Kurashicom Inc. (7110) AI Stock Analysis

• Market Cap: ¥14.62B
• Dividend Yield: 2.22%
• Average Volume (3M): 8.89K
• Price to Earnings (P/E): 10.5
• Beta (1Y): 0.47
• Revenue Growth: 26.29%
• EPS Growth: 28.62%
• Country: JP
• Employees: 100
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 49.77
• Shares Outstanding: 7,370,400
• 10 Day Avg. Volume: 14,720
• 30 Day Avg. Volume: 8,893
• PEG Ratio: -1.95
• Price to Book (P/B): 2.32
• Price to Sales (P/S): 1.46
• P/FCF Ratio: 17.29
• 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: 82 Outperform
• Price Target: ¥2,542.00 ▲(21.80% Upside)
• Action: Reiterated Date: 10/02/25
• Date: Action: Reiterated 10/02/25

The high score is primarily driven by the company's excellent financial health, characterized by a fortress-like balance sheet and strong cash flow, combined with very positive technical momentum. This is balanced by a reasonable valuation and a solid dividend yield. The main risk factor is the recent compression in profitability margins, which warrants monitoring despite the overall strong fundamentals.

Positive Factors

Revenue Growth

Consistent revenue growth of 21.07% YoY highlights Kurashicom's expanding market presence and effective business model, supporting long-term sustainability.

Balance Sheet Health

A strong balance sheet with minimal leverage enhances financial stability, providing Kurashicom with flexibility to invest in growth opportunities.

Cash Generation Ability

Efficient cash generation relative to net income indicates robust operational efficiency, supporting Kurashicom's capacity to fund future initiatives.

Negative Factors

Net Profit Margin Decline

A decline in net profit margin suggests potential challenges in maintaining profitability, which could impact long-term financial performance.

Cash Flow Conversion Concerns

Decreased cash flow conversion indicates potential inefficiencies in translating income into cash, which may affect liquidity and operational flexibility.

EPS Growth Decline

Negative EPS growth reflects challenges in improving profitability per share, which could hinder investor confidence and future capital raising efforts.

Kurashicom Inc. Business Overview & Revenue Model

Company Description

Kurashicom Inc. (7110) is a leading technology company based in Japan, specializing in providing innovative solutions in the e-commerce and digital services sectors. The company focuses on developing and operating online marketplaces, logistics, and payment systems that enhance the shopping experience for consumers and streamline operations for businesses. With a commitment to leveraging cutting-edge technology, Kurashicom aims to connect sellers and buyers efficiently, offering a wide range of products and services across various categories.

How the Company Makes Money

Kurashicom Inc. generates revenue primarily through transaction fees charged on sales made through its online marketplace platform. The company also earns income from logistics services, which include warehousing and delivery solutions for merchants utilizing its platform. Additionally, Kurashicom has developed a suite of payment processing services that allow businesses to facilitate secure online transactions, further contributing to its revenue. Key partnerships with major retailers and financial institutions enhance its service offerings and drive customer engagement, resulting in increased sales and repeat business. The company's focus on expanding its digital services and integrating new technologies also positions it to capitalize on emerging trends in the e-commerce landscape.

Kurashicom Inc. Financial Statement Overview

Summary

The company's financial health is strong, underpinned by robust cash flow generation and an exceptionally solid balance sheet with negligible debt. While revenue growth continues, a recent decline in net profit margin and Return on Equity are key areas to monitor.

Income Statement

Kurashicom shows a solid growth trajectory with a Revenue Growth Rate of 11.4% in the latest annual report, continuing a multi-year trend of expansion, although the pace has moderated. The Gross Profit Margin remains strong and stable at 44.9%. However, a key concern is the compression in profitability, with the Net Profit Margin declining to 8.4% from 11.2% in the prior year. This suggests rising operating costs or pricing pressures are impacting the bottom line despite top-line growth.

Balance Sheet

The company's balance sheet is exceptionally strong and represents a key area of stability. The Debt-to-Equity Ratio is extremely low at 0.02, indicating minimal reliance on debt and very low financial risk. This is further supported by a high Equity Ratio of 84.4%. The main point of caution is the declining Return on Equity (ROE), which fell to 13.5%. While still a respectable figure, the downward trend suggests diminishing returns on shareholder capital.

Cash Flow

Cash flow performance is a significant strength. The company demonstrates excellent quality of earnings, with an Operating Cash Flow to Net Income ratio of 1.02, meaning profits are being effectively converted into cash. Free Cash Flow is robust and grew significantly in the latest period. The high Free Cash Flow to Net Income ratio of 0.98 further underscores the company's strong cash-generating capabilities, providing ample flexibility for investment and shareholder returns.

Breakdown	Jul 2025	Jul 2024	Jul 2023	Jul 2022	Jul 2021
Income Statement
Total Revenue	8.49B	7.01B	6.06B	5.16B	4.53B
Gross Profit	3.74B	3.01B	2.61B	2.26B	2.05B
EBITDA	1.16B	1.15B	983.05M	846.15M	784.32M
Net Income	716.16M	785.76M	695.34M	561.35M	570.99M
Balance Sheet
Total Assets	6.30B	5.60B	5.02B	2.99B	2.48B
Cash, Cash Equivalents and Short-Term Investments	4.73B	4.20B	4.34B	2.39B	2.02B
Total Debt	103.34M	152.78M	216.11M	179.42M	247.56M
Total Liabilities	981.30M	869.95M	744.24M	674.37M	729.31M
Stockholders Equity	5.32B	4.73B	4.28B	2.31B	1.75B
Cash Flow
Free Cash Flow	714.98M	585.36M	715.82M	489.09M	443.57M
Operating Cash Flow	729.49M	784.06M	732.81M	535.53M	444.32M
Investing Cash Flow	-21.97M	-530.09M	-65.34M	-99.47M	15.50M
Financing Cash Flow	-174.81M	-395.00M	1.28B	-70.14M	-87.54M

Kurashicom Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2087.00
• 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:7110, the sentiment is Negative. The current price of 2087 is above the 20-day moving average (MA) of 2064.30, below the 50-day MA of 2118.28, and above the 200-day MA of 1947.58, indicating a neutral trend. The MACD of -13.99 indicates Positive momentum. The RSI at 44.71 is Neutral, neither overbought nor oversold. The STOCH value of 27.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7110.

Kurashicom Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7110	82 Outperform	¥14.62B	10.54	―	2.22%	26.29%	28.62%
9997	71 Outperform	¥85.08B	5.42	6.96%	2.98%	1.15%	86.72%
3092	65 Neutral	¥974.69B	17.87	49.14%	2.82%	6.80%	0.62%
4385	63 Neutral	¥561.39B	23.34	31.11%	―	4.83%	106.29%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3660	59 Neutral	¥40.59B	20.81	14.53%	0.21%	23.01%	34.28%
4755	41 Neutral	¥1.58T	-12.21	-21.14%	―	11.45%	42.34%

Kurashicom Inc. Corporate Events

Kurashicom Delivers Record Quarterly Sales and Profit Boost on Strong Brand Performance

Kurashicom Inc. reported strong results for the three months ended October 31, 2025, with consolidated net sales rising 28.4% year on year to a quarterly record of 2.43 billion yen, driven mainly by robust performance at its “Hokuoh Kurashi no Douguten” and “foufou” brands. Consolidated EBITDA surged 2.4 times from the previous first quarter to 340 million yen, while net sales at the Kurashicom segment climbed 26.6% to 2.34 billion yen and the number of purchasers for “Hokuoh Kurashi no Douguten” increased 17.2% to a record 117,000, underscoring the effectiveness of the company’s marketing investments and product planning in strengthening its growth trajectory and market position.

The most recent analyst rating on (JP:7110) stock is a Buy with a Yen2498.00 price target. To see the full list of analyst forecasts on Kurashicom Inc. stock, see the JP:7110 Stock Forecast page.

Kurashicom Inc. Reports Strong Financial Growth in Q3 2025

Kurashicom Inc. reported a substantial increase in its financial performance for the three months ended October 31, 2025, with net sales rising by 28.4% and profit attributable to owners of the parent increasing by 180% compared to the previous year. The company maintains a strong equity-to-asset ratio of 81.7%, indicating solid financial health and stability, and it forecasts continued growth in net sales and profits for the fiscal year ending July 31, 2026.

The most recent analyst rating on (JP:7110) stock is a Buy with a Yen2498.00 price target. To see the full list of analyst forecasts on Kurashicom Inc. stock, see the JP:7110 Stock Forecast page.