Japan Eyewear Holdings Co.,Ltd. (5889) AI Stock Analysis

• Market Cap: ¥44.91B
• Dividend Yield: 3.23%
• Average Volume (3M): 236.86K
• Price to Earnings (P/E): 11.0
• Beta (1Y): 1.09
• Revenue Growth: 12.18%
• EPS Growth: 34.17%
• Country: JP
• Employees: 580
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 39.83
• Shares Outstanding: 24,130,260
• 10 Day Avg. Volume: 264,760
• 30 Day Avg. Volume: 236,863
• PEG Ratio: 0.27
• Price to Book (P/B): 3.34
• Price to Sales (P/S): 3.29
• P/FCF Ratio: 17.82
• 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): 156.7
• Revenue Forecast (FY): ¥18.60B

• Rating: 65 Neutral
• Price Target: ¥2,013.00 ▲(1.67% Upside)

Japan Eyewear Holdings Co., Ltd. demonstrates strong financial performance with robust revenue and profit growth, which is the most significant factor in its overall score. However, the technical analysis indicates bearish momentum, which negatively impacts the score. The valuation is reasonable, with a good dividend yield, providing some support to the stock's attractiveness.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion and stability.

Profit Margins

High profit margins reflect efficient cost management and pricing power, enhancing the company's ability to invest in growth and innovation.

Cash Flow Generation

Strong cash flow generation supports operational flexibility, debt servicing, and reinvestment in strategic initiatives, bolstering financial health.

Negative Factors

Debt Levels

Moderate leverage could pose financial risks if not managed carefully, potentially impacting the company's ability to finance future growth.

Debt Management

High debt levels may constrain financial flexibility, increasing vulnerability to interest rate changes and economic downturns.

Market Position Challenges

Lack of recent strategic initiatives or partnerships may indicate challenges in maintaining competitive market positioning and growth momentum.

Japan Eyewear Holdings Co.,Ltd. Business Overview & Revenue Model

Company Description

Japan Eyewear Holdings Co., Ltd. (5889) is a leading player in the eyewear industry, primarily engaged in the design, manufacture, and retail of eyewear products, including prescription glasses, sunglasses, and optical lenses. The company operates through various segments, catering to both domestic and international markets. Its core offerings are characterized by a blend of innovative design and advanced technology, appealing to a diverse customer base seeking quality and style in their eyewear choices.

How the Company Makes Money

Japan Eyewear Holdings generates revenue through multiple streams, including direct sales of eyewear products through their retail stores and online platforms. The company also earns income from wholesale distribution to optical retailers and partnerships with optical chains. Additionally, revenue is bolstered by its proprietary brands as well as collaborations with luxury brands for exclusive eyewear lines. The company's ability to leverage its brand reputation and innovate in product design plays a significant role in driving sales and sustaining its market position.

Japan Eyewear Holdings Co.,Ltd. Financial Statement Overview

Summary

Japan Eyewear Holdings Co., Ltd. exhibits strong financial performance with impressive revenue and profit growth, efficient cost management, and robust cash flow generation. The balance sheet is stable, though the high debt level warrants attention. Overall, the company is well-positioned for continued growth in the Medical - Instruments & Supplies industry.

Income Statement

Japan Eyewear Holdings Co., Ltd. has demonstrated strong revenue growth with a 23.2% increase from 2024 to 2025 and a consistent upward trend over the past years. The gross profit margin is robust at 78.9%, indicating efficient cost management. The net profit margin improved significantly to 24%, showcasing enhanced profitability. Both EBIT and EBITDA margins are healthy at 32% and 42%, respectively, reflecting strong operational performance.

Balance Sheet

The company's balance sheet shows a solid equity position with a debt-to-equity ratio of 1.01, indicating moderate leverage. The return on equity is impressive at 24.3%, highlighting effective use of shareholders' capital. The equity ratio stands at 42.3%, suggesting a stable financial structure. However, the total debt remains substantial, which could pose a risk if not managed carefully.

Cash Flow

Cash flow analysis reveals a strong free cash flow growth rate of 15.2%, indicating improved cash generation capabilities. The operating cash flow to net income ratio is healthy at 1.32, suggesting efficient cash conversion. The free cash flow to net income ratio is 0.77, reflecting a solid cash flow position relative to earnings. Overall, the cash flow situation is favorable, supporting future growth and debt servicing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	17.00B	16.67B	13.53B	10.72B	7.07B
Gross Profit	13.46B	13.15B	10.49B	8.21B	5.48B
EBITDA	7.18B	7.00B	5.18B	3.63B	2.29B
Net Income	4.04B	3.99B	2.22B	292.00M	90.00M
Balance Sheet
Total Assets	38.00B	38.83B	34.77B	31.17B	30.79B
Cash, Cash Equivalents and Short-Term Investments	3.06B	3.93B	4.43B	2.21B	2.20B
Total Debt	16.95B	16.65B	16.46B	17.11B	18.23B
Total Liabilities	21.87B	22.41B	21.50B	22.09B	22.35B
Stockholders Equity	16.12B	16.42B	13.27B	4.68B	4.37B
Cash Flow
Free Cash Flow	3.03B	3.08B	2.67B	2.62B	1.33B
Operating Cash Flow	5.05B	5.26B	3.45B	2.94B	1.61B
Investing Cash Flow	-2.20B	-2.41B	-904.00M	-359.00M	-5.56B
Financing Cash Flow	-3.99B	-3.38B	-388.00M	-2.61B	4.64B

Japan Eyewear Holdings Co.,Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1980.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5889, the sentiment is Negative. The current price of 1980 is above the 20-day moving average (MA) of 1961.60, below the 50-day MA of 2081.88, and below the 200-day MA of 2164.50, indicating a bearish trend. The MACD of -59.77 indicates Positive momentum. The RSI at 45.73 is Neutral, neither overbought nor oversold. The STOCH value of 31.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5889.

Japan Eyewear Holdings Co.,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7780	74 Outperform	€93.27B	19.20	5.97%	2.08%	3.17%	7.07%
7743	67 Neutral	¥17.71B	12.87	―	2.60%	0.81%	-26.76%
5889	65 Neutral	¥44.91B	11.04	―	3.23%	12.18%	34.17%
3046	64 Neutral	¥143.08B	17.18	28.56%	1.82%	17.13%	78.33%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Japan Eyewear Holdings Co.,Ltd. Corporate Events

Japan Eyewear Holdings Transitions to Tokyo Stock Exchange Prime Market

Japan Eyewear Holdings Co., Ltd. has transitioned its shares from the Standard Market to the Prime Market of the Tokyo Stock Exchange, marking a significant milestone for the company. This change reflects the support of stakeholders and aligns with the company’s philosophy of inspiring global cultural richness through eyewear, potentially enhancing its market position and stakeholder value.

The most recent analyst rating on (JP:5889) stock is a Buy with a Yen2451.00 price target. To see the full list of analyst forecasts on Japan Eyewear Holdings Co.,Ltd. stock, see the JP:5889 Stock Forecast page.

Japan Eyewear Holdings Revises Earnings Forecast Amid Market Fluctuations

Japan Eyewear Holdings Co., Ltd. has revised its full-year consolidated earnings forecast for the fiscal year ending January 2026, due to a temporary decline in inbound sales from certain Asian regions following social media dissemination of potential earthquake risks in Japan. Despite a slight reduction in revenue expectations, the company anticipates maintaining profitability through price adjustments and improved operational efficiencies, with operating profit and other financial metrics remaining unchanged.

The most recent analyst rating on (JP:5889) stock is a Buy with a Yen2687.00 price target. To see the full list of analyst forecasts on Japan Eyewear Holdings Co.,Ltd. stock, see the JP:5889 Stock Forecast page.

Japan Eyewear Holdings Advances to Prime Market on Tokyo Stock Exchange

Japan Eyewear Holdings Co., Ltd. has received approval to change its market category from the Standard Market to the Prime Market of the Tokyo Stock Exchange. This move marks a significant milestone for the company, highlighting the support from stakeholders and addressing past concerns over a withdrawn application. The transition is expected to enhance JEH’s market positioning and reflects its commitment to growth and innovation in the eyewear industry.

The most recent analyst rating on (JP:5889) stock is a Buy with a Yen2687.00 price target. To see the full list of analyst forecasts on Japan Eyewear Holdings Co.,Ltd. stock, see the JP:5889 Stock Forecast page.

Japan Eyewear Holdings Declares Interim Dividend of 42 Yen Per Share

Japan Eyewear Holdings Co., Ltd. announced a resolution to declare an interim dividend of 42.00 yen per share, using 1,013 million yen from other capital surplus. This decision aligns with their policy of returning profits to shareholders while securing funds for future expansion, reflecting a stable financial position and commitment to shareholder value.

The most recent analyst rating on (JP:5889) stock is a Buy with a Yen2422.00 price target. To see the full list of analyst forecasts on Japan Eyewear Holdings Co.,Ltd. stock, see the JP:5889 Stock Forecast page.

Japan Eyewear Holdings Reports Revenue Growth and Increased Dividends

Japan Eyewear Holdings Co., Ltd. reported its consolidated financial results for the six months ending July 31, 2025, showing a revenue increase of 7.7% year-on-year to 8,937 million yen. The company also announced a significant rise in dividends, with a forecasted annual dividend of 84 yen per share, reflecting a strong financial position and commitment to shareholder returns.

The most recent analyst rating on (JP:5889) stock is a Buy with a Yen2422.00 price target. To see the full list of analyst forecasts on Japan Eyewear Holdings Co.,Ltd. stock, see the JP:5889 Stock Forecast page.