CUBE CO.,LTD. (7112) AI Stock Analysis

• Market Cap: ¥4.92B
• Dividend Yield: N/A
• Average Volume (3M): 8.08K
• Price to Earnings (P/E): 265.8
• Beta (1Y): 0.71
• Revenue Growth: 6.54%
• EPS Growth: -58.94%
• Country: JP
• Employees: 85
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): -2.60
• Shares Outstanding: 6,139,647
• 10 Day Avg. Volume: 5,990
• 30 Day Avg. Volume: 8,083
• PEG Ratio: -0.62
• Price to Book (P/B): 0.73
• Price to Sales (P/S): 0.60
• P/FCF Ratio: 39.69
• 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: 59 Neutral
• Price Target: ¥820.00 ▲(40.17% Upside)

The score is held back primarily by weak operating fundamentals (stalled revenue and compressed margins) and a very high P/E valuation. These negatives are partially offset by low financial risk from a debt-free balance sheet and currently strong price momentum, though momentum appears overextended.

Positive Factors

Conservative balance sheet

Zero debt provides durable financial flexibility for an apparel manufacturer, lowering refinancing and liquidity risk during industry cycles. This structural strength enables sustained investment in product development, inventory management, or opportunistic M&A without reliance on external funding.

High gross margins

Mid-50% gross margins indicate strong underlying unit economics and pricing power on products. That margin cushion can absorb SG&A or input-cost volatility, making it feasible to restore operating profitability over months if the company re-controls operating expenses or scales revenue.

Improving cash generation

Return to positive operating and free cash flow demonstrates improving conversion of earnings into spendable cash. Sustained FCF enables internal funding for capex, working capital, or shareholder returns and reduces dependency on external financing across economic cycles.

Negative Factors

Stalled revenue growth

Flat revenue undermines scale benefits in apparel manufacturing and constrains margin recovery. Without durable top-line expansion, fixed-cost leverage is limited, reducing the company's ability to regain prior profitability and invest consistently in brand or distribution growth.

Compressed operating profitability

Sharp compression to low single-digit operating and net margins indicates weaker price realization or higher operating costs. Persistently thin margins will depress returns on capital, limit reinvestment capacity, and make the business more vulnerable to input-cost shocks or competitive pricing pressure.

Uneven cash conversion

Weak and inconsistent cash conversion versus reported earnings suggests working-capital or operational volatility. This limits reliable internal funding, raises the need for precautionary liquidity, and increases execution risk when funding growth or navigating seasonal demand swings.

CUBE CO.,LTD. Business Overview & Revenue Model

Company Description

CUBE CO.,LTD. engages in the planning, manufacturing, wholesaling, retailing, and sale of apparel in Japan and internationally. The company is involved in brand consulting, graphic and web production, and licensing businesses. It sells its products under the MARK & LONA and HORN GARMENT brand names through retail and online stores. CUBE CO.,LTD. was incorporated in 1994 and is based in Tokyo, Japan.

How the Company Makes Money

null

CUBE CO.,LTD. Financial Statement Overview

Summary

Very strong balance sheet with zero debt supports low financial risk, but operating performance is the main drag: revenue growth has stalled, margins have compressed sharply (2024 EBIT margin ~3.4%, net margin ~2.2%), and cash flow has been uneven despite improving back to positive in 2024.

Income Statement

Revenue growth has stalled recently (2024 roughly flat after a decline in 2023), and profitability has compressed sharply versus the 2021–2022 peak. Gross margin remains solid in the mid‑50% range, but operating profitability is now thin (2024 EBIT margin ~3.4%) and net margin is low (~2.2%), indicating higher costs and/or weaker pricing power. Net income remains positive, but the earnings trajectory is a key weakness.

Balance Sheet

The balance sheet is very conservative with zero debt in 2022–2024 and a debt-to-equity ratio of 0. This provides strong financial flexibility and reduces refinancing risk in a volatile consumer sector. The main drawback is returns have cooled materially (return on equity down to ~2.7% in 2024 from much higher levels in 2021–2022), suggesting capital is being used less efficiently as profitability normalizes.

Cash Flow

Cash generation is improving but still somewhat uneven. Operating cash flow rebounded to positive in 2024 (~¥238m) after being negative in 2023, and free cash flow also returned positive in 2024 (~¥74m). However, cash conversion vs earnings looks weaker in 2024 (free cash flow is only ~31% of net income), and the 2023 negative operating/free cash flow highlights working-capital or operating volatility that investors should monitor.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.86B	4.86B	5.56B	3.90B	2.61B
Gross Profit	2.71B	2.69B	2.94B	2.35B	1.42B
EBITDA	263.63M	360.47M	933.95M	730.53M	-222.49M
Net Income	108.77M	190.87M	609.82M	681.99M	-302.25M
Balance Sheet
Total Assets	4.79B	4.51B	4.62B	2.59B	2.12B
Cash, Cash Equivalents and Short-Term Investments	2.90B	2.84B	3.26B	1.58B	1.35B
Total Debt	0.00	0.00	0.00	0.00	746.66M
Total Liabilities	809.18M	646.62M	948.62M	963.78M	1.17B
Stockholders Equity	3.98B	3.86B	3.67B	1.63B	946.48M
Cash Flow
Free Cash Flow	73.72M	-377.54M	360.28M	997.51M	247.53M
Operating Cash Flow	238.12M	-177.85M	393.77M	1.02B	260.65M
Investing Cash Flow	-172.62M	-250.12M	-137.52M	-39.05M	-504.51M
Financing Cash Flow	-25.00K	0.00	1.43B	-746.66M	661.94M

CUBE CO.,LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 585.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7112, the sentiment is Positive. The current price of 585 is below the 20-day moving average (MA) of 717.50, below the 50-day MA of 641.90, and above the 200-day MA of 550.17, indicating a bullish trend. The MACD of 46.11 indicates Negative momentum. The RSI at 92.03 is Negative, neither overbought nor oversold. The STOCH value of 87.09 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7112.

CUBE CO.,LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8115	69 Neutral	¥5.99B	8.91	―	4.33%	6.79%	15.83%
8123	68 Neutral	¥2.72B	5.66	―	3.56%	2.89%	35.17%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7112	59 Neutral	¥4.92B	265.77	―	―	6.54%	-58.94%
8166	47 Neutral	¥4.43B	4.10	―	―	-5.25%	-77.53%
8105	44 Neutral	¥11.66B	-23.35	―	―	-8.93%	-395.73%
3598	43 Neutral	¥2.41B	30.42	―	1.78%	-4.17%	9.23%

CUBE CO.,LTD. Corporate Events

CUBE’s January Sales Climb 7.7% on Strong Winter and Early Spring Demand

CUBE CO., LTD. reported that total January 2026 sales at its directly managed stores, combining physical outlets and e-commerce, rose to 107.7% of the prior-year level, driven by solid demand for winter items and a strong initial performance from Spring 2026 products launched mid-month. Physical store sales showed particularly robust year-on-year growth, while e-commerce lagged, underscoring a channel mix shift that favors brick-and-mortar. The company signaled it will keep expanding its business and bolstering brand value through further Spring/Summer 2026 product rollouts in February, with investors and other stakeholders awaiting the imminent release of FY2025 financial results for a fuller picture of its earnings trajectory.

The most recent analyst rating on (JP:7112) stock is a Hold with a Yen836.00 price target. To see the full list of analyst forecasts on CUBE CO.,LTD. stock, see the JP:7112 Stock Forecast page.

CUBE Posts Double-Digit December Sales Growth on New Products and Promotions

CUBE CO., LTD. reported that total December 2025 sales across its directly managed physical stores and e-commerce channels rose to 111.2% of the previous year, driven by strong performance of newly launched products and aggressive year-end promotional activities, despite some existing products underperforming. The company plans to leverage this momentum by rolling out its spring-summer 2026 collection from mid-January, targeting further business expansion and enhancement of brand value, while detailed FY2025 financial results are scheduled for release in February.

The most recent analyst rating on (JP:7112) stock is a Hold with a Yen602.00 price target. To see the full list of analyst forecasts on CUBE CO.,LTD. stock, see the JP:7112 Stock Forecast page.

CUBE CO., LTD. Reports Financial Results with Mixed Performance

CUBE CO., LTD. reported a slight increase in net sales for the nine months ending September 30, 2025, but experienced significant declines in operating profit, ordinary profit, and net profit compared to the previous year. Despite these challenges, the company maintains a strong equity-to-asset ratio, indicating financial stability. The company forecasts improvements in financial performance by the end of the fiscal year, with expected increases in net sales and profits.