QB Net Holdings Co., Ltd. (6571) AI Stock Analysis

• Market Cap: ¥18.06B
• Dividend Yield: 2.53%
• Average Volume (3M): 48.00K
• Price to Earnings (P/E): 16.2
• Beta (1Y): 0.09
• Revenue Growth: 4.71%
• EPS Growth: -0.41%
• Country: JP
• Employees: 2,401
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Personal Products & Services
• EPS (TTM): 9.19
• Shares Outstanding: 13,279,400
• 10 Day Avg. Volume: 56,720
• 30 Day Avg. Volume: 47,996
• PEG Ratio: -0.68
• Price to Book (P/B): 1.02
• Price to Sales (P/S): 0.59
• P/FCF Ratio: 4.61
• 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): 102.05
• Revenue Forecast (FY): ¥26.90B

• Rating: 62 Neutral
• Price Target: ¥1,426.00 ▲(2.08% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is driven primarily by steady profitability and strong free-cash-flow generation, offset by leverage and weakening margins versus prior years. Technicals are the main near-term drag due to bearish momentum signals, while valuation and the dividend provide some support.

Positive Factors

Consistent free cash flow generation

Sustained positive operating and free cash flow provides durable internal funding for capex, shareholder distributions, and debt servicing without relying on equity raises. This strengthens financial resilience and supports strategic choices (store refurbishment, selective expansion, or slow deleveraging) over months.

High underlying EBITDA margins and consistent profitability

A roughly 20.9% EBITDA margin implies efficient unit economics from a no-frills, high-throughput haircut model. Durable margin at the EBITDA level supports ability to absorb cost variability, fund overhead, and preserve operating cash generation as the company scales its store network over the medium term.

Standardized, high-throughput business model (QB HOUSE)

A standardized, simplified service model with predictable throughput creates repeat demand, low operational complexity, and easier training/franchise replication. This structural advantage supports scalable roll-out, consistent unit economics and resilience to changing consumer trends over multiple quarters.

Negative Factors

Elevated leverage versus equity

Material leverage above equity increases interest expense sensitivity and reduces financial flexibility for strategic investment or absorbing shocks. Over a 2-6 month horizon, elevated debt constrains the firm's ability to pursue opportunistic expansion or accelerate deleveraging if operating margins remain soft.

Margin compression and falling returns

A visible decline in core profitability and ROE signals structural pressure from rising costs or pricing limits. Persisting margin deterioration reduces retained earnings and cash available for debt reduction or reinvestment, impairing long-term growth potential and competitive reinvestment capacity.

Weak cash conversion relative to reported profits

If accounting profits convert to cash at well under 1:1, the business faces working-capital timing or receivables/ payables dynamics that can constrain liquidity. This limits the speed of deleveraging and makes the company more dependent on short-term financing in stress scenarios over the coming months.

QB Net Holdings Co., Ltd. Business Overview & Revenue Model

Company Description

QB Net Holdings Co.,Ltd., through its subsidiaries, operates in the hair cutting business in Japan, Singapore, Hong Kong, Taiwan, and the United States. It operates haircut specialty stores under QB House, LogiThcut, and FaSS brands. QB Net Holdings Co.,Ltd. was founded in 1995 and is headquartered in Tokyo, Japan.

How the Company Makes Money

QB Net Holdings generates revenue through multiple streams, primarily from the sale of software licensing, subscription-based cloud services, and IT consulting projects. The company also earns income through maintenance and support services offered to existing clients. Significant partnerships with technology providers and enterprises enhance its market reach and capabilities, contributing to its earnings. Additionally, QB Net Holdings may benefit from strategic alliances that allow for co-development of innovative solutions, further driving revenue growth.

QB Net Holdings Co., Ltd. Financial Statement Overview

Summary

Solid profitability and strong free cash flow (TTM FCF ¥3.73B), but margin compression versus prior years and a debt-reliant balance sheet (debt ~1.08x equity) temper the overall quality. Cash conversion is also somewhat weak with operating and free cash flow below net income (~0.77x and ~0.76x).

Income Statement

TTM (Trailing-Twelve-Months) revenue is ¥26.44B with very strong reported growth (about 176%), but profitability is only moderate: gross margin ~22.5% and net margin ~4.1%. Earnings power has cooled versus FY2023–FY2024 (net margin ~5.3%–6.3% then), with EBIT margin down to ~6.8% TTM from ~9.5% in FY2023, suggesting higher costs or pricing pressure. Still, the company remains consistently profitable and maintains solid EBITDA margin (~20.9%).

Balance Sheet

Leverage is meaningful: TTM debt is ¥20.12B against equity of ¥14.94B (debt roughly 1.08x equity), which is an improvement from higher leverage in FY2021–FY2022 but still elevated. Returns on equity are positive but trending lower (about 7.3% TTM vs ~11.2% in FY2023), consistent with the margin compression seen in the income statement. Overall asset base is stable (¥34.65B), but the balance sheet profile remains more debt-reliant than conservative.

Cash Flow

Cash generation is a clear strength: TTM operating cash flow is ¥4.76B and free cash flow is ¥3.73B, with very strong reported free-cash-flow growth (~685%). However, cash conversion into profits is somewhat weaker than ideal: operating cash flow is below net income (about 0.77x), and free cash flow is also below net income (about 0.76x), indicating working-capital or cash timing headwinds. Despite that, the business remains consistently free-cash-flow positive across the years provided.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	26.44B	25.54B	24.76B	22.75B	20.56B	18.93B
Gross Profit	6.05B	5.72B	5.83B	5.29B	4.03B	2.50B
EBITDA	5.64B	5.28B	5.61B	5.44B	4.58B	3.73B
Net Income	1.11B	1.02B	1.30B	1.44B	856.00M	243.00M
Balance Sheet
Total Assets	34.65B	34.21B	32.30B	31.11B	29.74B	30.63B
Cash, Cash Equivalents and Short-Term Investments	4.23B	5.27B	4.70B	4.45B	3.72B	4.60B
Total Debt	20.12B	15.75B	14.13B	14.87B	15.34B	18.21B
Total Liabilities	19.71B	19.52B	18.13B	18.23B	18.35B	20.48B
Stockholders Equity	14.94B	14.68B	14.17B	12.87B	11.39B	10.16B
Cash Flow
Free Cash Flow	3.73B	3.25B	4.17B	4.26B	4.23B	3.66B
Operating Cash Flow	4.75B	4.30B	5.06B	4.69B	4.71B	4.05B
Investing Cash Flow	-1.50B	-1.31B	-846.00M	-484.00M	-558.00M	-393.00M
Financing Cash Flow	-4.10B	-2.26B	-4.12B	-3.60B	-5.25B	-4.22B

QB Net Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1397.00
• 50DMA: Negative
• 100DMA: Negative
• 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:6571, the sentiment is Negative. The current price of 1397 is above the 20-day moving average (MA) of 1376.65, above the 50-day MA of 1385.58, and above the 200-day MA of 1298.84, indicating a neutral trend. The MACD of -9.33 indicates Positive momentum. The RSI at 42.61 is Neutral, neither overbought nor oversold. The STOCH value of 33.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6571.

QB Net Holdings Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9251	77 Outperform	¥19.03B	19.85	―	5.16%	6.58%	―
7523	73 Outperform	¥14.89B	10.37	―	2.67%	1.90%	7.25%
7358	68 Neutral	¥13.79B	12.14	―	2.82%	7.95%	13.67%
6571	62 Neutral	¥18.06B	16.19	―	2.53%	4.71%	-0.41%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
9262	61 Neutral	¥9.06B	12.65	―	2.04%	10.87%	14.80%
4679	47 Neutral	¥2.66B	335.28	―	―	-6.45%	99.39%

QB Net Holdings Co., Ltd. Corporate Events

QB Net Holdings Delivers Strong First-Half Earnings and Affirms Profit Growth Outlook

QB Net Holdings reported consolidated revenue of ¥13.48 billion for the first half of the fiscal year ending June 30, 2026, a 7.1% increase year on year, with operating profit up 19.7% to ¥866 million and profit attributable to owners of the parent rising 20.3% to ¥502 million. Earnings per share improved to ¥37.93, equity attributable to owners inched up to ¥14.94 billion with an equity ratio of 43.1%, and the company maintained full-year guidance calling for 7.1% revenue growth and a 30.5% jump in operating profit, while keeping its plan for a ¥40 year-end dividend, signaling confidence in continued earnings expansion and shareholder returns.

The company left its full-year forecast unchanged at ¥27.35 billion in revenue and ¥1.4 billion in profit attributable to owners, implying a 36.9% profit increase for the year, supported by stronger interim margins and a stable financial position. The decision to forgo an interim dividend but raise the full-year payout from the prior year’s ¥35 to ¥40 suggests a measured but improving capital return policy, underscoring management’s positive view on cash generation and the sustainability of growth in its salon network operations.

The most recent analyst rating on (JP:6571) stock is a Buy with a Yen1603.00 price target. To see the full list of analyst forecasts on QB Net Holdings Co., Ltd. stock, see the JP:6571 Stock Forecast page.

QB Net Holdings Posts Steady Revenue Growth and Expands Salon Network in Japan

QB Net Holdings reported monthly operating data for its domestic outlets through January 2026, showing steady year-on-year revenue growth, with existing outlets posting a 3.3% increase and all outlets up 6.2% over the period, supported by net store expansion to 596 locations in Japan despite a small number of closures. The company also implemented a price increase for its core QB HOUSE service in February 2025 and broadened its once-a-month 100-yen discount campaign from seniors to all age groups, measures that are likely to bolster average revenue per customer while potentially stimulating repeat visits and supporting continued growth of its domestic salon network.

The most recent analyst rating on (JP:6571) stock is a Buy with a Yen1603.00 price target. To see the full list of analyst forecasts on QB Net Holdings Co., Ltd. stock, see the JP:6571 Stock Forecast page.

QB Net Holdings Posts Steady Revenue Growth and Store Expansion in Domestic Haircut Network

QB Net Holdings reported monthly operating data for its domestic outlets, showing year-on-year revenue growth for both existing and all outlets through December 2025, supported by continued net store expansion in Japan, with 15 openings and 4 closures over the period, bringing its network to 596 outlets domestically by year-end. The company also highlighted a February 2025 price revision for QB HOUSE haircuts and the expansion of its once-a-month discount campaign to all age groups, initiatives that are likely contributing to higher sales per outlet and strengthening its competitive position in Japan’s low-cost haircut market.

The most recent analyst rating on (JP:6571) stock is a Hold with a Yen1416.00 price target. To see the full list of analyst forecasts on QB Net Holdings Co., Ltd. stock, see the JP:6571 Stock Forecast page.

QB Net Holdings Enhances Shareholder Benefits for 2026

QB Net Holdings Co., Ltd. has announced an enhanced shareholder benefit plan for the fiscal year ending June 2026, aiming to express gratitude to shareholders and encourage long-term investment. The plan includes a continuous holding period requirement and offers free haircut coupons to shareholders based on the number of shares held and the duration of holding. This initiative is expected to strengthen shareholder loyalty and expand the company’s base of ‘QB fan shareholders,’ potentially impacting its market position positively.

The most recent analyst rating on (JP:6571) stock is a Hold with a Yen1416.00 price target. To see the full list of analyst forecasts on QB Net Holdings Co., Ltd. stock, see the JP:6571 Stock Forecast page.