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Japan Eyewear Holdings Co.,Ltd. (JP:5889)
:5889
Japanese Market
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Japan Eyewear Holdings Co.,Ltd. (5889) AI Stock Analysis

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JP:5889

Japan Eyewear Holdings Co.,Ltd.

(5889)

Rating:75Outperform
Price Target:
¥2,473.00
▲(10.80% Upside)
Japan Eyewear Holdings Co., Ltd. scores well due to its strong financial performance, characterized by robust revenue and profit growth, and efficient cost management. The valuation is attractive with a reasonable P/E ratio and a solid dividend yield. Technical analysis suggests a cautious outlook with mixed signals, but the overall fundamentals support a positive view.

Japan Eyewear Holdings Co.,Ltd. (5889) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionJapan Eyewear Holdings Co., Ltd. (5889) is a prominent player in the eyewear industry, specializing in the design, manufacture, and retail of eyewear products, including prescription glasses, sunglasses, and optical lenses. The company operates within the broader sectors of fashion and healthcare, catering to a diverse clientele that values both style and vision correction. With a commitment to quality and innovation, Japan Eyewear Holdings has established a strong brand presence in both domestic and international markets.
How the Company Makes MoneyJapan Eyewear Holdings generates revenue through multiple streams primarily focused on the sale of eyewear products. Key revenue sources include direct sales from retail outlets, e-commerce platforms, and wholesale distribution to other retailers. The company also benefits from partnerships with optical professionals and healthcare providers, which enhance its market reach and customer base. Additionally, Japan Eyewear Holdings may see income from licensing its brand for eyewear-related products and services. Seasonal trends and fashion collaborations can also contribute to revenue spikes, while ongoing investments in marketing and customer engagement help sustain its earnings.

Japan Eyewear Holdings Co.,Ltd. Financial Statement Overview

Summary
The company demonstrates robust financial health with strong revenue and profit growth, efficient cost management, and impressive cash flow generation. The debt level requires monitoring, but overall financial stability and growth prospects remain positive.
Income Statement
85
Very Positive
The company has demonstrated robust revenue growth, with a significant increase from 13.5 billion to 16.7 billion JPY, representing a year-on-year growth rate of 23.2%. The gross profit margin is strong at 78.9%, indicating efficient cost management. Net profit margin has improved to 24.0%, showcasing enhanced profitability. EBIT and EBITDA margins are impressive at 32.0% and 42.0%, respectively, reflecting operational efficiency.
Balance Sheet
75
Positive
The debt-to-equity ratio is 1.01, suggesting a balanced capital structure with manageable leverage. Return on equity is remarkable at 24.3%, highlighting effective use of shareholder capital. The equity ratio stands at 42.3%, indicating a stable financial base. However, the increase in total debt over the years poses a potential risk if not managed carefully.
Cash Flow
78
Positive
Operating cash flow to net income ratio is 1.32, reflecting strong cash flow generation relative to earnings. Free cash flow has grown by 15.2%, supporting financial flexibility. The free cash flow to net income ratio is 0.77, indicating sufficient cash flow to cover net income. Positive free cash flow growth aligns with the company's revenue growth trajectory, although capital expenditures have significantly increased.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue16.67B13.53B10.72B7.07B
Gross Profit13.15B10.49B8.21B5.48B
EBITDA7.00B5.18B3.63B2.29B
Net Income3.99B2.22B292.00M90.00M
Balance Sheet
Total Assets38.83B34.77B31.17B30.79B
Cash, Cash Equivalents and Short-Term Investments3.93B4.43B2.21B2.20B
Total Debt16.65B16.46B17.11B18.23B
Total Liabilities22.41B21.50B22.09B22.35B
Stockholders Equity16.42B13.27B4.68B4.37B
Cash Flow
Free Cash Flow3.08B2.67B2.62B1.33B
Operating Cash Flow5.26B3.45B2.94B1.61B
Investing Cash Flow-2.41B-904.00M-380.00M-7.50B
Financing Cash Flow-3.38B-388.00M-2.58B6.58B

Japan Eyewear Holdings Co.,Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2232.00
Price Trends
50DMA
2218.65
Positive
100DMA
2204.20
Positive
200DMA
2281.07
Negative
Market Momentum
MACD
-2.13
Negative
RSI
55.26
Neutral
STOCH
94.29
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5889, the sentiment is Positive. The current price of 2232 is above the 20-day moving average (MA) of 2140.48, above the 50-day MA of 2218.65, and below the 200-day MA of 2281.07, indicating a neutral trend. The MACD of -2.13 indicates Negative momentum. The RSI at 55.26 is Neutral, neither overbought nor oversold. The STOCH value of 94.29 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5889.

Japan Eyewear Holdings Co.,Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
¥53.85B13.29
2.87%17.45%43.39%
74
Outperform
$191.39B24.5929.03%1.10%18.75%179.55%
69
Neutral
€89.24B18.376.01%2.43%3.13%2.91%
67
Neutral
¥15.56B13.96
2.88%2.38%-48.68%
65
Neutral
¥341.96B11.05-0.16%2.40%9.83%-10.32%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5889
Japan Eyewear Holdings Co.,Ltd.
2,220.00
-619.62
-21.82%
JP:7743
Seed Co., Ltd.
521.00
19.66
3.92%
JP:7780
Menicon Co
1,187.00
-137.23
-10.36%
JP:3046
JINS HOLDINGS
8,250.00
3,553.74
75.67%

Japan Eyewear Holdings Co.,Ltd. Corporate Events

Japan Eyewear Holdings Expands with New Taiwan Subsidiary
Jul 28, 2025

Japan Eyewear Holdings Co., Ltd. has announced the establishment of a new wholly-owned subsidiary in Taiwan, named Japan Eyewear Holdings Taiwan Co., Ltd. This strategic move aims to enhance branding and service offerings for local customers by opening directly managed stores. The subsidiary, which will handle the import, export, and retail of eyewear, is expected to have minimal impact on the company’s consolidated business performance for the fiscal year ending January 2026.

Japan Eyewear Holdings Reports Revenue Growth Amidst Market Stability
Jun 12, 2025

Japan Eyewear Holdings Co., Ltd. reported an 8.6% increase in revenue for the three months ending April 30, 2025, compared to the same period last year. Despite a slight decline in total comprehensive income, the company forecasts a positive outlook for the fiscal year ending January 31, 2026, with a projected 14.3% increase in revenue, indicating a stable position in the market.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 08, 2025