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

• Market Cap: ¥5.69B
• Dividend Yield: 1.68%
• Average Volume (3M): 1.75K
• Price to Earnings (P/E): ―
• 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: ¥1,383.00 ▲(16.41% 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 and equity cushion

Zero reported debt and a sizeable equity base provide durable financial flexibility. This materially reduces refinancing and solvency risk, supports continued operations through downturns, and gives management optionality for investment or restructuring without urgent external funding needs.

Strong gross margin profile (~76%)

A ~76% gross margin indicates attractive underlying product economics and pricing power in core cosmetics. High gross margins create structural room to cover SG&A and promotional variability, supporting long-term margin recovery if fixed costs or efficiency initiatives improve.

Return to positive operating and net income in 2025

Re-establishing operating and net profitability demonstrates the business can generate earnings after prior losses, indicating operational levers and cost discipline can work. Sustained profitability would improve reinvestment capacity and reduce structural earnings risk over the medium term.

Negative Factors

Negative operating cash flow and sharply negative free cash flow

Persistent negative operating and free cash flow creates durable execution risk: the company cannot fully self-fund investments, store operations, or working capital needs. Over months this raises reliance on external financing or asset sales, constraining strategic optionality despite no current debt.

Thin margins and volatile profitability history

Very slim operating and net margins leave little buffer against cost inflation, competitive pricing, or demand dips. Historical swings to sizable losses show earnings are not consistently durable, increasing the risk that a small adverse shock reverses recent profitability gains.

Modest, uneven revenue growth

Only modest revenue recovery and prior declines suggest limited top-line momentum and constrained scale benefits. Slow, uneven growth makes margin expansion harder to sustain, and it indicates reliance on existing channels rather than durable market share gains or new product-driven expansion.

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 primarily generates revenue by selling its cosmetics and skincare products to customers, with sales supported by in-person counseling and recurring customer relationships. A second core revenue stream comes from beauty services (e.g., facial treatments) provided through the company’s salons/stores, which both produce service fees and help drive product purchases. Revenue is therefore tied to (1) product sales volume and mix, and (2) utilization of in-store beauty services that encourage repeat visits and repeat purchases. Specific details on pricing structure, membership/continuity programs, wholesale vs. direct-sales mix, or major external partnerships are null.

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	455.40M	324.45M	171.85M	126.39M	418.05M	-679.98M
Net Income	252.21M	136.27M	-26.35M	-421.77M	44.87M	-621.87M
Balance Sheet
Total Assets	8.67B	8.60B	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	2.89B	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	-301.11M	-693.60M	330.15M	-803.08M
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: Neutral
• Last Price: 1188.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4926, the sentiment is Neutral. The current price of 1188 is below the 20-day moving average (MA) of 1340.45, below the 50-day MA of 1299.00, and below the 200-day MA of 1206.62, indicating a neutral trend. The MACD of 9.31 indicates Positive momentum. The RSI at 53.30 is Neutral, neither overbought nor oversold. The STOCH value of 46.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	¥2.24B	-3.04	―	―	12.96%	―
4925	63 Neutral	¥6.82B	12.52	―	2.38%	-0.79%	―
4936	63 Neutral	¥8.24B	-49.92	―	2.65%	11.87%	-31.02%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
4929	60 Neutral	¥6.15B	8.18	―	1.59%	-9.99%	-35.06%
4926	58 Neutral	¥5.69B	-33.12	―	1.68%	8.46%	―
4934	52 Neutral	¥5.65B	42.42	―	―	-19.42%	―