues unless margins and cash conversion sustainably improve.

C'BON COSMETICS Co., Ltd. Business Overview & Revenue Model

Company Description

C'BON COSMETICS Co.,Ltd. manufactures and sells cosmetics, quasi-drugs, and beauty appliance products. It offers various products, such as cleansing, lotion, cream, face wash, serum, and makeup base products. The company was founded in 1966 and is headquartered in Kawasaki, Japan.

How the Company Makes Money

C'BON COSMETICS Co., Ltd. generates revenue through the direct sale of its cosmetics products, which include skincare creams, lotions, and other personal care items. The company primarily sells its products through a network of retail stores, online platforms, and beauty salons. Revenue is largely driven by consumer demand for high-quality skincare solutions and the company's ability to maintain strong relationships with retail partners. Additionally, C'BON COSMETICS may engage in strategic partnerships with other brands or entities to expand its market reach and enhance its product offerings. The company's earnings are significantly influenced by its brand reputation, product innovation, and effective marketing strategies.

C'BON COSMETICS Co., Ltd. Financial Statement Overview

Summary

Balance sheet strength is a key positive (no debt and solid equity cushion), but operating quality is mixed: profitability rebounded in 2025 to positive net and operating income with thin margins, while cash generation is a major weakness with negative operating cash flow and sharply negative free cash flow in 2025.

Income Statement

Revenue has been broadly stable with a modest rebound in 2025 (+2.76% YoY) after declines in 2023 and a flat 2024. Profitability improved materially in 2025, returning to positive net income (¥136m) and positive operating profit, but margins remain thin (net margin ~1.5%, operating margin ~1.6%), well below the stronger gross margin profile (~76%). Results also show meaningful volatility, with sizable losses in 2020–2021 and again in 2023, suggesting earnings are not yet consistently durable.

Balance Sheet

The balance sheet is conservatively positioned with essentially no financial leverage (debt-to-equity near zero and total debt at ¥0 in 2025), which materially reduces refinancing and solvency risk. Equity remains large relative to the asset base (¥5.7bn equity vs. ¥8.5bn assets in 2025), providing a cushion through downturns. The main weakness is low and volatile returns on equity (about 2.4% in 2025 following negative returns in 2023–2024), indicating the company has not been consistently converting its capital base into attractive earnings.

Cash Flow

Cash generation is the key pressure point. Operating cash flow turned negative in 2025 (−¥43m) after being positive in 2024 and 2022, indicating weaker cash conversion despite improved reported earnings. Free cash flow is consistently negative across most years and was sharply negative in 2025 (−¥927m), pointing to heavy cash outflows that are not being self-funded by operations. While free cash flow improved in 2024 versus 2023, the overall pattern suggests elevated ongoing cash needs and higher execution risk if negative free cash flow persists.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	9.02B	8.84B	8.50B	8.53B	9.15B	9.10B
Gross Profit	6.91B	6.74B	6.40B	6.34B	7.10B	6.92B
EBITDA	404.41M	292.59M	168.64M	-92.22M	329.61M	-345.64M
Net Income	253.04M	136.27M	-26.35M	-421.77M	44.87M	-621.87M
Balance Sheet
Total Assets	8.67B	8.52B	8.81B	8.84B	9.56B	9.56B
Cash, Cash Equivalents and Short-Term Investments	2.54B	2.65B	3.63B	3.98B	2.80B	2.32B
Total Debt	0.00	0.00	4.24M	13.27M	22.30M	25.20M
Total Liabilities	3.00B	2.82B	3.15B	3.13B	3.36B	1.97B
Stockholders Equity	5.67B	5.70B	5.66B	5.71B	6.20B	7.60B
Cash Flow
Free Cash Flow	0.00	-926.52M	-313.38M	-700.71M	321.35M	-829.87M
Operating Cash Flow	0.00	-43.16M	278.19M	-81.47M	433.37M	-694.00M
Investing Cash Flow	0.00	-849.16M	-581.94M	1.35B	44.91M	161.38M
Financing Cash Flow	0.00	-90.22M	-31.20M	-91.29M	-6.73M	-6.80M

C'BON COSMETICS Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1188.00
• 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:4926, the sentiment is Positive. The current price of 1188 is below the 20-day moving average (MA) of 1311.00, below the 50-day MA of 1262.46, and below the 200-day MA of 1192.77, indicating a bullish trend. The MACD of 25.84 indicates Negative momentum. The RSI at 82.25 is Negative, neither overbought nor oversold. The STOCH value of 81.90 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4926.

C'BON COSMETICS Co., Ltd. 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%	―
4925	63 Neutral	¥6.95B	10.29	―	2.38%	-0.79%	―
4936	63 Neutral	¥9.11B	24.70	―	2.65%	11.87%	-31.02%
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%	―